Retirement planning calls for building investment portfolio to maintain lifestyle through Systematic Withdrawal Plan (SWP) during post retirement phase.
With SWP, investor can withdraw fixed amount from mutual fund scheme regularly.
Building optimum retirement corpus first is essential for SWP to meet adequate expenses.
It is important to determine amount required to meet post-retirement expenses before initiating SWP suitably.
Tax implications for investors opting for SWP are much lower when compared with interest on fixed deposits.
SWP provides more flexibility in terms of withdrawal amount and frequency as per family budget.
SWP enable investors to defend against volatility without market timing for withdrawal from mutual fund scheme.
