How to make a financial retirement plan to save upto 2 crore
New Delhi: People in India have a Saving psychology mind more than spending but what they lack is proper investment planning. People are dependent on their savings for retirement, so one needs to make plan which can help them to sustain their life after retirement. The proper saving and investment planning is required. Here are few tips one can follow and save upto Rs. 2 crore on their retirement.
Consider monthly income is Rs. 40000. Out of which your household expenditure for month is pay Rs.10,000 rent is Rs.10000, child’s education costs 5000 rupees and other miscellaneous expenditures such as transport is Rs. 10000. One is left with 5000. Rs. Think about investment here. If you invest this amount through a SIP with a long-term target of up to 20 years in the mutual fund till retirement, then you will easily accumulate Rs 2.62 crore.
The return on investment is calculated here at an annual rate of 10%. This amount can be much more than this because you can get better returns over the long term period.
The monthly expenses will increase threefold. The inflation is increasing so the month’s expenditure is also set to increase in the coming days. As long as there is a job and there is good salary, there is not much worry about it but after retirement it will be difficult to keep up with the expenses.
If inflation rises to an average of six% then after 25 years the current expenditure will more than double. That is, if you spend 25 thousand now, it will be Rs. 75000 after 25 years.
If you have not yet started investing for retirement planning, do not delay now. If you start investing early, you will be able to easily deposit funds for retirement. You will not even need a large amount of money for investment. You can easily make an investment plan with the desired amount.
Financial experts say that for a happy life after retirement, one should create a retirement plan 25 times larger than his current income. For this, it is necessary to start investing from the age of 30 by planning for retirement. If one starts investing at the age of 30 by saving 25 to 35% of his income, he will easily create a plan 25 times larger than his current income in the next 25 years.
Why planning is important?
After retirement, your life should peaceful. If your retirement planning is not right then you will not be able to live these golden moments properly. Therefore, it is important that you make some time for retirement planning in while balancing work life. Follow the above things-
Prepare plan in five steps
• Set your goal
• Evaluate current economic situation
• Identify your vulnerability
• Know the investment options
• Change the portfolio from time to time