Thread by @_KiranRajput

Systematic Withdrawal Plan (SWP) as a Pension Tool.
More realistic nos.
At 23 yr, I
SIP in Mutual Funds: Rs 2,500
Annual Increment: 15%
Duration: 25 yr
Conservative CAGR: 12%

Corpus at the age 48yr: 1.7 Cr
Lets see if I do 1.5 Cr SWP in below BAF
(20L - Taxes)
🧵⤵️

Monthly withdrawal is 8% of the corpus. Slightly on higher side.
For those who are concerned about inflation, every 2-3 yrs you can increase withdrawal. Just that reminder will be reduced.

Fund1: HDFC Balanced Advantage Fund
Withdrawal/ Month: 1 Lakh
Duration: 20 yr

Fund2: ICICI Pru Balanced Advantage Fund
Withdrawal/ Month: 1 Lakh
Duration: 15 yr

Fund3: DSP Equity & Bond Fund
Withdrawal/ Month: 1 Lakh
Duration: 20 yr

Fund4: Franklin India Equity Hybrid Fund
Withdrawal/ Month: 1 Lakh
Duration: 20 yr

Fund5: Tata Hybrid Equity Fund
Withdrawal/ Month: 1 Lakh
Duration: 20 yr

Fund6:
Withdrawal/ Month: 1 Lakh
Duration: 25 yr

Fund7:
Withdrawal/ Month: 1 Lakh
Duration: 20 yr

Fund8: What if we would have opted SWP in Nippon India Mird-cap kind of fund? Highly not suggested.
Just for curiousity in 20 yrs how much reminder value it creates with 1 lakh/ month withdrawal on 1.5 Cr Lumpsum.
Its 48.39 Crore.

Please note this is just a concept we can have it as a pension tool.

Dont try this concept to clear your holiday loan, house EMI or Vehicle EMIs & Personal Loan.
For Inflation Lovers: Reiterating to increase withdrawal every 2-3 yrs. Reminder value reduced.

Best Wises
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