tag:blogger.com,1999:blog-27731716282016995.post1266843051582145993..comments2023-10-15T16:21:55.358+05:30Comments on Retire Early in India: Is 1 Crore enough to retire on in India?burntouthttp://www.blogger.com/profile/18418243954043079271noreply@blogger.comBlogger28125tag:blogger.com,1999:blog-27731716282016995.post-42319662868569464472016-07-31T22:37:43.512+05:302016-07-31T22:37:43.512+05:30This comment has been removed by a blog administrator.Mohamed Alihttps://www.blogger.com/profile/13110714870720006179noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-7467998643690220242016-07-31T22:37:17.090+05:302016-07-31T22:37:17.090+05:30This comment has been removed by a blog administrator.Mohamed Alihttps://www.blogger.com/profile/13110714870720006179noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-82617103385403000962016-07-31T22:36:30.018+05:302016-07-31T22:36:30.018+05:30This comment has been removed by a blog administrator.Mohamed Alihttps://www.blogger.com/profile/13110714870720006179noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-35071768838570898182016-06-26T07:42:23.507+05:302016-06-26T07:42:23.507+05:30Its as good as to die early in 60s rather than kee...Its as good as to die early in 60s rather than keep worrying whole life for money. How ? Simple. Don't go for medication and stop worrying. Arthii's Bloghttps://www.blogger.com/profile/12597002739613623374noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-45436055590123872722016-03-15T10:28:39.709+05:302016-03-15T10:28:39.709+05:30Hi, Looking for Like Minded Investors for an excit...Hi, Looking for Like Minded Investors for an exciting web based education recruitment Job board, for a start up in Hyderabad, sales projections are expected at 36 crores from 2nd year, Investment per year less than one crore; Interested can call me for further details - 7842507153sripanihttps://www.blogger.com/profile/11836024082535293011noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-50345047077893327252014-06-24T17:45:17.249+05:302014-06-24T17:45:17.249+05:30Hi Raj, I have only one kid and I know how expensi...Hi Raj, I have only one kid and I know how expensive it is. I did math and I heard medical costs are quite expensive now. With unpredictable inflation, I think I will have to work whole life.Shopaholichttps://www.blogger.com/profile/04480085184429777103noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-68861929427453699732014-06-24T08:22:13.497+05:302014-06-24T08:22:13.497+05:30You have kids Hacker? I am told their education (b...You have kids Hacker? I am told their education (both primary and secondary) is the biggest expense you need to worry about. <br />Did you do some math around this? I am interested as well in it as I am same age and have 2 kids. Raj Singhhttps://www.blogger.com/profile/17872700687356212270noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-41737912367662098892014-06-17T00:55:28.504+05:302014-06-17T00:55:28.504+05:303636Shopaholichttps://www.blogger.com/profile/04480085184429777103noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-87080955708999685452014-06-17T00:45:51.649+05:302014-06-17T00:45:51.649+05:30Simply awesome. I am glad you did this homework. L...Simply awesome. I am glad you did this homework. Like few others above, if only you could attach an xls, would have been the icing on the cake<br />Shiv... as I know him :)https://www.blogger.com/profile/12728191210096642269noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-7418800326169309972014-06-11T08:24:57.401+05:302014-06-11T08:24:57.401+05:30whats your current age ?whats your current age ?Anonymoushttps://www.blogger.com/profile/00586453179808189547noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-22628984096240003202014-05-29T20:50:15.423+05:302014-05-29T20:50:15.423+05:30dear
