Retirement & FIRE Planner

Based on the Trinity Study, a retiree can safely withdraw 4% of their initial retirement portfolio in the first year, and adjust that amount for inflation every subsequent year, with a near-zero probability of running out of money over a 30-year retirement.

To implement this, your target corpus must be exactly 25 times your annual retirement expenses. If your retirement annual expense is ₹12 Lakhs, you need:\[\text{Corpus} = \text{₹12L} \times 25 = \text{₹3 Crore}\]

* Lowering the withdrawal rate (e.g. 3.25%) reduces risk if you plan to retire early (FIRE) and need the corpus to last 40+ years.

This is the risk that market returns are negative in the early years of your retirement.

If the stock market crashes right after you retire and you are forced to sell shares when prices are depressed to fund your living expenses, your portfolio will deplete much faster than if the crash occurred late in retirement.

Mitigation Strategy: Implement a **bucket strategy** or keep 3–5 years of retirement cash needs in liquid debt instruments, letting your equity bucket compound undisturbed during downturns.