20-30 years back Lakhpatis(one having assets of 1lakh and above) were unheard of in the middle class. Nowadays the middle class means you should be having assets in lakhs. 20-30 years from now the middle-class is going to be the one with assets in crores. Let alone being rich are we ready to keep ourselves in the middle class is the first question?
Let’s see how we can achieve 1Cr by investing in mutual funds. Refer to the following table. You need to select the amount based on time horizon you want to achieve the target.
| Time in years | Returns | Monthly Investment Amount |
| 10 | 12% | ₹ 43,471.00 |
| 11 | ₹ 36,779.00 | |
| 12 | ₹ 31,342.00 | |
| 13 | ₹ 26,867.00 | |
| 14 | ₹ 23,143.00 | |
| 15 | ₹ 20,017.00 | |
| 16 | ₹ 17,373.00 | |
| 17 | ₹ 15,122.00 | |
| 18 | ₹ 13,196.00 | |
| 19 | ₹ 11,539.00 | |
| 20 | ₹ 10,109.00 | |
| 21 | ₹ 8,870.00 | |
| 22 | ₹ 7,794.00 | |
| 23 | ₹ 6,857.00 | |
| 24 | ₹ 6,039.00 | |
| 25 | ₹ 5,323.00 | |
| 26 | ₹ 4,696.00 | |
| 27 | ₹ 4,145.00 | |
| 28 | ₹ 3,662.00 | |
| 29 | ₹ 3,236.00 | |
| 30 | ₹ 2,862.00 | |
| 31 | ₹ 2,532.00 | |
| 32 | ₹ 2,240.00 | |
| 33 | ₹ 1,983.00 | |
| 34 | ₹ 1,756.00 | |
| 35 | ₹ 1,555.00 | |
| 36 | ₹ 1,378.00 | |
| 37 | ₹ 1,221.00 | |
| 38 | ₹ 1,082.00 | |
| 39 | ₹ 959.00 | |
| 40 | ₹ 850.00 |
12% return is assumed for the entire period. However, we can expect even higher returns in such a long run. You can see by just saving 850/- a month for 40 years you can reach 1Cr. This is the power of compounding.
You can even start this in name of your kid and once he is old enough to go to college you can ask him/her to continue with investments. This would help your kid with finances and also help him to understand financial discipline to your kid. People remain poor because of the wrong financial decision they make or lack of financial knowledge itself.
The major rationale here is you need to beat the inflation before inflation beats you. Hope this article helps you in your retirement planning.
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