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Retirement planning, a topic that strikes an individual mind, generally when he reaches his 30’s, even when they want to retire early. And then they start searching about “How To retire Early”!
Google search has about 17,50,00,000 results when you search for how to retire early, from this big data it is hard to pick up a well-explained investing idea that can actually help an individual retire early.
Well, Deepak Mullick’s book, titled “SimplyMutual: the 1% formula to gain your financial freedom” has something great for individuals, who are looking towards their retirement planning and want to retire early! The book is soon going to be launched.
In his book, Deepak talks about the opportunity for lay investors in the Indian equity markets how to grab this opportunity and attain financial freedom.
Let us see what is the trick explained in Malick's Book!
Equity Mutual Funds, Best Option To Plan Your Early Retirement!
In his book, Mullick talks about the huge opportunity for lay investor to grow their money by investing in the equity market of India. He also explains that investing in equity mutual help attain financial freedom to individuals.
Mullick further explains in his book that, the only way to let your idle money keep growing is, invest it in the Equity market of India. Currently, the Equity market of India is full of opportunities as the economy is in a growing and developing stage. However, the risk is also high.
How To Get Rs 1 Lakh Per Month Salary Pension And Retire By 45?
In his book, Mullick explains how an individual can approach building a corpus over 15 years that would give you a sustained ‘salary pension’ after this time period that amounts to 1% of the original corpus.
To obtain a salary pension of Rs 1 lakh per month after attaining 45 years of age, a person needs to create a corpus of around Rs 1 crore by the age of 42 years, by the age of 42, the extra three years would act as a cushion for market uncertainties.
Secondly, if you manage to grow a corpus of Rs 1 crore and start withdrawing Rs 1 lakh per month, even then the remaining of the corpus will continue to grow if you remain invested.
If you start investing at the age of 30, then to create a corpus of 1 crore by the age of 42, you will require to invest, around Rs 32,000 monthly for long 13 years with an expectation of a 12% interest rate in equity mutual funds.
Below is a picture depicting your investment in mutual funds to create the retirement money required. Have a look
#note: the return shown in the figure are calculated returns and not the actual. Actual returns may vary with volatility in the market.
Why 15 Years?
A person can build a corpus of Rs 1 crore much before a 15 year time period, but experts suggest a 15-year time frame so that investors can easily deal with the regular ups and downs in the market or market cycles.
Basically, a long-term investment frame would help you recover from the short-term losses and will help you grow your money to its potential.
If we conclude, simply only saving is never enough to create a big corpus especially if the corpus is meant for retirement that too for early retirement. So do not wait and start investing in equity mutual fund investment for your Happy Retirement Days!
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For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).