Key Points
Now if the person's cost of living today is 1 lakh rupees a month, we want to ensure that his lifestyle is not getting impacted during his retirement years..
A 35 year old will get 25 years to invest for before he achieves his retirement assuming again at 60 is what he is retiring at and if his life expectancy is 85 years, then his current cost of living which is 1 lakh rupees needs to be inflation adjusted to 4,29,000 and he would need a portfolio of about 10 crore 28 lakhs...
If he is a conservative investor, he needs an SIP of 96,000 rupees if the portfolio is growing at 9%, if he is a balanced risk investor, he needs a monthly SIP of 70,700 rupees growing at 11% per annum and if he is an aggressive risk profile, he just needs an SIP of 51,000 where the portfolio is going at 13%...
So his current cost of living, which is 1 lakh rupees a month will get inflation adjusted to 239000 and his required portfolio will be 5 crore 74 lakhs to sustain his cost of living for till his age of 85...
If he is waking up at 45 to plan for his retirement at conservative investor growing at 9%, he would need an SIP of 155,000 at a balance this profile of 11% he would need an SIP of 131,000 and at a aggressive risk profile of 13% per annum he would need a monthly SIP of 110,000..
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