Some people search on retirement calculators to get an estimate of the retirement corpus they needed during retirement. But most of them get astonished on the figures in the retirement calculator and conclude that they can’t achieve that goal! But the fact is- “They Can achieve that goal by investing from an early age!
Though it is hard to hear , it is fact that – “If an investor starts investing at young age and remained for the long term without missing a single monthly installment, they could achieve that goal”.
Though youngsters strongly believe that there is long-time for retirement and there is no need to think for retirement as-of-now, when they started early and invested in the right asset class which has higher potential to beat inflation in the long term, they would surely be “Crorepatis” sooner!
This will be done if the investor understands the magic of compounding and experiences it by investing for the long-term. This would be possible if the investor waits patiently for the long term.He has to start early and continue till his goal is achieved.
Let us compare two friends- Sunil and Anil who are child-hood friends. Both Sunil and Anil completed their graduation in the same year and joined in the similar jobs. Their salaries are almost similar. But Sunil has the habit of savings for the future and visited one of the online retirement calculators and concluded that he has to invest 22,690 rupees per month in an equity mutual fund through sip to achieve 12 crores which he assumed to be sufficient during retirement.
While Anil is a easy-go person and delay 10 years to start investing. After realising that Sunil is earning decent returns on his advise he also searched on online retirement calculator and surprised to see he has to invest 73,460 rupees/month in an equity mutual fund to earn the same corpus of 12 crores!
He can’t understand why he has to invest such an huge amount by procrastinating the investment for just 10 years! This is because sunil realised the importance of saving at an early age and invests in right asset class, while Anil misses the bus by delaying the investments for 10 Years which looses the magic of compounding.
You can check at any of the online retirement calculator and you will see huge opportunity loss if you delay the investments. So don’t neglect the power of compounding, by investing early you will surely achieve the corpus mentioned in the online calculator. The only thing you have to do is being patient and holding the investment for the long-term