Deffered Annuity Vs Immediate Annuity.

Dear viewers Today we discuss an another issue for those who want a regular income in the form of annuity by making investment. As we are seeing lots of ups and down in the market, nowhere there is boom and the deposit rates in banks  are at record  low due to RBIs monetary policy basically the impact of repo rate. Now the question is where to invest to get a secured income monthly at a smart rate.  Deffered for youngers and immediate for olders- I am talking about annuity( pension), whether this concept is right or wrong. Deferred Annuity is nothing but just to keep money with the annuity provider for a time period and after the certain period you will get a fixed income as defined/contracted. However, if i explain it- it is as lower in comparision to immediate annuity is. How? Let see an example of Mr.x aged 40, who have 40 lakhs of  rupees in hand chooses deffered annuity @ 22 percent for life from 60 yrs of age comes to rupees 8,80,000 yearly/ 12= Rupees 73,300 approx mly. On being purchaging of National savings certificate of Rupees 40 lakhs  from Post office  at 7 percent interest per annum (as indian economy is growing we can assume that interest will not come down below 7 percent in another 20 yrs) Mr X's capital grows to rupees 1, 61,54, 955 approx and on investing the amiunt at the age of 60 for immediate annuity option with lesser amount of interest i.e. say 6 percent Mr x will get 9,69,297 yearly/12= 80,774 mly. In addition to above one can take loan on the deposits invested during those 20 yrs for any uncertainties (addon benefit).  The picture is clear-- if  you can analyse that the scenario of Indian economy may grow and India will become a developed country than interest on deposit will come down and if one thought that India will remain a developing country in another 20 years that in no way deposit interest rate comes below 6 percent. The second option will grow you more Guys. Its your money play safe and make more (use the power of compounding). 

Monthly income uninterrupted

A new topic for bringing joy and happiness around you. Everybody wants a steady and secured income uninterrupted. Hows it possible? It can be- ur efforts and cleaverness can bring u to a position of high. Invest your savings in secured tools backed by GOI such as Indian postal department having its different schemes running as sukanya samridhi yozna, NSC, KVP etc having higher interest rates upto 7.9 percent. What should be ur technique-  Always lock money during higher interest rates for a longer period. The PPF of SBI and PLI ( only for govt employees) are additional tools for making a hefty capital for steady income out of these. However, after PMC bank issue and banks gurantee upto 1 lakh rupee including interest, a question mark arises on safety and security of hard earned money. To reach at the goal a long term plan with cleverness of investing in secured and not induced by lucarative interest rates of here and there, a common man becomes the winner since money grows money and the grown money will gives a steady income to the incumbent or his keens too. So, start early to get early.

Power of saving money

Dear viewers, This is all about storing of money for future rather than bringing of money to your pocket for distributing among various channels. A story of every common man who earns continously till his retirement or upto his last breath but depends upon gratuity/ earned leave accumulation for marriage/settlement of her daughter/ son or for accuring a two bed room house(aashiyana). why ? Grow up and grab it ! How- its all about management. 1. Have a daughter - Deposit 5 percent of total earnings from 1 year to 25 years (provide you the expenses of marriage) 2. Have a son too-  keep another 5 percent for the same period (provide him atleast a capital of your standard to run a business so that not getting a job will become a burden) 3. Unable to secure ur family from unforeseen issues since already contributed 10  percent, go for a term insurance of the expected maturity of ur 10 percent investment by investing another 5 percent of total income- it will make ur mind relax. 4. Still with a long list of aspirations! Not satisfied! Run a recurring deposit suits u for flow of immediate cash! Ahhh! Dont close it, as 90 percent loan is available just 1 percent higher than deposit rates. Why r you waiting now - prepare the plan on paper and  live a happy life with the nature. Will comming soon with another well note for my viewers.