I want to understand how to calculate my probable returns (or rather say corpus amount) which is inflation-beaten (meaning inflation factored in). I am really finding it hard to understand how to calculate one’s future returns keeping an eye on the growing inflation. Please help.
Let’s take an example of my retirement plan. How much corpus I need after my retirement to lead a moderate lifestyle? How to calculate it?
I have two approaches to my query:
Approach 1: Let’s say that currently I am 32-year old and investing 10K/month in MFs for my retirement plan (with 60:40 approach), which is 25-26 years away. What would be my retirement corpus (Expecting 10-12% returns)?
Approach 2: Let’s think that I might need ~2.5 crores after my retirement (it is a random guess from my side, thinking that should do. Please correct me if I am wrong). What should be my approach to achieve that? What should be my SIP amount in MFs?
I would really appreciate if you could clear my (trivial!) doubt with a simple illustration on calculating inflation-beaten returns.
Thank you very much in advance.