Posts tagged with "retirement"


  • Our First Step Towards True Retirement - Part 2

    Happy new year everyone! I want to continue where I left off in my previous post, so if you haven’t read that, I suggest you head over there first to get some context. The year was 2022, and like I mentioned in the previous post, we were thinking about farm life and were not sure if we can adapt to it after living in the city for such a long time. Since a few of our unschooling friends were living on farms far away from the city we thought it would be a good idea to visit their farm and see how they live and take care of their daily activities in such remote places. It will help us answer some long standing questions.

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  • Our First Step Towards True Retirement - Part 1

    If you have been paying attention to the last few posts, you know that we are cutting down our sustainability efforts here at home. We first stopped rain water harvesting. Then slowly started to reduce our organic gardening footprint. None of these decisions were taken on a whim. They were deliberate and well thought out. While I mentioned some of the reasons for slowing down the projects, one reason which I did not mention was that we were not finding enough time. Yes I know, it sounds strange coming from a person who (and his better half) have completely retired and have not worked for money for more than 5 years. Yet, here we are. We finally realized our long-held dream of becoming owners of a farm and that kept us busy.

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  • Be Prepared For Retirement

    There are many reasons one might want to retire early. Some may want to travel, some may want to sit and dream, and yet others might want to work on a startup or hobbies. Whatever the reasons might be, be prepared if the plan does not pan out. But more importantly remember that early retirement is not for everyone. I know a lot of people who have realized that early retirement is not for them. They don’t know what they would do if they retire early. For them, work is the thing that keeps them busy. That is a very good reason not to retire early and I am glad these people have a clear idea. While a few others want to retire early because the thought of freedom to do whatever you want sounds nice, or they are in a very stressful job. These kind of people can land up in trouble if they don’t have a plan.

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  • Is Investing Early Really That Important

    Many financial planners and advisors including yours truly will have you believe that it is important to start investing early if you want to have a comfortable retirement corpus. In fact this is the first step I propose in my five step plan to early retirement. After all it makes sense right? You have a long runway if you start early and it will allow compounding to show its effects. Compounding needs time. But is it really all there is to it? The genesis of this thought was an article that I recently read on the internet. While there is a kernel of truth, it is not all its made out to be. Let me try and explain using the information from the article.

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  • Time To Revisit My Expectations?

    Most of my finance related numbers for retirement were based on an inflation of 6% and investment returns of 10%. Going by the recent data, neither inflation nor returns are inline with my expectations. We are in a high inflation and low returns period of a market cycle. The worst part is that the returns from both equity and debt are low at the same time. While it is not as bad in India, elsewhere in the world, that is causing a lot of pain. Since the rest of the world will affect India at some point, I thought it was time to revisit my numbers and see if they still make sense in the future as I continue my long retirement journey.

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  • Personal Finance Is Not Always About Money

    We attribute personal finance to so much about financial planning, but it is really not just about the money. There are various other aspects which don’t feel like they are related to personal finance, but they are. Take for example the quality of life aspect. It is not related to money, but it could be part of personal finance for some. How? Let’s take this example – say I was offered a job with Rs. 20L per year where the work does not involve any travel, and say I have another offer which pays be Rs. 30L per year but with lots of travel. I would choose the former offer. Because the quality of life would be far better without travel. I don’t care for the extra Rs. 10L per year if it is going to take me away from family for prolonged periods.

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  • Retiring In A Bear Market

    I already wrote a bunch of posts about 4% rule on my blog. Most recently I explained how early retirement might work during a prolonged recession. You have also seen how 4% rule is working out for me. Then there is that topic about whether 4% rule actually works in India given the high inflation, which we found out might actually work better in India. But then why should we stop the discussion there? Let us talk about retiring in a bear market. Actually I am not going to do any analysis, but will just point you to an interesting article I read recently.

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  • Retiring Early During A Recession

    A reader asks “Can you write a post on how early retirement works in a bear market (potential recession) scenario going for say 1-2 more years earning less than 10% or even say 6%. Meaning a real return of 0% as per your assumption. What kind of planning should folks who have already retired and folks who are planning can take. Keeping a good buffer is definitely one option but any other thoughts to discuss there (fixed income vs equity balance or others) will be great to see”. So lets see what it takes to be retired in this situation and if there is something we can do to reduce the impact of an unexpected long recessionary climate.

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  • How Much Do You Need To Retire At 45

    A few days ago, I read an article where the reader wanted to know how much corpus they need to retire by 45. I thought it was interesting and wanted to use my own calculators to see what numbers I would arrive at. I was surprised at how very close my number was, compared to what the advisor in that article gave. But do remember that for the exact same question different people will give different answers based on their own past experience and their biases. Anytime you take financial advice, do keep that in mind. No one has the perfect right answer. They are just approximations to lead you in the right direction. In the end, you need to figure out what the right advice for you is.

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  • Saving Strategy Of A Minimalist

    The normal advice you hear from people is that you need to pay yourself first. Basically what it means is that as soon as you get your salary or other income, you need to save up for your goals first and then only spend what is remaining. Save up for your goals basically entails paying SIPs for each of your goals according to your plan. The advice is sound indeed. Otherwise some people may not be able to save enough to reach their goals. If they spend first and invest last then their expenses might eat up into the savings.

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