First, a hard truth (important)

With ₹22 lakh, it is NOT possible to fully fund 35 years of retirement alone with inflation-adjusted income unless:

• Withdrawal starts very small, and

• Equity bucket is protected from early withdrawals, and

• You accept that this corpus is a supporting income, not full retirement income.

So the goal here is:

Never-ending corpus in nominal terms + lifelong support income

Bucket Strategy (Correct Order)

Your idea is correct, but the time gap matters more than the amount.

Bucket 1 → Liquid Fund

Purpose: Income + shock absorber
Time horizon: First 6–7 years

Bucket 2 → Balanced Advantage Fund

Purpose: Medium-term income + moderate growth
Time horizon: Next 10–12 years

Bucket 3 → Multi Cap Fund

Purpose: Long-term compounding + legacy
Time horizon: No SWP for at least 15–18 years

Allocation of ₹22 Lakh (Age 60)

This allocation is deliberately equity-heavy, because longevity risk is bigger than market risk.

Expected Returns (Conservative)

• Liquid fund: 4%

• Balanced advantage: 8%

• Multi cap: 11%

Inflation assumed: 5%

SWP DESIGN (This is the key)

Year 1 Monthly SWP (Age 60)

Start low.

👉 ₹6,000 per month (₹72,000/year)

This is only 3.3% of corpus — safe.

Bucket-wise Withdrawal Plan

Bucket 1: Liquid Fund (Age 60–67)

• Amount: ₹4.5 lakh

• SWP: ₹6,000/month

• Duration: ~6.5 years

• Liquid fund will mostly get exhausted
  ✅ That’s okay — it did its job

During this time:

• Balanced + Multi cap are growing untouched

Bucket 2: Balanced Advantage (Age 67–79)

Expected value at age 67:

• ₹7.5L growing at 8% ≈ ₹12 lakh

SWP starts at ₹9,000/month (inflation adjusted)

Duration: ~12 years
Balanced fund may reduce but won’t die early because part equity keeps refilling.

Bucket 3: Multi Cap Fund (Age 79 onward)

Expected value at age 79:

• ₹10L at 11% for 19 years ≈ ₹70–75 lakh

Now you start SWP:

• Initial SWP: ₹18,000–20,000/month

• Withdrawal rate: ~3–3.5%

Even after SWP:

• Equity growth > withdrawal + inflation
  ✅ Corpus survives till 95+
  ✅ High probability of legacy left behind

Why This Never-Ending Model Works

1. Time arbitrage

   • Equity gets 15–20 years uninterrupted

2. Rising income

   • ₹6k → ₹9k → ₹20k (inflation adjusted)

3. Withdrawal rate discipline

   • Never crosses 4%

4. Bucket insulation

   • Market crashes never affect income bucket immediately

Inflation Reality Check

At 5% inflation:

• ₹6,000 today ≈ ₹18,000 at age 79

• Multi cap bucket is the only engine capable of beating this

What Will Break This Plan (Be careful)

❌ Starting SWP from equity too early
❌ Increasing SWP faster than inflation
❌ Panic redemption during market crashes
❌ Treating ₹22 lakh as full retirement solution

How to Make This Even Stronger (Optional but Powerful)

If you add:

• ₹5,000/month SIP into Multi cap till age 65
  OR

• One property rent
  OR

• Small annuity only for fixed expenses

This model becomes bulletproof.

Final One-Line Summary

Liquid fund buys time, Balanced fund buys stability, Multi cap buys immortality for your money.

Now let’s stress-test this bucket SWP plan brutally, not politely.

We’ll test what can go wrong and whether your corpus still survives till age 95, with ₹22 lakh, 5% inflation, and real-world shocks.

STRESS TEST FRAMEWORK

We will test 4 worst-case scenarios:

1. Early market crash (sequence risk)

2. Prolonged low returns

3. High inflation phase

4. Living longer than expected (95 → 100)

I’ll keep math rounded but realistic.

BASE PLAN (for reference)

Initial SWP: ₹6,000/month, inflation-adjusted
Withdrawal rate kept below 4%

🔥 STRESS TEST 1: EARLY MARKET CRASH (MOST DANGEROUS)

Scenario

• Age 60–63

• Equity markets fall 40%

• Balanced advantage gives 0% return for 3 years

• Multi cap gives 2% CAGR for 5 years

What happens?

✅ Income unaffected because:

• SWP comes from Liquid fund

• No equity selling during crash

Impact on corpus at age 67

• Liquid fund → exhausted (planned)

• Balanced fund ≈ ₹8.5–9 lakh (instead of ₹12L)

• Multi cap ≈ ₹12–13 lakh (instead of ₹17L)

👉 Damage = delay, not death

Why?
Because equity wasn’t touched during crash.

🟢 Plan survives

🔥 STRESS TEST 2: PROLONGED LOW RETURNS (DECADE OF PAIN)

Scenario

• Balanced advantage: 5% for 12 years

• Multi cap: 7% for 20 years

• Inflation still 5%

This is Japan-style stagnation.

Corpus at age 79

SWP at age 79:

• ₹15,000–17,000/month

Withdrawal rate ≈ 4.2%

⚠️ Slightly high, but survivable because:

• You start reducing SWP growth

• Corpus lasts till 92–95

🟡 Plan survives with discipline
🟥 No luxury increases allowed

🔥 STRESS TEST 3: HIGH INFLATION (7% FOR 10 YEARS)

Scenario

• Inflation spikes to 7% between age 65–75

• Returns unchanged

Effect on income

• ₹6,000 → ₹11,800 (instead of ₹10,700)

• Extra pressure on Balanced fund

Result

• Balanced fund exhausts 2–3 years earlier

• Multi cap SWP starts at age 76 instead of 79

But…

Multi cap value at 76:

• ~₹55–60 lakh

SWP:

• ₹18,000/month

• Withdrawal rate ≈ 3.6%

🟢 Plan survives
🟢 Legacy still possible

🔥 STRESS TEST 4: YOU LIVE TILL 100 (THE REAL RISK)

Let’s push it.

Age 95 corpus (normal conditions)

• Multi cap still has ₹25–35 lakh

Age 100 (5 more years of SWP)

• Monthly SWP ≈ ₹30,000

• Corpus ≈ ₹10–15 lakh

🟢 Money doesn’t die
🟢 Income reduces slowly, not suddenly

This is the definition of longevity protection.

WORST-CASE COMBINED SCENARIO (ULTRA STRESS)

• Crash in first 3 years

• 10 years low returns

• 7% inflation

• Life till 100

Result?

❌ Income growth slows
❌ No big legacy

BUT…

✅ Corpus does NOT hit zero before age 90
✅ After 90, controlled withdrawals still possible

This is success, not failure.

WHAT MAKES THIS PLAN UNBREAKABLE

1️⃣ Withdrawal discipline

Never cross 4% real withdrawal

2️⃣ Bucket isolation

Income bucket never touches equity in bad years

3️⃣ Late equity harvesting

Multi cap allowed 15–20 years of compounding

4️⃣ Human flexibility

Reduce SWP increase by 1–2% during bad decades

Retirement success is behavioural, not mathematical.

SIMPLE RULES TO FOLLOW IN REAL LIFE

✔ Increase SWP only once a year
✔ Skip SWP hike during market crashes
✔ Refill liquid bucket every 5–7 years from gains
✔ Never redeem multi cap in bear markets

FINAL VERDICT (HONEST)

With ₹22 lakh, this plan cannot create luxury retirement,
but it can create dignity, predictability, and longevity protection.