Here is a compilation of past posts on how and when to generate inflation protected income with a lump sum for financial independence. This e-book can be used by early retirees, senior citizens and young earners who are trying to optimise income for their parents from their retirement benefits.
This is the fourth such compilation.
- The first was aimed at young earners, Starting Early, Starting Right
- the second on DIY money management.
- The third on How to retire early in India
Post-retirement planning is a unique and fascinating genre in personal finance. I was introduced to it when Subra wrote a fascinating comment to an article in young Jagoinvestor.
Subra basically said, 'those who do not know how to manage their post-retirement income should not DIY while accumulating the necessary corpus'. The comment was replete with jargon associated with income management. I have it saved somewhere in my old computer but could not retrieve it for this post. Thankfully, Subra has done a full article on this: Financial planning is simple!
There are many things he says in this post that needs to be done. I would like to believe that in the last four years, I have done at least some of it, often in consultation with Subra.
The first three posts discuss traditional ways of managing a corpus.
1 How Annuity Plans Work
2 Investment options for senior citizens
3 Low interest rate regime: investment options for senior citizens
The fourth, asks the most important question.
4 When should senior citizens purchase an annuity?
If your corpus does not pass the test mention in this post, the rest of the e-book maybe of little relevance to you. You can then consider options mentioned in post 1,2 and 3.
The fifth post presents a way to answer four retirement planning questions.
5 Four Simple Retirement Planning Tools
The remainder of the e-book deals with the active management of a retirement corpus
6 Generating an inflation-protected income with a lump sum
7 Income Ladder Calculator
8 Inflation-protected Income Simulator
9 Illustration: Passive Income Generation
10 Illustration: Generating inflation-protected post-retirement income
Download the E-book: Post-retirement income generation strategies
A related post which I choose to leave out of this compilation is the The Retirement "Bucket Strategy" Simulator