Financial goals

Retirement planning, which requires `90 lakh, is one of their goals. They also want to travel to Germany every three years to meet their daughter. This would involve about `10 lakh for the next 10 years, aggregating to `1 crore.

For the purpose of calculation, we have assumed that they would live till they are 85 years of age, and that the cost of living will grow at eight per cent per annum while earnings on savings and investments will grow at 10 per cent per annum.