Advik-It is hard for anyone to guide without knowing your exact doubt or issues.
Dear sir, I was not able to post my query. My father will be retiring from his current job next year end. Their current monthly expense is 15k.He will be receiving the provident fund of around 30lk and regular pension of 7k. I have already bought health insurance of 10 lk for both of them.He has liability of 12 lk as a home loan. Should we close the loan with his pf or continue to get IT return benefit for few more years post retirement. Please suggest the financial plan which he can consider.
Advik-He needs another monthly income of Rs.8,000 (considering the current cost). Also, in my view if he is going to get Rs.7,000 as pension then his income is not that much great to think about tax saving. Hence, my suggestion is let him first close the existing loan. Then he will left out with the amount of Rs.18,00,000. If he invests this amount in any senior citizen saving schemes then he will fetch around a monthly return of Rs.10,000 (Approximately considering 7% post tax return). This I think will suffice his requirement of Rs.15,000 per month. At the same time, I suggest him to invest in such a way that it will take care yearly expenses of inflation (like an annuity product). Let me know whether this will be acceptable for you or not.