Invest in mutual fund that pay you a monthly salary after retirement
Today SIP tomorrow SWP in mutual fund:
An excellent way to plan for retirement. Now a day Mutual Funds have become a better option for financial planning or Investment. In Mutual Funds the risk is very low compared to the stock market and there is a guarantee of returns in the long term. If you invest in a mutual fund with an understanding while on the job, then it can help you after retirement. Investing small amount each month can give you financial freedom in later years of your life.
For this, Today SIP(Systematic Investment Plan) and Tomorrow SWP (Systematic Withdrawal Plan). You can arrange salary each month after retirement of ₹. 65k for yourself every month for the next 20 years.
Let’s Take An Example..
If you make a monthly SIP of ₹. 10k every month for 20 year with 12% annual return, it will becomes ₹. 1cr
Now calculate return on ₹. 1cr @ 8% annually, it will be ₹. 8 lacs. So you will get 800000/12 = ₹. 65k monthly like a salary by investing your money in many low risk Investment as SWP (Systematic withdraw plan).
What Is Systematic Withdrawal Plan.
A systematic withdrawal plan (SWP) is a plan which allows you to withdraw a fixed amount(units) from your mutual fund at regular periodic intervals(monthly, quarterly, half-yearly or annually) as per your requirement. With every withdrawal, the value of your investment in the fund is reduced by the market value of the units you have withdrawn as the withdrawal happens at current NAV (Net Asset Value).
It has been observed that SWP is a more reliable option than divide
Hence In SWP, you have complete control so It is a more reliable option than dividend. You take regular income from SWP by redeeming units from the scheme. At the same time, if you have surplus money after the fixed time, it will also be paid to you.