SWP fix income

[Roger D]

My age is 51 and I have 60 laks saved. I want get retired now. My monthly expenses is around 75k. I would like to get one lakh per month through SWP for next 20 yrs. What swp you recommend

 

[luciferocious]

not possible with 60lac

 

[Roger D]

not possible with 60la

not possible with 60lac

So with what amount it is possible?

 

[luciferocious]

So with what amount it is possible?

for relatively moderate risk returns after tax you will get arround 10% returns. so it comes arround 1.5cr to get 1lac per month theoretically.

practically getting 1lac per month in your bank is another ball game as returns are calculated and provided yearly

 

[17ysaurabh]

My age is 51 and I have 60 laks saved. I want get retired now. My monthly expenses is around 75k. I would like to get one lakh per month through SWP for next 20 yrs. What swp you recommend

Hi Roger,
In a Systematic Withdrawal Plan (SWP), the percentage of the amount withdrawn annually should be less than the interest rate with which you are growing the funds.
For example:
For Rs. 60 lakhs investment,
if monthly withdrawal = Rs. 1 lakh
then annual withdrawal = Rs. 12 lakh
annual withdrawal percentage = 20%
Now, to keep on getting this amount for 20 years, your investment should grow at a rate of more than 20% interest. It is extremely difficult even in Small cap mutual funds.

Suggestion:
Ideally, we can grow the investment:
1. In Nifty 50 Index fund at a maximum rate of 12%
So, the amount you can withdraw annually = Rs. 7,20,000
withdraw monthly = Rs. 60,000

2. In Midcap mutual funds at a maximum rate of 15%
So, the amount you can withdraw annually = Rs. 9,00,000
withdraw monthly = Rs. 75,000
In these scenarios, it can most probably last for 20 years.

 

[Mohit kharb]

Hi Roger It i not possible to withdraw Rs 100000 per month from SWP with 60 Lakh corpus.
It is possible only in one condition that your mutual fund gives 22% CGAR returns .

In the market no one can commit you for the guaranteed returns.