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SWP - Best tool for retired people
- Thread starter fradela
- Start date
COSMOCRAT
TF Premier
Yes, my retirement planning includes this.
Set retirement age to 55-60.
Gather as much wealth as possible till 50.
Slowly start transferring accumulated wealth from equity to stable debt funds from age 50 to 60. (Keep 20% still in equity)
Around the age of 60 start SWP from a debt fund with a required monthly amount.
Set retirement age to 55-60.
Gather as much wealth as possible till 50.
Slowly start transferring accumulated wealth from equity to stable debt funds from age 50 to 60. (Keep 20% still in equity)
Around the age of 60 start SWP from a debt fund with a required monthly amount.
After taxation change on debt fund, does it still make sense to go for debt fund instead of fixed deposits?
COSMOCRAT
TF Premier
The 12.5% tax is not a problem but the removal of indexation was quite a big blow. I chose mutual funds due to ease of access and tax is straightforward. In FD first there is TDS, then tax on total income and then claiming that TDS.
It's still 25 years away. Taxation rules will be changed way differently than those of today, so there is no point worrying too much about that now.
For now, focus is to just increase the savings via equity.
Last edited:
Yes. It gives more returns and safety than FD. FD has TDS.
You are not going to withdraw all your money once.
After retirement only, your are withdraw using SWP, not entire money. By that time you are not tax slab. No Tax for your money.
