For every 1 Lakh that anyone has invested for 30 years @ 12% CAGR….today’s corpus should be Rs.29,95,992.22/-. You might have invested in any asset. Doesn’t matter. Have you made that 12% and have you stayed invested for 30 years (even flipping assets)? Just staying invested, is what mattered and then, Not Losing Money.
I’m discounting the 30 years BSE S&P Sensex returns substantially and considering the lower end of past equity returns @ 12% CAGR.
I’ll urge anyone who’s been working for over 30 years to estimate their Net Worth. For every 1 L invested for 30 years, they should have created assets worth about 30 L.
Even better, if you can estimate the Liquid Net Worth on the same lines (just deduct the illiquid real estate, self-occupied property etc. from your overall NW)
What were your past financial decisions and where have they led you to? The answer will be in the front and in black & white.
Some would have done better and many would struggle to hit that mark, without including their Self Occupied Property. And by this logic, anyone who’s worked for so long and struggles with liquidity issues, has definitely not yet hit their optimum savings level.
There’s still time
The next 30 years, for sure ?