Money for Retirement

POSTED BY shyam ON February 27, 2011 11:37 am COMMENTS (8)

Hi Manish,

Firstly, Thankx a ton for the effort&time invested in your website development
Really appreciate your contribution in the site.

Now my Q’n below?

Im 29 now.
If i invest 25k/year (roughly 2k/month), for 30 yrs.
I need to calculate how much would the total amount be aftr 30 yrs.

I repeat,
1st yr  -> 25k
2nd yr  -> 25k + amt. from 1st yr + 8% intrst of 25k(from 1st yr)
3rd yr  -> 25k + amt. from 2nd yr
4th yr  -> 25k + amt. from 3rd yr.
30th yr -> How much does this accumulate to ?

This will enable me to decide whether to opt for the above way
or a standard LIC/SBI/Pvt company pension plan
Assmuming the above is compound interest.

Im aware 8% interest on FD is taxable.
But what if the above invstmnt is done in a PPF account.

So i need a calculator(tool/xls sheet) that calculates based on the above fashion
& intererest also compounded yearly.

Usually, for a pension plan, the LIC guys say
invest X amount yearly, after 30 yrs, one gets Y amount.

So, if i get this calculator, that will help me to see if
Y in LIC/SBI/Pvt company pension plan   >  PPF or taxable FD invested as described above.
Which one is higher?

Apart from this, i will take an yearly LIC term insurance for life coverage.
So, i don want to mix life insurnce and pension plan in a single package.
I chose annually 25k, this may vary depending on one’s lifestyle.
ppl with a highr lifestyle can go for annually 25k+

Inflation part, for next 30 yrs , is not forgotten but keeping that
aside for a while.

All the calculators in different websites in the net,
do the calculations based on one time investment.
Your calculators are also good, but the one that
i have addressed above with yearly investment is not there.

So, Please help me in this.


8 replies on this article “Money for Retirement”

  1. Jagadees says:


    For PPF u can visit this site – on the top u can enter the monthly deposit u wish to enter.

    In the case of jagoinvestor calculator – go to constant SIP calculator – enter ur monthly amount as 2000 and interest as 8% and duration – 30years. final amount will be around 30lacs.

    U can also visit and punch in different numbers. hope it clear ur doubt


    1. shyam says:

      2 Jagadees, ashal , manish

      thnkx evry1.
      Now i get it.


      share me more links if u got
      they were useful.

  2. ashal jauhari says:

    Dear Shyam, Open an exl. sheet in your PC, Click in any cell & then click on formula (Fx). There select the financials & within financial category select for FV – Future Value.

    Just punch in the required nos. & result ‘ll be there immediately. For a correct answer, make sure to put a minus sign before the investment amount say -25000 Rs. in your example.



  3. Shaym

    You can use the calculators here for different purposes :


    1. shyam says:

      2 Manish,

      Which of the calculators referred in ur site would solve my question ?

  4. ashal jauhari says:

    Dear Shyam, You may calculate it very easily in the excel sheet of your PC. For your help, here is the direct answer, After 30Y the corpus value ‘ll be 30.58L Rs.

    For your kind information, as on date you can’t purchase Pension plan with out an insurance attached to it. Sorry but True & IRDA is to be blamed for it.

    By the way, For a 30 long year I ‘ll put my money in Eq. MFs to generate a sizable corpus.



    1. shyam says:

      2 ashal jauhari ,

      Thkx for that info .
      n also calculating on my behalf.

      Could u plz share that sheet or whatever tool u used to show me the 30yr corpus.

      i might use it for futur other purposesalso.

    2. shyam says:

      2 ashal jauhari ,

      Thkx for that info .
      n also calculating on my behalf.

      Could u plz share that sheet or whatever tool u used to show me the 30yr corpus.

      i might use it for futur other purposes also.

      Also 2 add i also im having a MF portfolio, and they r doing good

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