At the age of 28 or 30 this might look like an alien subject, but retirement planning is the first goal one should plan. You can get a loan for all other purpose, simply because you are earning. The moment you reach at a stage of retirement, no loan can be availed for your retirement. This can only be done if one has planned it well in advance.
This is a process of saving systematically & regularly for considerably long period of time, around 20-30 years. Second part is to invest that amount in a Mutual Fund or other similar products based on one’s goal and preferences about risk & return. The power of compounding and taking relatively higher risk in the initial years can help one to build a sizeable corpus for the comfortable retirement.
For example an SIP of 10,000/- started at the age of 30 years can create a corpus of more than 3 crores at 12% compounding. This amount looks very attractive today, but considering the inflation, it might not be sufficient if your monthly expense is high. How to calculate your ideal retirement corpus? Well, a financial advisor preferably a CFP can help you with this process. For example at the age of 30 years if my monthly expense is Rs. 25000/-, chances are that my post retirement expense with the similar needs would be more then 6 to 8 times! Thus, we need to plan sufficient amount well in advance. So that retirement becomes comfortable and one need not to be financially dependent on anybody.
To know more about retirement planning and to invest in Mutual Fund & SIP you may contact us on 9879956949 or email us at hardik@niveshplanner.com.