5 Crore Rupees Corpus: Nowadays, there is a trend of taking early retirement in the global market. People doing jobs, business or any other job believe that if money is arranged for old age, then what is the need to work till 60 years. Such people want to enjoy life in their energetic days by taking early retirement and also plan to arrange money to maintain their average lifestyle. We are telling you 3 such strategies by which you can also get a fund of Rs 5 crore by the age of 50 and enjoy your life by taking early retirement.
Strategy 1
Suppose the investor is 25 years old and he has 24 years left for his desired retirement (age 50). To have a fund or corpus of Rs 5 crore at the age of 50, such an investor will have to save Rs 1,92,500 every year i.e. Rs 1.92 lakh annually. That means you will have to make a monthly investment of Rs 16,042 every month. If you follow this goal, then keep the standard for this saving according to the annual return rate of 10 percent.
Strategy 2
If the investor is 30 years old, then there are still 19 years left for the desired retirement. To get Rs 5 crore at the age of 50, people like you will have to save Rs 4 lakh every year. If we look at it in terms of dividing it every month, then a monthly investment of Rs 33,333 will have to be made. That is, an average employee with a monthly salary of up to Rs 1 lakh will have to save 30 percent of his monthly income. This may seem high because if you have started this investment or saving at the age of 30, then you are a bit late, so the savings will also have to be increased. As you know, as per financial rules, as soon as you start earning, you should start saving or investing money from then itself.
Strategy 3
People aged 35 years who want to earn Rs 5 crore by the age of 50 have only 14 years left to save. If the target is Rs 5 crore, you will have to save Rs 8,85,000 every year. By saving Rs 73,750 every month, you will be able to save Rs 8.85 lakh. Assuming an average return of 10 percent on this, you can achieve your target of Rs 5 crore.
Why was the benchmark of average 10 percent return taken?
For this example, we have considered an average return of 10% as a benchmark according to the current financial structure. We have also given it a standard of different returns according to different ages because in the financial world, the returns also fluctuate with the change in age. The factors that make a difference behind this are return, type of asset class, risk and how many years of investment are left.
Average potential return in the financial world
12% by the age of 40
9% by the age of 41-45 years
7% by the age of 46-50 years
Note: These returns are calculated as per common industry standards.
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