[Aceman82]

I would play the contrarian role and say that 4 Crores is actually less for two Children's education, especially if one wants to Medicine in a private college + MD either in India or in Western Countries (Read via USMLE (or) PLAB). I would say it would be a similar cost if one is aiming for BE in a tier - II university (i.e. non IIT top private university) + MS in a top 10 US university (read Stanford, Carnegie..etc).

This has nothing to do with merit but this is the competitive world we live in where i consider that the best investment one can make for their children is in their education. Studying from top universities does not guarantee success in their lives, but the probability of success is greatly increases. As with any investments we make, there is a factor of luck but one will try to make life as "risk free" as far as possible for their children.

Regarding retirement funds, the number quoted by Saurabh is bang on target and is a number I am working towards (actually want slightly higher ). Everyones lifestyle and requirements are different and once someone reaches upper middle class, one will try doing all it takes to stay there.

[whitewing]

Originally Posted by Axe77

..Worth a read if you can get hold of today's edition. Link is included below as well.

I don't have a subscription, so, went through the screenshot you shared, thanks.
Have been following his firm's channel in youtube, have found it useful.

I miss one key information required for retirement planning => Saurabh says he is targeting a net of 50Cr on retirement, how many years of post expense does that cover? Or, does he assume that the annual returns from the corpus would cover his annual expenses?
Without this, the rest of the data is just a bunch of numbers [apart from the the kids education].

Another point (more of a nit pinking one) I notice is that he mentions his debt ratio is 10% but he has 15% in NPS, which would mean that even with an active choice, he'd have to have 25% of NOS in debt.
Wouldn't this imply that his debt allocation is atleast be 13%+ ?

Also I find it surprising that he has managed 25% returns on NPS! Must've made large lumpsum investment during the covid crash. Till now, I was happy with my 13-14% XIRR with NPS :-)

[DudeWithaFiat]

Thanks for making me feel poor

Here I am thinking that I`ll retire as soon as I have Rs.4 crores cash, live off the Rs. 2L/month interest out of which I`ll spend 1L a month and save the remaining 1L to fight inflation. And there you are talking 20-50 Crores. Going by that level of money, is retirement life enjoyable only for a miniscule percentage of people in India?

Am I living in a bubble? In most cases that I have seen, at least in KL, folks who had a pretty above average income during their working life and good savings/investment plans, generally have a good retired life.

[kpkeerthi]

Originally Posted by Axe77

Attachment 2591868

What an innovative way to promote his "products"! First, these experts deliberately made finance sound like a rocket science. And now what? "retirement planning" needs some "magical compounders"? Good luck to the investors. A 20 crore corpus, when invested well, will feed you with 20 lakhs a month easily for life. That's a lot and an over Investment.

[Latheesh]

Originally Posted by DudeWithaFiat

Thanks for making me feel poor

Here I am thinking that I`ll retire as soon as I have Rs.4 crores cash, live off the Rs. 2L/month interest out of which I`ll spend 1L a month and save the remaining 1L to fight inflation. And there you are talking 20-50 Crores. Going by that level of money, is retirement life enjoyable only for a miniscule percentage of people in India?

Hey buddy, you have a company here!

Where our dream ends where someone else's begin and there is nothing wrong with it. "Mass affluent class" is the key word in that article.

[Axe77]

+1 to what Latheesh wrote. I think the key word indeed is “mass affluent” and I reckon he’s hitting at the upper echelons of that as well and well into HNI territory.

I think there are enough and more formulae that help people use their monthly expense budgets / requirements and arrive at what should be a suitable corpus target to account for “that budget”. That should be a more apt calculation metric perhaps at an individual level.

Rest is all personal. For instance, I’m not saving any money towards my child’s wedding - he’s on his own on that front and I’ll contribute whatever I can comfortably, if anything and within reason. There may be others who very specifically work towards collecting a corpus to that end. For education on the other hand I’d like to keep whatever best option I can muster. How and how much of that to deploy based on ability, suitability, total savings etc can always be decided later.

At the end of the day, this is a never ending wide band - he’s just quoting figures for one small part of that band. After all, one can own a home for 50 lakhs, 2 crore, 6 crore or even 16 crore. And then there’s Antillla too at the other end of the range!

[ninjatalli]

Originally Posted by kpkeerthi

What an innovative way to promote his "products"! First

+100 to this.

Originally Posted by Latheesh

Hey buddy, you have a company here!

Where our dream ends where someone else's begin and there is nothing wrong with it. "Mass affluent class" is the key word in that article.

Good point. I'll agree more with @kpKeerthi that this was a nicely sponsored article to promote his products. Most wouldn't have known about the firm. I'm sure some of us googled his firm and/or those products for sure.

I guess those who fit the ask (existing mass affluent class or those aspiring to get there) are the primary target segment. His firm would have a lower cut-off (financial investment) for future clientele.

