The govt must be sympathetic and somewhat Lineatnt towards senior citizens. It should not put any tax on interest earned by seniors on their savings in banks.
Retirement plans 1 rental real estate 2 well constructed mutual fund portfolio 3 fixed deposit 4 pension and guareented income plan insurance Others Dividends Post office scheme RBI bonds
I’ll tell you the biggest problem with rental is that in India you can get a litigant tenant who can sit in your house without paying you rent and you need to go behind a lawyer to evict them. Also getting good tenants is based on luck.
You are right. A friend of mine said he did not visited his rented flat since more than 10 years. On reply he said tenant is rowdy etc. I kept my flat vacant for 8 years and live in peace by avoiding many offer which were of high risk.
One of the negatives of rental real estate in India is that the law is not helpful to the owner in case the tenant defaults on rent or refuses to vacate. It is very difficult and expensive for anyone, especially a senior citizen to get timely justice.
Very clear and simple explanation. Thank you very much. The take home message is to have 4 streams, viz., Rental Real Estate, Mutual Funds, FDs & Pension Fund.
In addition to rental income, the house that the person is staying can also be reverse mortgaged. As the monthly amt he gets is NOT considered as income, it is tax free. The house can continue to be occupied by the spouse even after the demise of the person. Anand Pendharkar
Sorry for my ignorance sir, what is reversed mortgage ? I have a small house with my family, how it can be mortgage? Even when we are staying with limited space.
U R right.one thing I would like to advice the youngsters the day you are getting appointment letter for a job,your planning for retirement years too simultaneously start.Therefore planned expenses, savings for future will definitely take care of your living years after RETIREMENT.
Great video sir. Thank you. I have taken early retirement last August. I have done almost everything you have mentioned. This video is a real refresher to me. Thanks again.
Very good video. Just one comment sir. You mentioned some risks involved in rental real estate. One more risk is if we get a bad tenant who is problematic person. You will loose peace of mind
One of the most interesting and extremely knowledgeable videos on RUclips , i highly appreciate your time and support to help all viewers, God bless you immensely i pray Bhat Maam , all the best.
NPS could have been a good solution for retirement, but needs some improvement for becoming so. At present, 60% of the corpus can be withdrawn tax free, while an annuity has to be purchased from remaining 40%, from an insurance company that is empaneled under NPS. Since the pension from this annuity is not inflation adjusted, it will not cover expenses after a few years (even if it does during initial years). The best thing is an inflation indexed annuity, with the annuity funds invested in some kind of target date fund that invests in liquid fund and equity portfolio, and rebalances every year.
You should go for a government servant as tenant for your flats , for a stable rental income . also after a longer duration you can offer the tenant a buyback offer of the flat at a good price , as it has already become a HOME for the tenant . Wishing best to have a golden retirement years .
While you do advocate MFunds, you dont touch upon Equity Shares or Equity ETF, Equity share also do yield dividend but of course , the risks are higher.. but some portion of Equity do need to be there so that it derives higher returns which could increase your overall yield Thanks
Annuities are a better option over Rental income. Rental yields are just about 3% , plus there are recurring costs of house property and taxation issues during exit. Annuities upto 6% is much better and a most convenient
@@NRIMoneyClinic Annuities may be static but cud fetch more than 100% better returns than rental income. So a part of the annuities if reinvested can give a far better yield than rent. In case of property, there are other challenges of recurring costs and maintaining the house to be able to get good returns. Also the taxation laws make the exit also equally difficult. Unless the property appreciates, it makes no sense in my view to opt for rental income and struggle to create an asset of there are other better alternatives
It would be much easy to do a job at old age than managing a tenant. They don't maintain the house, raise complaint about many facilities of house every now and then, use all tactics to resist increasing rent, may leave house on a short notice etc. etc. At very old age, when we migrate to our children's place, it will become very difficult to manage tenants from a remote place. Sitting at Mumbai, what can we do if tenant don't deposit rent for a house at Kerala in one month? REIT - Real estate investment trust is a.better option than managing rentals on our own.
