We started off with a design of simple calculator for knowing a monthly SIP amount that we may have to save in terms of our financial planning to achieve any financial goal. Then I thought of designing online interactive multipurpose SIP calculator for different life goals from financial planning perspective After trial and error Zoho sheet was found apt for the job which you may view here .
Three goals viz
- child’s education expenses in future
- You need to input the current age, year (age) when higher education begins and estimate of expenses at current levels.
- child’s marriage expenses in future
- You need to input the current age, year (age) when marriage is expected and estimate of expenses at current levels
- retirement corpus needed at the time of retirement can be estimated using the same calculator.
- You need to input the current age, year (age) when you expect to retire and an estimate of current monthly expenditure for maintaining the life-style preferred.
For all the goals you may have to indicate inflation rate (say 3% to 10%) and investment rate of interest (say 3% to 20%)
It is sane to expect 8-9% from short term funds, 12% returns from long term debt funds and 14-18% in equity oriented mutual funds.
Once these goals are estimated then it is easy to calculate the monthly saving required in the form of SIP investment amount. A sheet has been added to the cash flows involved in the calculation.