Withdrawal rate
Risk & psychologyThe percentage of a corpus drawn each year, usually adjusted for inflation.
In plain terms
The famous 4% comes from US data. Indian inflation has run higher, so be more conservative.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Financial independence
Risk & psychologyHolding enough capital that work becomes optional.
In plain terms
Annual spending divided by a safe withdrawal rate. A number you can check, not a feeling.
Longevity risk
Risk & psychologyThe risk of outliving your money.
In plain terms
You do not know whether the corpus must last twenty-five years or forty, which is why withdrawal rates are conservative.