Client: A Retired Government Officer, aged 58 

Challenge: The client had a substantial retirement corpus but needed a regular income to supplement his pension while minimizing tax liability. He also wanted to ensure his savings would last throughout his retirement.

Solution: Garg Financial Services advised the client to invest his retirement corpus in a mix of equity and debt mutual funds and introduced the concept of a Systematic Withdrawal Plan (SWP). The SWP provided him with a regular monthly income while allowing his remaining investments to grow over time.

Results:  The client received a steady monthly income of ₹40,000, meeting his lifestyle needs without depleting his principal. 

– By withdrawing only the capital gains and not touching the principal, the SWP helped him reduce tax liability on withdrawals. 

– After 5 years, the portfolio not only maintained its value but also grew by an additional 10%, securing his retirement further.

Key Takeaway: SWP offers retirees a reliable source of income with tax benefits while keeping their retirement corpus growing.