| Calculating retirement Corpus | ||
| Formula | Sample calculation - Years to retirement = 25, Present Montly Expenses = 15000, Rate of Inflation = 5%, Rate of Interest after retirement (RIA)= 8% Rate of Interest before retirement(RIB) = 11% | |
Estimated Future Cost of Living | Present Cost*(1+Rate of Inflation)^No of Years for Retirement | 609,544 |
| Corpus Required | Future Cost/RIA | 7,619,299 |
Yearly Savings Reqd | Corpus*RIB/(((1+RIB)^Years to retirement-1)*(1+RIB)) | 59,995 |
Budget 2010 is here and it brings yet another relief for the salaried middle class - quite a relief infact considering the fact that you can u will have to shell out 40% less in taxes.
Here's how the maths goes:
This illustration assumes a person having a Taxable income of 6 lakhs. The deductions considered are Sec 80 C, 80 D and the new Infrastructure bonds only.
As can be seen, the Tax under new laws comes to 31415 Rs from 52530 that the person had to pay earlier - a saving of approx 40%.
Yes yes its a reason to cheer but make sure you invest this extra money & not spend it. Its will ensure a better for you only and nobody else.
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