Want to retire early at the age of 50 with fixed monthly earnings?. Being financially secure once one is retired is not a myth and this can only be achieved if the correct investment plan is used. Here is a crude guide on how earn ₹50,000 every month through the investment.
How to Build Your Retirement Fund
For example, to receive ₹50,000 per month after retirement, you must begin investing in your 30s or 40s. Here’s a step-by-step guide to help you get there:
1. Save and Invest Regularly: Invest 10-20% of your monthly earnings or 20 times the amount you currently owe to your madam. For instance, if your salary is ₹ 50,000 you should spend at least ₹10,000 per month in investment. If your salary is less, then one must look for other sources of income in order to achieve this investment target.
2. Choose the Right Investment: Save ₹10,000 every month through Systematic Investment Plan (SIP) in a mutual fund for 15 years. Save 5% of your monthly income and augment that by 10% yearly. This implies that in the following one year, ₹11,000 would be invested, and in the next one year ₹12,100 and so on.
Expected Investment Growth and Monthly Earnings
While using Step-Up SIP, you can save approximately ₹1 crore in 15 years’ time. Here’s how it works:
Initial Investment: In more than 15 years, your investments will form a rather large amount of money.
Investment Strategy: Finally, after 15 years, the corpus should be partially used for meeting the requirements at initial or else invest it in another scheme. It is suggested that ₹50 lakh remain in an SIP of a mutual fund.
Monthly Income: Based on an expected annual return of 12%, your investment shall yield around ₹ 6 lakhs per annum or ₹ 50,000 per month.
Key Points to Remember
Start Early: Compound gains refer to the gains you get from investing in the early stages before moving to the next level; the longer you wait, the lesser you will gain from compound growth.
Increase Investments: Thus, one should ensure that the investment is gradually and consistently boosted in order to achieve the laid down objectives.
Consult Experts: One should always consult approved investment consultants before venturing into any investment.
