#10YearsChallenge: Achieve Your Financial Goals in the Next 10 Years with Mutual Funds
The famous #10YearsChallenge has been viral these days where the people are seen taking part by simply posting their then and now pictures. The message is to check the physical growth an individual has seen in the past 10 years. We too decided to be a part of all the fun by helping you find the right 10 years challenge for yourself. Let’s together join the social media craze with a twist of better goals this time.
You cannot deny the fact that in the coming ten years, what you have earned or accumulated will definitely play a bigger role than what you look like. So, here we are, with a set financial 10 years challenge for our readers that can help them make a quantitative difference in their lives. So, are you all set for your challenge?
Table Of Content
Capturing the change in your appearance and comparing it from what it was a decade ago is a trend that’s picking up the speed and you must have spotted it from somewhere or the other in your feed as well. Here’s how you can make better use of the challenge.
Prepare Well in the Stormy Twenties
Having a disciplined approach to investment and maintaining financial life in the early stages of one’s career is far more rewarding to meet important goals. If you are in your twenties and have started earning, then it’s time to invest an amount every month via SIP instead of splurging without a thought on the latest mobile phones or other gadgets. If you are not giving a thought to saving now, then this is something which is soon going to haunt you in the coming years. Make the best use of your financial independence by stowing money in mutual funds which helps it grow into multiples.
Take a challenge to accumulate for the down payment of your first house. Supposing you’re a 25 years old individual who is willing to buy his/her own house till 45. Estimating the cost of a house in the next 10 years to be around Rs 1.4 cr and the down payment for the same is Rs 30 lakhs.
Yes, you can make Rs 30 lakhs with an investment of Rs 15,000 per month with a step up of just Rs 1,500 per month.
Build a Strong Foundation in Your Thirties
Are you landing in your 30s? Well, by now you must have crossed a couple of milestones in your career, reached mid-management or senior management level or some might have even started their own venture. Well, it’s time to accelerate your debt repayment process and also increase your savings for the upcoming challenges like child education and marriage.
Thus, it’s time for you to take a challenge to create a corpus of Rs 70 lakhs for a child’s education or marriage. Assuming that you continued with your SIP of Rs 30,000 without any step up, you can reach out to your goal.
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Get Ready for the Responsible Forties and Life Ahead
The forties to fifties is the period till when several people get a clear roadmap of their lives. This is the time when they usually settle into their set lifestyles and start planning for their life after retirement. Well, this is when you are required to juggle several roles at a point. As you cannot change your lifestyle at this age, so you need to accumulate money for the future to maintain the lifestyle that you’re leading.
Give yourself a time span of 15 years max for retirement if you are already in your 40s now. The challenge for you is to build a good corpus for your retirement. The second important challenge the people in their early 40s can take is to clear off all the debts until the age of 50.
Some of you who haven’t thought of financial planning in your early 20s and 30s should have understood by now that you cannot procrastinate on investing more. Also, to stand up strong and intact in your fifties, you have to save a good amount for your life after retirement. Thus, it’s time for you to take a challenge to create another corpus of Rs. 70 lakhs- Rs. 1cr for your golden years. Assuming that you continued with your SIP of Rs 30,000 without any step up, you can reach out to your goal. Further, if you have more money, you can invest more to accumulate a greater amount.
Summarized Plan
By starting a SIP of 15,000/month with Rs. 1500 step-up every year for starting 10 yrs, you can accomplish all the goals of Rs 30 Lac in 10 yrs for the house down payment, Rs 60 lac in the next 10 yrs for child marriage and education, and then Rs. 1 crore in next 10 yrs for retirement as well.
Here are the funds you can choose to carry out the above plan:
1. Child Future Along with Wealth Creation Goal
- ICICI Prudential Child Care Fund: Gift Plan: 30%
- ICICI Prudential Bluechip Fund: 20%
- Mirae Asset India Equity Fund: 30%
- L&T Mid Cap Fund: 20%
2.Retirement Goal
- Tata Retirement Savings Fund: Progressive Plan
- Reliance Retirement Fund: Wealth Creation Plan
Note: The return expectation is kept average at 12-15% which is quite a realistic figure to achieve for all the schemes listed above.
Summing Up
If you want to seek help with the above plan, connect with the experts working at MySIPonline. When you invest in mutual funds, it is important for you to understand your needs, investment objective, risk appetite, and time horizon first, and then invest accordingly. Also, if your mind is all tangled up with queries concerning regular mutual funds, you can simply mention it in the form provided below and we will provide you with an answer asap.
