How Much To Invest To Accumulate 5 Crore By The Age Of 45

I read an interesting article where someone wanted to know how much they need to invest to accumulate Rs. 5 crores by the age of 45. It would be interesting to see how I would answer that question. I was also wondering if there are enough tools on my blog to be able to answer such questions. Before we begin, here is some more information — Age of the person: 32 Planned retirement age: 45 Current investments: Rs. 18 lakhs Home loan: Rs. 20 lakhs paying EMI of Rs. 25,000 Net take home salary: Rs. 1,10,000 Unfortunately we don’t have … Continue reading “How Much To Invest To Accumulate 5 Crore By The Age Of 45”

Three Years Into Early Retirement

It is now exactly three years into early retirement! I can’t believe how time flies. I can now officially say that I have lived through retired life, although three years is still a short time. These years have been quite eventful to say the least. Stock market crash, a new virus that affects the whole world, lockdown for several months, raging bull market while in pandemic. I’ve seen things in a few years than I have never seen my whole life :). In spite of all the up and downs over the years, I still very much enjoy my early … Continue reading “Three Years Into Early Retirement”

Mistakes To Avoid If You Plan To Retire Early

There is no one straightforward way to reach the goal of early retirement. Although many people have attempted to streamline the process. And that includes me (see my 5 steps to early retirement) :). There are several other small things that you need to take care of before the grand picture emerges. One of them is expenses. Of course early retirement is not just about the finances. There is a lot more to it and early retirement is certainly not for everyone (see should you retire early?). But if you have already made up your mind, read on. Save a … Continue reading “Mistakes To Avoid If You Plan To Retire Early”

Comparison With Another FIRE Couple

You know how I like to compare myself with other FIRE (Financially Independent, Retired Early) individuals. So here is one more of them. I do the comparison because there are very few of them and I just started my journey. So comparing with others helps me understand how they think, behave and spend. That way I can check if I am inline with them or whether I am an outlier. Either of those situations is alright with me, but it is just a fun exercise. If you missed my earlier comparisons, you may be interested in the following My Expenses … Continue reading “Comparison With Another FIRE Couple”

Thirty Years Into Retirement

It’s been barely three years into my early retirement. So, no I am not talking about myself here. I recently came across this article about a couple who retired 30 years ago. And they were 38 then. What great clarity they must have had of their future to retire in 1991! Since FIRE (Financial Independence, Retire Early) is a new phenomenon, there aren’t a lot of stories where people have been retired for a long period of time. Thanks to this couple, I have an opportunity to study their story and see what can apply to us. I wanted to … Continue reading “Thirty Years Into Retirement”

On Goal Setting

Setting goals is a great motivator to get things done. Without a goal, life goes on without much excitement and nothing to look forward to or work towards. But if you have a goal that is too hard or takes too long to achieve it may actually be demotivating. How do you get out of this situation. Simple, have a long term goal and then have a few smaller, shorter incremental goals. Shorter milestones Take the case of early retirement for example. How can you keep yourself motivated if your retirement goals is some 10 or 15 years away? You … Continue reading “On Goal Setting”

How And Who Should Pay Advance Tax

I just payed my second installment of advanced tax, so I thought I will write down the procedure. It will be like a reference for me in the future and might help some one as well. It is actually a pretty simple process that does not really warrant a post, but here we go anyway. Who should pay advance tax? If the computed payable tax for a year exceeds Rs. 10,000, then you are liable to pay advance tax. For most salaried individuals the payable tax probably will not exceed this amount because your employer pays tax (TDS) on your … Continue reading “How And Who Should Pay Advance Tax”

Risks Of Wrong Financial Planning

It is now more than 2 years since I officially retired. But unofficially I have retired in Jan 2018. I had accumulated the required retirement corpus by Dec 2017 and I could retire at the beginning of 2018. But for reasons best described in one of my earliest posts, I decided to delay my retirement date by 6 months. The way I decided when I was ready to quit was based on the 4% rule. Since it’s been only 2.5 years, I can’t say for sure if the 4% rule is working or not. We will have to wait and … Continue reading “Risks Of Wrong Financial Planning”

Two Years Into Retirement

This is going to be a really short post. I just completed 2 years in retirement! On this exact day in 2018, I was commuting back to home from work for the last time. It was one of the happiest day of my life. Nothing much has changed from what I have already wrote in my post after 1 year into retirement. The only thing that has changed is that I am going through a bad market cycle for the first time since I started investing in 2011. Hopefully I will come out strong after this. You already know pretty … Continue reading “Two Years Into Retirement”

Goal Based Investing

So far I have been giving financial advice for the singular goal of early retirement. But many of you probably have multiple goals. May be you want to buy a house, save up for kids education or planning an international vacation in a couple of years. Whatever might be your goal, you need to have a financial plan. Each goal needs to have a different corpus, asset allocation and redemption plan. If you rather watch a video on the same topic, check out the YouTube video at the end of the post. Start with the goals If you want to … Continue reading “Goal Based Investing”