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I am retiring from army and I want to invest my maturity benefits in a long-term, that is 10-15-year, plan. My children are still in college, so their liabilities of education and marriage are worrying me. How and where should I invest for secured returns? PC Jaswal You will get a good pension with inflation adjustment in the form of DA. You also have a good potential for another employment as you would right now be in your early 50s. Hence, your own expenses as also education of the children would be taken care of. The requirement then would be to cater to major expenses like children's marriage, home renovation, postretirement living, etc with your lump-sum retirement benefits. It is good that you are taking a long-term view of your investments. To avoid losing the purchasing power of your money after inflation and tax adjustments, do not invest the entire amount in only fixed income instruments like bank FDs, Senior Citizen Savings Scheme, Post Office schemes, etc. Balanced equity mutual funds with a good track record and FMPs in the current high interest rate scenario offer a good alternative. Corporate FDs from highly rated companies should also be looked at, though the interest will be taxable like in bank FDs.

I work with a PSU and will be retiring in July 2015. My terminal benefits would be Rs 40-50 lakh. Post retirement, I aim for a monthly income of Rs 60,000-70,000. How and where should I invest to get my target monthly income. --S P Rao S ince you have not given out any other require ments related to your children, house, etc, we assume that you have either met these financial goals or accounted for them. Taking an annual inflation rate of 8%, life expectancy of 85 years and that you will be able to get approximately 10% annualised returns on your investments, you would need about Rs 50 lakh corpus, which you are likely to get on retirement. Hence, you would need to invest in a careful combination of debt and equity-related products so that you generate annual returns of 10% after tax. However, do see your comfort as far as risk associated with some of the products is concerned.

Since you may not have any other income, long-term bank and corporate FDs with regular interest option and Senior Citizen Savings Scheme, invested to the extent that you remain tax-efficient, can be taken. We also recommend you to take adequate exposure to debt and equity mutual funds through a carefully constructed portfolio which is regularly monitored for long-term returns. Systematic withdrawal plan (SWP) from these funds can be a very good source of tax free regular income for you.

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