Retirement Planning Case

Key Information
Current age
Retirement Age
Life Expectancy
Current Annual Income
CurrentAnnual Expenses
Inflation
Expected Return
Pre retirement expected return

Corpus Needed at retirement

Investment @ PV
Deficit
Yearly Investment

Monthly Investment

50
60
85
1,200,000
800,000
10%
13%
16%

(34,805,460)
28,837,355
(5,968,105)
279,911

23,326

Investments/Savings
Equity
Gold
Mutual Funds
PPF
EPF
FD
Real Estate
Life Insurance
Health Insurance
Contigency Fund
Total
Suggested Investment
MF MIP
Post-office monthly income schemes
Senior Citizen Savings Scheme
6 months contigency fund

PV
(166,667)
(1,200,000)
(150,000)
(700,000)
(1,000,000)
(650,000)
NIL
(2,000,000)
(166,667)
(133,333)
(4,000,000)

Interest Rate FV@65

15%
20%
14%
8%
8%
8.5%

1,356,177
18,488,426
1,070,691
2,220,518
3,172,169
2,209,833

6%

319,541
28,837,355

Debt-oriented hybrid funds with 70-75%

Rs 1500 - Rs 4.5 lakhs for 6 years @ 8%
Rs 1000 - Rs 15 lakhs for 5 years @ 9%

50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85

Expenses
800000
880000
968000
1064800
1171280
1288408
1417249
1558974
1714871
1886358
2074994
2282493
2510743
2761817
3037999
3341799
3675978
4043576
4447934
4892727
5382000
5920200
6512220
7163442
7879786
8667765
9534541
10487995
11536795
12690474
13959522
15355474
16891021
18580124
20438136
22481949

($1,836,278)
($1,787,527)
($1,740,071)
($1,693,874)
($1,648,904)
($1,605,128)
($1,562,514)
($1,521,031)
($1,480,650)
($1,441,340)
($1,403,075)
($1,365,825)
($1,329,564)
($1,294,266)
($1,259,905)
($1,226,456)
($1,193,895)
($1,162,199)
($1,131,344)
($1,101,308)
($1,072,070)
($1,043,608)
($1,015,902)
($988,931)
($962,676)
($937,118)

Ammortization Problem
Home Loan
Interest
Tenure
Bank Transaction Charges

EMI
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

5000000
12%
20
1%

Prinicipal

Interest Outstanding Amt