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Take 1 simple idea and take it seriously.
This article from @pvsubramanyam is about compounding and creating a 1000 Cr corpus for your kids
subramoney.com/2019/03/how-mu…
This article from @pvsubramanyam is about compounding and creating a 1000 Cr corpus for your kids
subramoney.com/2019/03/how-mu…
From the day it was published, I am not able to get over this article ... have talked abt this to several friends ... it gives a sticky example of compounding and focuses on key aspects of compounding which we can control Principal and Duration
The 1000 Cr Plan is :-
1. Start with 25k Monthly investment and increment it by 5% every year (Principal)
2. Keep doing this for 20 years (Accumulation phase)
3. Let it compound for next 45 years
At the end of 65 years your child will have corpus of 1000+ Cr
1. Start with 25k Monthly investment and increment it by 5% every year (Principal)
2. Keep doing this for 20 years (Accumulation phase)
3. Let it compound for next 45 years
At the end of 65 years your child will have corpus of 1000+ Cr
The message is clear :-
Good Hefty Principal incremented every year accumulated for long period.
Let the corpus compound.
Here is data sheet which friend @yojp83 has created
Good Hefty Principal incremented every year accumulated for long period.
Let the corpus compound.
Here is data sheet which friend @yojp83 has created
Cant get over it cos -
1. The corpus amt is big - 1000 Cr (so sexy even to speak with others that working on 1000 Cr plan)
2. It touches the emotional cord of parents. Doing it for Kids is highest priority.
It makes you prioritize it over other things using this 2 factors
1. The corpus amt is big - 1000 Cr (so sexy even to speak with others that working on 1000 Cr plan)
2. It touches the emotional cord of parents. Doing it for Kids is highest priority.
It makes you prioritize it over other things using this 2 factors
Whenever there is deviation you can say yourself :-
My child's 1000 Cr plan will get impacted ...
Do you want to prioritize this over our child's 1000 Cr plan
So powerful to avoid "Avoidable Needs"
My child's 1000 Cr plan will get impacted ...
Do you want to prioritize this over our child's 1000 Cr plan
So powerful to avoid "Avoidable Needs"
My Plan :-
Daughter is 5 years old so have started with SIP amount of 6th year
Have tagged some investments in her name to make up for Corpus till 5 years.
Daughter is 5 years old so have started with SIP amount of 6th year
Have tagged some investments in her name to make up for Corpus till 5 years.
In addition I am not sure if I will be having active income for next 15 years, so not to affect the plan I calculated the PV of corpus at end of 20 Years using PV Calculator
investopedia.com/calculator/pvc…
investopedia.com/calculator/pvc…
Plan is to tag investments which fulfill the PV of the corpus which will be there at the end of the 20 year accumulation phase, will discount by 15 years as daughter already 5 years.
Will keep continuing SIP till I have active income
Will keep continuing SIP till I have active income
This also made me think if my investment horizon is 60 years and if I have to invest in stocks for full duration what kind of stocks should I Invest in.
The portfolio should look something like what @equitree had tweeted
The portfolio should look something like what @equitree had tweeted
Now go take the action to start your own Plan of 10, 100, 1000, 10000 Cr .....
