POSTED BY August 18, 2012 10:59 am COMMENTS (16)ON
I just started earning abroad (younger than 24 years) and I am beginning to get my financial planning done. I am doing the following to estimate a corpus for my retirement. I am entirely new to investing and following is a starting theory:
I plan to return to India in 2028, at an estimated yearly expenditure beginning at 6 lpa. I assume my post tax income then would be atleast 15 lpa (My posting is abroad, but the same starting position in India gets about 12 lpa, and I assume 2-3 promotions easily in 16 years for a conservative 15 lpa salary estimate later)
I compound my yearly expenses by 4% every year which will amount to 14 lpa expenses, when I am almost 60. Is it sufficient if I have 15 times my yearly expenditure during retirement? I think I can live off FD interests (assuming a 9% return still holds) from that corpus. My problem is that it looks very less (about 1.9 crores), which is the typical retirement corpus for people (in slightly high earning jobs) retiring now!. How can I estimate a ball-park figure for after 30-35 years?