Personal Life – Asset Allocation Thinking

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A short post for individuals thinking on Asset Allocation for their life:

  1. Real Estate – Living
  2. Gold – Ornament
  3. Insurance – Protection
  4. Capital Markets, Mutual Funds – Wealth Creation

How we should distribute our assets:

  1. Gilt Funds – 30%
  2. Equality – 70%

With the above asset allocation, now let us discuss on how we withdraw money.

SWP – Systematic Withdraw Plan – allows. you withdraw fixed amounts at regular intervals (monthly / quarterly / yearly )  – see this SWP also from tax angle perspective

Questions you need to ask:

  • When is SIP – Systematic Investment Planning is relevant
    1. When you are working invest in SIP
    2. If your goal for savings is for long years like 15-20 years, then in SIP go for Equity Mutual Fund since it is a long term goal
  • When is SWP – Systematic Withdraw Planning is relevant – 
    1. When you are retired because you need steady flow of money as there will no income from your salary during retirement time
    2. SWP is relevant when you need steady flow of income for your monthly needs

 

 

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