Retirement: Retirement fund is amazing, with the right strategy you can earn 1 lakh rupees every month..

Many people believe that earning stops after retirement, but the reality is that if you plan at the right time in life, then even in old age, you can easily earn an income of up to Rs 1 lakh every month without doing anything. You just have to create a strong retirement fund and then use it properly.

Let us tell you that a retirement fund is not created suddenly; it is prepared gradually with time and disciplined investment. You don't need to have crores of rupees for this. If you have a fixed amount, then according to that, you can choose different investment schemes to get returns.

How will you get 1 lakh rupees a month?

If you aim to earn 1 lakh rupees every month, i.e., 12 lakhs annually, then the size of your investment depends on the return you are expecting. If you want to avoid risk and want only 6% return, then about ₹ 2 crores will be needed. You can invest this money in an annuity, fixed deposit, or debt funds, which are considered safe.

If you are willing to take a little risk, then you can choose investment schemes that give 8% return, like the Senior Citizen Savings Scheme (SCSS), the Balanced Hybrid Fund, or the Equity Saving Fund. These options will require around Rs 1.5 crore. Taking a little more risk, if you target a 10% return, then you will need only Rs 1.2 crore. For this, you can resort to the Aggressive Hybrid Fund, the Large Cap Fund, and the Large and Midcap Fund. Those who have Rs 1 crore and are comfortable taking high risk can invest in flexi cap or multi cap funds that give returns up to 12%.

SWP plan is a great way

Systematic Withdrawal Plan (SWP) is a great way through which you can withdraw a fixed amount every month, and the rest of the money remains invested. This will keep your money growing, and you will also get a regular income. Suppose you have a fund of 2.5 crores, and you withdraw 1 lakh every month from SWP. If your fund gives an average return of 8-10% per annum, then you can comfortably manage your expenses till 2025. Also, growth in the fund can continue.

Keep inflation in mind.

The value of 1 lakh rupees today will not be the same after 10-15 years. Therefore, definitely include inflation in your plan. Always invest so much that you can withdraw not only the interest but also some part of the principal from time to time and your standard of living is not affected.

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