My husband is 49 yrs and if he plans to retire at 60 yrs, and our monthly spending is Rs.30,000 ( 650 US dollar)now, how much money would we need monthly when he is 60 yrs taking into consideration the inflation. So to get that amount as a monthly interest how much deposits should we have by then?? Please explain. Thanks
2006-06-10 22:37:04 · 4 answers · asked by cheerfulwife 2 in Business & Finance ➔ Personal Finance
Hi Flush, Thx for your time. I expect life span upto 85 and his retirement at 60yrs. As per your calculation should we invest Rs.72,00,000 to get Rs.3,60,000 a year before his retirement? I have to plan now hence am anxious.
2006-06-11 14:19:14 · update #1
Your savings should be placed in safe investments (bonds, certified deposits, or deposits protected against inflation) which will yield about 5%.
Your yearly expenses being Rs.3,60,000 (12 x Rs30,000), the required amount of savings that would produce this income is:
Rs.3,60,000 x 20 = 72,00,000
(multiplying by 20 is the same as dividing by 5%).
This assumes that you have a very very long retirement.
If you factor in the number of years you expect to live (you did not specify in your question), the amount above is reduced... however the calculation is more complex.
As an example, if you expect your savings to last 25 years after your husband retires, the amount becomes approximately 50 lakhs. Sounds like a lot? one thing you can do is reduce your monthly expenses (in retirement people usually spend less) and save, save, save!
2006-06-11 14:09:43 · answer #1 · answered by Flush 2 · 0⤊ 1⤋
try to just buy things that you really need ... and i would save all the money i can.. i am sure we can do without all the fancy luxuries in life...i am not good in math.. but i live on far less than that and i make it...so just try and do like i do ...there is plenty of nice things in thrift shops...and flea markets, if there is anything you have to have..of course buy yourself a luxury now and then...i primp myself with special things to take a bath with.....i am sorry i did not answer this probably the way you wanted but i tried to tell you the way i feel about the subject...
2006-06-11 05:51:37 · answer #2 · answered by sanangel 6 · 0⤊ 0⤋
life is not all about mathematical calculations
suggest u take things simpler, may ease up u'r daily living too
just see an LIC agent and take a pension plan
tables all worked out - simple
2006-06-22 10:42:17 · answer #3 · answered by sεαη 7 · 0⤊ 0⤋
It depends on your expending! In my opinion we should adjust our expenditure according to our income!!
2006-06-11 05:43:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