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How much money $$$ to retire now ??


How much money $$$ to retire now ??

Last updated: February 4 2013
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  • #21


    Re : How much money $$$ to retire now ??

    Originally posted by himrathore View Post
    I think this is a very subjective topic; no class (lower/middle/upper), gender or philosophy defines the answer.

    One thing which can determine the answer might be ASPIRATION, what one person ASPIRE to become may give him/her the answer of what fund he/she can retire with.

    For an average middle class person to whom materialistic things are not that important and surviving with average facilities with happiness is important I guess 1L/month should be OK. If one can generate this money without job that can be the right time to retire.

    Ways to generate this money:
    1. As FD Interest : One need at least 1.5Cr in bank account to generate this kind of interest. Since this method being non appreciating asset or can actually depreciate if interest goes down (which is very likely), one should keep a backlog of 1Cr to support future needs.

    2. As Rental Value : If one can generate this money through rental income, it solves lot of future problems. Since Rental value is likely to appreciate with property prices.

    I am not considering other mode of generating money, since most of other means will require one's time. And then we are discussing about RETIRING.

    P.S. 1L monthly income is considered taking kids education and other dependancies to be handeled seperately.

    It simply means, to generate 1.0 lakh per month we need an FD of 1.50 crores but to generate same amount of income we must own a property of value more than 2.50 crores. { Present scenario of Property value to rental yield}.

    Doesn't this means if I have 1.50 Crore in hand excluding my property(self use) than its a wise idea to put that money in FD to get income of 1.0 lakh per month after ONE year.

    Obviously property value is going to increase but FD seems better if someone thinking of immedate retirement in 1 or 2 years ... Just an observation ...
    __________________________________________________ __________
    It is better to be blind than to see things from only one point of view


    • #22


      Re : How much money $$$ to retire now ??

      I would rather not rely on FD interest for long term in this case 20 or more years, FIRSTLY interest rates are likely to come down as we see in developed countries. SECONDLY Interest earned comes under TDS sword and lot of it is lost for the cause. THIRDLY my Principle amount would not appreciate and in future Inflation would create problems.

      I would rather work for few extra years and buy property with which i can generate 1L rental income. It is purely my POV and i donot oppose any other IREF member views.


      Have any questions or thoughts about this?