HOW SHOULD A MARINER PLAN EXPENSES SAVINGS & INVESTMENTS

What is a good way of SWP… Assuming i just signed off and will spend 8 lakh rupees in next 4 months of holidays..? I dont want to keep this 8 lakhs in my bank?

  HOW SHOULD A MARINER PLAN EXPENSES SAVINGS & INVESTMENTS  

 

 Suppose you start earning your  salary of $100 for 6 months a year ( means $50 a month). as agreed before you start investing 17.5 a month in equity mutual funds as a mark of respect to the income tax that you are not paying. From the remaining takeout double the monthly expenditure ( say $20) and either put it in your wife's saving account or your nre savings. After the month is over or even during it let the remaining amount from this get invested in mutual funds, ppf , ssy in your wife's name. Remaining 12.5$ a month will go either to your nre FD. Make variable  FDs of small amounts like $5  for periods like 12 months ,13 months, 14,15 months etc. ( You can multiply this$100 with whatever number of times your monthly salary is). After 2-3 years your every salary will only go for investment and NRE FD for future expenses. After 3 years of continuous FD building your interest roll over will be able to take care of expenses.  Since there is a difference in talking in percentage terms and actual sum , I'm sure you will be able to adjust your salary to this cyclical self sustaining outlay. There is a caution here... Moment you plan to become a resident for whatever reason start putting money away in Debt MFs also. As a resident the FD will become tax inefficient age debt funds will be able to generate the compounding effect better. Because of the deffered nature of capital gains on your Debt funds over  interest on FDs,  the advantage will actually become amplified. The way debt funds gain advantage is... Liquid funds give better returns than FDs upto 6 months Ultra short term debt funds give better returns than FD upto 1 year duration  Short term DFs give better returns than Fd of 18-24 months duration..  Gilt funds give better returns than FD of 5 year or more duration.  I personally have a varied structure of debt funds invested in upto 23% of the Corpus value. They're difficult to select and same debt funds may not perform best under all conditions. But they're better because all of it was invested earlier than 01-04-2023 when the new tax laws came into existence. So choose wisely from the gamut. Send me a personal query since each one of this has a different situation.