What is wealth accumulation calculator?
To secure a more financially stable future, one needs to have financial discipline in his younger formative years. Wealth accumulation is one of the most satisfactory things that can be achieved with the money which a person has currently. Suppose, you are 30 now and you have 30 more years to invest towards your retirement. To accumulate wealth for retirement, you need to decide for how long you want to receive the annuities from the plan. Say, you want to receive an annuity of Rs. 50,000 for a period of 30 years – up to age 90 – (50,000*30), you need to calculate how much you must invest as a corpus at the rate of the current interest. This is where a wealth accumulation calculator can help you
Why should you have a financial plan in place
Other than a comprehensive financial plan, there is no shortcut to secure a comfortable financial future. After working all these years, you deserve that comfort and peace of mind. You can spend your golden years travelling and catch up with your peers or enjoy a laid back life with your loved ones. Financial planning is all about chasing your dreams (short or long term) without having to think about the money. Financial planning will prepare you for any emergency (that money can solve) and give you peace that even if something unfortunate happens to you, your family will not suffer.
Factors to keep in mind while planning
Start Right Now:You might think you have a lot of time left before you could start planning for retirement. But the thing is time can play dirty tricks. So stop procrastinating and start planning and move towards your goal. Early and consistent planning will make a huge difference later
Analyze your current situation:Do you have your insurances (medical, vehicle or life insurance) in place? Are you able to put aside a certain amount regularly after expenses? Do you have a plan B for emergency situations? What about outstanding loans and dues, if any? Answers to these can help you analyze this
Existing Debts:Nothing gives the financially conscientious a bigger nightmare than debts. With credit card companies, banks and NBFCs issuing unsecured loans to people from all income class, people rely a lot on instant loans to take care of their immediate needs. This has to change. Start by paying off a little more than required and close the debts at the earliest
Allocate Assets Wisely: When you choose assets to invest in, understand the purpose of the particular product. For instance, if you balance your equity investments with debt funds or a safer financial tool like FD, it can spread the risks. Balancing is a key step to wealth accumulation
To build wealth or save tax:You must focus on a diversified investment portfolio that can do both – then only you can accumulate wealth. Do you know which tax slab you belong to and what are the legal options (including 80C deductions) you have to save tax? There are excellent opportunities like ELSS which will help you to build wealth and save tax at the same time