(3) Retirement Planning & Long Term Investment Management – Part III

This is part III of the article Retirement Planning & Long Term Investment Management – Part I . Please start reading from the first part before proceeding with this one.

Increase your annual investment to the following and see the maturity amounts:

Annual Investment	Total maturity Amount
10000	1,717,373.94
12000	2,060,848.73
15000	2,576,060.92
18000	3,091,273.10
20000	3,434,747.89
25000	4,293,434.86
30000	5,152,121.83
35000	6,010,808.80
40000	6,869,495.78
45000	7,728,182.75
50000	8,586,869.72
70000	12,021,617.61

I have comments from the readers of this blog that they have bought insurance policies and pension plans worth 35,000 annual investments or even more. Why not consider investing in PPF which is risk free and offers certainty (except for the interest rates).

• Certain Purpose – Certain Investment Amounts – Certain Returns: PPF
• Certain Purpose – Certain/Uncertain Investment Amounts – Uncertain Returns: Stocks, Mutual Funds, Index Funds or ETF

The choice is yours.

It may vary widely depending upon your risk appetite and your financial status. Just concentrate on the purpose for your investment and things will become clear to you!

I want to thank Anil Rai and Shashi for their contributions to my blog. Anil is regularly posting relevant material on this blog articles and Shashi has done the same for my articles on PPF, covering the details of PPF account withdrawal which I missed. Someone also posted important information about online tax filing on my article on tax returns. I want to thank each of them as it really helps when readers play a complimentary role in terms of information being published. I would appreciate if readers keep posting information that I may miss or point out the mistakes that I may make in my calculations and help me eliminate the errors.

I also realize that readers are now taking financial decisions based upon the content of this blog. Please note that there is nobody in this universe who can tell you how such and such stock will perform or how long will the interest rate offered on PPF will remain unchanged. It is important to know that things work with a lot of uncertainties and we should always focus on the purpose of investments taking into consideration the time horizon and our risk appetite. It’s good to be aware of profit calculations and the financial products and take investment decisions on our own in a responsible way. Advice can come today and will be gone tomorrow. But if we can learn to look at financial products and investments in a more realistic and informative way, we will become self dependent.

People have been complaining about my pessimistic approach towards investments – it’s not correct. Instead, I am a very big risk taker as I trade heavily in derivatives – most of the times on intraday basis.

The purpose of this blog is to help people realize the truth atleast about making calculations and product information, which is only possible when we start looking at things in a different way. Be it intraday stock trading or derivatives business, medium terms investment or long term retirement planning, same rules apply to all these situations. You are all alone in the finance world, take help or advice from someone, but make decisions on your own. Take professional PAID help, but only if they guarantee something for sure. Better to educate yourself and be self dependent.

Keep visiting this blog for further content.

Please read the comments and post your views and queries in the comments section which helps in open discussion and avoid duplicity of questions.

You may be interested in reading my previous articles. Here is the link to Table of Contents in a chronological order.