SWP to make regular income from investments? SWP With Live Demo | Earn & Make Money at same time

A systematic withdrawal plan (SWP) is an investment strategy where an investor withdraws a predetermined amount of money at regular intervals from their investment portfolio. Here are the details, pros, and cons of a systematic withdrawal plan:

0:00 Introduction
1:19 How it works?
3:48 Live Demo
5:39 SIP vs SWP
6:37 Right SWP Amount
9:52 Advantages
10:23 Risks and things to consider

Details:

1. Regular Withdrawals: With an SWP, investors can choose the frequency and amount of withdrawals they wish to make from their investment portfolio. Common intervals include monthly, quarterly, or annually.
2. Flexibility: Investors have the flexibility to adjust the withdrawal amount or frequency based on their financial needs and market conditions.
3. Investment Portfolio: SWPs are typically set up using mutual funds, exchange-traded funds (ETFs), or other investment vehicles. The withdrawals are made from the accumulated funds within the investment portfolio.

Pros:

1. Regular Income: SWPs provide investors with a steady stream of income, making them suitable for retirees or individuals seeking regular cash flow from their investments.
2. Discipline: By establishing a systematic withdrawal plan, investors can maintain financial discipline and avoid impulsive or emotional decisions regarding their withdrawals.
3. Potential Tax Benefits: Depending on the investment vehicle and holding period, withdrawals from certain investment accounts may be subject to favorable tax treatment, such as capital gains tax rates.
4. Rupee-Cost Averaging: If withdrawals are made during market downturns, investors may benefit from rupee-cost averaging, purchasing more units of an investment at lower prices.

Cons:

1. Market Risk: SWPs are subject to market fluctuations, and prolonged bear markets or poor investment performance can deplete the investment portfolio more quickly than anticipated.
2. Risk of Outliving Savings: If the withdrawal rate is too high or if investment returns are lower than expected, there is a risk that investors may outlive their savings, especially in retirement.
3. Transaction Costs: Depending on the investment vehicle and brokerage fees, frequent withdrawals through SWPs may incur transaction costs, reducing overall returns.
4. Inflexibility in Market Timing: Unlike lump-sum withdrawals, SWPs may not allow investors to time the market or take advantage of potential investment opportunities during market upswings.

In summary, a systematic withdrawal plan can provide investors with a reliable income stream and financial discipline but carries risks such as market volatility and potential depletion of savings. It’s essential for investors to carefully consider their financial goals, risk tolerance, and investment strategy before implementing an SWP. Consulting with a financial advisor can also help in designing an SWP tailored to individual needs and circumstances.

SWP in Tamil
SWP for Monthly Income
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[jayashreevenkatakrishnan]

Now I m 35.. I have a feeling why
I was not thought about these investments in my young age. Being a home maker if I had known this I would have a decent saving by now.
Better late than never. I m sure I will teach my kids about investments in a very young age.

[arunramnathan]

As usual very well and clear explanation for SWP.
Thanks Boosan..!!!
New look and style 😜

[SubhashA-uq]

Best option for retirement planning is split the corpus to 40-60 (assuming you are 60 years) put 60% in fixed income securities(debt mutual funds or bonds) and 40 % in large cap and balanced mutual funds (safer than multicap and small cap etc)
Whenever you need money, manually redeem from these funds based on market conditions. SWP is good, but you need to take care of the corpus if market falls and monitor fund performance because it’s automated and sometimes we don’t care to look at it.
Having 50-60% in debt mutual funds or even FDs protects your corpus during market falls( especially if you are senior citizens) It also gives you buying opportunities during such scenarios.

If you have dhilliku dhudu then put all your money in equities but later you should not cry when market falls. New Gen investors and traders haven’t seen what a bear market looks like. If market falls, it will bleed and hurt a 😢

[muralidharan.m]

Today I learnt a new thing in investment 🎉 thankyou bro ❤

[rameshts]

Thanks Boosan !!! Though I know what SWP is... I never gave it a serious thought, up until seeing this video. All your videos are good.

[karuppasamym]

Unique content with extraordinary explaination ❤

[valliappana]

Good explanation of SWP concepts with live examples. Keep it up

[johnsonpm]

Bro your videos are very informative and useful, infact I started my investment journey after watching your videos, thank you so much for sharing your knowledge. Keep educating people,
God bless you and your family..!!!

[karpagamm]

I have learnt a very new concept today. Thanks for your very useful insight

[gokuinstinct]

Actually I'm the one asked this question in Instagram. Thank you for posting

[imax._]

Well explained bro. The Pros and Cons was very useful. Thank you.

[r.a.t.sinpathology]

A fantastic professional explanation in the local vernacular. Helps us organize. Thank you.

[vignesh.e]

புதிய தகவல்களுக்கு, நன்றி boosan bro ❤😇🤟👍

[Nantha_Mahi]

2 Crore Kaasu Serkanum... Apram SWP la 1 Cr.... FD monthly Payout la 1 Cr... Nimmathiyaa Family kooda vaazhanum

[PrasanthNagarajan-rp]

Hi bro . Nice information. But, The problem with SWP is withdrawing as the actual amount . Because in the initial period of your SWP, if the NAV goes down because of volatility, then more units have to be sold for the same required amount, so the corpus can run out soon than expected, the averaging might not work . There is difference between facing a market downturn in the initial period of SWP rather than the end period of SWP . I feel it could be better to set a SWP based on the number of NAV to be sold every month which will leave you in a better position. It’s a psychological thing, whether you are able to accept a volatile corpus or a volatile cash flow every month .

[sheikfaridjailani]

Thanks for the wonderful explanation. I am your subscriber and I follow all ur videos. I have a request if you don't mind can you do a video on how to identify shariah complaints stocks.
1. Shariah complaints stocks
2. Mutual funds
3. Bees
And any other way of investing for people like me who follow shariah complaints I am already investing in Tata ethical mutual fund please help

[azeezmubarakonline]

Bro your voice is equal to actor vishal
And your video is also Good 👍

[MyRacistNation]

60 lakh invested in real estate, that gives atleast 20k return every month rental for like 20 years and value of the property will go atleast 2 folds if you want to sell it then.

[yuvraj]

First time learning this thanks for sharing it bro🙂

[gopiaug]

When is the right to invest in SWP.. now it's a bull market, does that yield good returns ? Also which funds to invest for swp..