If you save a good amount on retirement, then your life ahead can be very easy. You will not need to work anywhere or depend on any pension for regular income. If you also want the same, then you should do one thing from now itself. By the time of retirement, you will have more than a crore rupees deposited. Here in the calculation, we are telling how you can make 1 crore rupees by retirement from 1 lakh rupees.
Compounding can increase your wealth manifold. According to this, you should invest in such places where you are getting a higher amount as compound. Mutual funds can be a better option in this. You can invest money in Mutual Funds from lump sum to monthly. You can avail the benefit of annual interest on this.
If you have only Rs 1 lakh and you want to invest it as a lump sum. Assuming an annual return of 12% on this, let us understand how much money you can save till retirement.
If you invest at the age of 20
If you invest Rs 1 lakh at the age of 20, you will be surprised. When you turn 60, this investment grows almost 100 times to almost Rs 1 crore. This is due to the compounding rate, as your money will continue to grow rapidly without stopping for 40 years.
Invested at the age of 30
On the other hand, if you start investing at the age of 30 and deposit a lump sum of Rs 1 lakh, then the investment of Rs 1 lakh now grows only 30 times till retirement, resulting in Rs 30 lakh by the age of 60.
Investing at the age of 40
If you start investing at the age of 40, Rs 1 lakh will grow 10 times to Rs 10 lakh by the time you turn 60 with a 12% annual return.
Invest as soon as possible
Experts also say that the sooner you invest, the more money you make in the long term. For example, we have seen that even a small amount like Rs 1 lakh started at the age of 20 can turn into assets worth Rs 1 crore. At the same time, Rs 1 lakh at the age of 30 and 40 is not able to turn into much money.
(Note- Before making any investment, please seek the help of a financial advisor.)
Source (PTI) (NDTV) (HINDUSTANTIMES)