Mutual Fund Investment Plan: Retirement plans are important to achieve financial independence even when income sources stop. When retired from work, you would like to travel to new places, pick up a hobby, or start a venture. You would not want to compromise your lifestyle after retirement. Therefore, planning is crucial. On that note, let’s understand how you can plan retirement through SIP starting at age 20, 30 and 40.
Retirement planning through SIP: How much to invest monthly if you start at 20?
If you are 20 and planning for retirement, here’s how much you should invest assuming a 12 per cent annual return. At the age of 20, if you start a monthly SIP of Rs 2200, assuming a 12 per cent annualised return for 40 years as the investment period (considering 60 as retirement age).
Your investment amount during the period would be Rs 10,56,000, your estimated return would be Rs 2,04,88,756, and your estimated total corpus in 40 years would be Rs 2,15,44,756.
Retirement planning through SIP: How much to invest monthly if you start at 30?
If you are 30 and planning for retirement, here’s how much you should invest, assuming a 12 per cent annual return. At the age of 30, if you start a monthly SIP of Rs 6000, assuming a 12 per cent annualised return for 30 years as the investment period (considering 60 as retirement age).
Your investment amount during the period would be Rs 21,60,000, your estimated return would be Rs 1,90,19,483, and your estimated total corpus in 30 years would be Rs 2,11,79,483.
Retirement planning through SIP: How much to invest monthly if you start at 40?
If you are 40 and planning for retirement, here’s how much you should invest, assuming a 12 per cent annual return. At the age of 40, if you start a monthly SIP of Rs 20,000, assuming a 12 per cent annualised return for 20 years as the investment period (considering 60 as retirement age).
Your investment amount during the period would be Rs 48,00,000, your estimated return would be Rs 1,51,82,958, and your estimated total corpus in 20 years would be Rs 1,99,82,958.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
