Retirement Corpus Analysis

[merrooi]

This has been my analysis so far. DB experts opine. ( This doesn’t go into whats required for retirement as that changes with each individual life choices )

Use Bucket Strategy

1. Safe Cash Buckets - 3 Years of Expenses - If 50 LPA, invest 1.50 Cr in Arbitrage/Short Term bonds/FD’s if no other income/ RFC accounts if you have USD ( Generates 6% gain and currency depreciation ).

2. Conservative Hybrid buckets for 4-10 Years (3 Crores ): Invest in Balanced advantaged funds like ICICI Fund generating 9-10% without huge draw downs. 

3. Rest invest in : Flexi Cap/Mix of Index funds ( US or India based on where you have the money ). Generates 10% annually over 10 year long duration with possibility of 40% draw downs. Your 10 years  of bucket 1 and 2 should keep you solid even in case of 2008 recession like situation.

Rebalance every year. If any buckets grows higher compared to other move them appropriately. Dont assume growth in one year will continue forever or the growth you have seen in last 4 years is the norm. We have years of time correction. So be prepared  for worth. 

Prerequisites :

Have health and Term insurance ( At least 3 crores ).