1. Invest in equity MFs, preferably a portfolio of 1 fund each in multicap, Hybrid Aggressive, and ELSS funds (if income becomes taxable), through long-term SIPs, starting with at least 10% of first month's earnings itself,
2. Utilize fixed income products as a contingency / rebalancing corpus,
3. Always consider inflation impact while building a retirement corpus during the earning years itself,
4. Aim to accumulate a growth-oriented, inflation-beating corpus of 25 times estimated annual retirement expenses during the earning years,
5. Aim to withdraw 5-6% (or up to 10% at a later stage) for annual retirement needs, to enjoy it for your entire life and also bequeath it later to your kith and kin.
6. A Ready reckoner of corpus that gets created from just Rs.1000 SIP investment for 30 years (i.e. Rs.3.6 lakh only):-
a) Rs.12 lakh from Recurring Deposit at 7% CAGR,
b) Rs.15 lakh from Post Office / Debt fund at 8% CAGR,
c) Rs. 22 lakh from ELSS / Large cap fund at 10% CAGR,
d) Rs. 35 lakh from Balanced / Multi-cap fund at 12% CAGR, and
e) Rs. 70 lakh from Mid-cap / Small-cap fund at 15% CAGR.
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