When the Paycheck Stops, How Should Your Money Work?

Shyam retired at 60.

His children were settled. The home loan was closed. Life was finally slow and peaceful.
But one question kept coming back again and again:

“Will my money last… and will it give me regular income?”

Shyam did not want excitement from his investments anymore.
He wanted stability, income, and peace of mind.

That’s when he met Ravi.

“I Don’t Want Big Returns, I Want Peace”

Shyam explained his concern honestly.

“I don’t want to take big risks now.
I need monthly income for expenses.
And my money should grow slowly so inflation doesn’t hurt me.”

Ravi smiled. This was a very common retirement question.

“That’s actually a good starting point,” Ravi said.
“In retirement, the goal is not to beat the market.
The goal is to protect money, create income, and avoid stress.”

Step 1: Understanding the 3–5 Year Reality

Ravi first spoke about time.

“Shyam, since your focus is the next 3–5 years, we must be careful.
Markets can go up and down sharply in short periods.
So we should not depend heavily on pure equity funds.”

Shyam nodded. He remembered how markets sometimes fell suddenly.

Step 2: Making Stability the Base

Ravi then explained the foundation.

“A large part of your money should be in debt mutual funds.”

He kept it simple.

These include:

Short-duration funds
Medium-duration funds
Bond and corporate bond funds

“These funds invest in government securities and strong companies.
They are not flashy, but they are stable and predictable.”

Ravi added,

“Think of them like the ground floor of a house.
Strong, quiet, and reliable.”

Shyam liked that comparison.

Step 3: Adding Gentle Growth with Hybrid Funds

“But what about growth?” Shyam asked.

Ravi replied calmly.

“To beat inflation, we add conservative hybrid funds.”

He explained in simple words:

Most of the money is in debt
A small part is in equity
Risk stays controlled
Growth is slow but steady

“This gives your money a chance to grow
without giving you sleepless nights.”

Shyam felt reassured.

Step 4: Optional Low-Risk Equity Exposure

Ravi also mentioned another option.

“If you are comfortable, a small portion can go into
equity savings funds or arbitrage funds.”

These funds:

Keep volatility low
Do not behave like full equity funds
Are used only as support, not the main plan

“This step is optional,” Ravi clarified.
“Comfort matters more than returns.”

Step 5: Turning Investments into Monthly Income

Now came the most important question.

“How do I get monthly income from all this?” Shyam asked.

Ravi explained a simple solution.

“We use something called a Systematic Withdrawal Plan (SWP).”

With SWP:

A fixed amount comes to Shyam every month
Withdrawals are planned, not random
Remaining money stays invested

“It works like a salary from your own savings,” Ravi said.

Shyam smiled. That’s exactly what he wanted.

What Ravi Clearly Avoided

Ravi also made one thing very clear.

“For a 3–5 year retirement goal,
we usually avoid pure equity funds.”

“They are great for long-term wealth creation,
but too risky for regular income needs.”

To Sum up

Ravi summed it up for Shyam:

Debt funds for safety and stability
Conservative hybrid funds for slow, steady growth
Optional equity savings/arbitrage funds for balance
SWP for regular income
Focus on peace, not performance charts

Shyam’s Realisation

After the conversation, Shyam felt lighter.

“This feels comfortable,” he said.
“My money doesn’t need to run fast.
It just needs to walk steadily with me.”

Ravi smiled.

“That’s exactly how retirement investing should feel.”

In retirement, the best investment plan is not exciting.
It is simple, steady, and quietly supportive.

When money works silently in the background,
retirement feels exactly the way it should—peaceful.

Disclaimer: This is only a general example to explain how retirement investments can be planned. Every person’s needs are different. Your lifestyle, monthly expenses, health needs, and comfort with risk can change what is suitable for you. Please consider your personal situation or speak to a financial advisor before investing.

Is Your Retirement Plan Wrong? The Real Truth About Insurance Policies

Rita walked into Ram’s office right after work—ID card still around her neck.

“Ram, I think I’m sorted for retirement.”

That sentence always made Ram slow down.

She pulled out a brochure.
“HR’s insurance partner explained this plan. ₹1 lakh a year. After 60, guaranteed pension. No market tension.”

Rita smiled.
“With EMIs, kids’ fees, and job uncertainty, this feels safe.”

Ram nodded.
“Let’s talk through it—using your daily life, not brochure language.”

“What Happens to Your Salary-Cut Premium?”

“Rita,” Ram asked,
“when ₹1 lakh goes from your bank account every year, what do you think happens next?”

Rita answered like most salaried professionals would.
“It grows for retirement.”

Ram replied gently.
“First, it gets divided.”

He explained it like a monthly salary slip:

Some part goes to insurance cost
Some to admin charges
Some to agent commission
What remains goes into investment

“It’s like your CTC,” Ram said.
“The full number looks big, but your take-home is smaller.”

Rita nodded slowly.
“That makes sense.”

“The Return That Doesn’t Beat Rising Costs”

Ram continued.

“These plans typically give 4 to ~6% return over 20–25 years.”

Rita said,
“But that’s stable. No ups and downs.”

