Build a retirement corpus that beats inflation and lasts as long as you do
Bengaluru-based marketing professional Atul Kumar, 45, has been exploring investment options as he wants to build a corpus for his retirement days. He has been investing in Public Provident Fund (PPF) in the past five years. He could not invest much till he was 40 because he had to service a housing loan. He also has an Employee Provident Fund (EPF) account. “I have a term, health and a medical insurance running to help me and my family to deal with any contingency as it should not affect my investment cycle,” he said.
Though there are many options available for Kumar, the norm of retirement planning is, the earlier you start investing, the better your chances of creating a good corpus for retirement. For instance, if you are 30 years old and invest ₹1 lakh in a mutual fund growing at 15 per cent annually, you get ₹16 lakh when you are 50. But, if you make the same investment at 40, you get only ₹4 lakh when you redeem it ten years later. That is the power of compounding.
“Assume that your desired retirement age is 60. If you are 30 now, you have 30 years to reach your goals. This is a good length of time to accumulate a decent retirement corpus with low-risk instruments,” said Adhil Shetty, founder and CEO of BankBazaar.com. “Delaying investment means having to take higher risks later in order to achieve the same goals. You would have to invest in riskier funds, reduce your retirement corpus to reduce risk, stretch your retirement age, or increase your monthly investments to meet the goal. Don’t postpone building that corpus. The sooner you start, the better.”
Bu hikaye THE WEEK dergisinin June 17, 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye THE WEEK dergisinin June 17, 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
Indira's Bang
How Indira Gandhi secured the borders, ended food import, before going for the test
Who's Afraid Of A New Nuclear Doctrine?
It has been 50 years since Pokhran I. With its capabilities increasing and global power equations changing, does India need to look at reviewing its nuclear doctrine?
I don't think things will change because of the win
When independent filmmaker Payal Kapadia’s All We Imagine As Light scripted history by winning the Grand Prix at the 77th Cannes Film Festival, it was not just a proud moment for the film's team, but also a triumph for the collective aspirations of women across the country.
Sid for kids
As a child, Sidhartha Mallya wished he had someone in his life to tell him what he wants to convey in his latest children's book, Sad Glad
Ready to roll
Following the Pokhran tests, India has operationalised a credible deterrent that the nation should be proud of
Breaking nuclear apartheid
How India protected its ability to move ahead with the nuclear weapons programme despite not signing the NPT
Power point
The Pokhran tests launched India's march towards being a full partner and participant in the global nuclear order
Shock and awe
India’s comprehensive capability in the nuclear domain is the result of its autonomous pursuit of the atomic programme against all odds
Spied on none, stole from none
A senior scientist during the Pokhran test in 1974 and chairman of the Atomic Energy Commission during the tests in 1998, Dr Rajagopala Chidambaram has been a key figure in the Indian nuclear journey.
Leader with a difference
ARVIND KEJRIWAL'S RETURN TO JAIL APPEARS IMMINENT. BUT HIS BLISTERING POLL CAMPAIGN MAY HAVE BRIGHTENED INDIA BLOC’S PROSPECTS
