How to Build Your Retirement Corpus

Building your Retirement Nidhi is your Karmayoga, ensuring a Golden Yug where you can truly enjoy the fruits of your labour, says Vatsal Ramaiya as he explains how Rs 15,000 per month can help build a Rs 7 crore corpus.

Illustration: Dominic Xavier/Rediff.com

Hey Rohan, feeling a flicker of anxiety about your future after retirement? Don't worry!" Vijay Uncle's here with another wisdom nugget from the Bhagavad Gita: Karmayoga (duty with action)!

Just like a wise king who prepares for his kingdom's future, you too can take action and invest for a secure and prosperous retirement -- your very own Golden Yug (Age).

The Fourth Path: Building Your Retirement Nidhi (Treasure)

The Bhagavad Gita emphasises the importance of fulfilling one's Dharma (duty). One of your most crucial financial duties is to invest for your retirement. Think of it as your Karmayoga in action -- taking action today to secure a comfortable and fulfilling tomorrow.

By diligently investing a portion of your income, you build your Retirement Nidhi (Treasure), ensuring a Golden Yug in your later years.

Here's how the Gita's wisdom applies to your Retirement Nidhi:

Arjuna's Legacy: Arjuna fought not just for himself, but for the future of his kingdom. Similarly, by investing for retirement, you're securing your own future well-being and potentially leaving a legacy for your loved ones.
Krishna's Message of Long-Term Vision: Lord Krishna emphasised the importance of looking beyond the present. Investing for retirement embodies this message. You're making sacrifices today to ensure a secure and worry-free future.

Investing for Your Golden Yug: A Commitment to Your Future

The Bhagavad Gita teaches us about perseverance and achieving goals through focused action. Building your Retirement Nidhi requires a similar commitment. Here's why aiming for 15 per cent of your income is crucial after completing the earlier steps:

The Power of Consistent Saving: Remember the story of the tortoise and the hare? Slow and steady wins the race! Consistently investing 15 per cent allows your money to grow exponentially over time, thanks to compounding interest.
Building a Safety Net: Life can be unpredictable. Having a well-funded retirement corpus ensures you're not financially vulnerable after you stop working. It's your safety net, allowing you to face the future with confidence.
Early Sukoon Through Discipline: The Bhagavad Gita emphasises self-discipline (Stithaprajna). Investing 15 per cent requires discipline, but it unlocks the door to early sukoon. Imagine retiring earlier and pursuing your passions -- that's the true reward!

Building Your Retirement Nidhi: A Multi-Pronged Approach

The Bhagavad Gita may be ancient wisdom, but building your Retirement Nidhi involves a smart blend of modern and traditional investment options. Here's a look at some key instruments, remembering to prioritise them after completing the crucial first three steps:

Employee Provident Fund (EPF): Consider this your Yudhishthira's Righteous Savings (Dharma Bachat). EPF is a foundation you can build upon.
National Pension System (NPS): Think of this as your Bhima's Strength for the Long Haul (Shakti Sanchay). NPS provides a steady income stream for your later years.
Mutual Funds: Imagine this as your Arjuna's Diversified Arsenal (Vichitra Astra). Mutual funds offer the potential for higher returns.
Public Provident Fund (PPF): See this as your Draupadi's Unending Bounty (Akshaya Patra). PPF is a great way to add a safe and steady element to your corpus.

Assuming that your salary is Rs 1 lakh per month with a yearly increase in salary of 10 per cent, you have to save Rs 15,000 per month and that would become Rs 7.24 crore at 8 per cent return in 30 years. Of course, we plan for an early retirement but this is our safety net.

Remember, Rohan, investing for your retirement is not a burden, but a wise investment in your future happiness.

The Bhagavad Gita reminds us that fulfilling our Dharma leads to a sense of peace and fulfillment. Building your Retirement Nidhi is your Karmayoga, ensuring a Golden Yug where you can truly enjoy the fruits of your labour.

By prioritising the first three steps and then dedicating 15 per cent of your income after those are complete, you're well on your way to achieving early sukoon!

"Stay tuned, Rohan! We'll explore the next step in your Bhagavad Gita-inspired journey to early sukoon soon!"