🎯 Key points for quick navigation: 00:02 *🎓 Retirement Planning Introduction* - Retirement is a crucial financial goal for everyone. - The question "How much money do I need to retire?" is common. - The retirement calculator helps determine the required retirement corpus. 02:04 *💰 Retirement Calculation Inputs* - Key factors for retirement calculation include age, life expectancy, current annual expenses, inflation rate, and return on investment. - Considerations like investment horizon, expected returns, and post-retirement investment strategies are essential. - Proper assumptions in calculations are necessary for accurate retirement planning. 08:15 *💵 Retirement Corpus Requirement Calculation* - Example scenarios show how monthly SIP amounts vary based on different factors like starting SIP amount, annual increase, and return on investments. - Introducing step-up SIP strategy can help adjust SIP amounts over time based on income growth. - Calculating retirement corpus needs involves considering factors like lifestyle expenses, investment growth rate, and early retirement goals. Made with HARPA AI
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
My Financial adviser is ‘’'Natalie Lynn Fisk ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Thanks for sharing the calculator and explaining the concepts behind it. Fortunately, I am debt free but neglected financial planning discipline and mostly worked for the money and not let money work for me. Started my journey to get financial education so that I can do a better job at managing my money. Your explanation made a lot of sense and will give me my own inflation and expense estimates for years ahead. Thanks again.
Excellent calculator. This helps. It's eye opening to know, how much money we would need for retirement. The only way to successful retirement is start investing from day one of earning.. must be taught early in life. Lost so many years with lack of such knowledge. Pls highlight if you have noticed any flaw in this calculator as people may be taking decision based on this. Thanks. Appreciate.
Sir, you are saying "14.5 cr after 30 years is 70-80 lacs or may 1 crore of today" & then your saying I'm guessing. But, actually it is around 1.9 crore of today when you take inflation as 7%.
there is something wrong with the calculator, becasue with 30 yrs in hand and annual expense of just 6 lacs..... no ways he needs sip of 48000 for 30 yrs when growing by 12 %
During service follow 50:25:25 (expense/ investment/ emergency fund reinvested cyclic) after retirement 50:50 (income and expense. Balance 50 will beat the inflation.
The calculator given online is incorrect. It does not consider the current investment and return on that. Corpus required and SIP required does not change there though I am making changes in current investment increase or decrease or current return in that increase or decrease. It still gives same corpus required and SIP required amount. Correct that part.
When we are planning for retirement what should be the expected return and inflation we should presume for calculation purpose present age 55 , retirement age 60
About 30 times your annual expenses, with a conservative investment of 40 percent in equity mutual funds can sustain you for over three decades. Build your own program and test it for various extreme conditions to figure out how much you may need.
You are considering only returns on investments. What we will do with principal after our life. So annuity should be considered for calculating pension
I got negative sip. My inputs, current age 32, retirement 60, life expectancy 75, annual expense 600000. Inflation 7, expected pre ror 10, post ror 7. Annual incre in income 5, existing investment 50 lac(assuming), expected ror on existing invest 10. Am I doing something wrong.
You have added the life expectancy as 75 which means you just need 15 years of retirement fund which is covered through your existing corpus. However if you will not live beyond 75 is a scary assumption and to be on safer side should always be considered as 90.
Real return on investment post retirement is 1% less than inflation rate and income tax implications also need to be considered Also can you add a sub goal in retirement corpus for Medical/Travel
Please excuse me if I'm wrong, in your calculations you might have forgotten one critical facts to mention which will change the whole scenario, i.e. compounding interest which would be earned from the age of 61 to 95 years @ 8% on the retirement corpus you mentioned at the age of 60 Rs. 14.66 Crore even after deducting Rs. 6 Lakhs PA with 7% inflation would be very huge amount of around more then Rs. 200 crores Please correct me if I'm mistaken
Bhai aaj se 50-60 saal baad kaunsa instrument tumhe 8% return dega aur us age pe aake kaise manage karna chaahoge investments. Its easier said than done.
Hi dear I would like ask you a question if you don't mind. Please let me know the prices of anything any entity which came down after its increase in price. Mostly the answer is no. Because its simply game of supply and demand. Day by day due to population prices of all commodities increasing due to demand. Huge demand less supply creates inflation issue. And I don't think in future the population will go down, which will result in more inflation. Now inflation is different for different person.
Not sure if it would go down to as low as 1-2%, but you are right, after 25-30 years India will be most probably a developed country and would have low interest rate/ low inflation economy. If inflation becomes 1-2%, expect interest rates to be in similar range. This is my opinion. Plz do your due diligence.
