I am in my early 30s with family of 3 (kid and spouse). I have a fully paid out home in tier-2 city in India. I am looking for a general consensus on the retirement corpus. Please note my expenses are not too high. So with average expenses how much is enough.
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NRI in late 30s and low nw. whats your gameplan
Seriously people voting10 cr. Why not 50. With 8% returns on 10 cr gives you 80l per year.. That's insane amount someone needs in their retirement.
Dude, 10 cr you won't accumulate in a short span. The target is 10 by the time you reach, inflation adjusted returns would still be relevant. I feel 10cr should be a target to retire in metro.
But factor inflation and taxes in. By 4% rule of early retirement, you can use 40L per year with near zero failure rate for 30 years. The catch here is 'near zero' and '30' years. If you need even better odds, 30L (which means 3%). With 30L, you can live comfortably, a little luxuriously but that's definitely not an 'insane amount', if you ask me.
Human wants are unlimited. Shows here clearly.
True. Wondering where to stop.
What would be the reason to retire in a metropolitan city? It is advisable to consider tier 2 or selective tier 3 cities as an option. Nowadays, international schools are available in these cities as well. Retiring in a metropolitan city can be as expensive as retiring in the United States, due to the extremely high cost of living.
People who voted for 20 cr may be were born rich
Assuming a monthly cost of living is 1L then a 5.5 Cr FD with 5% rate of interest (after taxes) would give you ~27L per year. This gives you 12L in yearly living expenses with 3L in buffer. And 12L that you can re-invest in a MF to keep up with cost of inflation. Another approach could be buy 3 houses(2Cr each) in places that give you 50K rental income each.
Did you forget about taxes?
Tax is included. See FD rate of interest today is ~7% after tax it’s around 5%. 2Cr house easily gives 65K-70K rent in Bangalore.
This has to be the most debated topic in last few years. FIRE is really picking up in India. There are hell a lot of videos/blogs on it. But what I believe the most accurate one is: <<your monthly expense>> X 400 Provided: 1) Above money is invested appropriately 2) Excluding any self occupied house (with no cash flow generation) as investment 3) Excluding the cost for your life commitments like your child's education, marriage etc.
Quick correction: FIRE - <<monthly expenses>> x 360 + enough amount invested for medical expenses
Ok sir. Please continue destroying your parent's money. We appreciate your invaluable contributions to the society and mankind. Thank you.
Sir I have a question. Why do you work at Salesforce like a poor peasant?, I thought you are a rich kid. Have you spent your inheritance completely?
With paid off home in tier 2 city you have almost no expenses. You can retire with 1 crore which gives you 4 laks per year which is good for tier 2 with paid off home. Add whatever extra on top of this for international vacation travel as that will be the most expensive item if you stay in luxury properties. Even the kaun banega crorepati winners end up with only 70laks after taxes
It generally depends upon your expenses?