1. If you have achieved 20 times your current annual expenses as your invested corpus (which would suffice as your retirement corpus too), it is suggested that you should simplify your investment portfolio drastically to enjoy your retired life.
2. If you would have bought a health insurance during your working years, it would also be very handy now, and being debt-free should be the first priority.
3. Keep 7-8 months expense amount in a liquid fund (even a bank's flexi-deposit is ok) to take care of any contingency.
4. Thereafter, shift your entire retirement corpus into 1/2 Equity balanced funds (surrender even insurance annuities too) which will take care of both debt and equity allocations for income and growth simultaneously.
5. Now, you can keep withdrawing 4% (or even 5%) of your corpus annually, through tax-free monthly Systematic Withdrawal Plans (or as needed if lesser) to meet expenses during your entire retired life, while your corpus still continues to grow too.
6. In fact, even after you are gone, your successors can also reap a tax-free bonanza too from your retirement corpus if you could manage to start a nominal monthly SIP (possible out of savings from your monthly retirement withdrawals) in the same balanced fund during your retired lifetime too.
7. This 4%-5% withdrawal rule presupposes that your retirement corpus would be in a position to maintain this differential between it's annual earnings and the inflation rate at all times.
8. Hence the necessity for invest in a Balanced equity fund, instead of a pure debt fund, as it succeeds in doing precisely so over the long-term.
9. You wouldn't need any other retirement tool like annuity, deposits, SCSS and insurance (continue pure term insurance if you already have one).
10. For identifying the appropriate balanced funds, you could choose 1/2 top-rated ones from different fund houses after comparing their CAGR of the last 15-20 years.
2. If you would have bought a health insurance during your working years, it would also be very handy now, and being debt-free should be the first priority.
3. Keep 7-8 months expense amount in a liquid fund (even a bank's flexi-deposit is ok) to take care of any contingency.
4. Thereafter, shift your entire retirement corpus into 1/2 Equity balanced funds (surrender even insurance annuities too) which will take care of both debt and equity allocations for income and growth simultaneously.
5. Now, you can keep withdrawing 4% (or even 5%) of your corpus annually, through tax-free monthly Systematic Withdrawal Plans (or as needed if lesser) to meet expenses during your entire retired life, while your corpus still continues to grow too.
6. In fact, even after you are gone, your successors can also reap a tax-free bonanza too from your retirement corpus if you could manage to start a nominal monthly SIP (possible out of savings from your monthly retirement withdrawals) in the same balanced fund during your retired lifetime too.
7. This 4%-5% withdrawal rule presupposes that your retirement corpus would be in a position to maintain this differential between it's annual earnings and the inflation rate at all times.
8. Hence the necessity for invest in a Balanced equity fund, instead of a pure debt fund, as it succeeds in doing precisely so over the long-term.
9. You wouldn't need any other retirement tool like annuity, deposits, SCSS and insurance (continue pure term insurance if you already have one).
10. For identifying the appropriate balanced funds, you could choose 1/2 top-rated ones from different fund houses after comparing their CAGR of the last 15-20 years.