Excellent presentation dr. Chandrakanth. Very informative. I shall be retiring next month. Will contact you to take advice on investing retirement benefits as advised in pension plans and other 3 to generate a monthly income while beating inflation. God bless you. Your channel rocks.
Good day sir, At Age 35, what should be a proper Ratio we need to invest for our retirement. ?? It should be less or more?? Or we need to build multiple mutual funds for age 60, age 70 age 80.
Hi Sir, 1 headsup and 1 query. 1. There is LIC Jeevan Akshay VII which is like a pension and the best part there is option that annuity will go to primary applicant and then secondary applicant and after that the purchase price shall go to nominee. 2. In budget 2021, seniors above 75 years of age (residents) should not be filing IT Return. Will it also apply if they have mutual fund portfolio in thier books?
Sir, I am a avid listener to your various videos and gain great knowledge as they are simplified for a common man. Today I would like to detour from a subject and ask different question.. It goes like, is a Bank retired employee drawing monthly pension entitled for same even if he changes his Nationality? Say from India to Australia? I shall appreciate your candid reply. Regards
Nice one - am 50 now and from your video, I understand that mutual fund portfolios are the best for a creative income ( other than rental , which I have now ). Can you give link on this as to which MF should I chose ?
The best product at present is NPS and this gentlemen did not even mention this. Well, well, NPS has asset allocation which is critical wherein 50% goes to equity, 25% to corporate bonds and 25% goes to gilt. No need for demat account, managed by professionals and not thieves like FT. Cost is miniscule. Wonder why he forgot this product in his video. Guys do your own research , dont just listen and comment. In the end it is your money. Maybe he will tell you this once you do whatsapp?
That is precisely I say you should conquer your emotions before you hit success in finance field . Trigger happy commenting only exposes your overall understanding of subject . Please go to video section/ play list on the channel. We have five videos explaining every bit of detail of NPS . Also observe reference to pensions . NPS is all about pensions . Going overboard only on pensions is counterproductive. What is required is balance in approach . Please watch the whole program all over again to understand concepts correctly. Thank you for your feedback . Please subscribe and keep sharing the videos
Sir, ur this video is very informative but I am afraid to show my dad who is very unfamiliar to these terms n on term of that your r also telling the negatives of the same. :)
I am still being pulled by two forces. One to return to India and expatriate. The other to stay in USA because of Medicare, and ease of doing transactions like buying groceries, servicing cars, paying bills etc. One hand India a very friendly country, other hand USA a very alienated country where people to busy to be friendly.
Mitigation of Risk is very important in any investment strategy post or pre retirement. These risk are variable in terms of uncertainty, volatility, and however you are smart as a planner taxman is behind you. Be aware and beware. The scale of investment if a retired person in all these plans will cover him in 30% tax bracket and add rising inflation return and cash flow that you get the end is very disappointing. In post retirement, the maximum effort is to secure and safe your principal and do not go for higher returns. More returns more risky, more tax burden and any investment in big ticket will be show cased as SFT and highlighted in 26AS. I am sorry to be a critic rather to be critical however you plan, prepare to pay taxes. After that you know what is meant bt retirement?
@@SurajInd89 Do you know what is the real estate rental yield in India? It's around 2-3%. Plus, you need a substantial amount to start with. Further, you cannot have a diversified portfolio, and property management is another issue. There may be periods when you don't have any tenants. All the above-mentioned problems are solved in REIT. Further, if you buy at the right price, there will be a 100% guarantee of capital appreciation, not depreciation. The rental yield also increases over time. In western countries like the USA, it is one of the best income-generating asset classes. In India, it is still in a nascent stage. Thank you.
@@kaushik3995 The percentage of allocation depends on your investment style. Therefore, I cannot say any particular percentage to you. However, I am a fan of cash flow investing. Therefore, 70% of my portfolio consists of Dividend-paying stocks, bonds, ReiTs, and InviTs. To answer your first question, I may say that you should wait for some more time to see what is the impact of work from the home trend. I am not saying that commercial real estate will cease to operate. But, there may be some constraints in distributable cash flow. Therefore, just wait for two to three years more before taking a decision. I have a good entry point so I am going to stay here. I have invested in all the three ReiTs and Invits expect IRB infra. Thanks.
