Sensex, Nifty have hit record highs but the best time to invest has already gone

Human lifespan has increased and this means you have more years post-retirement to live. But you can enjoy your post-retirement life in peace only if you are financially sound.

Your retirement age would be 60 years and assuming you live for another 20 years, you are alive till you are 80 years. You start earning at the age of 25 and in that case, you have 35 years to save for your retirement which is quite good.

The reality hits most of us only after 5 – 10 years that if we would have saved or planned for our retirement from the 1st pay cheque onwards, we would all actually retire rich. The key to investing is “Start Early”

Investing in the stock market, which is the barometer of the nation’s economy is the most effective way to be wealthier in the long term. Mutual funds work as an oasis in the desert for newcomers in the investment arena.

The best way to invest into mutual funds is SIP (Systematic Investment Plan). Let’s take a look at a scenario wherein if you save Rs. 5000 every month from the month of your 1st salary to your month of the last salary 5000x420 months (35yrs) you would have invested Rs 21 lakh.

Assuming the MF in which you are investing gave a meager return of let’s say 12 percent per annum, then your investment of Rs 21 lakh would have become Rs 2.75 crore.

And, if you delay this investment by just 2 years you would save Rs. 1.2 lakh by not investing but would lose Rs 7.41 lakh from your returns as well.

Now, this example is how the delay in investments would cost you.

Let me tweak the returns from 12 percent to 15 percent then your returns will soar up to Rs 5.70 crore with the same amount of capital investment that is Rs 21 lakh and the amount you would lose on the delay of investments would be Rs 18.24 lakh.

The above scenario helps you understand that you need to start investing early. Invest regularly and plan your future in advance.

Go ahead have confidence in your financial advisor, understand the risks and learn how return are calculated and once you convince yourself then start investing.

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