That's not how you plan for retirement. You must assume a higher rate of inflation to calculate a value that is on the safer side. Also the rate of inflation is not JUST the rate provided by the govt. You have to take into account personal inflation too i.e. how much do you increase your expenses on an average. You'll realize that a rate of 9% is the minimum you should assume to arrive at a safe number.
How much Fund a person should have who already retd on Dec 2021 and whose annual expense is Rs 12 Lacs (including Health Insr premium, Building Tax, Car Insurance, Housing Society annual maintenance). Where should the person invest to meet the yearly expenses taking care of tackling future enhanced expenses?
Considering u never run out of your corpus and u grow ur money by modest 8 percent and 6 percent as inflation. 12 lakhs must be 2% of ur corpus. So an ultra safe figure would be 50*12 I.e. 6 cr inr. If u keep half money in a fund that generates 10%. You would need 3.6 cr inr. All these are extremely safe bets and u won’t ever dry up ur corpus. Forever u will live with interest gained. For life expectancy of 85 in India and u want to eat up ur corpus it would be a bit lesser.
There should be an option to update Lumpsum Funding as Lumpsum amount can be different for individual as per their current Saving. so that if i can give how much Lumpsum i can do it will change sip values.
GAURAV JI, There is one option missing in your retirement corpus calculator, which is, if a person is having currently some Lumpsum amount say Rs 3 or 5 Lakh (PV - Present Value) to further invest apart from SIP, then considering this lumpsum his SIP amount will be drastically reduced. Most expert misses this point while telling investors. Most of us have Rs 2 or 3 Lakh in spare, which drastically reduces SIP burden. I am using this in Excel for youngsters in my family to calculate retirement corpus. Another point is after retirement also inflation will be there but for a retiree, it may not be 7%, but may be 2-3% (usually food inflation and medical expenses inflation), So a separate box for inflation after retirement to be there, if one does not want to fill that then automatically inflation before retirement to ne considered. Your comments please.
If there is current lump sum, it should be added in current investments For inflation after retirement, calculation wouldn’t change much as our post retirement RoI will also change accordingly
@@InvestYadnya True, Post retirement RoI will change after retirement, but can be estimated and can be accommodated in calculator. In calculator many assumptions are taken, which may not correct at that time, so one more thing can be taken, no harm at least. Your team doesn't want to do as some work to be done that is separate point and need not to be justified.
Inflation post retirement is going to be same. Idea is to maintain same life style as one is having. Infact it be 1-2% more than RBI published inflation rate
Whichever video of any youtuber or finfluencer available only talks about the Corpus required upto the retirement age but no one discusses about the overall expenses upto the life expectancy and how to earn that money post retirement. Eg. someone at age of 40 with Rs.24 Lakhs Yearly expense, planning to retire at 50 and live upto 83 or 84 Years would have total expenses of Rs.57 Crores approx. to maintain the current lifestyle. That person will need a minimum of Rs.15 Crores at the age of 50 and then further invest that money for lifetime (84 Years) with an ROI of 7% minimum. No one is considering taxation and other expenses on these returns. Who knows what instrument will give 7% return from the year 2034 to 2067. Everything is Hypothetical but of course some planning is required.
सर जी समझ गया मैं अगर आज मेरी उम्र 30 साल है और मेरे तीन बच्चे हैं तो कुल मिलाकर उनकी शादियों के लिए उनकी पढ़ाई के लिए और अपने रिटायरमेंट के लिए मुझे हर महीने 90000 सेव करना है पर सैलरी 70000 है कैसे करूं
Inflation is 15-20% So you need at least 100x of your annual expenses on needs to retire if you don't want to leave any inheritance 150x if you want to leave something for children. 200x if you wish to travel post retirement. Net net ..it's impossible to take early retirement for salaried ppl
Sir, ITR-2 me ek issue hai. aap pls check kerke confirm kariye. if LTCG is less than 1 lac in that case also its getting adjusted against CFL(last year capital loss). Actually its less than 1 lac so last year losses should not be adjusted.
