How and When I Decided To Retire

A friend and reader of my blog asked me this question — I don’t know if you covered this in the blog, but could you write about how you arrived at a number for net worth where you felt comfortable retiring. I have written about my retirement journey which is scattered across many posts. So I thought I should consolidate and revisit the topic for the benefit of new readers. The way I decided I was able to retire was when I knew that my corpus (investments) has reached 25 times my annual expenses + some buffer. That basically is … Continue reading “How and When I Decided To Retire”

Learnings From 2020

The year 2020 has been special in many ways. We have seen something that was unprecedented not only in my life, but even during my parents life. Who would have ever imagined a lock-down of the whole nation for example? Many things were a first in 2020. While the year was not too bad, I did have a few learnings. In this last post (hopefully) in the year review series, I want to go over my learnings. Pretty much all my issues and the resulting lessons were related to Franklin :). Bigger emergency fund One of the problems I faced … Continue reading “Learnings From 2020”

Year In Review – 2020 Net Worth

Continuing on with the year in review series, next up is net worth. This year I wanted to make a small change to my net worth calculations. For the last 2 years I have included my US stocks (employee stocks) as part of my net worth. That has caused a lot of confusion to my readers. While my company stocks in the US are worth something, I am planning to keep it out of the reviews. That corpus is supposed to be used for my international (mostly US) vacation. So no point dragging it into net worth calculations. Another confusion … Continue reading “Year In Review – 2020 Net Worth”

Year In Review – 2020 Returns

At the start of every new year I review my portfolio and take stock of my expenses, returns and net-worth. So just like last year I am reviewing my returns for 2020. This is the first of the year in review series. I will also post my expenses and net-worth reviews in upcoming posts. Without wasting too much time, lets get right to it. Portfolio vs Index — Returns The first thing I do is to compare my returns with index. Of course it should not really matter, but I like to have fun like that :). The index returns … Continue reading “Year In Review – 2020 Returns”

Real Estate Investment vs Equity Investment

While you know my aversion to real estate investment in India, I don’t discourage anyone from investing in it. If you don’t mind the corruption related to property deals, you might make more than simply investing in equity and debt mutual funds. But before you decide which way to go, make some informed decisions. In this post I will try to simplify some calculations which can help you guide in the right direction. I will also mention some risks involved in each of those asset classes. Buying a property Lets take an example to make it easy. You will have … Continue reading “Real Estate Investment vs Equity Investment”

My Corpus Reached All Time High And I am Worried

Just recently, my corpus has reached an all time high. I thought we are in the middle of a world wide pandemic. How come the markets don’t seem to care? Agreed that I don’t understand markets, but still, this is completely unreasonable. Various indices and stocks in India, as well as in the US, are hitting all time highs. But the economy is hurting. Where am I going wrong in my understanding? Well, there is nothing new happening really. Mr. Market has always been manic-depressive and probably will continue to be that way forever. My corpus Just 4 months ago … Continue reading “My Corpus Reached All Time High And I am Worried”

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”

How Am I Handling the Market

Given the current market situation, a few of my friends wanted to know how my portfolio is doing and what have I been doing during the crisis. So this post should hopefully answer these questions. I want to preface by saying that don’t be fooled by randomness. I may have performed better or worse than you expect and it does not mean I made any smart moves nor that I made mistakes. Only note that luck favors the prepared. For a couple of years now, I have been complaining about the market being overvalued (in my opinion) and you know … Continue reading “How Am I Handling the Market”

COVID-19 vs Market

Have you seen the market lately? It has gone on a wild roller coaster ride. You get to read news like Sensex fell over 1500 points from the peak. Should you be concerned? Do you need to act on this news? Lets find out. Let me preface by saying that I don’t know anything about the virus, how much affect it will have on economy or how the economy works. Nor can I predict the future and where the markets will go. All I can give is some financial planning advice. Now, how bad is the effect of the virus … Continue reading “COVID-19 vs Market”

Year In Review – 2019 Net Worth

The final post in 2020 Year in Review series, is my net worth. Like last year, I took stock of my investments and asset allocation. As a reminder to the readers, the idea is not to know how much I am worth, but mainly to understand my asset allocation. Even so, it is fun to check out the net worth, so here it goes. Since I have retired, I don’ t have PF anymore. I took out all my PF investments and moved them to debt funds because I am liable to pay taxes on the interest earned on PF after retirement. … Continue reading “Year In Review – 2019 Net Worth”