Retirement: If you need 4 crores on retirement then memorize the formula of 30+10+30, you will spend your old age in luxury...

Old age is the stage when your body is not capable of doing much hard work, but your needs increase. In such a situation, the most important need is money. This is the reason why people start planning for retirement from the time of their job. If you also want your old age to pass very comfortably and you do not have to depend on anyone at that stage of life, then understand the formula of 30+10+30. Through this formula, you can create a fund of up to 4 crores and spend your old age in luxury.

Know what to do
To secure old age, you have to start investing first. Make this investment in SIP because SIP can increase money rapidly. Despite being a market-linked scheme, it has less risk as compared to shares. The average return of SIP is around 12%, so it is believed that this is a scheme that can beat inflation. This is the reason why most experts recommend including SIP in your portfolio.

What is the 30+10+30 formula?

According to this formula, the first 30 means your age, the second 10 means a 10% top-up, and the last 30 means 30 years of SIP. To adopt this formula, you will have to start investing at least at the age of 30, put a top-up of 10 percent in a SIP every year, and run it for 30 years.

How much SIP should be started?

To accumulate a fund of 4 crores by the age of 60, you will have to start with a SIP of Rs 5,000. After that, you will have to put a top-up of 10% every year and run it for 30 years. Suppose you ran a SIP of Rs 5,000 every month for a year, next year you will have to increase it by 10% of Rs 5,000, i.e., Rs 500. In this case, your SIP will become Rs 5,500. Next year, you will have to increase it by 10% of Rs 5,500, i.e., Rs 550. In this case, your SIP will become Rs 6050. In this way, you have to keep increasing it by 10% year after year.

Now, understand how a fund of Rs 4 crore will be created.

Suppose you started a SIP of Rs 5,000 at the age of 30 and ran it for the entire 30 years by applying a top-up of 10% every year. In this case, in 30 years, you will invest a total of Rs 98,69,641. If we consider the return of 12%, then you will get an interest of Rs 3,00,59,240. In this way, a fund of 98,69,641 + 3,00,59,240 = 3,99,28,881 (about 4 crores) will be created. In this way, you will become the owner of 4 crores at the age of 60.

Keep this in mind

SIP is a market-linked scheme, it does not have a fixed return. Here, the calculation has been done based on estimation according to the average return of 12%. This return can be less or more. Apart from this, keep in mind that there are many types of SIPs. Choose it according to which SIP you can reach your goal through. For this, you can take the advice of a financial advisor.

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