As you may be aware financial behavior or the risk appetite of every individual is different. It depends on various factors like total income, number of earning members in the family, total net worth, age, responsibilities, pending financial goals, etc.
While "investing in the market" has become an easy choice for almost all investors, it is also important to understand that there is always an element of risk with any kind of reward. There is no doubt that if someone wants to beat inflation, equity is the most preferred type of investment and it has proven itself over the last few decades. However, the basics of financial planning insist that One should not keep all eggs in one basket. Also one must have a portion of "Guaranteed Income" in his overall investment portfolio such that the guaranteed cash flow keeps coming in for a very long period (maybe for a lifetime)
This is especially important for retirees or aspirant retirees. For them, regular and guaranteed cash flow for a very long duration is more important than the rate of interest. It provides peace of mind and some kind of certainty to them.
Insurance companies have designed some guaranteed income products for such individuals that provide attractive IRR (around 6.9%) Some products even provide Tax-Free Income for more than 30 years.
To know more about these products get in touch with us!!
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