For everyone else; the construct (and not the figures) can be leveraged for self-learning.

[Pequod]

Originally Posted by DudeWithaFiat

Thanks for making me feel poor

Here I am thinking that I`ll retire as soon as I have Rs.4 crores cash, live off the Rs. 2L/month interest out of which I`ll spend 1L a month and save the remaining 1L to fight inflation. And there you are talking 20-50 Crores.

Originally Posted by Latheesh

Hey buddy, you have a company here!

Where our dream ends where someone else's begin and there is nothing wrong with it. "Mass affluent class" is the key word in that article.

Count me in too! Give me 5 crore in liquid assets, and I am done! Live off the interest, and find time to do things that make me really happy. Of course, that’s subjective.

[JediKnight]

Originally Posted by DudeWithaFiat

Thanks for making me feel poor

Here I am thinking that I`ll retire as soon as I have Rs.4 crores cash, live off the Rs. 2L/month interest out of which I`ll spend 1L a month and save the remaining 1L to fight inflation. And there you are talking 20-50 Crores.

You have to figure out what is best for you. Human greed is infinite. My parents live on a government pension. What a terrific quality of life they have. Beautiful generous people. People of high moral values and greatly respected in their circle.

One more thing be careful about financial flashers. People who claim huge amounts especially on social media ostensibly for public education. Actually, they are just status signaling. At the end you have to think for yourself.

[ashpkd]

Originally Posted by DudeWithaFiat

Thanks for making me feel poor

Here I am thinking that I`ll retire as soon as I have Rs.4 crores cash, live off the Rs. 2L/month interest out of which I`ll spend 1L a month and save the remaining 1L to fight inflation. And there you are talking 20-50 Crores. Going by that level of money, is retirement life enjoyable only for a miniscule percentage of people in India?

Am I living in a bubble? In most cases that I have seen, at least in KL, folks who had a pretty above average income during their working life and good savings/investment plans, generally have a good retired life.

I am in the same boat as you. I think 4-5 crores is good enough to have a very decent life in Kerala. And I think because real estate is still cheap here compared to many parts. I am just waiting to hit the 4-5 cr mark to retire.

[Nikhilvm4]

I kind of agree with the 10Lakh Health Cover. Why would somebody having 20Crores corpus want to rely on a third party in the time of crisis. I have personally had a harrowing time dealing with an insurance company with numerous forms to be filled and request for additional documents, doctors signatures, etc. only to finally approve 60% of the actual expenses / claim amount.

Honestly, i feel it was just not worth it and only added to the stress, contrary to what is actually expected of a Health Cover. I would rather have a separate SIP or set aside a sum for such emergencies.

[SnS_12]

Originally Posted by Nikhilvm4

I kind of agree with the 10Lakh Health Cover. Why would somebody having 20Crores corpus want to rely on a third party in the time of crisis.

Better would be to have a top up cover (25/50 lac) with an attachment/deductible of 10 lacs which a person with that kind of corpus of even lower can easily afford and you will get this policy at a much lower premium/rate comparatively.

[SchnelleKurven]

I might be oversimplifying but think a liquid INR net-worth equivalent to USD 1 Million Dollars is more than enough for a couple plus a kid. Liquid net worth is one without real estate. I know real estate is not illiquid and can earn rental income , but I haven’t been a fan of the asset class.

However, I feel with increasing affluence, parenting has become very difficult. Teaching kids the value of money, education, hard work is a challenge. How does one push kids to build their own when they get/are going to get things on a platter?

[civic-dk]

Originally Posted by SchnelleKurven

I might be oversimplifying but think a liquid INR net-worth equivalent to USD 1 Million Dollars is more than enough for a couple plus a kid. Liquid net worth is one without real estate. I know real estate is not illiquid and can earn rental income , but I haven’t been a fan of the asset class.

However, I feel with increasing affluence, parenting has become very difficult. Teaching kids the value of money, education, hard work is a challenge. How does one push kids to build their own when they get/are going to get things on a platter?

Agree with you wholeheartedly. Both my kids are starting their MBA journey (son is going to a Paris based institution after working for 5 years, while the daughter is joining Mumbai based institute after completing her BBA).

After accounting for all educational and wedding expenses (would be retiring in 5+ years), I am angling for around 10 CR. With this kind of sum, I believe I can live comfortably with SWP proceeds from part of the corpus, while remaining part of the corpus can remain invested in safer avenues.

[DigitalOne]

There were lots of discussions around whether it makes sense to move to a Tier-2 or Tier-3 post-retirement. So here is one more input for the decision-making process. This is from today's TOI Print edition (Bengaluru).



This could mean

1) Health costs in Tier2/3 cities are 40% lesser than Mumbai and/or

2) People in Tier-2/3 cities are healthier and have lesser claims, so that insurance companies are still able to be profitable.

Either way, this is a point in favour of living in a Tier-2/3 city post-retirement.