All savings generated by a tax paying citizen is tax paid. E.g. a FD is made by tax paid money. The government taxes the returns again. This is though not comfortable, is ok till one has his earnings. Once retired, this puts tremendous pressure on a person. This should be reviewed sympathetically and should be offered some relief as per the person's requirements.
Video summary Retirement Income that is comprehensive: Real Estate Rentals Well Structured Mutual Funds Portfolio Guaranteed Income Plan from Insurance Companies Fixed Deposits and Debt Income Portfolio
Nice information, one should make use of ur very useful infomation.And expecting still more information , where to invest in mutual fund or some where, lumpsum amount for regular safe monthly income.As retired Govt officer
Excellent video sir. You are great inspiration. I have started investment for UlIPs for retirement and NPS. Should i move to Fixed income? Or should i buy gold every month to sell in retirement and get the profit
Excellent video sir. Thanks for your excellent work.
You are most welcome. Please subscribe and keep sharing the videos
Very nice video.Useful tips for retirement planning. 🙏
Are SIP good for investment?
@@NRIMoneyClinic w us to w my mom w my mom is the only
@@laxminarainkhanna7930 aqq
The govt must be sympathetic and somewhat Lineatnt towards senior citizens. It should not put any tax on interest earned by seniors on their savings in banks.
Retirement plans
1 rental real estate
2 well constructed mutual fund portfolio
3 fixed deposit
4 pension and guareented income plan insurance
Others
Dividends
Post office scheme
RBI bonds
I’ll tell you the biggest problem with rental is that in India you can get a litigant tenant who can sit in your house without paying you rent and you need to go behind a lawyer to evict them. Also getting good tenants is based on luck.
How about, new tenant every 2-3 yrs
You are right. A friend of mine said he did not visited his rented flat since more than 10 years. On reply he said tenant is rowdy etc. I kept my flat vacant for 8 years and live in peace by avoiding many offer which were of high risk.
@@NaNa-lt1po If you do due diligence on your tenant then no problem
Always do through due diligence on your tenant
@@syedimtiazabbashussain4913
One of the negatives of rental real estate in India is that the law is not helpful to the owner in case the tenant defaults on rent or refuses to vacate. It is very difficult and expensive for anyone, especially a senior citizen to get timely justice.
Very clear and simple explanation. Thank you very much. The take home message is to have 4 streams, viz., Rental Real Estate, Mutual Funds, FDs & Pension Fund.
In addition to rental income, the house that the person is staying can also be reverse mortgaged. As the monthly amt he gets is NOT considered as income, it is tax free. The house can continue to be occupied by the spouse even after the demise of the person.
Anand Pendharkar
👌
Sorry for my ignorance sir, what is reversed mortgage ?
I have a small house with my family, how it can be mortgage? Even when we are staying with limited space.
U R right.one thing I would like to advice the youngsters the day you are getting appointment letter for a job,your planning for retirement years too simultaneously start.Therefore planned expenses, savings for future will definitely take care of your living years after RETIREMENT.
Great video sir. Thank you. I have taken early retirement last August. I have done almost everything you have mentioned. This video is a real refresher to me. Thanks again.
Keep it up. Please subscribe and keep sharing the videos
This is really transforming viewers' way of thinking.This kind of discussion will certainly stand as a safeguard in retired life.Please keep it up.
Very good video. Just one comment sir. You mentioned some risks involved in rental real estate. One more risk is if we get a bad tenant who is problematic person. You will loose peace of mind
One of the most interesting and extremely knowledgeable videos on RUclips , i highly appreciate your time and support to help all viewers, God bless you immensely i pray Bhat Maam , all the best.
