SWP (Systematic Withdrawal Plan)
Many of you have must hear about
SWP (Systematic Withdrawal Plan). You can implement it in many ways. If you
have sizable amount of sum for invest and want to invest in equity capital
appreciation for long term but you are not sure about market in short and
medium term. You can invest your sum in debt mutual fund and through SWP you
can keep SIP in equity mutual fund.
Before understand use of SWP for
retirement planning let us first understand about annuity. Annuity schemes are
often aggressively promoted by life insurance companies. In annuities plan
people receive a fixed sum per month over a period of time against lump-sum
investment.
The yield of these annuity plan
issued by life insurance companies hardly 7% and post tax it reduces further.
You can apply SWP in smarter way in debt mutual fund for your post retirement
income. For this you should invest lump-sum amount in debt schemes of mutual
funds after consulting qualified certified financial planner. Use SWP facility
to get a fix sum every month on specified date. In pre specified date you will
get credit pre specified amount in your bank account.
If you compare it with life insurance promoted annuity scheme you will
get much better return to apply SWP in mutual fund debt schemes.
For more detail about SWP or if you have any other query related
investment you can contact me through my email.
Regards,
Arvind Trivedi
Certified Financial Planner
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