Can your retirement corpus survive a 50% market fall? For most people, No. Especially if it hits the year they retire. Here’s what to do. 👇 Before retirement, a crash barely matters. You’re earning and buying cheap. After retirement, with no salary and everything in equity, the same crash can be a wound that never heals. You’re now selling units to live, at the worst possible time. Imagine the worst case. You just retired, everything is in equity and the market falls 50%. Here’s what I’d do, in order: 1️⃣Do not rush to fix your allocation. Moving to three buckets now means selling equity at 50% down and creating a fixed income bucket when markets have already corrected 50% 2️⃣Cut your withdrawal rate immediately. Keep withdrawing the originally planned amount after a 50% market fall will result in you outliving your corpus.. 3️⃣Add income. A part time job, freelancing or consulting. Anything that covers some part of the expenses resulting in lesser withdrawals from the corpus. 4️⃣Freeze discretionary spending. Trips, upgrades, big buys, pause them till markets recover. 5️⃣Once recovered, realign to the three buckets strategy: cash for the near term, auto rebalancing funds for the medium, equity for the long. The real lesson is simpler. Never let your entire retirement sit in equity. Not because equity is bad, but because you cannot choose when the crash arrives. The three bucket strategy is not about returns. It’s about never being forced to sell low. For more such content, follow @stepbystep888 . Mutual Fund investments are subject to market risk. ARN-285284, Holistic Prime Wealth Pvt Ltd. AMFI Registered Mutual Fund Distributor.

I know someone, he is a full time, small smugller, selling fancy alcohol across India. He mostly travells by road. 😜🤓