Hi Sir, I am 50 years and planning for early retirement by this dec 2024. I will have around 2 crores to manage my post retirement expenses. I would need 1 lakh for my expenses. Please suggest ways to invest this 2 crores and get 1 lakh from it every month.

Ans: Planning for retirement income is crucial, especially with a significant corpus like yours. Here's a strategy to generate 2 lakhs per month with your 2 crores corpus:

Dividend-Paying Mutual Funds: Consider allocating a portion of your corpus to mutual funds that focus on dividend-paying stocks or bonds. Look for funds with a track record of consistent dividend distributions. These funds can provide regular income through dividend payouts. However, keep in mind that dividends are not guaranteed and may vary based on market conditions and fund performance.
Systematic Withdrawal Plan (SWP): Set up a systematic withdrawal plan (SWP) with a combination of debt funds, balanced funds, and liquid funds. SWP allows you to withdraw a fixed amount regularly from your investments while keeping the principal amount invested. Choose funds that prioritize capital preservation and have a history of providing steady returns. Adjust the withdrawal amount periodically based on your income needs and investment performance.
Senior Citizen Savings Scheme (SCSS): Consider investing a portion of your corpus in the Senior Citizen Savings Scheme (SCSS) offered by the government. SCSS provides regular interest payouts, usually on a quarterly basis, at attractive rates. It's a safe option for generating stable income, especially for retirees.
Annuity Plans: Explore annuity plans offered by insurance companies. Annuity plans allow you to convert a lump sum amount into a series of regular payments, providing you with a guaranteed income stream for a specified period or for life. Annuities offer security and peace of mind by providing a fixed income irrespective of market fluctuations.
Fixed Deposits (FDs) and Bonds: Consider allocating a portion of your corpus to fixed deposits (FDs) and bonds to diversify your income sources. While FDs and bonds offer lower returns compared to mutual funds and equities, they provide stability and safety of capital. Look for FDs and bonds with competitive interest rates and varying maturities to create a laddered income stream.
Before making any investment decisions, it's essential to assess your risk tolerance, liquidity needs, and income requirements. Consider consulting with a certified financial planner who can provide personalized advice based on your financial situation and retirement goals.

Ans: Getting even 40,000 per month just two months later onwards implies receing an assured about 9.6% yearly return on your investments. I do not know of any such instrument which can generate this much for you on an assured continuous basis from just 2 months later onwards.

Ans: It's fantastic that you're planning ahead for your retirement. You've done a commendable job of saving up a substantial amount through different investment instruments.

Retiring early is a significant milestone, and it's essential to ensure your savings can support your desired lifestyle. With a corpus of 1.5 crores, generating 1 lakh per month for your expenses is achievable.

Given your age and retirement goal, it's crucial to focus on preserving and growing your savings while ensuring a steady stream of income. Consider transitioning a portion of your savings into income-generating assets such as dividend-paying stocks or debt funds.

Diversification is key to managing risk and maximizing returns. Spread your investments across different asset classes to minimize volatility and maintain a balanced portfolio.

Consulting with a Certified Financial Planner can provide personalized guidance on optimizing your investment strategy for retirement. They can help assess your financial situation, recommend suitable investment options, and create a comprehensive retirement plan tailored to your needs.

Remember to regularly review and adjust your investment portfolio to ensure it remains aligned with your retirement goals and risk tolerance. With careful planning and prudent investing, you can enjoy a fulfilling retirement with financial security and peace of mind.

Ans: Congratulations on building a retirement corpus of Rs. 1 crore! That's a significant achievement. I understand your concern about managing your monthly expenses of Rs. 50,000 post-retirement. Let's delve into a comprehensive strategy to ensure your funds are managed wisely.

Systematic Withdrawal Plan (SWP)
An SWP allows you to withdraw a fixed amount from your mutual fund investments regularly. This helps in managing cash flow efficiently while keeping your principal invested.

Benefits of SWP
SWP provides regular income, which suits your monthly expense needs.

It offers flexibility, allowing you to adjust the withdrawal amount.

Invested capital continues to grow, balancing withdrawals.

SWP is tax-efficient compared to withdrawing a lump sum.

Selecting the Right Mutual Funds
Choosing the right mutual funds is crucial. Diversification across categories ensures stability and growth.

Equity Mutual Funds
Equity mutual funds invest in stocks, offering high returns. They're suitable for long-term growth. However, they carry higher risks due to market volatility.

Debt Mutual Funds
Debt mutual funds invest in bonds and other debt instruments. They offer stable returns with lower risk. Ideal for preserving capital and generating steady income.

Balanced Mutual Funds
Balanced or hybrid funds invest in both equity and debt. They provide a mix of growth and stability. Suitable for those seeking moderate risk and returns.

Advantages of Mutual Funds
Mutual funds are managed by professional fund managers. This ensures informed investment decisions.

They offer diversification, reducing risk by spreading investments.

Mutual funds are highly liquid, allowing easy access to your money.

They provide transparency with regular updates and disclosures.

Power of Compounding
Compounding is the reinvestment of earnings, generating earnings on previous earnings. Over time, this significantly boosts your investment growth.

Evaluating Risk
Every investment carries risk. Understanding and managing risk is key to a successful strategy. Equity funds are riskier but offer higher returns. Debt funds are safer but with lower returns. Balancing both types mitigates risk and ensures steady growth.

Implementing SWP with Mutual Funds
Here's how to implement an SWP effectively.

Step 1: Diversify Investments
Diversify your Rs. 1 crore corpus across equity, debt, and balanced funds. This ensures growth, stability, and regular income.

Step 2: Calculate Monthly Withdrawals
Determine the monthly withdrawal amount considering inflation and future needs. Rs. 50,000 is your current need. Plan for gradual increments.

Step 3: Monitor Performance
Regularly monitor the performance of your investments. Adjust allocations if needed to maintain the desired income flow.

Disadvantages of Direct Funds
Direct funds require constant monitoring and expertise. They lack guidance from financial professionals. This increases the risk of poor investment decisions. Opting for regular funds through a Certified Financial Planner (CFP) provides professional management and advice.

Benefits of Regular Funds
Regular funds involve a small fee but offer professional management. CFPs provide personalized advice based on your financial goals. They help in selecting the right funds, balancing risk and returns. This ensures optimal growth and income stability.

Tax Efficiency of SWP
SWP is tax-efficient as it benefits from capital gains taxation. Withdrawals from equity funds held for more than a year are taxed at 10% on gains above Rs. 1 lakh. Debt funds held for more than three years are taxed at 20% after indexation. This reduces your overall tax liability compared to lump-sum withdrawals.

Regular Reviews and Adjustments
Regularly reviewing your investment portfolio is essential. Market conditions and personal needs change over time. Adjust your SWP and fund allocations accordingly. This ensures continued growth and stability of your income.


You've done an excellent job by accumulating a significant retirement corpus. Managing your funds wisely will ensure a comfortable and stress-free retirement. Your dedication to securing your financial future is commendable.


I understand the challenges of managing retirement funds. It's crucial to balance growth and stability while meeting monthly expenses. Your proactive approach in seeking advice shows your commitment to a secure future.

Final Insights
Investing your Rs. 1 crore corpus through a well-planned SWP in mutual funds ensures regular income and growth. Diversify across equity, debt, and balanced funds to balance risk and returns. Regular reviews and adjustments keep your strategy aligned with your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in