15X15X15 and 555 rules; how these 2 SIP strategies can help you generate up to Rs 5.28 cr retirement corpus

Here are two timeless principles — Rule 555 and Rule 15x15x15 — that can enhance your investment strategy, optimize your financial planning, and help you build long-term wealth.

Here’s how the 15x15x15 formula of SIP works:
1. First "15": Invest through SIPs for 15 years.
2. Second "15": Contribute a monthly SIP of Rs 15,000.
3. Third "15": Expect an annualized return of 15%.

If you start a monthly SIP of Rs 15,000 and invest for 15 years, your total investment will amount to Rs 27,00,000.

With an average return rate of 15 per cent, your investment can grow significantly. After 15 years, you could earn approximately Rs 74,52,946 in long-term capital gains.

At the end of 15 years, combining your initial investment with the long-term capital gains, you will accumulate an estimated amount of Rs 1,01,52,946.

The Triple 5 formula is designed to optimise your retirement savings. Here's how it works
1. First 5: Retire five years earlier.
2. Second 5: Increase your SIP by 5% each year.
3. Third 5: By age 55, you could have a fund of Rs 5.28 crore.

Suppose you start with a monthly SIP of Rs 10,000, increasing it by 5 per cent annually, with an average return of 12 per cent. Over 30 years, you would invest approximately Rs 79.73 lakhs, earning around Rs 4.48 crores as a long-term capital gain. This results in a total corpus of Rs 5.28 crores (approx.).

After paying long-term capital gains tax, even with a conservative interest rate of 6 per cent on an FD at the time of retirement, you will still receive a substantial pension. On a post-tax corpus of Rs 4.74 crores, you will earn around Rs 28.42 lakhs annually at 6 per cent, equating to approximately Rs 2.37 lakhs per month.

Investing in Equity Mutual Funds:
- Monthly SIP: Rs 10,000
- Annual SIP Increase: 5%
- Expected Return: 12%
- Investment Duration: 30 years

- Total Investment: RS 79,72,662
- Long-Term Capital Gains: Rs 4,47,61,398
- Total Value: Rs 5,27,34,060
- Taxable Corpus: Rs 5,26,34,060
- 10% Long-Term Capital Gains Tax: Rs 5,26,340.60
- Post-Tax Corpus: Rs 47,37,054
- Annual Income at 6% (FD): Rs 28,42,239.24
- Monthly Income: Rs 2,36,853.27

By following either of these two powerful strategies — the 555 SIP Formula or the 15x15x15 formula — you can amass a significant corpus and achieve financial independence.