I hear a lot of stories and doubts about folks looking to retire in India. I am looking to FIRE in India in a couple of yrs (have only worked in India) but traveled across multiple countries. A couple of my friends also achieved FIRE in India in the last couple of years, so have spent extensive time in planning and discussing their FIRE journey. So ask me anything with respect to retiring in India: - Cost of living in India - Way of life in India, those moving from US - Ways to generate Passive income etc. Personal info, age 36, NW: 7 cr TC: 1 cr, 14 yoe, family tc: 1.3 cr Based out of Bangalore, married with 1 kid.
You can easily retire right now, with this much net worth! You are financially free, my friend!
Not yet. I will retire when my liquid assets touch 8 cr. Current house is 2 cr+ and liquid assets are 5 cr.
What are your ways to generate passive income?
There are multiple ways: - Dividend incomes - Freelancing and consulting gigs - FD with recurring returns - Commercial real estate When I retire, i will have 2 cr in FD with recurring monthly returns and 1 cr commerical real estate. Rest 5 cr will continue to be in equities, which continues to multiply with time.
Freelancing and consulting are active income, not passive. It would be more of CoastFire. Also why commercial only and not residential?
House? Do you need to have a house early on or you can buy it later after retirement? Whats the increase in FIRE money if not planning any house till retirement?w.r.t tier 1and tier 2 city both for retirement.
Good question. The way I look at it, we should buy one house for emotional needs and safety. However, we shouldn't buy one outside our means. Don't buy one after retirement but don't park all your funds also to buy a house. First try to get to a 1 cr corpus which is deployed well and continues to grow over time. Now get to 30-40% corpus of house value and then buy a house. And buy a house within your means, say a house or 2 cr only when your family tc is more than 50 lakh and NW is close to 2 cr.
Also take a loan to buy the house, around 70% of house value and take loan of 10-12 yrs and such that house loan emi is not more than 30% of family monthly pay.
Do you consider buying flat for rental income.. what are the ways to generate passive income.. my age is 29 and family income 85 .. have been msft for 4 yrs so total ctc is 45 ..do you think people should switch to maximize tc to retire early or focus on building passive income streams in free time
Net worth 2cr but liquid is 1cr
Don't focus on passive income assets at this stage in life. Only focus on growth assets and build a huge corpus. When you are closer to retirement you will find a ton of ways to make passive income. A few listed above. However if you find a very good land to buy, you may consider buying it, but keep growth in mind and not passive income at this stage.
Age : 25, NW: 40L, 20 liq plus 20 savings What do you suggest for me, i am not that into investing as it seems quite time consuming. have a few sips mostly large cap. Short term Target is 1 cr to buy a house 1st. What do you suggest me to achieve the same and how shall I plan my long term goal ?(i want to fire till 5cr and then don't want to retire...I want to work on something of my own, but have to get out of corporate) No passive income as of now. Also what kind of free lancing work do you do and on which platform, we can discuss in IM also if you are not comfortable sharing here!! Btw congratulations!!
Don't worry about passive incomes at this stage. Just focus on investing, pick top Mutual funds and perhaps some top rated smallcases for direct equity investing. Later on you can explore PMS when your corpus grows.
I am 36 too , NW 1.2 cr only (all liquid) .. Having one ancestral house in a town in UP. TC recently touched 1.2 cr. Living on rented flat... Now saving rate is 40 lpa , remaining going to taxes and expenses... Am I on right path ?
Yes, continue to remain frugal and enjoy life. Be focuse on your investments, rest will find your own way.
When should be right time to buy flat?
How’s your NW is distributed across equity, debt and other instruments. How much you have in Microsoft?
I am mostly all in equity. Don't believe much in debt. Have an emergency corpus plus EPF rest is all equity. MS would be around 1/3rd of the total liquid portfolio of 5 cr. Bought a house for around 1 cr 5 yrs back only for living purpose, it's well over 2 cr now.
Isn’t it risky to have 1/3 of portfolio in one company stocks? Also did you sell any of your vested/espp stocks and diversify in past and did diversification gave better returns?
Heard from folks returning from US a while back that their 2m NW isn't sufficient. Hardly doubt 7-8cr liquid is enough to retire. May be enough to not needing a high TC job. Might be able to aggressively invest and have a job that provides for month to month expenses Edit: I have about 10Cr NW. 6 in liquid. Live frugally but still don't think ready to FIRE
Not really. An 8 cr liquid corpus with own home easily generates around 2 lakh monthly income, which gives a decent fire. Let me explain how: - 5 cr in equity which gives dividends of 5-7 lakh pa. Plus this continues to grow each year. - Rest 3 cr in diversified instruments gives 8% returns with no principal growth, so this is 24 lakh. Overall pre-tax, it's 30 lpa and you continue to grow the equity corpus.
Also in my case, wife has a super chill job so she will continue to work, but I will retire and do my own stuff (I love to write) and also make passive 2 lpm.
How to invest in commercial real estate?
What you can do is invest via top real estate groups like Shobha, Phoenix for commercial real estate like malls, office space etc. Don't do anything adventurous and stick to top industry players only, else just stick to REIT if you wanna invest a smaller sum.
Thanks.
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Family tc including your tc or excluding ?
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Family tc includes mine, of course.