Good to know these Insurance schemes are not a scam !! Thank you
Well presented Retirement Strategy
Sir, very important topic taken up for retiring persons. However please also cover Reverse Mortgage for Retired persons owning a property
It's too good for all...u covered all plans that every investmenter thinking ....
Iam 3 years back to retire, using your knowledge iam sure I will beat the inflation by investing on Real estate and Fds
Consider Invits and reits in your portfolio as well.
NPS could have been a good solution for retirement, but needs some improvement for becoming so. At present, 60% of the corpus can be withdrawn tax free, while an annuity has to be purchased from remaining 40%, from an insurance company that is empaneled under NPS. Since the pension from this annuity is not inflation adjusted, it will not cover expenses after a few years (even if it does during initial years). The best thing is an inflation indexed annuity, with the annuity funds invested in some kind of target date fund that invests in liquid fund and equity portfolio, and rebalances every year.
Thanks for your analysis about retired people. contents of the video are amazing .I am retired in 2012 . Thanks again.
I wish, I had this information before my retirement.
Good information, explained in very simple language. Without using jargons. Highly appreciate the advice. Thanks.
Sir I can listen to you all day. Thank you 🙏
Why dont you marry him. Can I listen all day?>
@@rachelninan9074 bad joke
@Rachel Ninan , Why should you be jealous?
Rental income plans are truly amazing as you explained. Thank you for sharing.
Yes they are!Please subscribe and keep sharing the videos
REIT and INVIT may also be considered as one of the retirement income options.
You should go for a government servant as tenant for your flats , for a stable rental income . also after a longer duration you can offer the tenant a buyback offer of the flat at a good price , as it has already become a HOME for the tenant . Wishing best to have a golden retirement years .
While you do advocate MFunds, you dont touch upon Equity Shares or Equity ETF, Equity share also do yield dividend but of course , the risks are higher.. but some portion of Equity do need to be there so that it derives higher returns which could increase your overall yield Thanks
Equity shares of a company is more risky then mutual fund, which mitigate risk of loosing investment.
Excellent stuff. Very nicely articulated. well done sir 👍
Thanks for your hard work and presentation skills are very good.
Thank you for your feedback . Please subscribe and keep sharing the videos
best retirement plan , one time investment
Annuities are a better option over Rental income.
Rental yields are just about 3% , plus there are recurring costs of house property and taxation issues during exit.
Annuities upto 6% is much better and a most convenient
Wats annuity
Annuities are static. Rentals are inflation proof . Have both . Not one . Please subscribe and keep sharing the videos
Pensions
@@NRIMoneyClinic Annuities may be static but cud fetch more than 100% better returns than rental income. So a part of the annuities if reinvested can give a far better yield than rent.
In case of property, there are other challenges of recurring costs and maintaining the house to be able to get good returns. Also the taxation laws make the exit also equally difficult. Unless the property appreciates, it makes no sense in my view to opt for rental income and struggle to create an asset of there are other better alternatives
Rental incidents is also evaporating
Very useful, practical advice
It would be much easy to do a job at old age than managing a tenant. They don't maintain the house, raise complaint about many facilities of house every now and then, use all tactics to resist increasing rent, may leave house on a short notice etc. etc. At very old age, when we migrate to our children's place, it will become very difficult to manage tenants from a remote place. Sitting at Mumbai, what can we do if tenant don't deposit rent for a house at Kerala in one month?
REIT - Real estate investment trust is a.better option than managing rentals on our own.
PPF and NPS from govt haven't been mentioned that too tax free.
Tension free when compared to rental income.
PPF and NPS are corpus accumulation plans . They are not cash flow strategies. Please subscribe and keep sharing the videos
Very informative. I will plan accordingly
Excellent presentation dr. Chandrakanth. Very informative. I shall be retiring next month. Will contact you to take advice on investing retirement benefits as advised in pension plans and other 3 to generate a monthly income while beating inflation. God bless you. Your channel rocks.
Always welcome. Please subscribe and keep sharing the videos
Good day sir, At Age 35, what should be a proper Ratio we need to invest for our retirement. ?? It should be less or more??
