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It is every person’s dream to live life after retirement comfortably without any financial crisis. The biggest worry we have during our job or business days is that how will we manage our household expenses every month after leaving work? This question often arises in the minds of people that if they have a corpus of ₹ 1.5 crore ready at the time of retirement, can they get a regular income of ₹ 1 lakh every month without any risk?
Financial experts say that the direct answer is ‘Yes’ Is. But it is not as straightforward as it seems. How much money you want to see in your account every month will depend entirely on where you invest your money, your risk appetite and how much money you are withdrawing from the fund every year.
How will your monthly income change according to your risk profile?
The real meaning of retirement planning is not just about earning high interest or returns, but also about ensuring that your money stays with you till your last breath and can also beat the ever-increasing inflation.
Let us understand from the table below how much income your ₹1.5 crore fund can generate every month based on three different investment strategies:
Understand all three strategies in depth
1. Conservative Investor: Focus only on security
If you are a person who does not want to see even one percent risk or market fluctuations on his savings after retirement, then government and completely safe schemes are best for you. In this, your principal capital remains safe and you continue to get fixed interest. By following this path you can easily earn ₹70,000 to ₹85,000 every month. However, one downside is that this strategy may not be able to keep up with inflation in the long run.
2. Moderate Portfolio: Safety with a Slight Edge
This strategy is most popular for those who want to keep their money safe and also want their funds to grow a little over time. In this, your fund of ₹ 1.5 crore is divided in a balanced manner between debt (Frees/Safe) and equity (Stocks/Growth). According to experts, with this balanced approach you can earn a monthly income ranging from ₹85,000 to a full ₹1 lakh per month without any major stress.
3. Aggressive Investor: Preparation to beat inflation
If your risk appetite is good and you understand that long-term stock market returns are better than safer schemes, then you can put a large part of your funds in equity mutual funds. Through this strategy, it is absolutely possible to earn a handsome income of ₹1 lakh to ₹1.2 lakh every month. But remember, if there is a big fall in the market, the value of your portfolio may also fall sharply for some time.
Bucket Strategy and Safe Withdrawal Rate Rule
According to financial advisors, your ₹1.5 crore fund should never be kept in one place. expert for ‘Bucket Strategy’ Recommend.
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First bucket (short-term): Keep money in liquid or fixed deposits for expenses of the next 3 to 5 years.
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Second bucket (medium term): Keep it in safe debt funds or government schemes.
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Third bucket (long term): Leave the money that will be needed after 10 years to grow in equity mutual funds.
Moreover, every year only Taking out only 4.5% to 6.5% share Is considered safe. With this, your capital will never run out prematurely.
One final advice:
The real objective of retirement planning should not be just to withdraw as much money as possible every month, but to see that that money remains safe for your entire retirement period (which could be 25-30 years or more). By diversifying your portfolio, having a separate health insurance plan to cover medical expenses, and exercising some control over your withdrawals, you can turn this ₹1.5 crore fund into a very strong and unbroken source of regular income throughout your life.