really a good article if u add a excel for t...dear <br />really a good article if u add a excel for this it will be much useful pl provide if possible Anonymoushttps://www.blogger.com/profile/08708601647502349564noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-6341777366832020202014-03-19T20:52:33.471+05:302014-03-19T20:52:33.471+05:30I was planning to retire on 1 Cr but now your arti...I was planning to retire on 1 Cr but now your article evoked me to work more and fight for one more Cr. Damn it.Shopaholichttps://www.blogger.com/profile/04480085184429777103noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-51555492609319414982014-03-19T20:48:49.423+05:302014-03-19T20:48:49.423+05:30@Tatya vinchu - chhyala tu ekade pan aalas ka ? Ma...@Tatya vinchu - chhyala tu ekade pan aalas ka ? Marathi rooms kami padat hoti ka :DShopaholichttps://www.blogger.com/profile/04480085184429777103noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-19889058405057590942013-08-01T19:09:16.789+05:302013-08-01T19:09:16.789+05:30 1 CR in fixed deposits is a very good money to li... 1 CR in fixed deposits is a very good money to live a good life in india the only thing is that you have to be easy going in life. put all the savings in post office deposits in various names and all that is tax free. rollinreganhttps://www.blogger.com/profile/07735270964470832821noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-49240631906588994372013-06-02T18:32:04.376+05:302013-06-02T18:32:04.376+05:30Can you suggest the amount and avenues of investin...Can you suggest the amount and avenues of investing assuming I would like to retitre immediately and my present monthly expenses is fifty thousand per month.... I assume that I will live for additional 44 years as I am just 41 now3Lhttps://www.blogger.com/profile/02289723526559162582noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-33017248981972839762013-04-23T17:35:04.263+05:302013-04-23T17:35:04.263+05:30Nice article. I had tried to calculate this couple...Nice article. I had tried to calculate this couple of years back. But I had assumed an inflation rate as 10% per annum, bank interest rate as 9% per annum payable quarterly, TDS as applicable to senior citizens (between 60 years to 80 years) & subsequently when they become very senior citizens (above 80 years) and arrived at this magic figure of 0.92 to 1.07, which I called as Nest Egg Factor.<br /><br />The formula is as below.<br /><br />Corpus Amount I need after retirement = Annual Expenses as of today * Number of Years I might live after retirement * Nest Egg Factor.<br /><br />For example, if my annual expense is Rs. 12 Lac as of today and I might live for 40 years post retirement then,<br /><br />Corpus Amount Required = 1200000 * 40 * 0.92 = Rs. 4.4 Cr.<br /><br />or maximum Corpus Amount Required is 1200000 * 40 * 1.07 = Rs. 5.13 Cr.<br /><br />A retired person can live peacefully, if he uses the above formula to calculate the corpus fund required.<br /><br />In the above calculation, I have assumed that the retired person person owns a house (or rentals are accounted within the annual expenses), has no other liability and does not want to leave any corpus fund for dependents.<br /><br />Warm Regards,<br />AdarshAdarshhttps://www.blogger.com/profile/00711672158513614456noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-25036839044956348742013-01-23T22:54:42.856+05:302013-01-23T22:54:42.856+05:30Superb article. I wouldn't really worry about ...Superb article. I wouldn't really worry about the other comments. When you try to keep it simple ...... the noise distorts the effort. For others who have posted on this article --- if you are so good with numbers/ graphs/ predictions why read articles from others, Go Figure It Yourself.<br /><br />@Burntout: I will see if I can follow your articles. I like your style.Tatya Vinchuhttps://www.blogger.com/profile/04820908133784323191noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-56973598112580098002013-01-10T23:46:12.911+05:302013-01-10T23:46:12.911+05:30I have not understood your graph and example as x...I have not understood your graph and example as x axis denotes annual expances at 9% inflation and expanses of 4lac money will last for 40 yearssmrutihttps://www.blogger.com/profile/06740678282873591041noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-89312277874972088862012-11-30T14:47:46.226+05:302012-11-30T14:47:46.226+05:30Excellent article. But, a bit unrealistic.
