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Celebrate Father's Day by Creating an Income Stream for Your Father with SWP

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For a working professional, it is quite challenging to plan & manage their financial goals. Every child wants to help their parent & for this they have to plan for their own financial goals as well as short term financial objective to help their family. Key objective of a long term investment is only capital appreciation contrary to this; income is the utmost financial requirement of a senior citizen parent. If you’re serious about helping your parent then with the Father’s day approaching, you should plan to create an income stream for your father to will provide him confidence at this stage of life.

What is a Systematic Withdrawal Plan?

Systematic Withdrawal Plan is a smart investment solution and is commonly used for retirement. It is a good approach for an investor to build strong financial wealth even after retirement along with generating regular income. Investor is free to use SWPs for fulfilling different payout needs by just making a regular investment in his or her preferable mutual fund scheme. For a retiree, SWP is not only a good source of generating regular income but also such schemes are highly tax efficient for them. Investors just need to instruct his financial planner or fund manger to redeem a fixed amount on a particular date (of your choice) on a monthly basis to fulfil financial necessities.

Browse Top Performing SWPs Plan here

How to Plan for a SWP?

To make a proactive plan for systematic withdrawals, investors can utilize the tools like standard retirement calculators or SWP calculators. These calculators will help investors to determine the requisite amount which they think will be sufficient to cover their withdrawal requirements. With such tools, one can easily calculate growth and returns by considering parameters like retirement savings income allocation, age, annual salary, social security estimates, expected annual ROI & retirement income needs. With the help of a SWP calculator, investors will be able to determine how much amount will be sufficient for a secure future.

Setting up a Systematic Wealth Plan

Setting up a SWP usually takes some extra time than choosing any relevant mutual fund scheme. It will help investors to efficiently receive income cash flows. SWPs have provisions for investors to determine different distribution schedules like monthly quarterly, half-yearly and yearly. As these plans are regulated by the Internal Revenue Service i.e. IRS guidelines therefore the retirement investment account of an investors here needs additional due diligence than traditional retirement plan account.

To know about the SWPs with Annual Increase click here

How SWP can create cash flow for your father?

Systematic Withdrawal Plan is a smart approach to invest your money in a mutual fund scheme of your choice with a provision of redeeming a pre-defined amount regularly. Using this scheme, you can easily create a strong cash flow for your father using two options viz fixed amount SWP and SWP up to the amount of capital appreciation. As SWP works on a substantial corpus hence to get a larger financial corpus to maximize your benefit and paybacks, you can create attractive cash flow for your father by investing in a SIP. Following example will make this clearer to you:

Suppose you invest Rs 30,000 per month in a diversified equity mutual fund for 10 years assuming 15% rate of return. Such regular investment will facilitate your facilitate your father to accumulate a strong corpus of Rs 83.59 lakh. Not only this, such investment will give him a provision to withdraw Rs 40,000 per month for a sustained period.

If you’re uncomfortable with such high monthly SIP then you can also choose a SWP having Rs 5000 monthly SIP in diversified equity mutual fund for 10 years at 15 % rate of return. Such regular investment will also generate a corpus of approximately 13.5 Lakh for your father after 10 years and he will also able to withdraw decent sum monthly realizing higher benefits or pay checks.

Read More about How SWP from Balanced Mutual Funds can get you income and capital appreciation


Systematic Wealth Plan is really an effective and ideal give away gift to express your love towards your father for his dedication and hardship. As a senior citizen, your father or parent only requires your love and reassurance. By creating an income stream for him, which is free from factors like inflation dynamics and interest rate, you’ll definitely delight your Father on this Father’s day. So, choose a wise SWP for your father now by discussing it with your financial advisor now!

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Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.

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