From Rs 18,000 Monthly SIP to Rs 12 Crore Corpus: How many years it may take to achieve this goal; by what age, one can reach at that stage
From Rs 18,000 Monthly SIP to Rs 12 Crore Corpus: Monthly investment for the long term can make achieving a tough financial goal possible. If one is aiming at a corpus that can accomplish their retirement needs and meet expenses post retirement, early investing can be great help.
From Rs 18,000 Monthly SIP to Rs 12 Crore Corpus: A financial goal that seems uphill at first stance can be met with consistent investing. If one starts investing early and continues it for the long term, by the time they approach their retirement age, they can attain financial freedom and build a corpus that can meet their financial goals. These goals can be in the form of responsibilities, liabilities immediately after retirement, and the fund that can generate returns to help them bear monthly expenses. Here, we take you through projection, where we will show how a Rs 18,000 monthly SIP investment can help one reach a retirement corpus of Rs 12 crore if their annualised rate of return is 12 per cent, 13 per cent, 14 per cent, or 15 per cent. We will also tell that at what age one can reach from Rs 18,000 monthly SIP to Rs 12 crore retirement corpus goal if they start investing at 25 years of age.
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What is retirement age?
By the age, one gets financial freedom. It means, when they have enough fund, where they don't have to depend on their active income to run their daily expenses.
Need for retirement fund
Retirees may have liabilities such as loan repayment or responsibilities such as a child's education or marriage at the retirement age. The second important factor is that they need money to sustain their for rest of their life.
How they can build retirement fund
First they need to assess the money they need for retirement and then find an investment scheme that can help them accomplish that goal. Since retirement planning is long-term planning, they need to keep revising their investment strategy based on post tax returns.
Our Calculations
We are picking mutual fund SIP investment as the tool since 12 per cent, 13 per cent, 14 per cent, and 15 per cent annualised returns are possible there. We are not calculating post tax returns. We are taking 60 years as the retirement age.
Years to reach at Rs 12 cr retirement corpus at 12% growth
The estimated time to reach from Rs 18,000 monthly SIP investment to Rs 12 crore retirement corpus at 12 per cent annualised growth will be 37 years.
During that time, the investment will be Rs 79,92,000, estimated long term capital gains will be Rs 11,69,25,328, and the estimated retirement corpus will be Rs 12,49,17,328.
Years to reach at Rs 12 cr retirement corpus at 13% growth
The estimated time to reach from Rs 18,000 monthly SIP investment to Rs 12 crore retirement corpus at 13 per cent annualised growth will be 35 years.
During that time, the investment will be Rs 75,60,000, estimated long term capital gains will be Rs 11,86,82,852, and the estimated retirement corpus will be Rs 12,62,42,852.
Years to reach at Rs 12 cr retirement corpus at 14% growth
The estimated time to reach from Rs 18,000 monthly SIP investment to Rs 12 crore retirement corpus at 14 per cent annualised growth will be 33 years.
During that time, the investment will be Rs 71,28,000, estimated long term capital gains will be Rs 11,63,31,893, and the estimated retirement corpus will be Rs 12,34,59,893.
Years to reach at Rs 12 cr retirement corpus at 15% growth
The estimated time to reach from Rs 18,000 monthly SIP investment to Rs 12 crore retirement corpus at 15 per cent annualised growth will be a little over 31 years.
In 32 years, the investment will be Rs 69,12,000, estimated long term capital gains will be Rs 12,76,53,622, and the estimated retirement corpus will be Rs 13,45,65,622.
Age to reach Rs 12 cr retirement corpus at 12% investment growth
At 12 per cent annualised growth, the investor who is starting investment at 25 years of age, can reach the Rs 12 crore retirement corpus target by 62.
Age to reach Rs 12 cr retirement corpus at 13% investment growth
With that annualised growth, the 25-year-old can achieve the target by 60 years of age.
Age to reach Rs 12 cr retirement corpus at 14% investment growth
At 14% annualised returns, the 25-year-old will achieve the target by 58 years of age.
Age to reach Rs 12 cr retirement corpus at 15% investment growth
At 15 per cent annualised growth, the 25-year-old will accomplish the goal before 57 years of age.