1. You...Excellent article. But, a bit unrealistic.<br /><br />1. You won't get 12% (post tax) return on investment in any safe investment. You'll need to go the equity way for this - a very risky thing to do with retirement funds. <br /><br />2. Alternative way to earn risk free return is to invest in rental property. With inflation the rentals will gain too. But, typically rental properties only provide about 4-6% returns (pre-tax). Thus any expense above 4-5Lakh a month will not be feasible.<br /><br />3. While inflation is a reality, returns may not be. There can be erosion in funds with unforeseen expenses/damages.<br /><br />4. An article I had read had shown how to live off a given money. It says target to live with only 4% returns while earning between 8-9% on the corpus. Effectively, more than 50% of what is earned from corpus should add on to corpus.<br /><br />But, that is an western article and their rate of inflation is low. So, in India you should earn about 10-12% on investment but spend perhaps 4% to be safe!<br /><br />5. Ofcourse, all the above calculations take in to account you have no expenses related to children or other dependents.<br /><br /><br />All said, Best way to plan for old age - have enough corpus earning passive income that is more than double your current expense. i.e If your expense is 50,000/month, then you should have a corpus of above 1 crore earning at 12% (post tax) per annum. This way, you'll continue to contribute to corpus at higher speed than the inflation.<br /><br />If you don't have such corpus, then work as long as you can - so you are only adding to corpus - not eating it away. Rely on your retirement funds for as less years as possible.<br /><br />Alternatively - Bring your living expenses down dramatically. This can be done by moving to smaller town, smaller house, watching all expenses. May not be pleasant in beginning, but you'll be surprised how little a man (without dependents) really needs to survive.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-21223490235959838452012-11-19T17:12:35.369+05:302012-11-19T17:12:35.369+05:30This is a very good article and gives a good under...This is a very good article and gives a good understanding of what this kind of corpus can do. However could you also perhaps add in some unexpected expenses that could come up every three years that would require something like 4 lac expense (could be either a medical need or then a new gadget, a car etc). Will appreciate this effort as my husband and I are seriously looking at retiring in the next two years. Hope to hear from you soon :-)Anuhttps://www.blogger.com/profile/11710954052610685408noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-21901042892890279692012-10-26T19:21:50.560+05:302012-10-26T19:21:50.560+05:30Hi Nitin,
Thanks for stopping by and taking the ...Hi Nitin, <br /><br />Thanks for stopping by and taking the time to review the article. <br /><br />My assumption of 8% inflation is based on the numbers that I have been seeing in India for a long time now. Our average inflation numbers have been varying around this mark for several years, and it is quite common to use 8% inflation for financial calculations in the Indian context. <br /><br />As far as personal rate of inflation is concerned, it absolutely depends on the lifestyle you choose for yourself. I have generated the graph above with 8%, 9% and 10% inflation rates. I could easily generate it for a lower inflation rate if that makes you more comfortable. Personally I would rather be conservative on this front, than carry the risk of running out of money in my golden years. <br /><br />Finally, since this blog focuses on early retirement, the time periods I am working with easily extend into 30-50years spent in retirement. For that kind of timeline, it should not be a surprise, that 1Cr might turn out to be inadequate.<br /><br />-burntoutburntouthttps://www.blogger.com/profile/09700480120264513256noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-17688552978816848032012-10-25T19:26:28.786+05:302012-10-25T19:26:28.786+05:30You are assuming 8% inflation on the cost of livin...You are assuming 8% inflation on the cost of living. This is assuming that there will be no change in lifestyle. I dont think this is realistic. Even if I were working I would constantly think of reducing the cost of living by cutting corners. In case of retirement I think i would be more focused on reducing cost. Hence the whole argument of 1 crore not enough makes sense assuming that I am dumb. Anonymoushttps://www.blogger.com/profile/05288645971530782188noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-17915093779205445162012-08-19T07:19:07.227+05:302012-08-19T07:19:07.227+05:30Good article, also it shows how important to hv a ...Good article, also it shows how important to hv a bigger corpus initially, say if you had Rs 1.1 Cr initially then at 8% rate of inflation and 12% return you would probably be able to extend the time period from 28 years to 35 years. Also it is important to note that 12% is after/ post tax so gross return should be 14% or the net difference between savings and inflation should be 6-7% which is quite high and cant be sustained over a long period of time.<br />Also interestingly the corollory which may be entirely true is that, given the same cirsumstance ( return and inflation) the expenditure cannot be more than 5% of your net savings!Jaganhttps://www.blogger.com/profile/07739832463303960667noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-71746412142436581262012-08-06T02:29:01.900+05:302012-08-06T02:29:01.900+05:30LIVE SIMPLE LIFE STYLE DURING RETIREMENT TIME OR C...LIVE SIMPLE LIFE STYLE DURING RETIREMENT TIME OR CONTINUE WORKING TILL YOU REACH 2 CROREworklifelonghttps://www.blogger.com/profile/12678297125979256871noreply@blogger.comtag:blogger.com,1999:blog-27731716282016995.post-45469351731598383562012-02-03T01:51:05.487+05:302012-02-03T01:51:05.487+05:30Good question Sailesh. The math works something l...Good question Sailesh. The math works something like this. The 12% rate of return applies to your entire corpus, however the inflation rate only applies to your expenses. Therefore, for the 2nd year your corpus will increase to (100L - 6L )*1.12 = 105.28L. For the 3rd year the corpus will be (105.28 - 6*1.08)*1.12 = 110.656L and so on. So you see for the initial few years the corpus indeed keeps increasing.burntouthttps://www.blogger.com/profile/18418243954043079271noreply@blogger.com