Best retirement plan in india: Retirement planning is not something that you think about in old age, but this is the process so that you can cut your old age properly. If you are 25 years old and you already have a savings of 10 lakhs, then you have made a great start. Suppose you want to retire at the age of 55, then you have 30 years for retirement of your dreams. Let us tell you how you can make your retirement plan well.

Magic of compounding

If you invest your 10 lakhs in equity mutual funds or stocks for the next 30 years, where there is a possibility of getting 12 per cent annual returns on an average, then this amount can increase by 2.99 crores. Your basic investment in this will be 10 lakhs, while you will get 2.89 crores as interest.

Income after retirement

You can use this fund of 3 crore through a Systematic withdrawal Plan (SWP). If you withdraw 2.5 lakhs every month from the age of 55 to 70 years (15 years) and the rest of the money is on 7 percent returns in liquid funds, then you will be able to withdraw a total of 4.5 crore. Even after 15 years, you will have a fund of 28 lakhs and you must have earned a total interest of 1.88 crores.

Impact of inflation

Although after 30 years, the purchasing power of 2.5 lakhs will be less than today, but this plan will give you a strong basis. You can compensate for this by increasing your investment from time to time.

Invest from the age of 25 years

Actually, starting investing at the age of 25 gives you full advantage of compounding. Also, focus on equity. Equity gives good returns in the long term. Try to keep investing every month through SIP. Pay full attention to diversification. That is, invest in FD, Gold and Date Funds as well.

Start investing today

If you have not started retirement planning yet, then contact a financial planner today. Small savings and correct investment can provide you a comfortable retirement.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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