Ram smiled.
“So is your old PPF passbook.”

Then he asked:
“Do you remember what petrol cost 15 years ago?”

Rita laughed.
“₹50 per litre?”

“And now?” Ram asked.

“₹100+.”

Ram paused.

“If expenses double every 12–15 years, can a 5% return handle retirement for 25–30 years?”

Rita went quiet.

“The Harsh Retirement Math We Ignore”

Ram scribbled numbers.

“You invest:

₹1 lakh per year
For 25 years
Total: ₹25 lakh”

“At retirement, you’ll have around ₹45–50 lakhs.”

Rita did a quick mental calculation.

“That’s barely:

Two medical emergencies
One major hospitalisation
And household expenses for a few years”

Ram nodded.

“And remember—there’s:

No salary hikes
No Diwali bonus
No company medical cover anymore”

That hit hard.

“Why We Love Guarantees (And Why It Hurts)”

Ram leaned forward.

“Indians love guarantees because:

Our parents trusted LIC
Fixed deposits felt safe
Markets scared us”

He paused.

“But safety without growth works only when:

Life expectancy was lower
Expenses were predictable
Families were joint”

“Today,” Ram said,
“you may live till 85–90, with rising healthcare costs and nuclear family support.”

Guarantees, suddenly, didn’t feel so comforting.

“Same Salary, Smarter Allocation”

“Now let’s rework this like a middle-class budget,” Ram said.

Term insurance

₹1 crore cover
Costs roughly the same as one family dinner out per month

Mutual fund SIP for retirement

Monthly SIP adjusted to your salary cycle
Increase SIP when appraisal happens
Equity does the long-term heavy lifting

“Same discipline. Same monthly deduction,” Ram explained.
“Different destination.”

Result?

“About ₹1.5 crore in 25 years.”

Rita blinked.

“That’s a retirement I can actually imagine,” she said.
“Medical, travel, dignity.”

“The Moment of Clarity”

Rita closed the insurance brochure.

“So this plan wasn’t bad,” she said slowly.
“It just wasn’t meant for retirement.”

Ram nodded.

“Insurance plans are like umbrellas.
Great when it rains.”

“But retirement,” he added,
“is a long road trip. You need a strong engine, not just protection.”

Rita smiled.

“I wanted peace of mind,” she said.
“But I also want peace in my 60s and 70s.”

Ram smiled back.

“That’s when retirement planning truly begins.”

“A Thought for Every Salaried Person”

Retirement is not about avoiding market volatility.

It’s about avoiding dependency.

Plan accordingly.

The Lazy Investor’s Dream: 3 Years of Effort leading to Lifetime Pension

How Rohan Built a Lifetime ₹21,000 Monthly Income by Investing for Just 3 Years

Rohan was 30 when he realised something important: “I don’t need to invest forever. I just need to invest consistently for a short time… and then let time do the heavy lifting.”

But life wasn’t giving him a 20-year runway of regular savings.

He had a wedding coming up, a home loan on the horizon, and the usual chaos that shows up in everyone’s early 30s. He knew he could not invest long-term. But he also knew he must do something.

So he made a simple plan:
Invest for 3 years.
Wait for 20 years.

That was it.

Illustration 1: Rohan’s 3-Year Investment Phase (Age 30–33)

Monthly SIP: ₹25,000

Duration: 36 months

Growth Rate: 6% per annum (conservative)

Total invested: ₹25,000 × 36 = ₹9,00,000

Value at end of 3 years: ₹9.83 lakh

He didn’t try to chase big returns. He just stayed consistent. And after 36 months, he stopped. Completely !

Illustration 2: The Waiting Years (Age 33–50)

Rohan invested nothing after age 33.

He simply kept his ₹9.83 lakh invested and let it grow silently.

Compounding Duration: 17 years and the value after 17 years ₹62.54 lakh

No extra investment.
No extra effort.
Just time + compounding.

Illustration 3: Rohan’s Lifetime Income Plan (Age 50 onwards)

At 50, Rohan did one simple thing: He shifted the ₹62.54 lakh to a Conservative Hybrid Mutual Fund and set up an SWP (Systematic Withdrawal Plan).

Withdrawal Strategy:

Withdraw 4% per year
Stay within a safe, lifelong withdrawal limit
Keep the remaining corpus invested so it sustains forever

4% of 62.54 lakh = ₹2.50 lakh/year

That is ~₹21,000 per month — for life. This ₹21,000/month becomes his personal pension.

A pension he created by investing only for 3 years.

Rohan’s Biggest Realisation : While reflecting on his journey, he told his friend: “I didn’t build wealth by investing for 20 years. I built wealth by waiting for 20 years.” Most people believe wealth creation demands long-term investing, big money, or endless discipline.

Rohan proved otherwise:

Focus hard for 3 years

Do nothing for 17 years

Enjoy income for life

That’s the quiet magic of compounding.

Tax-Saving GPS: How Incentives Guide Us to Financial Security

Amit: Hey Riya, I was reading about the debate on whether tax incentives are necessary for savings. Some say they help build habits, while others feel they’re just a way for the government to manipulate financial choices. What do you think?

