When you look to invest your money, you have to factor in various aspects such as your financial goals, your risk appetite, your financial responsibilities and so on. At different stages of life, your investment requirements change. This is why the investment patterns of your parents would be very different from those of yours.
If you are guiding your parents in their financial journey and want to choose some good investment options for them, take a look at this article and find out the best investments for them.
- Immediate annuity plan:
If your mom or dad has recently retired or is about to retire soon, this can be a great investment option for them, especially if they do not have a retirement fund. If they have a lump sum amount of money lying in their savings bank account, they can use it to pay for their immediate annuity pension plan and have a steady source of income till the last day of their lives.
- Health insurance plan:
Health insurance is not an option, it is a necessity. Many senior citizens remain uninsured because they lose their company-provided group health cover after they retire. This is why you must ask your parents to invest in a good and comprehensive health insurance policy right away. Once their health remains covered, they can focus on their health and happiness without any worries.
- Fixed deposits:
Fixed deposits are another very good investment option for your parents. FDs offer safe and guaranteed returns and there is very little risk involved in a fixed deposit. A fixed deposit can be easily opened in any Indian bank, preferably the same bank where your parents have their account. A fixed deposit is a very flexible investment. You can choose the amount you wish to invest and the duration for which you wish to invest. You can also choose how you want to collect the returns, making a fixed deposit one of the best investment options for your elderly parents.
- SIP mutual funds:
SIP mutual funds are another good option for your parents. In all probability, your parents won’t have any major financial milestones, so they can invest small amounts of money through SIPs and build up a good mutual fund portfolio.
These are some of the best investments for your parents. At this stage of life, they won’t have too many financial milestones or responsibilities to worry about. They just need a steady flow of income and a stress-free way to store their money. Consider the above-mentioned investments and guide them properly.
Conclusion:
Your parents have always guided you and worked hard to give you a good and comfortable life. Now that they are old, it is your duty to ensure their life is smooth and free of any challenges. Since money plays a crucial role in this, guide them with their investments and allow them to remain financially independent and live with dignity till the last days of their lives.
