307 - B Sai Complex, Above Hotel Giriraj Kathyawadi, GIDC Char Rasta Vapi. 396195.
Retirement Planning
Why Is Retirement Planning Necessary?
You may establish the way to achieving your life objectives and have a strong knowledge of them with the use of an organised retiring plan.
What makes retirement financial planning necessary?
As long as you are receiving your monthly wage, it is simple to pay for your bills. However, after retiring, you’ll need to have enough money saved up to live comfortably for the rest of your days.
- To pay for a person's everyday needs
- To pay for medical expenditures
- Fight against inflation
- To handle uncertain conditions
- To reach your retirement objectives
Therefore, having a solid retirement plan will inform you of where you are right now and the measures you need to take to reach your goals is vitally necessary.
SWP (Systematic Withdrawal Plan)
An investor can use a facility known as a “Systematic Withdrawal Plan,” or SWP, to withdraw a certain amount from a particular mutual fund scheme on a given date that he chooses. For retirees looking for a steady source of income, this facility is very helpful. SWP eliminates the requirement to repeatedly withdraw a set amount.
You might be wondering how SWP operates at this point. ?
You only need to choose the amount and date on which you wish to receive your money and give the appropriate instructions to AMC for starting the SWP.
A person has the option to start an SWP and park whatever funds they have received in the shape of PF, gratuities, etc. in a mutual fund plan.
In SWP, there are two withdrawal options: Fixed Periodic withdrawal and Appreciation withdrawal.
Fixed-period withdrawal
In a fixed periodic withdrawal, the investor selects a fixed sum to be received after a certain interval. The mutual fund firm will send the money from the sale of the units into the investor’s account.
Appreciation Withdrawal
When taking an appreciating withdrawal, an investor decides to take only the profit made on his corpus. For instance, if a mutual fund has returned 1% during the last month and an investor has a corpus of Rs 1 Cr in the fund, he will only receive Rs 1 lakh for that month. The cash flow, however, won’t remain the same as returns are not constant, therefore an investor can establish a perpetuity via appreciation withdrawal.
HOW DOES SWP OUTPERFORM OTHER OPTIONS?
- Regular Income
- Tax Benefits
- The Best Pension Replacement
- The Best Way to Achieve Recurring Goals
- Better Averaging
- Consistent Cash Flow
Talk To Our Insurance Experts
Are you perplexed by complicated insurance terminology? Don't worry. Speak with an IRDAI-certified insurance expert at Plum to get the best group insurance quote.