Retirement Plan. Retirement Saving Plan is one of the most sought plans yet one of the most confusing. People work all their lives and wish to save some amount for their retirement. You too must have a lot of questions like how to retire with 5 crores? Where to invest after retirement in India? One thing more, if you think that an LIC 1 crore pension plan would suffice you after retirement, then let me tell you that you’ll get that 1 crores as pension per month. But what I am going to tell you will fetch you whole 5 crores as a whole at a time. This is not a 1 crore retirement plan, it’s a 5 crore retirement plan at just ₹3700 per month investment!
A friend of mine asked me once: how much money is enough to retire at 40 in India? It motivated me to write this article so that others could benefit from the knowledge I have.
How can a person create wealth for his retirement? How much to save for retirement in India? We’ll discuss the same in this article and I will let you know the simplest way to build a corpus of an amount in crores for retirement.
You don’t need a retirement corpus calculator but at least do need some idea how stuff works. Did you know that by investing just 3700 per month, you can retire with 5 crores in hand?
Even if you managed to accumulate this amount, do you the value of 1 crore after 20 years or 30 years? Inflation is a big hurdle in wealth creation. Let’s first understand how this is possible. Read on.
How do mutual funds help you realize your dream and create wealth?
Investing directly in share market needs knowledge, time and patience! Does that mean if one wishes to create wealth doing nothing, he’ll have to study business and stock market? No!
Mutual Funds comes in here!
What’s Mutual Fund?
According to Wikipedia, “A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities”. In layman language we can say: It is a fund which comprises of investors'(your) money, which is managed by a professional and experienced fund manager who knows how much, when and at what price to buy or sell a share in market on your behalf so that you don’t make mistakes, lose your money and time and helps you create wealth! It also helps you make a million dollars fast.
One advantage of mutual funds is that they provide a higher level of diversification, they provide liquidity, and they are managed by professional investors(known as fund managers). On the negative side, investors in a mutual fund must pay nominal fees and expenses.
How to Start investing to create wealth?
First of all, one needs two things to get started!
- PAN Number
- Bank account
In addition to these, one needs to get KYC verification done which is a 2 minutes step with Aadhaar OTP method if one has an Aadhaar Number. Register on Zerodha Coin to get started! I’ll explain why I recommend this! Basically, there are two types of funds in Mutual Funds viz. Regular and Direct Funds.
How to retire with 5 crores?
You don’t need a retirement planning calculator in Microsoft Excel. Just focus on what I’m trying to explain. This is going to be the easiest Retirement Saving Plan you’ll ever find. Don’t forget to share it with your colleagues after reading this. Let’s start. Assuming your present age to be 25 years old and the retirement age to be 60 years, you have 35 years to retire.
If you invest 3700 per month as Systematic Investment Plan in a Direct Mutual Fund on Zerodha which gives around 15% per annum interest for the next 35 years, you’ll retire with a corpus above 5 crores. Zerodha gives you the ease of instant starting, pausing, stopping a SIP with excellent support team!
Well, that’s when you don’t consider inflation.
Taking inflation into account
Due to inflation, these 5.5 crores would be worth today’s 1 crore. That too is not a small amount! 3700 per month is giving 1 crores. You will be a millionaire! What else do you want? It’s a fortune!
Taking inflation into account, let’s calculate again.
Growth with Inflation
What’s worth 5.5 crores today will be worth 27.5 crores 35 years from now. Thus to get 5 crores of real value after 35 years from now(27.5 crores), you’ll need to invest 18500 per month Investing 18500 per month, you will retire with 27 crores an investing 3700 you will retire with 5 crores!
A piece of Advice: No one increases their net worth by saving. They increase by making more money. One way is to start blogging. Here is a step by step guide on how to start your own super-fast revenue generating blog without coding.
What are your thoughts on this Retirement Plan? Do let me know in the comments section below. Also, do not forget to subscribe to Wroffle. To do so, just tap the bell icon at the bottom-left of your screen.