Publication details: Investorโs Guide โ ET Now – 01-09-2016
Responses, opinion and view from Kartik Jhaveri
Question sent by Mr. Abhishek Singh:-
I am looking at creating a pension fund. I am 37 years old and plan on retiring at 45. I am looking at making a one time investment and can spare up to Rs. 2 crores right now. My monthly expense right now is about Rs. 5 lakhs and I want to maintain this lifestyle.
Advice given:
- If you want to retire in the next 8 years, the pension fund that you will require is going to be close to Rs. 38 crores.
- The Rs. 2 crores that you’re willing to invest right now will at best grow to somewhere in the range of Rs. 5-6 crores if I take a fair estimate of growth via the equity strategy.
- So in summary a pension fund cannot be created to manage your lifestyle and expenses in the time that you have and in the budget that you are willing to provide.
- What I suggest is you postpone your retirement timeframe or increase the budgetary allocation that you have available as on today.