It is said that the sooner you start planning for retirement, the better it is. But sometimes people are not able to do so due to their responsibilities. If something like this has happened to you too, then do not worry. Even if you are around 45 years of age, you can easily accumulate a fund of crores by the age of 60. However, for this you may need to work a little harder and be economical. Here know the method by which you can accumulate more than Rs. 1.25 crore in just 15 years.
To accumulate a fund of crores in 15 years, you will have to start Step-up SIP. In this, you will have to invest 30% of your income every month through SIP. You will have to keep increasing your investment by 5% annually. In this way, by the age of 60, you can accumulate more than Rs 1.25 crore.
For this, you will have to start investing at least Rs 21,000. At the age of 45, you started investing Rs 21,000 every month in SIP and kept increasing the amount from time to time by applying a top-up of 5% every year. In this way, in 15 consecutive years, you will invest Rs 54,37,798. Whereas at the rate of 12 percent return, you will get Rs 75,63,492 on this. In this way, at the age of 60, you will own a total of Rs 1,30,01,290.
Suppose at the age of 45 you earn Rs 70,000 per month, then 30% share will be Rs 21,000. In such a situation, you can do this work easily. At the same time, as your income increases with time, applying an annual top-up of 5% will not be a big deal. Keep in mind that SIP is a market linked scheme, so there is no guaranteed return in it. Its return is market based. Since the average return of SIP in the long term is considered to be 12%, here the calculation has been done on an estimated basis at 12%.
PC:ZeeBussiness
