Posts tagged with "real-estate"
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Year In Review – 2022 Net Worth
The last post in the year in review series for the year is on my net worth. I am doing the net worth calculations using the very basic formula for net-worth which is basically
...continue readingassets - liabilities. Some don’t agree with that formula, but I will continue to use it since that is what I have used in the past. If I change the formula now, then there will be discontinuity in the numbers. Moreover, since I don’t publish any numbers, it does not matter what my net worth really is. It is only to show how it has grown or fallen over the years. My retirement is in no way dependent on my net worth. It is only dependent on my corpus of investments (debt MFs and equity MFs). -
Our Income Sources In Retirement
While I mentioned my retirement income sources many times before in my blog, I still get questions about that. So I thought I will revisit our income sources after our early retirement in 2018. It has been more than 4 years since we retired and nothing has changed in terms of income sources. I think most people are skeptical when I say I retired early and wonder if I am getting income from multiple sources. Actually that would be a good, probably correct way to retire early. But like many things in my life, I have taken huge risks with very little recourse if things fail. Having a plan B means I don’t have enough trust in Plan A. So plan B really is to make plan A work (you heard that one before didn’t you?). So in this post I will list out all our income sources again.
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Year In Review – 2021 Net Worth
It has been a while but I just realized that I did not do my net worth analysis as part of my year in review series. So here we go. I am doing the net worth calculations using the very basic formula for net-worth which is basically
...continue readingassets - liabilities. Some don’t agree with that formula, but I will continue to use it since that is what I have used in the past. If I change the formula now, then there will be discontinuity in the numbers. Moreover, since I don’t publish any numbers, it does not matter what my net worth really is. It is only to show how it has grown over the years. My retirement is in no way dependent on my net worth. It is only dependant on my corpus of investments (debt MFs and equity MFs). Real estate is not an investment since I live in it. -
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.
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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.
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The Truth About My Passive Income
Many people have been wondering and some were asking if I have any other passive income other than my investments in equity and debt mutual funds. Some think that I may have some real estate income or business income or some other income that I am not disclosing. Here is a post to bust some myths and bring out the truth.
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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.
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Year In Review - 2018 Net Worth
The final chapter in the Year in Review series, is reviewing my net worth. At the end of every year, in addition to reviewing my returns and expenses, I also take stock of my net worth. It is an exercise not to check how much I am worth, but more to get an understanding of my asset allocation, and see if it is converging towards my planned allocation. Lets take a look at the constituents of my net worth first.
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Let's Understand Asset Classes
Did you know that if you only invested all your money in stocks you would get incredible returns over the long term? But what if you cannot stomach the risk where your investment could erode by 70% within a few months? Would you be able to sleep soundly if you found that your Rs. 50 lakhs investment became Rs. 15 lakhs? If you don’t like the wild roller coaster ride then you might want to diversify your investments into different investment baskets of varying risks. Generally risk is correlated with returns, so lower risk usually means lower returns too. To alleviate risk and to diversify, we need to understand asset classes. But what is an asset class anyway?
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