Quick money tips after Retirement

Retirement is generally associated with safety. However, given the present levels of high inflation, investing in most fixed income instruments would give you a negative real rate of return. Further, rising inflation might upset retirement calculations quite badly.Now, if you wish to use the interest income to fund your retirement expenses, the chances are very high that you will end up dipping into the corpus invested in the post office saving scheme.

And that is real bad news because it means that your money is actually depreciating and that too at a rather alarming rate. In such a scenario, creating a judicious asset allocation mix that includes fixed income instruments for safety and regular cash flows and high return investments like equities and real estate will help matters to a great extent.Of course, the last two might see some volatility in the short run, but they are expected to deliver superior returns over fixed income investments over the long run.

Another factor to consider is that they should be tax-efficient as possible. Equities, equity funds and debt funds are good ideas because they are either tax-free or concessional tax rates apply to them, as opposed to traditional investments like bank deposits, senior citizen's deposits and post office schemes.If you have made a part of your pre-retirement investments in equities or equity funds through the systematic investing route, given the current tax structure, you would not have to pay any taxes on their redemption.

However, instead of redeeming all your money from equities and moving immediately to fixed income instruments on retirement, you could start a systematic withdrawal plan that would help meet monthly expenses while the equity portion keeps earning good returns.In case you have a very high exposure to equities, which is not advisable post-retirement, consider equity or index-linked capital protection structured products.