On 18 September 2016 at 23:28, Sandhya aka Sandy <sandhya.varn...@gmail.com> wrote:
> Hi Folks > > Thanks for all the responses! You can't imagine how curiously comforting it > is to talk about retirement while preparing for a Monday morn. > > Now Deepak, those were some great tips and links. Thanks so much. I guess > I'm partially there in terms of a corpus, and I sometimes get anxious that > I'm not further down the road, but I feel reassured with your explanation > of how to steadily build it up over the years. I was wondering what you > meant by buffers in your statement: > > Buffers are basically the idea that you don't know exactly how much you'll spend, because your assumptions could be wrong.For example we think of the rupee as 68 or so - it could be 100 in 20 years or more. Then the kids schooling at 150,000 dollars suddenly costs 1.5 crores, about 30% more than we thought about right now. You may have an expensive hobby, or you may stumble on to something that needs a significant personal financial commitment - i mean we aren't brain dead on retirement, and many ideas take money to pursue even if they are dead ends. (And that's what retirement really means - freedom for things, and freedom from the fear of failure) And because you don't know, you have to target for a little more. 1.28 crore = 1.4 crore. Kids education = X in an excel sheet, you try to do 1.5x or something. Exactness in predictions is folly. > Yes, I do need to factor in a child's expenses. As for travel, I'll try and > do that while I'm still earning and shoestring it later. That was a sound > portfolio plan you laid out. > True. You can still shoestring it but I would say you might not need to. Can you save Rs. 300 a day without even feeling it's gone? I mean this seriously. Take it out every single day and put it into a separate bank account. You won't feel it and and in a year you have 1 lakh rupees more. If you're retiring after 5 years, put on a little interest and this is like 6.27 lakh rupees. Nothing fancy, but this is what makes a few trips non-shoestring if you so desire - and you didn't even notice that the money was gone because it's like an extra coffee with a friend every day. (it is, really - you're having coffee with yourself a few years later) Do this for 10 years, and it's like 15 lakh rupees. > > Rajesh: I'm guessing Deepak's company also does financial management. I've > been working with Credence Family Office based on Bangalore. > Unfortunately, we don't just yet. We will, but that's going to take 3 more months at least. We do stock market stuff, primarily. I don't have personal experience, but have heard good things about Credence and about Hexagon in Bangalore. > >
