Retirement Allocator
Tell it what you have and what you want to draw each month. It shows one way the money could be split, and how long the income would last.
Read this first
This is an illustration, not advice. It shows how a model portfolio would behave using the return figures you enter below. It knows nothing about your age, health, taxes, other income or family. We are a mutual fund distributor and an authorised person, not a registered investment adviser, so nothing here is a recommendation to buy anything. Real returns are uneven, and a bad first few years hurts far more than the same fall later.
One way to split it
- Blended return, on your assumptions
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- Corpus when income starts
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- Income in the first year
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- Income lasts
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Corpus, in rupees of the day Same corpus, in today's money
Why the split changes when you draw more
Money you need soon should not sit in shares. If it falls, you are forced to sell at the bottom. So the model first sets aside a few years of income in bonds and conservative funds, and only invests what is left for growth. Ask for a bigger monthly income and that reserve grows, which makes the whole portfolio more cautious on its own.
Mutual funds appear as one line because that is how you buy them, but the money is doing two different jobs. The conservative, debt-oriented part sits in the reserve. The growth part is invested for the long run. The split is shown underneath the bar.
Before you invest anything
Five things to sort out first
None of this is exciting. All of it matters more than which fund you pick. One hospital bill or one missing nomination can undo years of careful investing.
0 of 5 done.
Common questions
Why 6% and 9%?
They are rules of thumb, not laws. Drawing about 6% of your corpus a year has historically been survivable over a long retirement. Above roughly 9% you are usually spending the corpus rather than the growth. Where you actually fall depends on returns, how long you live, and luck in the first few years.
Why does it insist on 12 months?
Gains on equity and equity mutual funds held under a year are treated as short-term and taxed at a higher rate. Waiting at least twelve months before you start selling keeps them long-term. Debt funds and gold follow different rules, so check your specific holdings with a chartered accountant.
Does this account for tax?
No. The figures are before tax. What you actually pay depends on which assets you sell, when, and your other income. Treat the income figure as gross.
Why do the numbers look so good?
Because the model assumes a steady return every year, and reality does not work that way. Markets fall. A bad run in the first few years of drawing an income does far more damage than the same fall twenty years later, and no simple calculator captures that. Treat the result as the optimistic end of a range.
Want this done properly?
Bring your actual numbers. Thirty minutes, free.