The pace at which the world is changing, this kind of linear thinking is suicidal. You have to accept that life is becoming more and more unpredictable. Invest in friends and family who will help you more post-retirement than money. Invest in your health and skills that will be your second biggest asset. Other than that just simply save/invest half of all your earnings in whatever instruments that make you feel comfortable and give you peace if mind. Rest nothing is in your control so be mentally prepared to be strong whatever happens. Baaki aap jo bhi plan karoge, aapki MAA sab barbaad kar degi aur aapko noch khayegi. BTW, MAA = Modi, Ambani and Adani :)
While preparing for retirement, the wisest thing that should be on every wise individual's list is to invest in different stream of income; I am earning more this year because I have been investing while working at the same time. I invested through ROCHELLE DUNGCA-SCHREIBER, same woman that an anchor kept mentioning on CNBC, and made multiple of my start up capital within three months . She lives here in the USA and she is licensed
I’ve been watching quite a good amount of finance videos lately and I came to discover something, that even with my experience so far in business and in the market I still require someone who is higher than me to guide me. Thx for you advisor, I’ll look her up..
🎯 Key points for quick navigation:
00:02 *🎓 Retirement Planning Introduction*
- Retirement is a crucial financial goal for everyone.
- The question "How much money do I need to retire?" is common.
- The retirement calculator helps determine the required retirement corpus.
02:04 *💰 Retirement Calculation Inputs*
- Key factors for retirement calculation include age, life expectancy, current annual expenses, inflation rate, and return on investment.
- Considerations like investment horizon, expected returns, and post-retirement investment strategies are essential.
- Proper assumptions in calculations are necessary for accurate retirement planning.
08:15 *💵 Retirement Corpus Requirement Calculation*
- Example scenarios show how monthly SIP amounts vary based on different factors like starting SIP amount, annual increase, and return on investments.
- Introducing step-up SIP strategy can help adjust SIP amounts over time based on income growth.
- Calculating retirement corpus needs involves considering factors like lifestyle expenses, investment growth rate, and early retirement goals.
Made with HARPA AI
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
My Financial adviser is ‘’'Natalie Lynn Fisk ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Scammer
Thanks for sharing the calculator and explaining the concepts behind it. Fortunately, I am debt free but neglected financial planning discipline and mostly worked for the money and not let money work for me. Started my journey to get financial education so that I can do a better job at managing my money. Your explanation made a lot of sense and will give me my own inflation and expense estimates for years ahead. Thanks again.
Excellent calculator. This helps. It's eye opening to know, how much money we would need for retirement. The only way to successful retirement is start investing from day one of earning.. must be taught early in life. Lost so many years with lack of such knowledge. Pls highlight if you have noticed any flaw in this calculator as people may be taking decision based on this. Thanks. Appreciate.
Sir, you are saying "14.5 cr after 30 years is 70-80 lacs or may 1 crore of today" & then your saying I'm guessing. But, actually it is around 1.9 crore of today when you take inflation as 7%.
What about tax on mutul fund or unveatment once they are withdrawn?
Does calculatir takes that into consideration?
there is something wrong with the calculator, becasue with 30 yrs in hand and annual expense of just 6 lacs..... no ways he needs sip of 48000 for 30 yrs when growing by 12 %
During service follow 50:25:25 (expense/ investment/ emergency fund reinvested cyclic) after retirement 50:50 (income and expense. Balance 50 will beat the inflation.
Lovely video and tool. Shared with 110 ppl
As usual excellent one sir.. Very precise calculations... Thanks a lot
Sir, your worst case assumption of 7% increase in salary equal to the rate of inflation is a correct assumption in case of government job.
It's most important topic and I know maximum public will be shocked after calculation..
Thanks 🙏for the update
Jai Hind 🇮🇳
The calculator given online is incorrect. It does not consider the current investment and return on that. Corpus required and SIP required does not change there though I am making changes in current investment increase or decrease or current return in that increase or decrease. It still gives same corpus required and SIP required amount. Correct that part.
Thank you for such a wonderful review of reality.
When we are planning for retirement what should be the expected return and inflation we should presume for calculation purpose present age 55 , retirement age 60
Your retirement calculator and formulas behind it is very good and logical
Wonderful utility... and thanks for detailed explanation which is absolutely needed when doing such type of calculation!
Good endeavour for increasing Financial Literacy .Thanks for sharing knowledge
About 30 times your annual expenses, with a conservative investment of 40 percent in equity mutual funds can sustain you for over three decades.
Build your own program and test it for various extreme conditions to figure out how much you may need.
Great job sir. U n yadnya team awesome
You are considering only returns on investments. What we will do with principal after our life. So annuity should be considered for calculating pension
Calculator seems to be wrong not considering existing investments
What an outstanding tool sir ji!
taxastion on returns to nahi add hua isme.
