This calculator can be used for any Goal based investment strategies. For simplicity, this is limited to planning for any single goal. Most people have vague goals as far as investments are considered. Almost every one has goals for their children like education, marriage and for self like own house, retirement etc., But all these goals are usually not quantified. Goals can be achieved reliably only if they are quantified and if progress can be monitored over a period of time.
To use this investment goal calculator, one should be aware of how much their goals cost in today’s price. This must be the cost of that if that goal has to be achieved today. For example, one can easily find out how much it costs to study Engineering, Medicine etc in their choice of college. As the cost of the goal increases every year, one must understand how much it is increasing annually. If not certain about this one can use the rate of inflation.
The most important thing in achieving one’s financial goals is to give enough time for their investments to benefit from power of compound growth. If investments are planned well in advance, one can easily attain the goal with considerably less investment amount by investing in right asset class. Enter how far is your goal in years. For example if you are planning to join your just born baby in medicine, then the investments should be for around 17-18 years. Similarly, if the goal is to save enough money for retirement corpus, then the time is the number of years for retirement. The most crucial input might be entering expected return from investments in the goal investment calculator.
Above 3 inputs namely, goal amount, rise in cost per year and number of years from goal can be entered with more certainty. But entering expected return is more uncertain. But one can take a clue from historic returns from different asset classes. For equities one can choose over a range of 15-18%.