Our SWP Calculator helps you determine the amount you can regularly withdraw from your mutual fund investments. It calculates your monthly withdrawals while keeping track of your remaining balance. Perfect for planning steady income from your investments.
SWP Calculator
What is SWP (Systematic Withdrawal Plan)?
A Systematic Withdrawal Plan (SWP) is a way to withdraw a fixed amount of money from your investment regularly, usually from mutual funds. It’s a smart option for people who want a regular income, such as retirees, without having to sell off their entire investment at once.
With SWP, you can decide how much you want to withdraw monthly, quarterly, or annually, while the rest of your money continues to grow. It’s like getting a paycheck from your investments! Plus, you still benefit from market gains on the remaining amount. It’s a great way to have financial stability while staying invested.
Also Use : Step Up SIP Calculator https://thebullbook.in/step-up-sip-calculator/
What is 4% rule for SWP?
The 4% rule for SWP is a guideline suggesting you can withdraw 4% of your investment annually during retirement without running out of money. This withdrawal rate is considered safe because it balances withdrawals with potential growth, helping ensure your savings last for about 30 years, even with inflation adjustments. It’s commonly used in retirement planning to provide a regular income while keeping your funds invested.
Also Read : How to invest in SIP without broker
https://thebullbook.in/how-to-invest-in-sip-without-broker/
FAQ :
What are tax benefits in SWP?
No additional tax is charged on the dividends you receive. With an SWP, there is no tax deducted at the source either. However, capital gains tax applies based on the scheme type and the withdrawal amount. As per the new taxation rules in India, short-term capital gains tax is 2% and long-term capital gains tax is 12.5%.
is there any maturity period in SWP
No, there is no fixed maturity period in a Systematic Withdrawal Plan (SWP). You can continue withdrawing funds as long as there is a balance in your investment.
Which is better, SIP or SWP?
SIPs help you achieve your investment goals, while SWPs offer a regular cash flow. By mixing both, you can enjoy the advantages of growing your wealth and receiving regular income at the same time.
