SIP Tips: Start SIP with this calculation and you will be a millionaire at 60..
It is very important to plan for retirement along with the job. For this, relying only on PF or savings is not enough. SIP, i.e., Systematic Investment Plan, is a smart and easy way for you, through which a big fund can be created from small amounts. The sooner you start investing, the less burden it will be on your pocket, and you will also have more time for investment. If you have not yet planned for your future and you feel that you are a little late, then there is no need to be disappointed. Calculate according to your age how many years of work you have left, and start a monthly SIP accordingly. By adopting this kind of strategy, you can make yourself a millionaire by 60.
Why is SIP necessary?
By investing a small amount every month in SIP, you can earn crores in the long term. The reason for this is the magic of compounding and the returns received from it. There is definitely market risk in SIP, but even if we assume an average return of 12%, it is many times more than any FD or government scheme. Apart from this, to take advantage of compounding, invest in it for a long time. The longer you invest, the more benefit you will get.
Calculate years of service like this.
The retirement age of a common man is considered to be 60 years. In such a situation, if you are 25 years old, then 60-25 = 35 years, if you are 30 years old, then 60-30 = 30 years, and if you are 35 years old, then 60-35 = 25 years. You will have to work longer. In such a situation, you can calculate your years of service.
If you have 35 years of job left…
If you are 25 years old and you have 35 years left for a job, then you can start a SIP of just Rs 2000 and can accumulate more than 1 crore by 60. Continue the SIP of Rs 2000 for 35 years. In this case, you will have to invest only Rs 8,40,000 in 35 years. According to the SIP calculator, you will get an interest of Rs 1,01,81,662 at the rate of 12 percent. In this way, at the age of 60, you will get a total of Rs 1,10,21,662 by combining the invested amount and interest, which will be much more than 1 crore.
If you have 30 years of work left…
If you have only 30 years of work left, then start a SIP of at least Rs 3500 and continue it till the age of 60, i.e., for 30 years. In 30 years, you will invest a total of Rs 12,60,000, and at the rate of 12 percent, you will get an interest of Rs 95,23,406. In this way, at the age of 60, you will be the owner of Rs 1,07,83,406.
If you have 25 years of job left…
If you are 35 years old and only 25 years are left for the job, then you must start a SIP of at least 6200. Continue it for 25 years. In 25 years, your total investment will be Rs 18,60,000, and the interest on it will be Rs 86,93,681. In this way, at the age of 60, you will get a total of Rs 1,05,53,681 by combining the invested amount and interest.
Why is SIP the best?
It is considered one of the best investment options due to all the features like a monthly small investment, a demat account is not necessary, the benefit of compounding, high return potential, disciplined wealth creation, etc.
How to do SIP?
Complete KYC (with Aadhaar and PAN), choose a fund from AMC (SBI, HDFC, ICICI, etc.), decide the amount and date of SIP, set auto-debit from netbanking or UPI, and run SIP for a long period without interruption.
Understand this carefully
Please note that investment in mutual funds is done through SIP. Being a market linked scheme, there is some risk in it, and returns cannot be guaranteed. But SIP is considered less risky than investing money directly in stocks.
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