If you want to prepare a big fund from investment, then you must first understand one thing. The sooner you start investing, the big you will be able to prepare the big fund. Preparing a retirement fund of 10 crores, you may find it impossible to hear. However, this fund can be prepared if smart planning, discipline and patience in investment. In the long term, the highest roll compound is in preparing large funds.
The lower the age, the lower the sip amount will be
If you are 25 years old today, then by the age of 60, 10 crores Retirment Fund To prepare, you have to invest Rs 15,000 every month through SIP. This investment will have to be made in the equity scheme of mutual funds. The annual return of funds in this calculation is considered to be 12 percent. If you want to get this target at the age of 30, then your sip amount will increase to Rs 28,000 every month. If you start investment at the age of 40, then your monthly amount of Sip will increase to Rs 1,00,000. It is about six times the required Sip amount at the age of 25.
You can with 3-3.5 percent every year
You may take more funds of 10 crores right now. However, this fund is necessary for your retirement. Most of the financial planners say that during retirement you should remove only 3-3.5 percent of your funds every year. By doing this your money will run as long as you want. This means that if you have Rs 10 crore at the age of 60 years, then you will get 30 lakh rupees in a year by withdrawing 3 percent. If you withdraw 3.5 percent in a year, then you will get 35 lakh rupees.
The effect of inflation in retirement planning will also have to be taken care of
30 lakh or 35 lakh rupees in a year after retirement can be sufficient for you. This will easily fulfill your medical expenses, food and lifestyle expenses. Second, you will not worry about the end of the retirement fund soon. The most important thing is that you also have to take care of the effect of inflation on your retirement fund.
Compounding benefits in long -term investment
The sooner you start investment, the more time the compounding gets to increase your investment. Compounding means that your money gets a return. That return is connected to your money. This gives more returns on your money. This process goes on for years. It is like planting a plant. The sooner you plant the plant, the sooner it will start growing. After a few years he will become a big tree.
You can also start with a low sip amount
For example, investment of Rs 15,000 every month at the age of 25 is not difficult. However, investment of Rs 1,00,000 every month at the age of 40 is difficult. Especially when a person is burdened with expenses like education and home loan of children.
Every year sip amount can increase by 10 percent
In such a situation, the first step for you is that as much amount is possible for you, the more you start investing with SIP every month. If you feel Rs 15,000 more every month, then you can start investing from Rs 10,000 or Rs 5,000 every month. Then as your income increases, you can increase the sip amount. If you increase the SIP amount every year by 10 percent, then the burden of investment on you will be reduced every month.
Discipline in investment has to be maintained
You have to invest this in equity funds. In the long term, the returns of the equity scheme of mutual funds are higher than that of another asset class. Equity fund returns are excellent in 30-35 years. You have to review it after starting the investment. Many times the value of the market fluctuations can increase or decrease the value of your investment. However, you do not have to pay attention to this. You have to maintain discipline in investment without coming under any pressure. Along with continuing investment in the long term, you will also have to take health insurance and term insurance.