Or we need to build multiple mutual funds for age 60, age 70 age 80.
Excellent explanation.Thank you so much.
Long story short and straight to the point
Good investment guidance Thanks
My retirement is in 2025.
I will take your help.
A video worth it. Thank you.
Hi Sir my topic.... thanks for enlightening...
Prema Lobo.
You are most welcome. Please subscribe and keep sharing the videos
Sir stay blessed🙏
Very insightful!
Super presentation 👌 👏
Thank you
Which is the best guaranteed income / pension plan ,Sir
Thanks for the useful information on retirement....
Very nice information
Thank you very much sir 🙏
Thanks again ❤.. What about bullion investment which can beat infaltion... Fcnr fd..... Gold mutual funds... Index funds....
Yes IF it safe from thieves and robbers. It is a long term investment and can't support retirement monthly cash flow.
How well u explain... Sm really glued to ur videos.
Thank you so much Please subscribe and keep sharing the videos
Very informative, thank you so much n waiting for more videos 🙏
How an OCI protect his NRE Rupee holder in US $ terms.
Hi Sir, 1 headsup and 1 query. 1. There is LIC Jeevan Akshay VII which is like a pension and the best part there is option that annuity will go to primary applicant and then secondary applicant and after that the purchase price shall go to nominee. 2. In budget 2021, seniors above 75 years of age (residents) should not be filing IT Return. Will it also apply if they have mutual fund portfolio in thier books?
1. I need to check
2. You need to check with a CA .
Please keep sharing the videos
Good advice but also mention some options witch is safe .many of us might be trapped in such things
Please give details of the guaranteed tax free income schemes
Fabulous video. Keep up the good work!
Excellent inputs sir 💐💐 nice collection of information
Excellent appraisal sir,
Excellent retirement ideas
Excellent information given sir.
Very good information.
Thank you
Very good information. 👍
Sir, I am a avid listener to your various videos and gain great knowledge as they are simplified for a common man.
Today I would like to detour from a subject and ask different question.. It goes like, is a Bank retired employee drawing monthly pension entitled for same even if he changes his Nationality? Say from India to Australia?
I shall appreciate your candid reply. Regards
Nice one - am 50 now and from your video, I understand that mutual fund portfolios are the best for a creative income ( other than rental , which I have now ). Can you give link on this as to which MF should I chose ?
The best product at present is NPS and this gentlemen did not even mention this. Well, well, NPS has asset allocation which is critical wherein 50% goes to equity, 25% to corporate bonds and 25% goes to gilt. No need for demat account, managed by professionals and not thieves like FT.
Cost is miniscule. Wonder why he forgot this product in his video. Guys do your own research , dont just listen and comment. In the end it is your money. Maybe he will tell you this once you do whatsapp?
That is precisely I say you should conquer your emotions before you hit success in finance field . Trigger happy commenting only exposes your overall understanding of subject . Please go to video section/ play list on the channel. We have five videos explaining every bit of detail of NPS .
Also observe reference to pensions . NPS is all about pensions . Going overboard only on pensions is counterproductive. What is required is balance in approach . Please watch the whole program all over again to understand concepts correctly. Thank you for your feedback . Please subscribe and keep sharing the videos
Rental yields are only 3% and becoming riskier in Indian market.
Sir, ur this video is very informative but I am afraid to show my dad who is very unfamiliar to these terms n on term of that your r also telling the negatives of the same. :)
I am still being pulled by two forces. One to return to India and expatriate. The other to stay in USA because of Medicare, and ease of doing transactions like buying groceries, servicing cars, paying bills etc. One hand India a very friendly country, other hand USA a very alienated country where people to busy to be friendly.
India has changed a lot and continue to progress
Clear explanation sir ....
Very much inspired by your explanation sir
So nice of you. Please subscribe and keep sharing the videos
Mitigation of Risk is very important in any investment strategy post or pre retirement. These risk are variable in terms of uncertainty, volatility, and however you are smart as a planner taxman is behind you. Be aware and beware.
