6 hours ago
1
The power of compounding helps your money grow over time, making early starts important in achieving financial goals with lesser monthly investments. Let's explore how investing in a Systematic Investment Plan (SIP) can help you build a substantial corpus over time. We will calculate how much you need to invest monthly to reach your goal of Rs 2 crore by age 60, depending on when you start investing, starting at the age of 25, 3,0, and 35.
What is retirement planning?
Retirement planning simply means getting ready for a life after you stop working, either retired from a full-time job or a business.
Why plan for retirement?
One retires from work, not life; they may have some dreams post-retirement. At the same time, they also have to maintain their standard of living. So to fulfill all these factors, one should go for retirement planning to prepare themself for the best.
Retirement planning through monthly SIP
A systematic investment plan (SIP) is a method of investing a fixed amount in a mutual fund at regular intervals, such as daily, weekly, monthly, half-yearly, or yearly. Investors can adjust their investment amounts based on their finances.
Retirement Planning Calculations
Target corpus: Rs 2 crore
Monthly investment: ?
Annualised return: 12 per cent
How much to invest monthly in SIP at 25 to reach Rs 2 crore by 60?
You can invest Rs 4000 monthly in a SIP to build Rs 2 crore by 60.
How long can it take to build the retirement corpus of Rs 2 crore?
If you start investing at age 25. It will approximately take 35 years to reach this target corpus.
How much can retirement corpus be in 35 years?
In 35 years, the invested amount will be Rs 16,80,000, the estimated capital gains will be Rs 2,03,63,325, and the estimated retirement corpus will be Rs 2,20,43,325.
How much to invest monthly in SIP at 30 to reach Rs 2 crore by 60?
You can invest Rs 7000 monthly in a SIP to build Rs 2 crore by 60.
How long can it take to build the retirement corpus of Rs 2 crore?
If you start investing at age 30. It will approximately take 30 years to reach this target corpus.
How much can retirement corpus be in 30 years?
In 30 years, the invested amount will be Rs 25,20,000, the estimated capital gains will be Rs 1,90,46,812, and the estimated retirement corpus will be Rs 2,15,66,812.
How much to invest monthly in SIP at age 35 to reach Rs 2 crore by 60?
You can invest Rs 12,000 monthly in a SIP to build Rs 2 crore by 60.
How long can it take to build the retirement corpus of Rs 2 crore?
If you start investing at age 35. It will approximately take 25 years to reach this target corpus.
How much can retirement corpus be in 25 years?
In 25 years, the invested amount will be Rs 36,00,000, the estimated capital gains will be Rs 1,68,26,479, and the estimated retirement corpus will be Rs 2,04,26,479.
English (US) ·