# I'm 29. How do I retire with Rs.1.5 crores at the age of 42?

Author
Anmol Gupta

Objective: To build a corpus of INR 1.5 CR in 13 years (from 29 to 42)

Existing wealth: INR 2 Lakhs in FD

Since we have 13 years, its considerable time period to invest in equity markets assuming your investments are well managed. Let’s say you invest your 2 lakhs in equity markets for 13 years which gives you a compounded annual return of 15%.

So, your 2 lakhs will amount to INR 1,230,557 (~12.3 lakhs) [1,230,557 = 200,000 x (1+15%)^13]

So, out of 1.5 CR, 12.3 lakhs, 1,230,557 will be accumulated using your existing 2 lakhs. We need to do some additional monthly investments from your monthly income to accumulate remaining (15,000,000 - 1,230,557) = 13,769,443.

Assuming a rate of return as 15% on your monthly investments, you will need to make an additional monthly investment of INR 30,942 to build the remaining corpus worth INR 13,769,443.

Solution: So, investing your 2 lakhs + additional monthly investment of ~ INR 31K for next 13 years, assuming a rate of return as 15% in equity markets will help you in building a corpus of INR 1.5 CR.

I’d like to go a step ahead and determine what this corpus means. Assuming the life expectancy to be 80 years, you will need to bear all your expenses from INR 1.5 CR for 38 years. A corpus of 1.5 CR at the age of 42 to live for next 38 years means living a lifestyle costing ~INR 25K per month in today’s terms growing at an inflation rate of 5%. So, if your desired lifestyle post retirement is going to cost INR 25K per month (in today’s terms), INR 1.5 CR corpus is sufficient at the age of 42. If not, then you need to increase the target corpus and in turn, increase the investments.