Three-bucket retirement.
A retirement corpus split by when you will need it: cash for the next few years, steady debt for the years after, and equity for everything later, left alone long enough to ride out a crash.
Savings, liquid funds, short FDs. Spent first.
Left in equity, untouched
₹96.7 L
It is not touched for 10 years. At 11% a year it grows to about ₹2.75 Cr by then, to refill the other two.
- Bucket 1, cash for 3 yrs
- ₹30.6 L
- Bucket 2, debt for 7 yrs
- ₹72.7 L
- Bucket 3, equity
- ₹96.7 L
How it adds up
- Your corpus₹2,00,00,000
- minusCash, 3 yrs of spending₹30,56,256
- minusDebt, the 7 yrs after₹72,73,542
- equalsLeft in equity₹96,70,202
- thenUntouched 10 yrs at 11%₹2,74,57,775
What this assumes
Spending rises with inflation every year. The cash bucket holds those years' spending in full; the debt bucket holds what, at its return, covers the years after. Refill the buckets from equity in good years. Returns are assumptions, not promises.
Rules and rates from
- A planning rule of thumb, not an official rule
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
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