SWP is ulta SIP. That means, all the advantages you get from SIP work against you in SWP. It reduces capital availability for compounding. In case of market downturn, you withdraw more from capital than earnings. So it actually works better to be irregular in withdrawal rather than sticking to a fixed schedule and amount. That's what rules of bucket theory try to implement. You withdraw from low volatility ( hence low risk) bucket for consumption. This minimizes impact of regular withdrawal on growth assets. (High volatility). You decide threshold for high volatility (High risk, High return potential) bucket to withdraw and replenish lower volatility buckets. So you introduce systematic irregularities in line with market performance for withdrawal. Thus negating the effect of regularity. This makes it interesting 😊
Dr. C. Bhatt, but this risk (sequence of returns) seems off late not affect most new investors as most have come in post covid last 4-5 yrs & they haven't yet seen any many major correction or crash
He is one of the best in this field. Trust is the biggest factor when it comes to investment and I think he is both knowledgeable and trustworthy. Thanks for your support Mr. Bhat and wish you and your team the bestest year ahead!
Everyone or most chase equity only mostly by running after & behind it for returns only so only putting in multiple lacs & crores even in NFO ! ALL these r only pushing the euphoria much higher
Everyone seems to be more optimistic & over hyped with euphoria running high so will they understand this unless until they really face loss or poor returns?
Thank you very much for your insight, Dr. C. Bhatt. Could you please advise investment opportunities for first-time NRI investors trying to invest in India on ETFs or NRE FDs/ etc. with low fees for a medium to longer term , and hoping to return back to India in the retirement phase or as situation so demands?
Injecting Fear and making people to follow is across all consulting fields like Medical, Spiritual , Insurance, and Investment One time all people were preaching of SWP 😃 Everybody should adopt a strategy that they can digest . Don’t become slave . Use own brains
Any person close to retirement should explore parking about 40 to 50 % of the portfolio in low cost Index funds ( Eg. S&P 500 , FTSE 100 , NIFTY tracker).
But i keep hearing many new investors simply put in bulk lumpsum of multiple lacs & crores at one go even @ market peaks in NFO! Is it not scarry but sales guys are happy as long it keeps coming in AUM!
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SWP is ulta SIP.
That means, all the advantages you get from SIP work against you in SWP.
It reduces capital availability for compounding. In case of market downturn, you withdraw more from capital than earnings. So it actually works better to be irregular in withdrawal rather than sticking to a fixed schedule and amount. That's what rules of bucket theory try to implement.
You withdraw from low volatility ( hence low risk) bucket for consumption. This minimizes impact of regular withdrawal on growth assets. (High volatility).
You decide threshold for high volatility (High risk, High return potential) bucket to withdraw and replenish lower volatility buckets. So you introduce systematic irregularities in line with market performance for withdrawal. Thus negating the effect of regularity. This makes it interesting 😊
Brilliant
Very apt and relevant information for retirement planning!
Very good analysis. Thx. Dr Bhatt. I am your ever student.
Thank you and congratulations
Dr. C. Bhatt, but this risk (sequence of returns) seems off late not affect most new investors as most have come in post covid last 4-5 yrs & they haven't yet seen any many major correction or crash
He is one of the best in this field. Trust is the biggest factor when it comes to investment and I think he is both knowledgeable and trustworthy. Thanks for your support Mr. Bhat and wish you and your team the bestest year ahead!
Thank you so much for your kind words Sir
D9ct9r sir
Nice advices keep it up
Lots of congratulations for good going yr after yrs
Everyone or most chase equity only mostly by running after & behind it for returns only so only putting in multiple lacs & crores even in NFO ! ALL these r only pushing the euphoria much higher
Everyone seems to be more optimistic & over hyped with euphoria running high so will they understand this unless until they really face loss or poor returns?
Thank you very much for your insight, Dr. C. Bhatt. Could you please advise investment opportunities for first-time NRI investors trying to invest in India on ETFs or NRE FDs/ etc. with low fees for a medium to longer term , and hoping to return back to India in the retirement phase or as situation so demands?
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Injecting Fear and making people to follow is across all consulting fields like Medical, Spiritual , Insurance, and Investment
One time all people were preaching of SWP 😃
Everybody should adopt a strategy that they can digest . Don’t become slave . Use own brains
Any person close to retirement should explore parking about 40 to 50 % of the portfolio in low cost Index funds ( Eg. S&P 500 , FTSE 100 , NIFTY tracker).
But i keep hearing many new investors simply put in bulk lumpsum of multiple lacs & crores at one go even @ market peaks in NFO! Is it not scarry but sales guys are happy as long it keeps coming in AUM!
Hindi
Thank you sir and all the best