Can I hold 5X expenses in cash bucket and the rest in equity after retirement?

Recently, a reader shared his post-retirement investment strategy: Hold expenses for five years in a cash bucket (savings funds + liquid fund + money market funds + safe bank fixed deposits) at all times during retirement and invest the rest in equity! I do not share the reader’s enthusiasm and would prefer the approach adopted…

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A safer alternative to the 4% withdrawal rule for retirement planning

If you are interested in achieving financial independence in retirement, especially if you hope to retire early, you’ve likely encountered the concept of the safe withdrawal rate, with the 4% rule being particularly well-known. However, it’s unfortunate that this rule is often misunderstood and misapplied, so it may not be a useful tool for retirement…

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Why can’t I include my residential property as part of my net worth?

A reader asks, “Can we include our own living property/house in total net worth? I had some discussions with friends about a particular case – where the total net worth will be significantly higher than the required retirement corpus if the living house/property is included”. “It’s an independent house in Chennai (NOT a flat!) And…

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Is it possible to combine a bucket strategy with income laddering after retirement?

This article explains how a retirement bucket strategy can be combined with an income ladder in various ways. The goal is to reduce the management risks associated with a bucket strategy. In an income ladder, we use fixed-income instruments that mature periodically in future, providing income to the retiree. Let us consider an example. Suppose…

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Higher annuity rates of LIC Jeevan Akshay applicable from Feb 2023

Last year, while preparing a retirement planning illustration based on laddered annuities, we listed the annuity rates of LIC Jeevan Akshay – an immediate annuity plan. These are the revised and higher annuity rates applicable from Feb 28th 2023. Additional resources Use this annuity ladder calculator to plan for retirement with multiple pension streams How…

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What does 30X refer to in FIRE or retirement planning?

A reader says, “In many personal finance forums, I see comments like I have accumulated 25X or 30X for retirement. Many claim that 30X is when one becomes financially independent and even ready for early retirement (FIRE). Can you please write an article explaining what this 30X refers to and how it signifies financial independence?” What is…

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