Year In Review – 2018 Returns

At the end of every year, I take stock of my investments, expenses and net worth to keep a tab on how I am performing with respect to my goals. This is also the time to rejig things if they are not going according to plan. So in this post, I wanted to go over my portfolio returns for 2018 and share any learning. Portfolio vs Index Lets start with how my portfolio performed, compared to Nifty 50, multi-caps, mid-caps and small-caps last year (Jan 1, 2018 to Dec 31, 2018). Almost all indices have given poor returns. The only … Continue reading “Year In Review – 2018 Returns”

How Long Will My Money Last?

How long will your money last? The oft given cliched answer is — it depends. It is true if you want someone to answer for you. But if you put some effort, you will be able to answer the question yourself. The only problem is that you should be able to make some good estimates of your expenses, inflation and investment return long into the future.   This is a continuation of my earlier post — How Much Do you Need to Retire. If you haven’t read it, I urge you to head over there first. So by now you … Continue reading “How Long Will My Money Last?”

How Much Do You Need To Retire?

I have touched upon this point briefly in step 5 of How to Retire Early in 5 Steps, but I thought I should expand a bit on that. Most people suggest the 4% rule, which basically states that if your expenses can be met by withdrawing 4% of your corpus, then that should be the corpus size. For example, if you need Rs. 50,000 per month to meet all your expenses comfortably in your retirement, then your corpus needs to be Rs. 50,000 * 12 / 4% = Rs. 1.5 crores. But does it really work?   For the skeptics, … Continue reading “How Much Do You Need To Retire?”

How Soon Can You Retire?

Like I mentioned in the previous post, there are really just two variables that you can control, which determine how soon you can retire. They are your expenses and savings. Remember step 4 of How to Retire Early in 5 Steps? Plan a Simple Retired Life. The lesser the expenses today, the less it will be in future after adjusting for inflation. If you like a rich lifestyle today, then as the years go by, not only will inflation cause the expenses to go up, but you will want higher and better lifestyle which adds up. Your savings will not … Continue reading “How Soon Can You Retire?”