Start saving to get benefit of compounding

1. 

   Each drop of Water add to make an ocean: We don’t get loan for retirement fund:.

   Start early and get benefit of compounding on your return. Assume there are two person Mr. Ajay and Mr. Vijay both starting their career at the age of 24, both are earning annually around 4 lakhs. Mr. Vijay being a smart investor, understanding the concept of early saving started investing yearly 1 lakh in investment which gives him 8 percent yield thinking, early planning would help him in creating a retirement fund. So when he is saving this for a span of 35 years, on maturity he gets 1crore 80 lakhs.                   

              Mr. Ajay who is a spending recklessly ,doesn’t do that whatever income he earned he spent on luxuries. He gets married and then at the age of 31 starts investing 100000 per annum for next 27 years but gets a return of only 75 lakhs in same plan.

   The reason is effect of compounding. Mr Ajay is 7 years late which made him lose around 1 crore due to this delay in investing which is just matter of seven years his same investment is giving him 1 crore less.

   Mr. Vijay being smart as and when his income increases he kept adding 20% in leverage asset which can take care of his dependents in whether he is there or not that regular income should be there for family for day to day expenses which will keep on arising .Thinking all such investments will yield a return for him in future. Rightly insurance endowments plan can only be a leveraged asset.

   Simple lesson

   Start as small as you could from your first salary/income.

   Compounding of money has huge impact .7 Lakh which was delayed for 7years could yield  after 27 years on year retirement 1 crore less which is huge amount.

   Always first invest to protect  your  capital with reasonable yield.

   This plan is of Lic jeevan anand which when at the age of 24 year investment of  100000 annually for 35 years thinking to retire at around 58 year. will get a yield of  1.80 corer plus 35 lakh risk cover till the person survives.

   But if the person invest from age 31 annually 10000 premium thinking he need to retire on 58 will get yield of only 75 lakhs.

                          We all should start investing today as small as we can, after food clothing shelter insurance is basic need.

   You just need a will and KYC documents. Let’s start today. Mail me: pritisdhadge@gmail.com

                 

   Age	No of years	Annual Premium   for Vijay	annual premium of Ajay	no of years
   24	1	-100000
   25	2	-100000
   26	3	-100000
   27	4	-100000
   28	5	-100000
   29	6	-100000
   30	7	-100000
   31	8	-100000	-1000000	1
   32	9	-100000	-1000000	2
   33	10	-100000	-1000000	3
   34	11	-100000	-1000000	4
   35	12	-100000	-1000000	5
   36	13	-100000	-1000000	6
   37	14	-100000	-1000000	7
   38	15	-100000	-1000000	8
   39	16	-100000	-1000000	9
   40	17	-100000	-1000000	10
   41	18	-100000	-1000000	11
   42	19	-100000	-1000000	12
   43	20	-100000	-1000000	13
   44	21	-100000	-1000000	14
   45	22	-100000	-1000000	15
   46	23	-100000	-1000000	16
   47	24	-100000	-1000000	17
   48	25	-100000	-1000000	18
   49	26	-100000	-1000000	19
   50	27	-100000	-1000000	20
   51	28	-100000	-1000000	21
   52	29	-100000	-1000000	22
   53	30	-100000	-1000000	23
   54	31	-100000	-1000000	24
   55	32	-100000	-1000000	25
   56	33	-100000	-1000000	26
   57	34	-100000	-1000000	27
   58	35	17500000	75000000	28
   		8.09%	7%