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Category: Retirement

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Published on 2 Comments on Can I Retire With Rs. One Crore Today?

Suppose we have Rs. one Crore with us today, can we retire with it? In this sneak preview of the freefincal Robo advisory template* let us punch some numbers in it and check what good is Rs. 1 Crore.

  • The template is free and open-source and will be released soon. It is currently being beta-tested by members of FB group, Asan Ideas for Wealth.

One Crore is a psychological or emotional benchmark for wealth. Financially it is just one followed by seven zeros with its value constantly eroded by inflation. That said, it is still a good chunk of money as we shall see below. read more

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Published on 14 Comments on Why have we not seen a retirement crisis in India?

In this post, I discuss reader Abhay Deol's question: As anyone who has played with a retirement calculator knows, the corpus required for the retirement portfolio is huge. And from all accounts, most Indians are not prepared for it or even realize the huge amount required. What I'm curious about though is why hasn't this crisis played out yet? Where are today's retired professionals getting their monthly income from? read more

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Published on 10 Comments on Why can’t I invest in 6010 equity all my life?!

A friend asked me this question: "I currently have an asset allocation of 60% equity and 40% fixed income. My retirement is many years away. Why can't I continue to hold 60% equity after retirement too? In fact, all my life?". Since the answer is not a simple "yes" or "no" and since it can illustrate certain aspects of reviewing the strength of a retirement corpus before or after retirement, let us discuss this with the aid of an example. read more

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Published on 2 Comments on A Set of Easy To Use Online Retirement Calculators

Here is a set of easy to use online retirement calculators created by Arunram, a certified financial risk management professional. Arun had pointed out a bug in my FU Money Calculator and shared this set of tools over email. We also met at the Delhi DIY meet last month. I requested him to share this on freefincal and he readily agreed.  The DIY community thrives on such meaningful contributions from intelligent investors and professionals. read more

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Published on 2 Comments on The Ugly Truth: How much should I invest for retirement?

"How much should I invest/save for retirement?" is a pretty common question (try googling it). This question, like most other, is often asked with the expectation of a nice and comfortable answer. "Be sure to save 10-15% of what you make, for retirement" is an equally common answer. Unfortunately, nice and comforting as it may sound, such answers are often far from the truth.

Retirement planning is complicated because the corpus accumulated is not meant to be spent in one-shot like all other goals. The corpus must not only provide regular income to meet expenses, it must also grow at a rate that at least matches inflation and must be large enough to outlive the individual. This is a tough ask. Any retirement calculation is subject to several assumptions. If these assumptions are not realistic (for example planning with inflation of 6% and equity return of 15%) then results of the calculation would appear comforting even as reality prepares a bitter pill. read more