.Chains of HABIT are too light to be felt …. until …… they are too heavy to be broken ~Warren Buffet
Saving and investing for a prosperous retirement is a basic financial hygiene habit, which if postponed to a later date, can have disastrous and painful financial implications… Take a look.. Numbers don’t lie…
X, Y and Z are salaried individuals working for a reputable Company and they all plan to retire at the age of 60.
X is 30 years old and is married with one child. He has set himself a retirement fund target of Rs. 1 crore.
Y is 40 years old and is married with two children. He has also set himself a retirement fund target of Rs. 1 crore.
Z is 50 years old and has also set himself a retirement target of Rs. 1 crore.
X has 30 years to achieve his target, Y has 20 years and Z 10. Assuming the return given by their investments is 12%, the following table shows the monthly investments that all three men will have to make if they are to achieve their retirement targets.
| Age | Years left | Retirement fund target | Annual return expected |
Monthly investment required |
|
| X | 30 | 30 | Rs. 1,00,00,000 | 12% |
Rs. 3,277 |
| Y | 40 | 20 | Rs. 1,00,00,000 | 12% |
Rs. 10,975 |
| Z | 50 | 10 | Rs. 1,00,00,000 | 12% |
Rs. 45,060 |
As we can see from the above table the more time the individual has to invest, the lower the monthly investment amount required to reach the target will be. So it is always a good idea to start saving for retirement as early as possible.
So, start investing early, it makes a hell lot of difference. And if you are in your golden years and had not planned in your hey days ~ the least you can do is advise your young loved ones to do so.. Stay wise..
