Posthaste_ Retirement crisis brewing as baby boomers near end of working lives with little, if any, savings


Here, we examine some of the most effective strategies for assisting fathers in reaching their financial objectives and securing the future of their families.

While fathers play a variety of responsibilities in their life, for the majority of us, they served as our very first financial advisors. Their insightful advice on budgeting and saving lays the groundwork for our personal financial literacy and sound spending practices. Retirement planning is a vital aspect of money management. Fathers should always start saving for their elderly years as soon as possible, regardless of what stage of their lives they are in. Additionally, fathers regularly make plans for their family's financial security, even when they are not around.

Here, we examine some of the most effective strategies for assisting fathers in reaching their financial objectives and securing the future of their families.

Guaranteed Returns Plans

Retirement security can be achieved through the use of guaranteed return plans, which offer a secure investment choice with a guaranteed, tax-free return independent of market volatility or fluctuations. They provide yields of up to 7.5 percent, which is unusual for a conventional savings instrument. Additionally, it enables the policyholder to lock in the interest rate for a considerable amount of time—up to 45 years. As a result, the policyholder experiences a predictable and steady return on investment. These plans have a life insurance component in addition to the guaranteed returns, guaranteeing the financial security of dependents in the tragic event of the insured's passing.

Therefore, if you're searching for a plan to help you develop your corpus, you should think about the no-risk, guaranteed return plan because it protects your capital and returns while also allowing you to receive a tax credit of up to Rs 5 lakh on your annual premium.

Annuity Plans

If you want to diversify your financial holdings, annuity plans are a smart, risk-free investment choice that can help you build wealth as well as provide a steady income once you've retired. Deferred annuities and immediate annuities are the names of these two categories of annuity plans, respectively. It's possible that as your retirement draws closer, you have the lump sum saved up and are looking to invest so you can buy an annuity right away and start receiving income. As an alternative, you might invest in deferred annuities and benefit from a bigger income in the future. Therefore, annuity plans are a good bet if you want your money to help you sail pleasantly through your senior years.

All things considered, annuity plans are safe and free of market risk, even though the income generated is subject to various tax slabs.

Unit Linked Investment Plans (ULIPs)

One major benefit of ULIPs is their capacity to divide the investment into stock, debt, or hybrid funds, allowing for the achievement of long-term financial objectives. In addition, they offer life insurance protection to safeguard the family's financial security in the tragic event of the insured's untimely demise. Additionally, it has the singular benefit of allowing investors to move between equity and debt funds based on their preferences after assessing market conditions. When the market is supportive, this feature can help generate substantial returns of anywhere between 12% and 15%. However, as they are a market-linked investment, it is important to understand that ULIPs carry a high level of risk. Additionally, policyholders may benefit from tax advantages that permit deductions on annual premiums of up to Rs 2.5 lakh.

In conclusion, it is advised to research the various possibilities offered online before choosing any of the plans in order to obtain the ideal insurance plan that meets your needs. Additionally, carefully study and comprehend any pertinent documents, such as the terms and conditions and features.