Outlook Money
Planning a good withdrawal plan is important for retirement. Unplanned withdrawals from the retirement savings from risk the retirement life.
One needs to make sure that the retirement corpus is protected from inflation risk before one starts to withdraw from it. Inflation keeps affecting the idle retirement corpus and if withdrawal is started from the corpus unplanned then it may exhaust the corpus.
One should divide the retirement corpus into different segments called ‘buckets’. This should be in sync with the financial requirements at different stages in retirement life.
Buckets can be created for short, medium and long term if it is found difficult to sync with different financial goals. These help avoid unnecessary expenses and define the financial goals clearly.
Retirement corpus should be kept growing simultaneously when withdrawing money from it. One can create a SWP to generate the required liquidity and at the same time allow the remaining corpus to get a return on investment.