Hi friends, welcome to Yadnya investment academy. We are going to talk about a topic of financial planning on Friday. And today's topic is very interesting. Because this question is asked regularly on many social media channels and workshops. That people have an amount in their mind that is 1 crore rupees. We think that if we have 1 crore rupees, our life will be good. So this question remains in the mind that if I have 1 crore rupees, can I retire now? Am I financially free? I don't have any tension of retirement now. Now whatever work I am doing is extra. So that 1 crore rupees is enough. And if you have retired now and got EPF money and total is 1 crore is it enough for you? And if it is enough or not, how much can you spend in both questions, when is enough and when is not. We will touch on all those things in this video. I will explain everything through a calculator. You can check that calculator on our website investyadnya.in as well. We cover many topics of financial planning in this session. If you want to make your own financial plan, then go to investyadnya.in website There are many products related to financial planning.
There are 1 to 1 sessions as well. You can check that out. Now I am going to my website and I am sure you can see my screen. If you go to the tool and calculator, here you can see the retirement calculator. I don't think you will get this anywhere else. Now the question is, suppose I have 1 crore rupees, is it enough for me to retire? First of all, I will be asked what is my age? I am just giving an example, 50. Suppose I am 50 years old, what is my life expectancy? It is important to know when you will be retiring. I think we should keep it around 90. I am keeping it at 90. How much is the expense now? If you are retiring and you have 1 crore rupees, how much do you want to spend? What is your monthly or annual expense? Suppose I am thinking that I have 6 lakh rupees. I have put 6 lakh rupees here.
How much inflation are you assuming? How much will my expenses increase every year? If India's inflation is around 6-7%, then you can assume that. Suppose 7% inflation till the end of life. Current asset, how much money do I have? I will put 1 crore rupees here. I have 1 crore rupees here. I will put that here. How do you invest this 1 crore rupees? How much return will you be able to earn? This is a very important question. What type of investment do you want to put? Do you want to put it in PPF? Do you want to put it in Senior Citizen Savings Scheme? Or do you want to put it in FDs? Or do you want to create a portfolio of Mutual Funds like Hybrid Equity Funds? This is very important.
Let's take all the scenarios. Suppose I want to put it in FDs. I don't want to do anything special. I will get 7% return in FDs. Whatever is the post tax. Or whatever you think. You get 7.5% but let's keep 7% for calculation. Let's keep 7.5%. Let's keep 8%. We have put it in bonds, Senior Citizen Savings Scheme. And there is some money in EPF. So, we have kept some money in equity. So, my 8% will earn 1 crore rupees corpus. Which is 1% over inflation. I have taken 7% inflation and 8% returns. I have to put these 6 fields first. If I submit this, My retirement corpus is in deficit of 1 crore. This means that I need 1 crore more to develop this scenario.
If I am 50 years old and I have 6 lakhs per month. And 7% inflation. And 8% growth. I need 2 crores. 1 crore is not enough. Now, let's change the scenario. What should I do if I am not able to do it. I can either reduce it. I don't spend Rs 50,000 per month. I can do 30,000. Then we can change the amount. We have done 36,000. And then we have put this change. So, 21 lakhs is still less. So, basically it will come to 3 lakhs. So, now our retirement corpus is only 67,000 less. So, I can spend 3 lakhs per year. If I can spend Rs 25,000 per month. And if I take 7% inflation. And 8% growth. Then 1 crore is enough in 50. If I spend 25,000. If I spend 50,000 with same scenario. Then I will need 1 crore. Now, you will say that I invest in mutual funds.
I know investing well. And I think that my corpus can earn 10%. If 7% is inflation. Then I think that my corpus can earn 10% per annum. Like our approach. You must have seen many videos on retirement. If you want to understand anything. Then put it in the comment section. If I think that I can do 10%. So, let's try it on 6% after spending 3 lakhs. So, now our corpus will be 47 lakhs. So, it means that I can spend 4 lakhs or 4.5 lakhs. So, 4.2 or 4.3. Means I can spend around Rs 35,000 per month. If I can earn 10% return. Now, you will say that I have already retired. I am 60 years old. And now tell me what is this scenario. So, in that I can spend 50,000 per month.
