Mutual fund calculator: Mutual funds funding can be utilized for post-retirement revenue as properly. According to tax and funding consultants, mutual fund SIP (Systematic Investment Plan) permits an investor to develop cash for one’s post-retirement monetary wants. However, if an investor makes use of this cash correctly, it is going to assist the investor proceed incomes post-retirement. They mentioned that like SIP, one wants to speculate the mutual fund maturity quantity in SWP (Systematic Withdrawal Plan) to proceed incomes on month-to-month foundation.
On tips on how to plan one’s month-to-month revenue post-retirement; SEBI registered tax and funding professional Jitendra Solanki mentioned, “One needs to first ensure how much monthly income one would require to continue meeting one’s financial goals. After that, there is need to assess how much amount one would need for SWP after retirement. Once, these two goals are finalised then comes how much monthly SIP will be needed to meet that post-retirement monthly income goal.”
Asked concerning the cash required for SWP to earn ₹1 lakh month-to-month revenue for subsequent 25 years; Pankaj Mathpal, MD and CEO at Optima Money Managers mentioned, “One would need ₹1.35 crore amount for SWP to get ₹1 lakh monthly income post-retirement for next 25 years. Assuming 8 per cent return on one’s money in SWP, the investor will continue to earn ₹1 lakh per month for next 25 years.”
However, Pankaj Mathpal of Optima Money Managers mentioned that typically folks wish to retire little earlier and in that case one wants post-retirement revenue for longer interval. He mentioned that if an individual needs to retire at 55 years of age, then it might want ₹1 lakh month-to-month revenue for subsequent 30 years. In that case, one’s SWP quantity will go as much as ₹1.43 crore.
Mutual fund return calculator
View Full ImageSource: Mutual fund SIP calculator (piggy)
On tips on how to get ₹1 lakh revenue for subsequent 30 years post-retirement, Pankaj Mathpal of Optima Money Managers mentioned, “Without assuming inflation post-retirement, an investor can start an SIP of ₹2100 per month and increase the amount of SIP by 15 per cent year after year. Assuming CAGR of 12 per cent on investment, you will be able to accumulate around Rs. 1.43 crore. If you invest the corpus in SWP at 8 per cent per annum, you will be able to withdraw ₹1 lakh per month for next 30 years.”
Mutual fund schemes
Asked concerning the mutual fund schemes during which one can consider investing at the moment, Pankaj Mathpal of Optima Money Managers listed out ICICI Prudential Focused Equity Fund, ABSL Equity Advantage Fund, Axis Midcap Fund, Nippon Small Cap Fund and ICICI Prudential Global Advantage Fund.
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