I can answer that first. Unfortunately, most retirees turn their faces against it. On retirement, we get an option to commute our pensions. 40% maximum, and more than 90% opt for this.
What this means is that we agree to get cash in lieu of pension, at 10.50% interest. Then the retirees invest this retirement money in fixed return instruments. Mostly at 7.5% or so.
Then, most investors in the share market are not down and out people. Retirement has given me money to invest. I want to grow my wealth. There are two purposes behind this. One I want to leave Noida and settle down somewhere with clean air. Secondly, after my death my widow should have no financial worries. To this end I will invest some money in long term bonds (one alternative I have looked at).
Do I take risk while investing? Of course I do. Am I reckless? I think not.
Issues that I have raised are not peculiar to me or my types (retirees), but to all the investors who are confused about the investing style to adopt. In this category, a majority of investors would fit in very comfortably.
Lets continue to bounce ideas. Thanks for your inputs.
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