The scale of investment if a retired person in all these plans will cover him in 30% tax bracket and add rising inflation return and cash flow that you get the end is very disappointing. In post retirement, the maximum effort is to secure and safe your principal and do not go for higher returns. More returns more risky, more tax burden and any investment in big ticket will be show cased as SFT and highlighted in 26AS.
I am sorry to be a critic rather to be critical however you plan, prepare to pay taxes. After that you know what is meant bt retirement?
Very informative, Thank you
You are welcome!. Please subscribe and keep sharing the videos
Thank you for sharing this information papa
Excellent information
The best option to get a constant cash flow is to invest in REIT and INVIT.
The existing REITs are generating only 6% return, with the risk of capital depreciation.
@@SurajInd89 Do you know what is the real estate rental yield in India?
It's around 2-3%. Plus, you need a substantial amount to start with. Further, you cannot have a diversified portfolio, and property management is another issue. There may be periods when you don't have any tenants.
All the above-mentioned problems are solved in REIT.
Further, if you buy at the right price, there will be a 100% guarantee of capital appreciation, not depreciation.
The rental yield also increases over time.
In western countries like the USA, it is one of the best income-generating asset classes.
In India, it is still in a nascent stage.
Thank you.
@@rnhotta18129 Can u suggest good REIT or INVIT for investing. What percentage should one invest. Thanks.
@@kaushik3995 The percentage of allocation depends on your investment style. Therefore, I cannot say any particular percentage to you.
However, I am a fan of cash flow investing. Therefore, 70% of my portfolio consists of Dividend-paying stocks, bonds, ReiTs, and InviTs.
To answer your first question, I may say that you should wait for some more time to see what is the impact of work from the home trend. I am not saying that commercial real estate will cease to operate. But, there may be some constraints in distributable cash flow.
Therefore, just wait for two to three years more before taking a decision.
I have a good entry point so I am going to stay here.
I have invested in all the three ReiTs and Invits expect IRB infra.
Thanks.
@@rnhotta18129 Thanks for the guidance.
Thank you for sharing useful information..🙏
Very very informative sir thanks 🙏🏻
Sir please advise and give example of Well construction, scientific Mutual Fund.
Perfect just for me 👏👏👏
Contradictory advice for income 1 !
In mutual fund REIT mutual fund is good or stock investment mutual fund is better for retirees . Anxiously awaiting your feedback.
income from real estate - is it still considered as a better way in India to beat inflation risk ?
Explained very nicely
sorry your message is fully going to confuse middle as well as personnel going to retire .any how life is not going to be stable nowadays .
Nice video sir but I suggest you to make a video in Hindi language also so that everyone can take benefits.
Great information !
Well explained sir. Thank u
All savings generated by a tax paying citizen is tax paid. E.g. a FD is made by tax paid money. The government taxes the returns again. This is though not comfortable, is ok till one has his earnings. Once retired, this puts tremendous pressure on a person. This should be reviewed sympathetically and should be offered some relief as per the person's requirements.
Nice prospective 👍
Thank you so much . Please subscribe and keep sharing the videos 👍
Fantastic video...! I have a question, if you please answer.
Sir, should one plan to do any business after retirement...?
Video summary
Retirement Income that is comprehensive:
Real Estate Rentals
Well Structured Mutual Funds Portfolio
Guaranteed Income Plan from Insurance Companies
Fixed Deposits and Debt Income Portfolio
Thank you for this wonderful video. Please let us know good retirement pension plans by LIC etc
Send messagecon the number shown on the screen
Nice information, one should make use of ur very useful infomation.And expecting still more information , where to invest in mutual fund or some where, lumpsum amount for regular safe monthly income.As retired Govt officer
Thank you sir for your helpful videos....🙋🏼♀️🙋🏼♀️
Excellent video sir. You are great inspiration.
I have started investment for UlIPs for retirement and NPS.
Should i move to Fixed income?
Or should i buy gold every month to sell in retirement and get the profit
Very informative video.
Truly said Great words
Thank you sir Very usefully
Good information sir thanks