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**ease and convenience of using an online retirement calculators, should never undermine the importance of retirement calculations.**

*’. Things you cannot control. Some examples of these are assumptions made for return percentages, inflation, etc. You can do nothing to control these factors. You can only hope that your assumptions remain as close to reality as possible over the years.*

**Uncontrollables****’. These are the factors which you can control atleast partially (if not fully). Some examples are your starting investment amounts, yearly increase in investments, etc.**

*Controllables**Uncontrollables*. And more specifically, lets focus on assumptions about the returns we expect to earn from our investments over the accumulation phase of retirement planning.

**doubling your money**every 3 years. We need to be realistic and stop listening to brokers and agents.

**luck favors me**and I manage to earn 14% return. Will I mind it? Not at all. I love positive surprises. And who doesn’t?

^{nd}and 3

^{rd }scenarios.

**Scenario 1:**

- Period 1 – when age between 30 and 40 years
- Period 2 – when age between 41 and 50 years
- Period 3 – when age between 51 and 56 years
- Period 4 – when age between 57 and 60 years

Now an important point to note here is that returns earned in each of these four periods can be different. But in this first scenario, the returns have been put uniformly as 12% for all four periods spanning 30 years. The scenario is summed up in table below:

**too far in future to be predicted correctly**.

**Scenario 2:**

**We need to understand that the situation after 30 years is very far off in the future. And we have absolutely no way of knowing what will happen then.**

**But when calculating our retirement corpus in future, it’s prudent to make assumptions of returns on the lower side, and those of inflation on the higher side.**

*Varies in 4 different period as shown in table above*

^{rd}scenario now.

**Scenario 3:**

^{rd}scenario. But here it is:

**if it means lowering my expectations and investing more, then so be it. I will do it as much as I can within my limitations.**

**how you can become really rich by increasing you annual investments by 10%**, the fact is that it is easier said than done.

**such purchases can be planned wisely**), foreign trips (Yes.

**Trips can be planned too**),

**unnecessary luxuries**, etc.

**And that is the beauty of expenses. The expenses have a bad habit of beating income increases every year.**🙂

^{st}scenario as the target. That is, we need to have Rs 2.31 Crs at the age of 60. And for returns, lets take the expected rate of returns from the 3

^{rd}scenario:

- 12% in Period 1 (30 and 40 years)
- 10% in Period 2 (41 and 50 years)
- 8% in Period 3 (51 and 56 years)
- 5% in Period 4 (57 and 60 years)

**Scenario 4:**

**Scenario 5:**

^{rd}scenario.

*I know the post is getting quite long. But please hear me out for some more time.*

*(using % mentioned as expected returns)*. In reality, stock markets and mutual funds have volatile returns. One year might give 40% and other might give (-) 20%. And there can even be instances where there is

**Zero growth for 5 straight years!**Almost anything can happen.

Thank you very much for the detailed analysis.

Thanks Sushanta 🙂

a lot of “real” possibilities and expectations. makes a lot of sense .

appreciate your efforts !!