I read all your articles. your are doing a great job.
My father is 52 year old and has his small business. He wants to retire after 10 years from now. is he too late??
He wants to save 1 lac per year for the same(I know it is less but his required pension amount is also less).I read your article //www.basunivesh.com/2014/02/10/best-pension-plans-in-india-how-to-choose-them/
I am confused with various available plans.
Whether he should keep in FD. or He should invest in equity (SIP) and debt (in 40:60 ratio). and later buy some immediate annuity plan.
OR by some ULIP Retirement Plans eg: ICICI easy retirement plan??
Please suggest the suitable pension plan for him.
Laxmikant-Planning for retirement when it is just 10 years away from today is definitely late planning. At the same time, it is not right that due to late planning we must invest in risky product. Instead, I suggest him to use the equity oriented Balanced Funds like HDFC Balanced Fund. Keeping money in FD may give him around 8% return. Hence, I don’t think it is a right way. Investing in equity oriented balanced fund is an advantage of managing your fund portfolio at 65:35 as equity:debt. Don’t run behind any pension product or ULIPs.
Thank you so much for you guidance.