Not Ideal for All

Consumer Voice - - Immediate Annuity Plans -

Im­me­di­ate an­nu­ity plans are not ideal for in­vestors who seek high re­turns or liq­uid­ity. They are good for risk-averse in­vestors who want to lock into a ba­sic in­come for 20 or 30 years. This type of in­vest­ment as­sures guar­an­teed in­come at reg­u­lar in­ter­vals as well as safety of amount in­vested (as the funds are in­vested in govern­ment se­cu­ri­ties, which do not fail), and can pro­vide a legacy cor­pus amount to your spouse af­ter your demise. Per­haps it will be right to say that you should not in­vest the en­tire amount in it and may keep it as an ad­di­tional plan along with post of­fice schemes, se­nior cit­i­zens sav­ings schemes and govern­ment bonds to max­imise guar­an­teed ad­di­tional in­come. The im­me­di­ate an­nu­ity plan can be a great re­place­ment of in­come for re­tirees. It en­sures that their sav­ings are pro­tected and it also pro­vides the com­fort of hav­ing a monthly in­flow to man­age reg­u­lar ex­penses.

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