So, in 60 years also if you are earning 10% return. Then there is a deficit of 24 lakhs. If this scenario plays. You say that I have inflation. I don't spend much. 50,000 per month. Next year, I will grow according to 5%. Then it is good. 5% inflation, 10% rate of return, 1 crore rupees. You have enough. You have just enough. So, you can spend 50,000 per month. If you are 60 years old, you will get that money for 90 years. Now, there is one more thing.
Many people think that I have a pension. I have a house. He is giving rental. Or I am getting pension. Suppose you are getting pension of Rs 10,000 per month. Means it comes more than that. But I think 10,000 per month. So, I am getting a pension of 1,20,000. And we will make it 7 again. Is there any growth of pension? It seems that 2-3% growth is there. So, let's grow it by 3%. Till when will the pension come? Will it come till 90? Will it come till life expectancy or will it come soon? Many times, for limited time, money is going to come.
So, we sell those things. Rental is going to come. I have to sell that house after 10 years. So, you can put that also. So, I have to get pension till last. Till 90. So, then in 6 lakhs, 7% inflation, 1 crore, 10% and all. So, then almost I am there. Means 3 lakhs is the only deficit left. So, in this way, you can find out that the money you have, is it enough for your retirement? So, now you can change the amount. If you have 2 crore, 3 crore or 50 lakhs, then you can change the amount.
Accordingly, you can find out how much expense I will have after retirement, my work will go smoothly till life expectancy which I have planned. So, this will be very very helpful for you. So, if you like Calculator, then do share this video with everyone. I think this will be very helpful to many people in retirement planning. And from the perspective of financial freedom also.
And if you want our financial plans and personalized approach, if you want to understand how to get 10% rate of return, or what all I can do after retirement, then you can go to our website and call our customer service, sales team or relationship team. You can WhatsApp or call or email. And then we will reach out to you and we will surely try to help you on those things. That is all I have. I hope, do subscribe more. Because the topics of financial planning are not going on much. So, do subscribe and like the video if you like it.
Have a great time, friends. Jai Hind..Read More
what income does it take to be in the top one percent of all retirees you'd think that'd be a relatively simple project to research turns out it wasn't so stick around and benefit from the work that I did to uncover these hard to find numbers let's go for a walk and talk about it and you know the first thing I want to observe is that most of us probably would not recognize could not tell by the lifestyle folks that are in the top 10 percent of all retiree income when I get to the numbers I I think you'll you'll say okay I think I would be able to recognize people that are in the top one percent I'll give you a hint it's a it's a much bigger number than than I thought it was going to be okay and and so why is that you know why wouldn't we recognize uh the folks that are in the top 10 percent and it's because like a lot of things in life you know if you look at Millionaires and millionaires lifestyle you know 70 of millionaires in America are self-made made and and most of them most of us uh got there by being you know uh careful with our money and and and being good Savers is as much as uh being fortunate and and receiving a good salary along the way okay so I'm going to start off with what these numbers look like for all Americans and this is from a large data set they say it's the largest population data set uh in the world and the organization is called ipums and this is for all Americans not just retirees so to be in the top well first let's start off with median and and this is household this is household income the median household income uh in the United States for for everybody all ages is is seventy thousand dollars to be in the top 25 you've got to make about a hundred and thirty thousand dollars to be in the top 10 you're making a little over two hundred thousand dollars that the household income a little over two hundred thousand it's two hundred and twelve thousand and to be in the top one percent you're making over five hundred thousand dollars a year now um and the number is five hundred and seventy thousand what was interesting is each of those groups from um 2021 to 2022 so this is a data set uh that they released the results of at the end of 2022.
each of those groups got a raise between 2021 and 2022. unfortunately from the median and Below on an inflation adjusted basis folks that are at the median below uh are actually making less on an inflation-adjusted basis folks that are above the median are making more in 2022 and we've heard this play out in the press okay so so those are the income levels now let's talk about savings and there's a really interesting point I wanna I wanna share with you here okay to be in the um to be in the top one percent of Savers in the United States this is the top one percent if you're between 65 and 69 75 and 79 or over 80.