Thanks for such a calculator..
Needed it..
Where is calculator download link ?
I got negative sip. My inputs, current age 32, retirement 60, life expectancy 75, annual expense 600000. Inflation 7, expected pre ror 10, post ror 7. Annual incre in income 5, existing investment 50 lac(assuming), expected ror on existing invest 10.
Am I doing something wrong.
You have added the life expectancy as 75 which means you just need 15 years of retirement fund which is covered through your existing corpus.
However if you will not live beyond 75 is a scary assumption and to be on safer side should always be considered as 90.
Real return on investment post retirement is 1% less than inflation rate and income tax implications also need to be considered
Also can you add a sub goal in retirement corpus for Medical/Travel
Please excuse me if I'm wrong, in your calculations you might have forgotten one critical facts to mention which will change the whole scenario, i.e. compounding interest which would be earned from the age of 61 to 95 years @ 8% on the retirement corpus you mentioned at the age of 60 Rs. 14.66 Crore even after deducting Rs. 6 Lakhs PA with 7% inflation would be very huge amount of around more then Rs. 200 crores
Please correct me if I'm mistaken
What do u mean ? do u mean compunding after 60 ? coz they will be spending the 14 crs is what iam assuming.
or are u talking about pre retirement ?
Bhai aaj se 50-60 saal baad kaunsa instrument tumhe 8% return dega aur us age pe aake kaise manage karna chaahoge investments. Its easier said than done.
One question - will inflation will forever remain around 6-7%? Can't it go down to 1-2% after some years?
Hi dear
I would like ask you a question if you don't mind.
Please let me know the prices of anything any entity which came down after its increase in price.
Mostly the answer is no. Because its simply game of supply and demand.
Day by day due to population prices of all commodities increasing due to demand.
Huge demand less supply creates inflation issue.
And I don't think in future the population will go down, which will result in more inflation.
Now inflation is different for different person.
Not sure if it would go down to as low as 1-2%, but you are right, after 25-30 years India will be most probably a developed country and would have low interest rate/ low inflation economy. If inflation becomes 1-2%, expect interest rates to be in similar range. This is my opinion. Plz do your due diligence.
That's not how you plan for retirement. You must assume a higher rate of inflation to calculate a value that is on the safer side. Also the rate of inflation is not JUST the rate provided by the govt. You have to take into account personal inflation too i.e. how much do you increase your expenses on an average. You'll realize that a rate of 9% is the minimum you should assume to arrive at a safe number.
To which class of Society FIRE is applicable
Those who already have a corpus of 1-2 crore
Sweet and simple.. very useful
Thank you Gaurav sir..
Going to calculate for myself with 10% return on NPS INVESTMENT.
thank you, thank you, thank you
How much Fund a person should have who already retd on Dec 2021 and whose annual expense is Rs 12 Lacs (including Health Insr premium, Building Tax, Car Insurance, Housing Society annual maintenance).
Where should the person invest to meet the yearly expenses taking care of tackling future enhanced expenses?
Considering u never run out of your corpus and u grow ur money by modest 8 percent and 6 percent as inflation. 12 lakhs must be 2% of ur corpus. So an ultra safe figure would be 50*12 I.e. 6 cr inr. If u keep half money in a fund that generates 10%. You would need 3.6 cr inr. All these are extremely safe bets and u won’t ever dry up ur corpus. Forever u will live with interest gained. For life expectancy of 85 in India and u want to eat up ur corpus it would be a bit lesser.
Harsh fact :
Only 1 % will be able to retire before 50.
Forget FIRE before 40 !
We won't be able to retire at 60 also due to the rampant consumerism that is going on
There should be an option to update Lumpsum Funding as Lumpsum amount can be different for individual as per their current Saving.
so that if i can give how much Lumpsum i can do it will change sip values.
U put current monthly expenses as 5 lac instead of 50k
GAURAV JI,
There is one option missing in your retirement corpus calculator, which is, if a person is having currently some Lumpsum amount say Rs 3 or 5 Lakh (PV - Present Value) to further invest apart from SIP, then considering this lumpsum his SIP amount will be drastically reduced. Most expert misses this point while telling investors. Most of us have Rs 2 or 3 Lakh in spare, which drastically reduces SIP burden.
I am using this in Excel for youngsters in my family to calculate retirement corpus.
Another point is after retirement also inflation will be there but for a retiree, it may not be 7%, but may be 2-3% (usually food inflation and medical expenses inflation), So a separate box for inflation after retirement to be there, if one does not want to fill that then automatically inflation before retirement to ne considered.
