Thread by @ithoughtplan

The actual cost of delaying an #investmentdecision is often unknown until one notices a shortfall in their corpus.

This often prevents one from achieving your goals on time.

Let's explore the cost of delay with an example. (1/n)

#financialplanning #financialgoals

Let's say you are 15 years away from retirement.

After retirement, you require ₹60,000 per month in expenses (in today's value) to live comfortably. (2/n)

#retirement #financialplanning #savings #investing

The final total goal amount that you require to sustain yourselves through retirement is ₹3 Crores. (3/n)

#retirementcorpus

If you were to start a SIP of ₹50,000 today and continue with it until retirement, you would be able to amass a pre-tax corpus of ₹2.6 Crores assuming a 12% Rate of Return per annum.

(absolute value; not considering inflation) (4/n)

#investing #mutualfunds #stocks #inflation

Say you delay saving for retirement by 2 years.

You still have 13 years to plan for retirement. It doesn't seem that bad now, does it?

Here is how it would affect your final corpus... (5/n)

#retirementplanning #personalfinance

With your SIP amount & Rate of return being the same, your final corpus would be only ₹1.96 Crores.

Leaving you with a shortfall of ₹63 Lakhs towards retirement.

(absolute value; not considering inflation) (6/n)

#investments #savings #SIP #mutualfunds

No, what if you delay by 5 years?

Time till retirement = 10 years

You would be able to accumulate approximately ₹1.19 Crores, resulting in a shortfall of ₹1.40 Crores.

(absolute value; not considering inflation) (7/n)

#retirementplanning #savings

Delaying could make 'compounding' work against you.

For the same ₹2.6 Crore corpus you would need to contribute ₹1.1 Lakhs per month to meet your retirement goal. (8/n)

#investing #compounding #financialgoals

The true cost of delaying your investments can result in not only shortfalls in your final corpus but also the mental stress that comes with it. (9/n)

#investments #personalfinance

Take action today. Consult your investment advisor to map out your goals and align your investments towards them.

Happy Investing! (10/n)

#financialadvisor #financialplanner #personalfinance

If you find this thread useful, retweet it and help us reach more people like you. (11/n)

#financialplanning #financialfreedom #financialgoals #investing #savings #retirement #personalfinance

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