Here is what Anil and Ruchira are saving for. A look at the goals and the accompanying timelines shows that a lot of thought and planning has gone into this.
Contingency fund
Rs 1,25,000
Birth of child (mid to late 2007)
Rs 60,000
School admission (mid 2010 - 2011)
Rs 60,000 -1,00,000
Child's higher studies (2026)
Rs 55 - 60 lakh (Rs 5.5 - Rs 6 million)
Though Anil and Ruchira figure this would come to around Rs 30 lakh (Rs 3 million), they prefer erring on the side of caution and providing for a higher figure.
Child's marriage (2032)
Rs 55 - 60 lakh (Rs 5.5 - Rs 6 million)
Retirement (2036)
Rs 11 - 15 crore (Rs 110 million - Rs 150 million)
Based on a high inflation rate of 6% -- 10% per annum, expenses will be about Rs 6,00,000 to 8,00,000 per month. So, on the assumption that they live for 15 more years, this is the corpus they have arrived at.