The Wake-Up Call: How Inflation Shocked a Financial Advisor

Meet Priya Kapoor, 30, Mumbai-based Mutual Fund Distributor

The Reality Check (2024)

Priya (confidently advising clients): "Your ₹40,000 monthly expenses today seem manageable, right?"

Then she ran her own retirement math:

Future Value Formula:
FV = PV × (1 + Inflation)^Years
FV = 40,000 × (1.05)^30

Her Jaw Dropped:

• Age 30: ₹40,000/month

• Age 60: ₹1,72,877/month (same lifestyle)

The Hidden Crisis

1️⃣ Household Help:

• Current cook salary: ₹15,000

• At 5% inflation → ₹64,829/month in 2054

2️⃣ Medical Costs:

• Today's ₹10,000 health insurance → ₹43,219/month premium

3️⃣ Shock Realization:
"My 'safe' ₹2Cr retirement target now needs to be ₹8.6Cr!"

Her Action Plan

1. Immediate SIP Increase:

   • From ₹25k → ₹40k/month (70% equity)

2. Career Hedge:

   • Got SEBI L2 certification to boost income

3. Client Conversations Changed:
   Now shows this ₹40k → ₹1.73L math to every 30-year-old client

The Lesson

"Inflation is the silent thief. Only aggressive investing can outrun it."

Your Turn: Calculate Your Number Now Current Expense