One of the girls who read my book….has sent this note….I have masked her name….obviously do not want her name to show up in a Google search!!

Name:  hidden           Age: 23 (born 1987)         Profession: Service / Banker
1. At what age do you plan to retire? Have you started saving for retirement?

I plan to retire when I have accumulated enough money for my post retirement life.* And yes, I have started investing for creating my retirement corpus. I have invested in a couple of Systematic Investment Plans – one of which is a tax saving scheme (Elss fund) with a leading fund house.
(the schemes are x and y)

2. Do you know how much you will require after retirement? How have you calculated the amount?
I have attempted some crude calculations – but the whole event is so far away that I do not think the figure is anywhere near accurate! Have not bothered too much about the accuracy – but I hope to accumulate about Rs. 5-6 crores by the time I reach my 50s. This will happen by stepping up my SIP from about 9000 presently to about Rs. 100,000 per month by the time I am in my 50s. Have realized that the earlier I start and bigger the amount, the greater will be the corpus*. My expected returns are in the region of about 14%p.a. – or in any case a rate superior to Public provident fund which will yield about 8%p.a. I have no clue whether I am accurate, but in the past 9 months I have got about 13% on my SIP.

3. What products have both of you invested in for retirement savings?
No products have been specifically earmarked for ‘retirement savings’ but apart from my equity mutual funds, I have a Provident Fund which is a debt product, but my contribution is compulsory. I have a PPF in which I have put Rs. 1000.

4. How much do you plan to save for retirement in a year (please give % break up for different options if possible).

I would like to earmark at least 10% of my net income for retirement – currently the earmarking is in the mind*! As time goes by and I need to withdraw for other goals, I will ensure that the money retained for retirement is sufficient for retirement. Currently all my mutual fund SIPs are in equities and my provident fund contribution is in debt instruments.

*This is the learning from Retire Rich: Invest Rs. 40 a day!

Thank you girl! At your age, I wish I was half as evolved as you are! God bless you…

PS: have seen her for one year….not sure whether she will do it for a few years…to be brutal. However as a friend I hope she does it…good for her!!

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  1. Been reading your post for quite sometime now and whenever i read a post like this, i wanted to ask a questions for a long time. The question is “why is it always a gal” 🙂 Is that guys don’t read your books/posts or you don’t get any feedback from the guys or is there any other reason, just curious to know.

  2. 5 girls have read my book and given me a feedback – feedback means a written summary of what they read. NOT EVEN ONE GUY BELOW 25 has done this. Or he has read, but not given me the feedback. My database is too small to say ‘girls are more financially savvy than guys’

    the feedback from guys is – we spend it on the girls! Though a couple of girls have told me ‘on a value to value basis – I have given as many gifts as I have received’.

    Not really sure, but no guy has given me a written feedback about my book…so my examples will continue to say girls…

    thank you girls, you are responsible!!

  3. I just did a calculation! From the date when she said she would do a SIP and the day she actually did it there was a gap. From the amount she said she would do and the amount she did there was a gap.

    Today in 2 years the gap is much higher! She should have accumulated 210,000 but she has about 60,805.


    well causes are many…but impressed with the start!! 60k is not bad for a 23 year old!!

  4. Actually she will be 24 next month…hence the urge to do the story this month and call her a 23 year old. She would kill me if I had said 24 running!! Ram do you know girls pass through 8 stages of life. Babies, child, kid, young girl, woman, young woman, young woman, young woman…then they die!

    She started the SIP early 2010…so 2 years is also a rounding off error!!

  5. Sir
    Where can i get your book “RETIRE RICH INVEST” in chennai
    I am 23 years old, and still doing my studies (CA).

    This is the first time i am reading your articles and these are very nice, thanks.

  6. Came across this article today, wondering what could be the progress of the girl today when she is 30?
    Starting early is such an important crucial decision that people tend to ignore and just see the return percentage they might get in future.
    I started my investing journey 5 years late at 27, regret the 5 years that i lost, because today at 32 my networth is a mere 2x my annual salary 🙁

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