Retirement Planning: In how many years will value of your Rs 1 crore investment be reduced to half? (2024)

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Retirement Planning: In how many years will value of your Rs 1 crore investment be reduced to half? ›

Suppose that today your total deposited amount is Rs 1 crore. At present, the inflation rate is 5 per cent, so you will have to divide the current inflation rate by 70. 70/5 = 14 i.e. in 14 years the value of your savings will be halved. That means the value of Rs 1 crore will become equal to Rs 50 lakh in 14 years.

If we assume an inflation rate of 5%, the worth of Rs 1 crore after 20 years is about Rs 37 lakh! If we assume an inflation rate of 5%, the worth of Rs 1 crore after 15 years is about Rs Rs 48 lakh. The value of 1 Cr in 30 years will decline and become Rs. 23 lakhs due to inflation.

If you start your SIP investment with Rs 10,000 per month and increase it by 5% every year, you can save Rs 1 crore in 18.3 years (220 months). If you increase the SIP amount by 10% every year, you can accumulate Rs 1 crore in little more than 16 years (194 months).

For that, you need to start early and invest a large amount every month. With that strategy, you may also build a Rs 1 crore corpus in just 5 years. Mutual fund investment can be an effective way to build a Rs 1 crore corpus in five years.

After 30 years, the value of one lakh will be around INR 23,000, assuming an annual inflation rate of 5%.

Current inflation rate in India is 6%, give or take. If we assume that this inflation rate will remain constant all the 20 years then ₹ 1 Cr (₹10,000,000) will be reduced to an effective value of ₹3,118,047 or ₹ 31.18 lakhs. What would be the value of INR 100,00,000 (1 crore) 50 years from now? The value of Rs.

It means, the purchasing power of the rupee keeps coming down due to inflation. For example, if you are investing to save Rs 1 crore for a goal which is 30-years away, the worth or the purchasing power of Rs 1 crore will be approximately Rs 23 lakh after 30-years.

What is the 8-4-3 investment rule? The 8-4-3 rule is a concept used to illustrate the power of compound interest in growing your investments over time. If we look at it carefully, it is not an investment strategy, but rather a simplified way to understand the potential acceleration of growth.

Supplementing your savings with these income streams can enhance financial stability. In conclusion, while Rs 1 crore may seem to be a substantial amount for retirement, several critical factors such as accounting for lifestyle, inflation, and healthcare expenses must be kept in mind.

- You can follow this rule to systematically grow your money: - 8% of Your Income: Allocate 8% of your income towards investments. - 4% Return: Aim for an annual return of 4% on your investments. - Reinvest for 3 Decades: Continue reinvesting your returns for a period of 30 years.

How much should I invest to get 1 crore in 10 years? ›

In order to make 1 crore in 10 years, here are the following amount one needs to invest. An individual can invest INR 38,050 to get 15% annual interest. Hence, in 10 years, the amount will be INR 1,0,09,124, and the investor will achieve the target of making 1 crore in 10 years.

At 12% interest rate per annum, you will get Rs 49.6 lakh after 20 years. Now, increase your investment by 5% every year. So in the second year, you have to invest Rs 5,670 every month. Again, in the third year, you have to hike your monthly investment by 5%; you will invest Rs 5,953.5 every month for a year.

Assuming an annual return rate of 7%, investing $50,000 for 20 years can lead to a substantial increase in wealth. If you invest the money in a diversified portfolio of stocks, bonds, and other securities, you could potentially earn a return of $159,411.11 after 20 years.

The table below shows the present value (PV) of $100,000 paid in 20 years for interest rates from 2% to 30%. As you will see, the present value of $100,000 paid in 20 years can range from $526.18 to $67,297.13.

Suppose that today your total deposited amount is Rs 1 crore. At present, the inflation rate is 5 per cent, so you will have to divide the current inflation rate by 70. 70/5 = 14 i.e. in 14 years the value of your savings will be halved. That means the value of Rs 1 crore will become equal to Rs 50 lakh in 14 years.