Riya: Great question! Let me put it this way—have you ever used Google Maps while driving?

Amit: Of course! It helps me avoid wrong turns and gets me to my destination efficiently.

Riya: Exactly! Think of tax-saving investments as a GPS for your finances. When you start earning, there are so many tempting “wrong turns”—gadgets, vacations, luxury expenses. Without a guiding system, many people would just spend, thinking they’ll save “someday.”

Amit: That makes sense. So, tax-saving schemes like ELSS or PPF act as the GPS that nudges people in the right direction?

Riya: Yes! In the beginning, people invest in tax-saving instruments just for the short-term benefit—like following a GPS only because they don’t know the route. But over time, they realize the real power of these investments, just like how regular drivers eventually memorize the best routes.

Amit: But what about people who already know how to save? Do they really need tax benefits?

Riya: That’s like saying experienced drivers don’t need road signs. Sure, they might not rely on them as much, but signs still help guide traffic, maintain discipline, and prevent chaos. Similarly, tax incentives help a huge middle group—the “fence-sitters”—who might otherwise delay or avoid saving.

Amit: I get it now! And the lock-in period in tax-saving investments is like being forced to take a slightly longer but safer road, ensuring you don’t take an impulsive shortcut.

Riya: Exactly! You stay invested long enough to see the magic of compounding, get comfortable with market ups and downs, and develop long-term investing habits. What started as a tax-saving move turns into a habit—just like how using a GPS initially leads you to discover better routes, even without guidance later on.

Amit: That’s a great way to look at it! But with the new tax regime, where incentives are being reduced, won’t this GPS be taken away?

Riya: That’s the challenge. While a simplified tax system is good, we need to find new ways to nudge people towards saving. Maybe we need a different kind of “financial GPS” that works without tax benefits but still encourages good habits.

Amit: Makes sense! Just like how cars now have built-in navigation systems, maybe financial planning should become second nature without needing tax incentives.

Riya: Exactly! The goal isn’t to force people to save, but to make it easier for them to take the right path. A little guidance at the start can lead to a lifetime of good financial decisions.

Amit: Got it! From now on, I’ll think of tax-saving investments as my financial GPS—helping me stay on track towards long-term wealth.

Learn to Break from the EMI Trap: An alternative Approach that can save you a LOT!

Rita: Hi Mohan, I need some advice. Every month, my salary gets credited in the last week, and within hours, most of it disappears into EMIs. I feel like I’m stuck in this vicious circle. With the festive season approaching, the offers are so tempting, but I’m worried I might overborrow again.

Mohan: I hear you, Rita. This time of the year is designed to make spending irresistible. The EMI culture makes it even easier to fall into the trap. Have you thought about how these EMIs are affecting your financial health?

Rita: I know the interest rates are high—somewhere around 12-20%. But when I see those “pay just Rs. 3,000 a month” deals, they seem manageable. It’s only later that I realize how much extra I end up paying.

Mohan: That’s exactly how they get you in the debt trap. Most people focus on the affordability of the monthly payment, not the total cost. But what if I told you there’s a way to avoid this EMI trap altogether? There’s a way out

Rita: Avoid EMIs? How? I thought they’re the only way to afford big-ticket purchases.

Mohan: Not at all! You can create a ‘Corpus’ fund. It’s simple—you set up an SIP in a short-term mutual fund with the same amount you’d typically pay as an EMI. Let that fund grow, and when you’ve saved enough, use that money to make your purchase outrightly. Don’t wait for the festival times.

Rita: Hmm, that sounds interesting. But how is it better than just buying on EMI?

Mohan: Think of it this way: With an EMI, you’re paying an interest rangig from say 12-20%, which means your purchase costs significantly more over time. With a Corpus build up, instead of paying interest, you earn returns—in the range of 6-8% since you are investing with debt funds for a period ranging from 6 months to 18 months max.

Rita: That’s a good point. But what if I want something immediately? Waiting for my fund to grow might not be feasible.

Mohan: Fair concern, but this approach will gradually teach you to keep your patience and financial discipline. If you really can’t wait, you can use part of your savings as a buffer. Over time, the habit will pay off. Also, if you save consistently, you’ll eventually have money ready for future purchases.

Rita: I like this idea. It’s like paying myself instead of the lender. But how do I start?

Mohan: Pick a short-term mutual fund suitable for your needs. Start an SIP with the same amount as your typical EMI. Think of this fund as your expenditure fund, not savings. Use it only when the balance is enough for your desired purchase.

Rita: Makes sense. I can also show this concept to my kids—it’s a great way to teach them financial responsibility. Maybe I’ll even use it to buy them something better in the future.

Mohan: That’s an excellent idea, Rita! It’s a practical demonstration of how patience and time can help you grow your money. Once you see the results, I’m sure you’ll never want to go back to the traditional EMI culture.

Rita: Thanks, Mohan. I feel like this is the mindset shift I needed.

Mohan: Great decision, Rita! Your future self will thank you. And who knows, maybe by next festival times, your fund will be ready for something bigger and better.