Turn Your Assets into Salary

A **Systematic Withdrawal Plan (SWP)** is the exact opposite of a SIP. Instead of investing monthly, you invest a lump sum once and withdraw a fixed amount every month.

It is the most tax-efficient way to create a regular income stream for retirement. Unlike bank dividends which are taxable, SWP withdrawals are treated as capital withdrawals, significantly lowering your tax liability.

The Golden Rule of SWP

To keep your money forever, your **Withdrawal Rate** must be lower than your **Expected Return**.
Example: If your fund earns 10% annually, withdraw only 6-8%. This allows the remaining capital to grow and fight inflation.

Smart Withdrawal Strategies

• The 4% Rule: A globally accepted standard suggesting you should not withdraw more than 4% of your corpus annually to ensure it lasts 30+ years.
• Capital Preservation: Only withdraw the interest component and leave the principal untouched.
• Bucket Strategy: Keep 3 years of expenses in liquid funds (safe) and the rest in equity (growth) to handle market crashes.