Projected Cost of Living
(Assuming 6% inflation rate)
Let us take the cost of living in your twenties and assuming 6% inflation, you will need around Rs.4-5 lakhs per month in your 60s, if your current cost of living is Rs.50,000/- per month
Value of ₹ Lakh over a Time
(Assuming 6% inflation rate)
Money's value diminishes over time due to factors like increased currency circulation. Holding Rs.1 lakh in a bank account today, it may depreciate to the equivalent of Rs. 10,000 after 40 years.
SIP(Systematic Investment Plan) Calculation
(Assuming an annual return rate of 13% for an investment of ₹15,000 p.m)
Starting investing at a very early stage ensures greater wealth accumulation and reduces financial concerns in retirement. Investments tend to nearly double every 5 years, emphasizing the importance of initiating investment as early as from first month salary or even from college days using pocket money. You can start SIP as low as Rs.500/-
SWP(Systematic Withdrawal Plan) Calculation
(Assuming post retirement returns of 12%)
Consider Raju, who upon retirement, created 24 crores by investing into Mutual Funds. Drawing Rs. 5 lakhs monthly, he can sustain a comfortable lifestyle and still retain 185 crores by age 80, which can be passed down to next generations.
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