Power of Compounding: Age 30 and want to start SIP? Know how much monthly investment you need to accumulate Rs 10 crore retirement corpus
Power of Compounding: As you age, your medical needs may increase. Having a trustworthy pension plan in place will guarantee that you have the finances to cover any potential future medical care bills.
Everyone should have a retirement plan since you cannot work your whole life. A retirement plan is all about determining how much you need to save to live comfortably for the rest of your life. While retirement may appear to be a distant goal, there are several advantages to starting retirement planning early.
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Why a person needs to do retirement planning
There are many reasons for planning your retirement on time. Let's take a look at a few:
You can maintain your lifestyle
If you plan your retirement on time then you do not need to worry about funds during your retirement period and you can maintain your lifestyle also.
Financial independence
If you don't want to rely on your family in your retirement period, then financial planning for retirement is important.
Income sources
Having a retirement plan allows you to receive income from different sources.
Medical expenses
As you age, your medical needs may increase. Having a trustworthy pension plan in place will guarantee that you have the finances to cover any potential future medical care bills.
Ways to plan your retirement
There are many ways to save funds or make investments for retirement. One of those plans are SIP (systematic investment plan).
What is SIP?
In SIPs, you invest a fixed amount on a regular period and get compounding benefits on that. SIPs are risky as they are linked to the market.
Age 30 and want to start SIP?
If you are already 30 years old and start an SIP then you don't need to worry as it is never too late. You can still start investing.
How much monthly investment do you need to accumulate a Rs 10 crore retirement corpus?
If you invest Rs 28,350 every month for 30 years then you can achieve a corpus of Rs 10 crore, calculations show. The expected return rate is 12 per cent per annum.
Calculations
Age: 30 years
Invested amount till 60 years: Rs 1,02,06,000
Estimated returns: 8,98,67,055
Total maturity value: 10,00,73,055
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.