-Don't panic seeing the portfolio management excel sheet firstly. Go through the videos of the Portfolio Management videos first and then try to simultaneously solve the excel sheet.
-Here is the conceptual solution of question 6 of the Portfolio Management Module worksheet.
The first part of the solution of the question, deals with the expense amount required by you at the age of 60. Say currently you need 1 lakh for expenses in the present; at 60 this amount will need to be recalculated again due to inflation.
The second part of the solution helps you to find the amount i.e. corpus required by you between 60-90 for spending and living. This amount will be kept in a low risk deposit.
The third part of the solution helps you to find out the amount you will be depositing from 20 to 60, so you can have sufficient corpus required at the age of 60.
PS: The inflation for the period of 60-90 is not calculated, so there are two ways:
a. You can calculate it for every 5 year block and reach till 90 for exact calculation. Tell you this would require good efforts, but make you pretty confident.
b. You can use a hack and calculate the inflated value of your amount required at 90. Although this will help you with a surplus-
- The bonuses mentioned in the "Types of Financial Investment" video are now part of the course and dispersed throughout. So keep learning through the course.
- In the CAGR calculation, you have to figure out your SIP required by your for every financial goal of yours, not only retirement. Right now, you have to take the return on investment as we have told you in the portfolio management videos, but as soon as you progress you will learn to know about different investment assets and their expected rate of return.
Those who are completely unaware of the insurance can refer to sites such as Policybazar to find the rates of return on different insurance policies.
PS: Don't share your number there as you may start to receive spam calls.