If you want your hard-earned money to work for you – then investing in the right financial plan that fetches you returns is a must. However, it is advisable to research, learn and benefit with thorough knowledge of such schemes before investing in them.

According to the survey conducted on work-life aspects of young Indians in 2020, over 35 percent of millennials earning more than 100 thousand Indian rupees per month expected their income to rise by more than 75 percent. Furthermore, only ten percent of respondents earning the same income expected their salary to increase by 25 percent. -Statista

With salary figures slated to climb rather slowly over the next few years, ensuring that smart investment for steady returns is a definite and safe option to enhance income. This not only guarantees monthly inflows but also readies individuals to handle planned or unplanned expenses in the family.

Options that help generate assured monthly income-

1. Savings accounts with high-interest rates.

Savings account grants free access to funds with the option to liquidate the amount at the individual's will. Usually, rates of interest for savings accounts are not as high but it is flexible and financial institutions today have begun to various benefits to customers with savings accounts.

2. Stocks with dividends.

Stocks pay a regular dividend over some time depending on the performance of the stock dividends fluctuate. The individual can study the performance of the stock and invest in one that has paid consistent dividends in the past. Normally a dividend yield of around 3 percent is good and some increased earnings per share (EPS) indicate the performance of the stocks.

3. Fixed deposits in banks and post offices.

Fixed deposits assure interest returns of an average of 8 percent and are an ideal secure means to generate income especially for those who are retired. It however does not allow liquidity benefit at will but attracts penalty on premature withdrawal. Interests are paid out monthly and this is a virtually risk-free option of putting one’s money into. Post office monthly income Scheme guarantees returns of 6.6% p.a.

4. Mutual Funds with monthly income plans.

The mutual funds invest mostly in debt instruments and the interest accumulated on this is distributed among investors periodically. The dividend distributed to the investors is declared only from the profits of the monthly income plan and this tends to be less risky than equity-linked funds.

5. Insurance coupled with a monthly income plan.

Today some institutions assure monthly income to those who invest in a life insurance policy. Now, this not only helps the insured get a guaranteed return for himself or his nominees but also gives him or her to option of life cover in the event of a mishap ( which also can be chosen as a cause). The insurance policy not only protects the insured’s life but also provides a host of other optional benefits that the person can ask for as riders. Now, these may include accident and disability cover, critical illness, etc. while also securing the family financially.

Conclusion - life insurance monthly income plan.

It is but a fact that different individuals have different needs when it comes to finances and investment. But one cannot dispute the fact that regular-income generating options along with life cover benefits in ways more than one. Particularly for the sole breadwinner of the family, steps must be taken to ensure an individual secures his or her family if there is a day for them to cope in his/her absence.

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