The 4% RULE & RETIREMENT CORPUS

The 4% RULE & RETIREMENT CORPUS

When a car 🚗 stalls because of no fuel in the middle of the road and if there isn't any fuel station, the car just rusts and is junked into the scrap yard.

Plan well because LIFE 🎯 isn't a joke.

Do you know 77% Indians don't save for retirement and unfortunately in their sunset years most depend on others.

We as individuals, in our busy schedules,  forget that we are getting older day by day and there would be a day when we will have to stop working.

There are lot of Financial information on Google, YouTube,  whatsapp,  Newspaper etc., Still people are taking wrong decisions due to lack of Financial literacy. 

Life extends till 80.

Thus our Retirement journey is much  longer than our employment journey.

THREE IMPORTANT  RETIREMENT RULES

Sharing with you Three imp retirement rules which needs strict implementation..

1. You should give due emphasis to the Growth Aspect of retirement corpus. It is because, in long years of retirement, you need to provide inflation protection. 

2. Be conservative with your withdrawal plan espeacially during the initial years because if you withdraw the RETIREMENT CORPUS aggressively,  you may not have enough left to generate returns in subsequent years. 

3. Do not get excited or carried away and start misutilizing your retirement corpus for any other purposes..

Now sharing with you the 💰

Retirement CORPUS REQUIRED formula..

Retirement CORPUS REQUIRED formula is creating 25 X of Annual Expenses at the time of retirement...

Eg. If annual expenses is 500,000/- then CORPUS REQUIRED TO RETIRE is 1.25 cr.

Better to put 60% in Fixed income instruments and remaining 40% in Equity instruments.

Withdraw 4% yearly ie. 5,00,000/- yearly for a period of 30 years...

Fixed Income eg SCSS, PMVVY, MIS, SC FD Etc.

Growth Instruments - Invest in  Equities via Mutual Funds in BAF & other funds and CREATE a SWP 

SWP - Systematic Withdrawl Plan is one of the best ways to sustain your retirement phase...

To know more about SWP, Do connect with me...

Do share this blog to someone whom you care.. 

Email: biswajitroyhyd@gmail.com

Blog URL: www.roynomics.blogspot.com

Happy Investing 🌞

Biswajit Roy

Financial Psychologist & Wealth Educator