Top News

Old age is that stage when your body is not capable of doing much hard work, but your needs increase. In such a situation, money is needed the most. This is the reason why people start planning for retirement from the time of job itself. If you also want your old age passes in a very comfortable way and you do not have to depend on anyone at that stage of age, then understand the formula of 30+10+30. Through this formula, you can create a fund of up to 4 crores and spend your old age in luxury.

To secure your old age, you have to start investing first. Make this investment in SIP because SIP has the ability to increase money rapidly. Despite being a market linked scheme, it has less risk as compared to shares. The average return of SIP is around 12%, so it is believed that this is a scheme that has the ability to beat inflation. This is the reason why most experts say to include SIP in their portfolio.

According to this formula, the first 30 means your age, the second 10 means 10% top-up and the last 30 means 30 years of SIP. To adopt this formula, you have to start investing at least from the age of 30, put a top-up of 10 percent in SIP every year and run it for 30 years.

To add a fund of 4 crores by the age of 60, you have to start with a SIP of Rs 5,000. After that, you have to put a top-up of 10% every year and run it for 30 years. Suppose you ran a SIP of Rs 5,000 every month for a year, next year you will have to increase it by 10% of Rs 5,000 i.e. Rs 500. In this case your SIP will become Rs 5,500. Next year you will have to increase it by 10% of Rs 5,500 i.e. Rs 550. In this case your SIP will become Rs 6050. Similarly, you have to increase it by 10% year after year.

Suppose you started a SIP of Rs 5,000 at the age of 30 and continued it for the entire 30 years by applying a top-up of 10% every year. In this case, in 30 years you will invest a total of Rs 98,69,641. If we consider the return of 12%, then you will get an interest of Rs 3,00,59,240. In this way, a fund of 98,69,641 + 3,00,59,240 = 3,99,28,881 (about 4 crores) will be created. In this way, you will become the owner of 4 crores at the age of 60.

SIP is a market linked scheme, it does not have a fixed return. Here the calculation has been done on the basis of estimation according to the average return of 12%. This return can be less or more. Apart from this, keep in mind that there are many types of SIPs. Choose it according to which SIP you can reach your goal through. For this, you can take the advice of a financial advisor.