Two retirees, Rs 2 crore each, yet one runs out of money early. CA explains why
Even though both saw the same average return of 10% and had identical withdrawal plans, the order of returns made a huge difference. That's sequencing risk in action.So, how can retirees protect themselves? Walia suggests, 'Keep 2–3 years of expenses in safe debt or liquid funds before retirement, follow a bucket plan: short-term needs in debt, long-term growth in equity and adjust withdrawals in bad years instead of sticking to a fixed number.'advertisementHe concluded his post by saying, 'Retirement planning isn't just about how much you save. It's about making sure your money survives the bad years that come too soon.' - Ends
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
a few seconds ago
- Economic Times
From Balakot to Sindoor: Inside the operations that made terror camps fair game
Synopsis In just over a decade, India has rewritten its security playbook. The Modi government has doubled defence spending, pushed homegrown production, and turned India into a global exporter. Operations from Balakot to Sindoor have shown that terror will be met with force. At home, extremism is fading, and self-reliance has spread across food, finance, and technology. The picture that emerges is of a country less reactive, more assertive, and determined to protect its sovereignty on every front. TIL Creatives Representative AI Image The strikes on Balakot in 2019 marked a clear shift. They followed the Pulwama attack, where forty CRPF personnel were killed. For the first time, Indian jets crossed deep into Pakistani territory to destroy a terrorist training camp. That operation set the stage for a bolder security doctrine. Six years later came Operation Sindoor. In May 2025, after civilians were murdered in Pahalgam, India's armed forces launched precision strikes. Drone and missile attacks destroyed nine terror camps in Pakistan and Pakistan-occupied Kashmir, killing over a hundred terrorists. Among them were figures tied to the Pulwama bombing and the 1999 IC-814 hijacking. Pakistan's retaliation faltered, its drones and missiles shot down by Indian counter-systems. From the Red Fort that August, Prime Minister Modi called it 'a new normal,' signalling to the world that India would not hesitate again. PM Modi has since laid out five unambiguous lines: Every terror attack will be answered decisively. Nuclear blackmail has no sway. Terrorists and their sponsors are treated as one. Talks, if ever, will only be about terrorism or Pakistan-occupied Kashmir. 'Terror and talks cannot go together, terror and trade cannot go together, and blood and water cannot flow together.'These words, repeated at rallies and addresses, frame a doctrine that mixes clarity with deterrence. Behind these actions stands a broader transformation. Defence spending rose from Rs 2.53 lakh crore in 2013–14 to Rs 6.81 lakh crore in 2025–26. Domestic production, once negligible, reached Rs 1.50 lakh crore in 2024–25, three times higher than a decade earlier. Today, fighter aircraft, artillery, missile systems, warships, and even aircraft carriers are designed and built in India. Defence exports touched Rs 23,622 crore in 2024–25, reaching over a hundred nations, including the United States, France, and slogan of Atmanirbharta 'self-reliance' has been backed by policy. The Defence Acquisition Procedure of 2020 placed Indian design and manufacturing at the top of the order. The Make categories offered state support for prototypes and opened the field to start-ups and MSMEs. One hundred and forty-six projects have been cleared across the services. Foreign investment rules were relaxed, allowing 74 percent automatic investment and up to full ownership with approval in advanced and joint ventures were encouraged too. The Offset Portal tracks commitments by foreign firms. The Strategic Partnership Model has paired Indian companies with global manufacturers. In 2019, an agreement with Russia allowed local production of spares, cutting delays and ahead will not be fought the way they once were. Anticipating this, the government created the Defence AI Council and the Defence AI Project Agency. Each public-sector defence unit now has its own AI roadmap. The Defence Research and Development Organisation (DRDO) has identified nine thrust areas, including cyber security, robotics, soldier support, and space Sudarshan Chakra Mission, launched in 2025, aims to deliver a full-spectrum national security shield by 2035. Its focus: predictive technologies, precision responses, and indigenous systems that defend both the battlefield and civilian security tells another part of the story. Left-Wing Extremism once scarred large swathes of central India. Now, fewer than twenty districts remain affected. Over 8,000 Naxalites gave up arms in the past decade. The toll of violence shrank from 1,936 incidents in 2010 to just 374 in 2024, with civilian and security force deaths falling by 85 percent. New roads, schools, communication links, and welfare schemes helped weaken the insurgency's grip alongside security is not limited to the armed forces. Food production rose from 246 million tonnes in 2013–14 to nearly 354 million tonnes in 2024–25. Farmers have received more than Rs 3.9 lakh crore under PM-KISAN. India now produces a quarter of the world's milk and has doubled its fish output since inclusion has expanded dramatically. By March 2025, the RBI's Financial Inclusion Index stood at 67.0, up almost a quarter since 2021. Through the Jan Dhan Yojana, 56 crore people opened accounts worth Rs 2.64 lakh crore. Women make up more than half of these account holders. The World Bank estimates that 89 percent of Indians now have a bank too, has been pulled into the fold. The Rs 76,000 crore semiconductor mission announced in 2021 bore fruit with the launch of 3-nanometre chip design centres in Noida and Bengaluru. By 2025, India's first indigenous chip was ready for together, these strands form a coherent picture. India today is less willing to wait and more ready to act. Its security is rooted in homegrown capacity, decisive leadership, and a refusal to bow to threats. From Balakot to Sindoor, from food fields to chip foundries, the story is of a nation seeking control over its future rather than reliance on others. A decade on, the change is not just in numbers or hardware but in confidence.
India.com
a few seconds ago
- India.com
Tech Showdown: Best 5G Smartphone Under Rs 25,000 – Realme P4 vs Redmi 15; Camera, Battery, Display, Design And AI Features Compared
2 / 3 The Realme P4 5G starts at Rs 18,499 for the 6GB + 128GB model, Rs 19,499 for the 8GB + 128GB variant, and Rs 21,499 for the 8GB + 256GB version. The smartphone sale begin on August 25 via Realme India's website, Flipkart, and retail stores. Meanwhile, the Redmi 15 5G is more affordable, starting at Rs 14,999 for the 6GB + 128GB model, Rs 15,999 for the 8GB + 128GB variant, and Rs 16,999 for the 8GB + 256GB version. The phone will be available from August 28 via Amazon, Xiaomi India's website, and offline outlets in the country.
NDTV
a few seconds ago
- NDTV
Centre Proposes Exempting Insurance Premium From GST: Samrat Choudhary
New Delhi: The Centre has proposed exempting life and health insurance premium from GST, Bihar Deputy Chief Minister and convenor of insurance GoM Samrat Choudhary said on Wednesday. Currently, health and life insurance premium attracts 18 per cent GST. The Group of Ministers (GoM) on life and health insurance will submit its report to the GST Council. The report will also include views and concerns expressed by some state finance ministers, he said. "The Centre's proposal is clear that the insurance sector's individual and family (policies) should be exempt from GST. This has been discussed and the GoM report will be presented to the Council," Choudhary told reporters here after the meeting of the GoM. "All members have given their approval for lowering rates. Some states have given their own views," he said, adding a final call on rates will be taken by the Council. Choudhary is the convenor of the 13-member state GoM on health and life insurance. The Centre's proposal on insurance is part of the overall next-Gen GST reform proposal under which goods and services tax will be levied at 2 rates-- 5 and 18 per cent -- based on categorisation of products as merit and standard. The 13-member GoM on health and life insurance was set up in September to suggest tax rates. The panel, which includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana, has been mandated to submit its report to the GST Council by October end. In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health insurance premium, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium.
