Now I have crossed my age of 40, earlier I did not think about investing, and now responsibilities have increased, hence less money is saved. Most people above 40 have this complaint. Actually, people are often aware of future plans after turning 40. They feel that saving is necessary for old age. But they have less time. Because most of the youth get a job between 25 and 30 years.
Today everyone wants to become a millionaire so that all their needs are fulfilled. But in this process most of the people are not able to reach their financial goals because they are not serious about future planning. However, now some people start planning for their future along with their first job.
Age above 40… is everything useless now?
In our country, some youth start saving money as soon as they get a job after studies and also decide their retirement plan. Some youth today choose the age of 40 for retirement, and this is also becoming possible. At the same time, some people think about investing when they turn 35-40 years old. Because when they were 25-30 years old, they were not serious about investing. There was only one argument that now is the time for fun. Will think about saving later. But later responsibilities kept increasing and they could not save money.
Now that the age has crossed 40, the worry of retirement has started to haunt. How will old age be spent? Because there is nothing in the name of savings. But now the question arises that after turning 40, is there no time left to become financially strong? Can’t a retirement fund be created by investing at this age? The answer to this is, when you wake up, then the dawn will come… You can raise more than Rs 2 crore for retirement even after 40 by investing with the right strategy. There is a special formula for this.
If your age is 40 years, then you can easily collect Rs 1 crore in the next 15 years. Whereas people retire at the age of 60. In such a situation, you can easily collect an amount of more than 2 crores as soon as you turn 60. Let us know what is the formula that makes someone a crorepati in just 15 years. We are talking about the 15x15x15 rule i.e. (15*15*15 Formula). You can collect Rs 1 crore in just 15 years with this easy formula.
Savings are necessary for investment
Let us tell you, to achieve any financial goal, one has to invest, and that too continuously. The 15x15x15 formula is shown in relation to mutual funds. In today’s era, financial advisors advise investors to do SIP in mutual funds, because investing money in mutual funds is very easy. People of any age can do SIP in mutual funds. The power of compounding is behind this. The formula of power of compounding says that investment has to be continued for a long period.
What is the 15x15x15 formula? There are three 15s in it. The first 15 determines the amount of investment. That is, an investment of Rs 15,000 is required every month. After that, the second 15 means that the investment has to be continued for 15 years. While the third 15 says that 15 percent interest should be received annually on that investment.
How does this formula work?
Now let us tell you how you can become a millionaire in just 15 years using the 15x15x15 formula (15*15*15 Rule in Mutual Funds). For this, you will have to invest 15 thousand rupees every month in mutual funds for 15 years, and you should get 15 percent annual interest on this investment. After which the investor will get a total of Rs 1,00,27,601 (more than one crore) in 15 years. During this time, the investor will have to deposit Rs 27 lakh, on which he will get a bumper interest of Rs 73 lakh.
If you understand at a young age, you will benefit more
The sooner you start investing, the more benefits you will get. By adopting this formula, you can raise more than Rs 2 crore in 20 years. For which the amount of investment (15 thousand rupees) and the interest on it (15 percent) will remain the same every month, only the time will increase to 20 years. Under the 15x15x20 formula ((15*15*20 Rule), you will have to do SIP of 15 thousand rupees every month for 20 years. On which 15 percent interest has been estimated, which has been given by the mutual fund in the last two decades. With the 15x15x20 formula, you will be able to deposit Rs 2,27,39,325. With this, you can fulfill all your needs at the age of 60.
Benefits of SIP: This interest must be surprising you, but it is possible. Because in SIP, interest is added through compounding formula. Initially, interest is received on the original investment, then interest is received on the interest. With this, you can become a millionaire by investing regularly every month.
(Note: The returns in the above formula are shown as an estimate, please seek the help of a financial advisor before making any investment.)