This is a ready reckoner of early retirement and post-retirement investment strategies at freefincal.
Recently Mr. V Muthu Krishnan suggested several improvements to the Retirement Bucket Strategy Simulator also pointed out some errors. I have now incorporated all his suggestions and am using this post as an excuse to announce the upload of the updated version!
There are different kinds of retirement calculators available. I do not wish to list the basic calculators here. You can easily get it from the top menu.
So here goes,
Accumulation Phase (pre-retirement)
Four tools to answer four questions!
- What is the corpus required for financial independence in retirement?
- How long will my retirement corpus last?
- How much can I withdraw from my corpus each year?
- What is the rate of return required for financial independence?
Use this to find out when the income from a corpus will equal your future expenses so that you can be financial free. Home loan amortization options are also included
A person nearing retirement has a variety of investments and sources of income to be taken into account. This tool does just that.
Distribution Phase (post-retirement)
Given a lump sum, how do we invest it in order to create a reliable income stream that is risk-free and has the ability to keep pace with inflation? This post answer this important question.
This simulator allows you to play with the possibilities described in the above post.
Using this tool you can find out how to setup an income ladder using a set of fixed deposits
For those nearing retirement, this simulator shows you ways to manage your corpus by investing it in buckets of differing volatility.
While the inflation protected income simulator plans with fixed average returns, this simulator randomly changes the annual return in each bucket. It allows the user to find out how long a corpus would last for a given risk profile (return and standard deviation)
This can be real fun to play with. Do give it a try.
Buy our New Book!You Can Be Rich With Goal-based Investing A book by P V Subramanyam (subramoney.com) & M Pattabiraman. Hard bound. Price: Rs. 399/- and Kindle Rs. 349/-. Read more about the book and pre-order now!