Your comments please.
If there is current lump sum, it should be added in current investments
For inflation after retirement, calculation wouldn’t change much as our post retirement RoI will also change accordingly
@@InvestYadnya True, Post retirement RoI will change after retirement, but can be estimated and can be accommodated in calculator. In calculator many assumptions are taken, which may not correct at that time, so one more thing can be taken, no harm at least. Your team doesn't want to do as some work to be done that is separate point and need not to be justified.
Inflation post retirement is going to be same. Idea is to maintain same life style as one is having. Infact it be 1-2% more than RBI published inflation rate
Whichever video of any youtuber or finfluencer available only talks about the Corpus required upto the retirement age but no one discusses about the overall expenses upto the life expectancy and how to earn that money post retirement. Eg. someone at age of 40 with Rs.24 Lakhs Yearly expense, planning to retire at 50 and live upto 83 or 84 Years would have total expenses of Rs.57 Crores approx. to maintain the current lifestyle. That person will need a minimum of Rs.15 Crores at the age of 50 and then further invest that money for lifetime (84 Years) with an ROI of 7% minimum. No one is considering taxation and other expenses on these returns. Who knows what instrument will give 7% return from the year 2034 to 2067. Everything is Hypothetical but of course some planning is required.
सर जी समझ गया मैं अगर आज मेरी उम्र 30 साल है और मेरे तीन बच्चे हैं तो कुल मिलाकर उनकी शादियों के लिए उनकी पढ़ाई के लिए और अपने रिटायरमेंट के लिए मुझे हर महीने 90000 सेव करना है पर सैलरी 70000 है कैसे करूं
Thank you Gaurav Sir
Jordar ❤️❤️
Nice and useful video on retirement.
Thank you
Inflation is 15-20%
So you need at least 100x of your annual expenses on needs to retire if you don't want to leave any inheritance
150x if you want to leave something for children.
200x if you wish to travel post retirement.
Net net ..it's impossible to take early retirement for salaried ppl
@@TheLionKing2345 womp womp
Sir, ITR-2 me ek issue hai. aap pls check kerke confirm kariye. if LTCG is less than 1 lac in that case also its getting adjusted against CFL(last year capital loss). Actually its less than 1 lac so last year losses should not be adjusted.
In reality, gain is first adjusted againt the carried forward of loss. Once that is exhausted only then you will get exemption.
Hope this helps. :)
need video explaination on calculators
Why business class Society dont follow Retire Early plan
Because they have business...
😀😀
Only slaves needed freedom.
Slavery is not dead only few understand fiduciary responsibility and become part owners.
Pl tell where you could get 9 percent
Ppf ka effective yield around 8.3% hai
Useful
Life expectancy should be 85 not 95.
The pace at which the world is changing, this kind of linear thinking is suicidal. You have to accept that life is becoming more and more unpredictable. Invest in friends and family who will help you more post-retirement than money. Invest in your health and skills that will be your second biggest asset. Other than that just simply save/invest half of all your earnings in whatever instruments that make you feel comfortable and give you peace if mind. Rest nothing is in your control so be mentally prepared to be strong whatever happens.
Baaki aap jo bhi plan karoge, aapki MAA sab barbaad kar degi aur aapko noch khayegi. BTW, MAA = Modi, Ambani and Adani :)
While preparing for retirement, the wisest thing that should be on every wise individual's list is to invest in different stream of income; I am earning more this year because I have been investing while working at the same time. I invested through ROCHELLE DUNGCA-SCHREIBER, same woman that an anchor kept mentioning on CNBC, and made multiple of my start up capital within three months . She lives here in the USA and she is licensed
I can’t drop her info here, Just do a web lookup using her full name and connect to her official webpage ..>
I’ve been watching quite a good amount of finance videos lately and I came to discover something, that even with my experience so far in business and in the market I still require someone who is higher than me to guide me. Thx for you advisor, I’ll look her up..
please gift this black T-shirt to a few model subscribers.
14 crore Corpus!!! 😂😂😂
May be you are planning for , high income group people only !!!!😄😄😄
Mare Jase logo ki to jindegi Kam pad jayegi 50000/- salary tak pahach ne ke liye
Sir can you explain whole life ulip policy
First comment 😀
Your calculator doesnt work on mobile now. Shows how much you care about your website lol
😂😂😂..apna health accha rakho...gaaw k log 90 yrs tak jrete hai kam kharch mei