How much would you need to retire at 30?
At age 30, some financial professionals suggest accumulating the equivalent of your current annual income. By age 40, you should have accumulated three times your current income for retirement. By retirement age, it should be 10-12 times your income at that time to be reasonably confident that you’ll have enough funds.
How do I start a corpus retirement?
Retirement planning: How to calculate retirement corpus
- Decide the number of years you have till retirement.
- Inflation during accumulation phase.
- Estimate the desired monthly expenses in retirement.
- Rate of inflation during post retirement phase.
- Expected rate of return during retirement years.
How much corpus will Rakesh need on retirement at age of 60?
Therefore, the corpus must be (Rs 48 lakh / 0.06), i.e. Rakesh will require a minimum corpus of Rs 8 crore on retirement at the age of 60 to generate Rs 4 lakh per month in a safe and secure manner. The big question is: how to create a corpus of Rs 8 crore by the age of 60? So, how to go about creating a corpus of Rs 8 crore in 30 years?
How do I build up my retirement corpus?
You should consider the number of years left for your retirement. This is the only time that you have in your hand to earn and see cash flowing in… that can help build your retirement corpus. Moreover the power of compounding works out to be a boon for those who start early.
How much corpus is required to generate Rs 4 lakhs per month?
Monthly expense of Rs 4 lakh will mean an annual expense of Rs 48 lakh. Therefore, the corpus must be (Rs 48 lakh / 0.06), i.e. Rakesh will require a minimum corpus of Rs 8 crore on retirement at the age of 60 to generate Rs 4 lakh per month in a safe and secure manner.
How much do I need to invest for a 30-year retirement?
Well, as per our calculations, you need to invest Rs 22,360 every month in equity mutual funds in line with your risk profile to create the target corpus at the end of 30 years. Once you have learnt the calculations, you may play around the figures and assumptions to calculate your desired retirement corpus.