it's to be in the top one percent you've got to have 2.7 million dollars in what's called net worth and net worth is just take all of your assets all of your savings accounts the value if you own a house the value of your house and subtract from it the the the debt that you have on that essentially so you just take all of your assets and you subtract all your liabilities your car alone your your mortgage your credit card debt hopefully you don't have too many of the latter two uh and that's your net worth so uh if you have a net worth of 2.7 million dollars a household net worth uh in the United States you're in the top one percent what I want to point out is you know if you look at the income boy that income is really staggering right I mean the top one percent of income is 570 000 or higher and you know some people will say well you know that number seemed a little low I was expecting that top one percent income to be higher and I I agree but that's like the last person that made it into the top one percent so there's plenty of people in that category that are making a lot more money but think about this you know the the lowest income in the top one percent is almost six hundred thousand dollars right it's five hundred and seventy thousand dollars yet to be the top one percent in savings you just need two point seven million dollars or more um and what that tells me is you know as a society as a country it's no surprise we're not saving enough money and so um it's not enough to make a great salary you've got to be able to to save it but to me that was just staggering that you know essentially that top one percent you know if they were the Savers they essentially have saved um what five years worth of income uh and most of us could not retire if we had just saved five years worth of income right so that just shows just the the importance of living below your means and and saving as much as you can okay let's keep going now I'm going to break it out by decile and again this is household this is according to the Congressional research service so the the lower quintile so there's five groups the lower one-fifth the lower 20 percent of Americans are making under twenty two thousand dollars a year then the next group up from that are making you know between that twenty two thousand and forty thousand the next group up to that is is making between forty thousand and sixty five thousand um so you can see that you know eighty percent of Americans households are making less than sixty five thousand dollars a year now I haven't got to retirement that's coming up here really soon um let me get to the top quintile the top quintile households in America are a little over a hundred and ten thousand dollars let's call it a hundred and eleven thousand dollars okay so now let's get to what I finally was able to find out so I've shared a lot of info information here and I think many of you are listening to this this uh these numbers and saying you know what I'm doing okay you know it's hard to get that high high salary but if you're saving and if if you're uh spending less than you earn if you're saving that and then importantly if you're investing that remember it's not enough to just save you have to invest it you have to get compounding working for you so a lot of you I think are looking at the at least the savings number and saying yeah we're doing okay we're doing okay and I hope you are I hope you are okay so now getting on to the uh uh the the top income in retirement uh and before I get there if you're enjoying this video take a quick second and hit the like button it really does help the algorithm uh find other people that this this video uh and my videos can help okay so um I'm gonna break this out the top 10 percent the top five percent and the top one percent so people 65 to 69.
Now this is people that are working and not working top ten percent is two hundred thousand top five percent is two hundred and sixty thousand top one percent is essentially one million dollars okay so that's 65 to 69 and now for people 70 to 74 numbers come down a little bit top 10 percent is a hundred and seventy thousand dollars top five percent uh is 260. is that right yeah 265 000 and and the last number is a million dollars so retirees to be in the top one percent of all people 65 and older you need to be making a million dollars a year just to put that in perspective that rule of 25. if that's what the uh if that's what the income is then they had they'd have to have 25 million dollars in savings by the the rule of four percent I hope you found this video helpful if you did I know you're going to like this video up here that talks about average income for retirees in America in this video down here that talks about five reasons to retire as soon as you can thanks for watching bye byeRead More
among the most typical retirement planning.
inquiries people have is just how much money can I draw from my profile yearly and survive.
in retirement which'' s where the four percent rule can be found in useful as well as it essentially states that.
if you can pull 4 percent or less from your Diversified portfolio purchased points like.
supplies and bonds as well as live off of that quantity while maintaining the rest invested after that there'' s. a great chance that your money is mosting likely to last 20 three decades or more and also as a framework of reference.
if you had a million bucks after that 4 percent would certainly be forty thousand dollars if you had.
5 hundred thousand bucks it would be twenty thousand bucks each year and also it'' s not. established in rock it is based off a research that was done several years back as well as has actually held up well over.
time but there are circumstances where individuals as they age might pull a lot more or if they retire.
early possibly they intend to think about even doing much less than that but it'' s a truly good way to get.
a structure of referral on considering just how much you'' ve saved and what that can translate.
into in retired life regarding earnings goes.