General Trading Chat

[Smart_trade]

ST Da, what will be the real value of 1 Cr in 30 years?

Every generation asks this question. In todays scenario, making Rs 10 K SIP is not difficult for a family....after 30 years it will grow to 4 Cr, the present value of which could be 1 Cr which takes care of retirement household expenses..In 30 years our incomes increase so the SIP amount also should increase periodically, if this is done we will build a very comfortable retirement fund.

Remember that we have no pension, no Govt PF,and if we dont accumalate few crores, our retirement is going to be very difficult. I meet so many senior citizen on my evening walk who dont have even 30-40 L retirement funds ( apart from own house to stay )and their life is of struggle even in later years.

Smart_trade

 

[Smart_trade]

Every generation asks this question. In todays scenario, making Rs 10 K SIP is not difficult for a family....after 30 years it will grow to 4 Cr, the present value of which could be 1 Cr which takes care of retirement household expenses..In 30 years our incomes increase so the SIP amount also should increase periodically, if this is done we will build a very comfortable retirement fund.

Remember that we have no pension, no Govt PF,and if we dont accumalate few crores, our retirement is going to be very difficult. I meet so many senior citizen on my evening walk who dont have even 30-40 L retirement funds ( apart from own house to stay )and their life is of struggle even in later years.

Smart_trade

I will give a definite case study. I bought my car on car loan some 25 Years ago and I was paying an installment of Rs 5000 for 5 year loan..after the loan was paid off, I should have started a SIP of 5000 with 10% increase every year.....with 12 % CAGR it would have given me 3.75 Cr after another 10 years, it may be equivalent to say 1.75-2 Cr today....which is a good retirement fund to take care of monthly expenses.

With 15 % CAGR, it is 5.85 Cr.....

Smart_trade

 

[niftygupshup]

holding LOD,
looking for 19350

 

[timepass]

I will give a definite case study. I bought my car on car loan some 25 Years ago and I was paying an installment of Rs 5000 for 5 year loan..after the loan was paid off, I should have started a SIP of 5000 with 10% increase every year.....with 12 % CAGR it would have given me 3.75 Cr after another 10 years, it may be equivalent to say 1.75-2 Cr today....which is a good retirement fund to take care of monthly expenses.

With 15 % CAGR, it is 5.85 Cr.....

Smart_trade

30 years ago, a 7th standard student was paying a school fees of Rs. 3 per month, today the same school charges Rs. 1200 per month for 7th standard. If the saving is for future generations, inflation in the essentials has to be kept in mind.

 

[niftygupshup]

IMO
For very long term investment (20/30 years), buying a property (flat), even a small one, on loan for 20/30 years, is the best option.
Provided you have enough extra income to pay instalment for first 4-5 years

 

[timepass]

IMO
For very long term investment (20/30 years), buying a property (flat), even a small one, on loan for 20/30 years, is the best option.
Provided you have enough extra income to pay instalment for first 4-5 years

There are all kinds of headaches associated with property as an investment. It has to be managed more carefully than other investment classes.

 

[Smart_trade]

30 years ago, a 7th standard student was paying a school fees of Rs. 3 per month, today the same school charges Rs. 1200 per month for 7th standard. If the saving is for future generations, inflation in the essentials has to be kept in mind.

I dont know which school was charging Rs 3 as fees even 30 years ago....do you think our household expenses has gone 400 times( taking same ratio in yr example )......so if my household expense was Rs 15 K 30 years ago, do I need 60 Lacs per month to maintain the same living style ? No...I probably need 60-80 K per month.

A thumb rule is household expenses double every 10 years..

Smart_trade

 

[timepass]

I dont know which school was charging Rs 3 as fees even 30 years ago....do you think our household expenses has gone 400 times( taking same ratio in yr example )......so if my household expense was Rs 15 K 30 years ago, do I need 60 Lacs per month to maintain the same living style ? No...I probably need 60-80 K per month.

A thumb rule is household expenses double every 10 years..

Smart_trade

IMO, the cost of living goes up by about 15% per year and a level jump every 5 years or so.

Edit : OK, that Rs. 3 per month was 40 years ago when I was in 7th standard

 

[vikas2131]

IMO
For very long term investment (20/30 years), buying a property (flat), even a small one, on loan for 20/30 years, is the best option.
Provided you have enough extra income to pay instalment for first 4-5 years

Buy Land if u could keep it safe.. probably the best investment ...if u cant then equity is the way to go..

 

[vikas2131]

I dont know which school was charging Rs 3 as fees even 30 years ago....do you think our household expenses has gone 400 times( taking same ratio in yr example )......so if my household expense was Rs 15 K 30 years ago, do I need 60 Lacs per month to maintain the same living style ? No...I probably need 60-80 K per month.

A thumb rule is household expenses double every 10 years..

Smart_trade

i disagree with the thumb rules...i have seen fruits price rising 100% in 6 years...