Going With Style and Losing Just 300 Crores!

Please read our last blog here. We have told how important it is to start saving early and the SIGNIFICANT difference it will have in our wealth creation journey. This blog is continuation of the same. Because a lot of people ask us the question whats the point in having money @ 50 or 60 or later than that when you cannot enjoy it. One thing i have to assure you is the definition of “Enjoy” will change when your age hits those numbers. Moving on! Next what we will tell you is more important and important than being important is that –
I T I S M I N D B O G G L I N G

A movie by name “Going in Style” released in Hollywood



It is story of 3 Elderly citizens who rob a bank and sign off their life in style by giving away dollars to all people related to their life..

We also had a movie with elderly citizen trying to steal a bank (8 Thottakal) albeit a sad ending. We like drama. 

This blog is to help you educate how you too can sign off in style…err.,without robbing a bank  😛  

Here we told you how by saving only half of your 1st salary (6000 rs) every month until your retire, you can create a huge corpus of 18.8 Crores. Please note that as your earnings go up, this contribution will only be a minute part of your income. Well if you want to be richer, you can increase the contribution. 

Okay, You have a corpus of 18.8 Crores. What should YOU DO NOW.  Simple, Retire, Let the money work for you and pay you for the rest of your life. 

Step 1 – Ask you father how much does he need to run his family today. Ideally it will come to around 25000/month. In 40 years hence, the equivalent @ 6% inflation will be 4 lacs, thats pretty big a money. Alright you know you will need monthly 4 lacs to have a good life when you are 60 Years old. I told you let your money work and earn for you. So your money has to give you a Monthly Income of 4 lacs. 

Step 2 – How long are you going to live? Ask me, Earning Money might be easy, Dying is not so easy. It wont happen tomorrow! The longer you will live, the better it is 🙂 “Longer n healthier may you live!” 

Lets see what we mean. 

Assume you will bid us farewell at the age of 75, We will see it in blocks of 5 years so on… 

Scenario 1  – You have 18.8 Corpus for retirement. You will withdraw 4 lacs every month for 15 Years.. 20 years, 25 Years so on !
 


Scenario 2 – You have 4.3 Corpus for retirement. You will withdraw 4 lacs every month for 15 Years.. 20 years, 25 Years so on !

Scenario 3 – You have 3.3 Crores Corpus for your retirement. You will withdraw 4 lacs every month for 15 Years.. 20 years, 25 Years so on !


Okay, so you can leave a inheritance of anywhere between 14.6 crores to 1645 Crores even after spending 7.2 to 14.4 crores. If you note we have highlighted some of the figures on that boxes and you will realize that if you dont start early you WILL LOOSE A MINIMUM OF 68 Crores to 1357 CRORES or may be more. 

Even with a conservative assumption of 10% growth, you will easily loose 300 Crores by not starting early

My Friends, That’s how rich become rich!

For those of you who still stay say that even if I leave such huge inheritance i would not enjoy life, Ask elders around what if they had one tenth of the above inheritance with them now, that will answer your question. Moreover, I am sure, a meager Rs 6000 every month will not stop your enjoyment in anyway. If yes, Please comment below 😉

To start with, It does not matter where you invest. It really matters how soon you start saving (read our earlier blog on saving here)and Investing. A fool with more money, they say is A Rich Fool.

For any financial Planning queries, Please contact Droplet Advisory @ 86101 72018 / 82483 69621.
Caution – Mutual fund investments are subject to market risk.