Each one of us has certain passions & dreams to pursue. For eg, photography, Globetrotting, Mountaineering, Skiing, Running marathons across the globe or contribute actively to social causes.
What is stopping you today from pursuing this passion? The most likely reasons could be lack of time, lack of sufficient money and multiple responsibilities. While the responsibilities of a younger or older family member(s) are unavoidable, time and money can be managed if it is well planned.
Now, the first few questions that come to our mind immediately are that I don’t have sufficient money that I can call off my work. I don’t know how much I would require.
Before we get onto understanding how much do we require, remember one thing, thanks to our fitness and health-conscious regimes, our life expectancy is way longer than our previous generations.
This essentially means that along with pursuing a passion, you must ensure that your wealth outlives your life. The objective of financial independence is money outliving us and we are never short of money and be dependent on anyone.
So, here we go to understand how much we would need so that we can happily and safely call off work and begin our passions/dreams.
|Assumed Retirement age||50||50||50||60||60||60|
|Assumed Life expectancy age||85||85||85||85||85||85|
|No.of years your wealth should be there for U||35||35||35||25||25||25|
|Assumed current monthly expenses including the cost of pursuing hobby||75,000||75,000||75,000||75,000||75,000||75,000|
|Value of expenses as on retirement with 6% inflation rate per month||₹1,79,742||₹1,34,314||₹1,00,367||₹1,34,314||₹1,00,367||₹75,000|
|Retirement Fund value would be||3.35 Cr||2.50 Cr||1.87 Cr||2.19 Cr||1.63 Cr||1.23 Cr|
|How much monthly to invest from now||70,400||1,11,600||2,42,350||97,800||2,11,200||–|
|Assumptions – Inflation at 6%, Investment return @10% if time < 5 years; else 12%
Retirement Goal is not supposed to be thought of in the 40s as it is a journey of managing expenses for 25-30 years after retirement without earning a salary, hence it is important to start early which gives a fair advantage to accumulate larger wealth. Are you on track with your investments?
If you need to get a Retirement Goal calculator, do reach out to us at email@example.com OR schedule a personalized call with our expert by registering at http://www.arthabodhi.com