A reader asks, “I am 27 years old. My current monthly expenses are about Rs. 30,000. I don’t intend to get married. Can I achieve financial independence at 40 if my net worth today is zero?” Let us determine what the freefincal robo advisor tool coughs up for this scenario. The assumptions and inputs are…

A reader wants to know, “What is the ideal corpus for retirement in India?”. There are two very different aspects to consider here. (1) Retirement Math is universal and independent of geography. Only the inputs would vary. (2) What we define as “ideal” is subjective. Even in 2024, some people compute the retirement corpus necessary…

A reader says, “My PPF has matured. I presently hold about 45 % equity, with the rest in debt, and I am looking to increase my equity exposure as I have about 17 years to retire. I was thinking of withdrawing the ppf, which is currently earning tax-free returns of 7.1% and moving that to…

A reader asks, “Can a 45-year-old get Rs. one lakh monthly income with Rs. 3 Crores retirement corpus?”. We will assume the reader wishes to retire immediately with a corpus of Rs. 3 crores. Let us punch this scenario into the freefincal robo advisor tool. Note: This retirement planning illustration depends on several inputs and…

Many first-time visitors to our website ask, “Where is the freefincal retirement calculator?” Our signature retirement calculator is now part of the freefincal robo advisor, which allows you to create a complete financial plan for your family. The retirement calculator was the first tool we created. Over the years, we have modified it by adding more…

Several news portals have reported that the government is considering a proposal to offer 40% to 50% of the last drawn salary as a guaranteed pension for central government NPS subscribers. It may never come to pass (because if the subscribers’ NPS corpus is not big enough to meet this guaranteed pension, the shortfall would…

Aarthi is 35 and wishes to retire by 50. In this case study, we shall find out how she can plan for financial freedom in retirement.  We shall find out how Aarthi can derive an inflation-protected income and be financially free after retirement. What is inflation-protected income? This retirement income increases each year as per…

Everyone instantly recognizes rental income as passive income – potentially the oldest one. There’s an irresistible allure to real estate, which naturally leads to inquiries about its potential use as a source of passive income, especially after retirement. We discussed how passive income is crucial to your retirement plan and how to build the ideal…

Retirement planning is a life-long exercise. Ideally, it lasts from when we draw our first salary/income to when we (or the surviving spouse) draw our last breath. During this journey, there are several stages. Each stage teaches us something new. Here are some of these stages. This could vary from person to person. This listing…

A reader says, “I am investing next month with a nest egg of Rs. 5 Crores. Please guide me on how to invest this for a peaceful retirement. I am 55 years old. My wife is 56. Our annual expenses are Rs. 8 lakhs (including Rs. 20 lakh health insurance cover)”. We shall punch this…

A reader wants to know, “Can I find out how much I need to invest for retirement without a calculator? Is there any thumb rule for this? Similarly, can I determine how much equity exposure I can have after retirement without a calculator?” We discussed the first part of the question earlier: Estimate Your Retirement…

A reader asks, “If there is a Real estate component (physical) in a retirement planning portfolio, what is the best way to consider this during the rebalancing of assets? Or when considering the equity vs debt allocation”. “For example. Without considering RE investment, my portfolio is at 65: 35. ( 65 % equity). However, if…

A reader sent us the following message: “This article – Can I Achieve Financial Independence and Retire Early by 45? – it was, as always, a good read, like most of your articles. I have been a reader of freefincal for quite some time. My rant/question may be long, so please bear with me. I would…

In this article, we discuss the idea of annuity laddering (also known as income laddering) and how it is helpful in retirement planning. Annuity/Income laddering generally means a series of cash flows that become available at different points in the future. Typically, bonds or fixed deposits are used for income laddering. A series of FDs…

One of the common retirement planning mistakes is to underestimate monthly expenses. If someone asks me about my monthly expenses, I list the usual big-ticket items, like groceries, vegetables, petrol, medicines, etc. If pushed a little harder, I recognise that it is better to consider annual expenses and compute an “average monthly expense.” The most…