Why SWP Can Be A Better Alternative To Lump Sum Withdrawals
Consider whether SWPs better fit your needs compared to lump sum withdrawals.
Consider whether SWPs better fit your needs compared to lump sum withdrawals.
SWPS
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When it comes to withdrawals from your retirement corpus fund, both Systematic Withdrawal Plans (SWPs) and lump sum withdrawal have certain advantages and disadvantages, so it is essential to understand their differences before choosing any of the options.
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1. Regular Income
2. Financial Planning
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3. Tax Benefits
4. Market Risk
5. Capital Preservation
Lump sum withdrawals are ideal for those who want a substantial quantity of cash all at once, such as when purchasing a home or covering a huge bill. They’re also beneficial if you have a one-time opportunity to invest or are paying off significant debt. If you’re comfortable managing your money with a considerable quantity up front and don’t need regular payments, lump sum withdrawals could be the way to go.
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ICICI Prudential Life Insurance has launched the ICICI Pru Gold Pension Savings scheme, a pension product offering up to 60 per cent tax-free lump sum withdrawal on maturity.
Ensuring regular income post-superannuation is one of the key objectives of any retirement plan. Here are a few ways to guarantee a steady cash flow in old age.
While steady cash flow is vital after retirement, correctly estimating the monthly expenses in the retirement phase is also critical.
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