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”

Why Save When You Cannot Enjoy?

Some one asked “I don’t have money before a job so cannot spend and have fun. After finding a job I have money, but I am saving for a future. So again I cannot spend. What is meaning of money? Spend it or save it or what to do?”. That got me thinking. I gave them the reply and thought I should expand a bit on my blog so it might help others. I understand the desire to spend after you get your first job. Obviously you don’t have to start saving the minute you have a job. May be … Continue reading “Why Save When You Cannot Enjoy?”

Happy New Year 2021!

Wish you all a very happy new year! Hope this year brings you more health, happiness and prosperity. When I wrote the new year post last year, little did I know that things will change so quickly. We have gone through some turbulent times indeed. I’ve had my fair share of ups and downs, but on the whole I ended the year on a positive note. Without going into too much detail, let me recount what happened in my life in 2020. Blog First let me start with this blog. I wrote more than 100 articles last year! That is … Continue reading “Happy New Year 2021!”

Hundred Posts and Counting

I passed a wonderful milestone today. This is my 100th post on this blog. I did not realize that I was so close to this milestone. When I first started I did not have any intentions of doing it for the long term. It was supposed to be just an online dairy. I wanted to pen down my daily activities and thoughts so I can recollect the memories and rediscover the days gone by. But thanks to encouragement from friends and family it grew into a blog for helping others In the last 100 posts I wrote on various … Continue reading “Hundred Posts and Counting”

One Year Into Retirement

It is now exactly one year since I retired on June 29, 2018. Incidentally, this also happens to be my 50th post on this blog! It was a fun journey so far. While I cannot say if this will continue into the future, there are some exciting times ahead. Everything is going almost exactly the way I planned. Still, since I haven’t yet gone through a bad market cycle, I don’t yet know if my financial planning will stand the test of time. One thing I realized is that no matter how much free time you create, it will get … Continue reading “One Year Into Retirement”

Am I Financially Ready To Retire?

Here is an alternative take on whether you are financially ready to retire. In this post, I want to help you determine if you are ready to quit with nothing but a simple calculator and just one formula. You don’t need to predict expenses, inflation, rate of return etc, and as such, this method is not as comprehensive as the How Soon Can I Retire calculator. So take it with a pinch of salt and use it more as an indicator of whether you are ready to retire or not. Also note that this is only to check if you … Continue reading “Am I Financially Ready To Retire?”

The 70:30 Asset Allocation

In my previous post, I talked about about allocating 70% to equity and 30% to fixed income and just keep that ratio irrespective of which stage you are in your life. But does it really work? Lets work out some examples to see how it might work under various conditions.   Pre-retirement While you are still not retired, you have income coming in and you are investing. It does not matter what markets are doing, your job is to just invest in such a way that you maintain the 70:30 split.   The way it would work is that every month … Continue reading “The 70:30 Asset Allocation”

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 must … 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?”