All of us need a target in life to make progress.

How much pot one should build to retire and live off interest assuming a fully paid house in a city like Pune.

What kind of expenses one should assume for a family of four - Rs 500000 per annum at current value considering house is already taken care of? i.e. we need to keep inflation in mind.

What is the best way to keep the money once you have it inflation and other risks protected?
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  • Depends on your lifestyle

    How much is enough is directly dependent on your lifestyle.
    How much you spend in groceries
    How much you spend on maid/helpers.
    How do you travel Air/Rail/Car etc.
    How often do you buy cloths.
    How often do you eat outside.
    How often you change TV.
    etc.

    Now depending upon how you live your life 50 lacs could be sufficient or 5 crore might be not sufficient.

    For my lifestyle 5 crore should be good but I will risk out of money. I would settle for 25 crores.
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  • Some one conduct this poll for Indian Politicians :D
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  • I think 1 crore of money, mostly liquid(Stock, FD, Gold, Silver), giving 10% ROI at the age of 60 yrs(when there is no dependancy) should be sufficient to live for a decent life for next 30 yrs.
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  • 50 CRORE is sufficient i think
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  • 30 times your current annual expense invested at 8%-this factors in inflation,basic medical expenditure and other expenditures like replacement of white goods, renovation etc.

    Your case:-

    5 Lakh*30=150 Lakh

    150 at 8%= 12L

    Expenditure- 5L + 2L(other expense like new tv etc)= 7L
    Balance-12-7=5L : this amount remains invested.

    Off course you can better the 8 % return
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  • Originally Posted by gurdial
    30 times your current annual expense invested at 8%-this factors in inflation,basic medical expenditure and other expenditures like replacement of white goods, renovation etc.

    Your case:-

    5 Lakh*30=150 Lakh

    150 at 8%= 12L

    Expenditure- 5L + 2L(other expense like new tv etc)= 7L
    Balance-12-7=5L : this amount remains invested.

    Off course you can better the 8 % return


    Good analysis...Thanks
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  • Better ask your parents or elderly people, what was their max monthly expense 30yrs back and how much will the same cost now? Use the same multiplication factor.

    As per my rough calculation, it must be a multiple of 100. Meaning, in 1980, 150/- a month was sufficient for a comfortable living. Whereas now, we require atleast 15000/- for similar life style.

    So if you go by same calculation, then in next 30yrs, we will require, at least 15lac a month :bab (59):, i myself cant believe it???
    It means, yearly 1.8crore(lets say 2cr a yr). Then if you take 8% as interest rate, then the sum you should have in bank is 25crore.

    So IMO, 25cr is the right amount to live comfortably on interest after 30yrs. Seems unimaginable but figures are like this.
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  • If the india growth story is to be believed then wont the fixed interest rates (FD) fall gradually and go below 5% level in coming future like it has been in Western countries ?

    if we do become a 3 trillion economy by 2015 will our FD rates hover around 8-9% ?


    Originally Posted by gurdial
    30 times your current annual expense invested at 8%-this factors in inflation,basic medical expenditure and other expenditures like replacement of white goods, renovation etc.

    Your case:-

    5 Lakh*30=150 Lakh

    150 at 8%= 12L

    Expenditure- 5L + 2L(other expense like new tv etc)= 7L
    Balance-12-7=5L : this amount remains invested.

    Off course you can better the 8 % return
    CommentQuote
  • Originally Posted by stoxxx
    All of us need a target in life to make progress.

    How much pot one should build to retire and live off interest assuming a fully paid house in a city like Pune.

    What kind of expenses one should assume for a family of four - Rs 500000 per annum at current value considering house is already taken care of? i.e. we need to keep inflation in mind.

    What is the best way to keep the money once you have it inflation and other risks protected?


    Even if you have the money , life would be pretty much boring(and inactive) if you don't work for a good number of years . At least you have to find a good getaway from home to spend a good number of hours everyday outside where you get to mingle with people as you do at work .

    Having said that , every persons needs are unique . Would be a better idea to contact a CFP who will guide you much better rather than trying to get vague answers from other people here ? Of course , you'll have to pay for his services .
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  • no amount of money is ever enough. not for me anyway. and ever honest person here will agree with it.
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  • Originally Posted by Manoos
    If the india growth story is to be believed then wont the fixed interest rates (FD) fall gradually and go below 5% level in coming future like it has been in Western countries ?

    if we do become a 3 trillion economy by 2015 will our FD rates hover around 8-9% ?

    FD rates are mostly around the mean inflation rate. Hence, rate would fall to those levels only with corresponding fall in the inflation rate. Plus his corpus would also grow each year.
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  • Originally Posted by Vinod Gupte
    no amount of money is ever enough. not for me anyway. and ever honest person here will agree with it.


    I agree with what you say..enough is never enough..
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  • Originally Posted by suryawork
    Even if you have the money , life would be pretty much boring(and inactive) if you don't work for a good number of years . At least you have to find a good getaway from home to spend a good number of hours everyday outside where you get to mingle with people as you do at work .
    Having said that , every persons needs are unique . Would be a better idea to contact a CFP who will guide you much better rather than trying to get vague answers from other people here ? Of course , you'll have to pay for his services .


    Well the idea is not that you stop working. It is about you spend time on what you like or even if you continue to work you are not dependent on it or you can engage in charity or other similar activities. There is lot to do in life than 12 hours of neck breaking in a glass and steel frame.
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  • Originally Posted by stoxxx
    Well the idea is not that you stop working. It is about you spend time on what you like or even if you continue to work you are not dependent on it or you can engage in charity or other similar activities. There is lot to do in life than 12 hours of neck breaking in a glass and steel frame.


    Good idea and thats what u can typically do in western countries . India is a conservative country with super rich and poor classes . Socially if u r not doing a job/living or even if doing it part time then u r looked down upon . It will take a number of years for this thinking to be absorbed by common Indians . Right now , we study/work only for things which can generate money/livelihood . Most of the youth of the current decade are looking only at IT or management options . I've interviewed a lot on campus and even guys who are non-IT engineers are pretty happy doing QA jobs wasting there respective branches .
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  • The mindset in India has to change.

    I tell my Mom and Wife, I want to quit my IT job and do something that will give me fun and joy. They say a BIG NOOOOOO. They don't want me to take a break for even 1-2 months. My back is sore daily. Seems, even after earning so much (?), I am still a donkey slogging..slogging...slogging. :D

    When can we Indians learn to say enough earning, now let me enjoy. Never. This is the reason for corruption. :)

    Our parents slogged during their prime times. We slog during our prime time. Luckily our next generation will be better off, atleast I hope they will enjoy what they do.

    I think any amount which is properly invested, so that it takes care of inflation, regular expenses, medical bills, give regular income to spend on regular leisure/entertainment etc, should be enough. We cannot put a exact figure. For each, it's different.
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