I want to retire with 1 crore in coming 20 years.

POSTED BY Deepak ON January 13, 2012 11:40 am COMMENTS (6)

I am Deepak aged 26 Yrs. Still i have not started any investment. I want to retire with 1 crore in coming 20 years. how much I need to invest per month & where to invest?

Also I dont have insurance cover. My Monthy income is 25000 per month. Pls help me in my financial planning.

6 replies on this article “I want to retire with 1 crore in coming 20 years.”

  1. Deepak says:

    Really An Eye Opener.

  2. Ankur Lakhia says:


    Your question is answered by forum members. However, I have a question for you. On what basis do you expect to retire with 1 Cr in 20 years time? Even by taking inflation at 6% per annum, purchasing power of 1 Cr, 20 years down the line, would be equal to roughly 30 lacs today. Considering 30 lacs today with 6% of withdrawal rate, you will have to live with Rs. 15,000/- per month, approximately. This does not leave you with any cushion. Besides, both these assumptions, inflation at 6% per annum & 6% withdrawl rate are not really reasonable. Hence, I think you need to either be prepared for work longer or increase your target from 1 Cr, thus increase your monthly savings, thus increase your monthly income as well. Food for thoughts!!

  3. Dear Deepak, most part of your query is already answered well by dear dominic prakash & dear justgrowmymoney. As your current mly income is 25K, I’m not sure, that you are in position to invest those 10K or not.

    My take start with whatever amount you can spare right now. Keep increasing your investment amount after every 6 months or so by at least 10%. for example if you are starting with 5000 Rs. as of now, from july onwards, invest 5500 & from next Jan i.e. Jan 2013, invest 6000 mly.



  4. Calculation is straight forward:

    Plug in this formula in Excel : =PMT(1%,240,0,10000000,1)
    It is assumed:
    YOu contribute every month
    Long term return is 12% so monthly euivalent is 1%
    240 is the number of periods of contribution >> 12 months * 20 years = 240
    0 is the present value of investments
    1 crore is the final needed amount

    Your answer is: Rs. 10,000 per month.

    Where to invest: COmbo of PPF and above MF

    Why PPF: Check this article on Asset allocation http://wp.me/p1Y418-24
    Which MF: Dominic has suggested some with excellent track record
    How much for insurance: If you have dependents I recommend taking 10 times annual pay. That will be 25,000*12*10 = 30 Lacs.

    IMPORTANT POINT: 1 Crore may be insufficient money 20 years from now to lead a full retirement life.

    Take away: Take Life Insurance if needed. Take Health insurance. Invest in PPF. Invest in MF SIPs. There is your recipe for a great financial life.

  5. Dominic Prakash says:

    You need to invest 11000 in funds that can return 12%. Use online tools to see the funds and their past performance.
    1. Franklin Bluechip
    2. HDFC Top 200
    3. IDFC Premier Plan A

  6. Deepak says:

    Aashal Bhai pls suggest…

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