Advisor Maps Rs 2 Lakh Monthly Retirement Income From Rs 12.5 Crore Corpus
Updated
Updated · The Economic Times · Jun 3
Advisor Maps Rs 2 Lakh Monthly Retirement Income From Rs 12.5 Crore Corpus
2 articles · Updated · The Economic Times · Jun 3
Summary
A Rs 12.5 crore retirement corpus can support about Rs 2 lakh in monthly withdrawals, Garg said, while advising the investor to start at that level rather than push immediately to Rs 2.5 lakh.
A 4%-5% annual withdrawal rate is sustainable for a portfolio with roughly 60% equity exposure, he said, with equity-led SWPs in normal markets and debt funding used during sharp declines.
A three-bucket structure underpins the plan: Rs 20 lakh in liquid emergency reserves, near-term spending in debt funds, FDs or arbitrage funds, and long-term growth through diversified equity-oriented mutual funds.
To cut risk and taxes, Garg urged a phased shift from direct stocks into mutual funds via staggered transfer plans, annual rebalancing when allocations move more than 5%, and spreading stock sales across tax years.
Health and contingency planning remain central, with at least Rs 2 crore of insurance, a separate Rs 35-40 lakh medical corpus, and reverse mortgage treated only as a later-life backup alongside inheritance and PPF proceeds.