When it comes to retirement, many people think of vacations while some see an image of a relaxed day out with friends and some imagine playing with their grandchildren. A good retirement consists of happiness, health, and wealth. This is not less than a daydream because after working for uncountable hours, this is the time to enjoy. To make this time more enjoyable, one needs to indulge in early planning.
Before you look for ways of planning, it is important to figure out the sum of money that you will need for the post-retirement phase. This sum of money differs from person to person because people differ in lifestyle and many other factors guide their way of living. Hence, this becomes your first task. Talking in practical terms then this is the biggest saving goal that one has to achieve in life.
Choosing the right investment option is the next task. Several options are available amongst which Fixed Deposit is the most opted one. Here are some reasons why fixed deposits are preferred more.
- Easy to understand – Fixed deposit is an old and traditional method of saving. This is easy to understand without any complicated terms and conditions.
- Convenient – Today, almost every financial institution and the bank provides the facility of Fixed deposit.
- safety of the capital – If we compare it to other options, Fixed Deposit provides much better safety of the capital investment than the others.
Now after all this, the question arises that are fixed deposits sufficient for securing the requirement. The answer here is maybe not. The reasons for this thinking is due to various reasons as follow:
- Rates of return are quite low – As compared to other methods, fixed deposits do not yield sufficient returns. Often the interest rates are low. Many times, big financial institutions pay fewer returns while local and less reputed institutions pay more.
- Is the money growing – The return is mainly 1-1.5% above the actual capital. In this way, can you say that the money is growing?
Due to all the three reasons mentioned above, your big saving dream shatters. You will have to cut down your to-do list of post-retirement. This can sound bad but this is one negative side of fixed deposits. But yes, people do invest because they trust.
After all this, it poses the question that are you heading towards a happy retirement. Many of you will answer no, which can be true maybe.
To this, we need to look at various other factors as well. A person can choose the investment mode often according to the kind of lifestyle they possess. If you want your money to grow faster, fixed deposits are not your type.
After all this, you can now make a choice that you want to invest in fixed deposits or not. The pros and cons are all in front of you, so what are you waiting for? Just make a checklist and compare it according to your requirements.
Disclaimer: All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Nothing on this blog constitutes investment advice, performance data, or any recommendation that any security, portfolio of securities, investment product, transaction, or investment strategy is suitable for any specific person. The owner will not be liable for any error or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. To encourage safety, we recommend you always consult with a licensed advisor before making any decisions related to information on this website. We recommend that you independently research and verify, any information that you find on our Website and wish to rely upon.
