How To RETIRE EARLY In Your 40s Using The F.I.R.E. METHOD? | Financial Independence | ET Money
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- Опубліковано 27 тра 2024
- FIRE stands for Financial Independence Retire Early. It’s a retirement method that challenges the conventional method of working until the age of 65 and instead quits their jobs in their early 40s or even in their 30s. The concept was inspired by a book titled “Your Money or Your Life” which was written by Vicki Robin and Joe Dominguez. In this video, we will discuss the F.I.R.E method in depth along with the 4% Rule & Financial Independence Ratio.
Chapters
00:00 Introduction
02:16 Setting Up Your FIRE Strategy
10:49 What's Fuelling the FIRE Movement?
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SETTING UP YOUR F.I.R.E. STRATEGY
The core tenets of a FIRE strategy are rather simple, firstly, you start by saving 50 to 70% of your income. Secondly, you show economic discipline by living frugally. And thirdly, you invest your savings wisely with the preferred instrument being a low-cost index fund.
And that’s it: Save More, Spend Less & Invest Wisely. These are the three bedrock principles of any FIRE strategy. Which starts by you asking yourself two basic questions:
How much income do you need to sustain your lifestyle in early retirement?
How soon do you want to retire?
Let's focus on the first question. Which is another way of saying how much are you allowed to spend on a monthly or yearly basis? A helpful and often used rule-of-thumb around this is the 4% RULE.
If you retire with a kitty of say, 5 crores then per the 4% rule, you can use up 4% of 5 crores each year which comes to 20 lakh rupees. Infact, another way of doing this is to reverse the rule so 4% when inverted comes to 25 times which means your retirement corpus needs to be 25 times the amount you'll withdraw the first year.
For instance, the 4% rule was built on the assumption that your invested portfolio would grow at an average of 7% per year which seems perfectly doable. Like the fact that the 4% rule was built to work reliably for 30 years however if you are retiring at the age 40 or 45 then your retirement journey is a lot longer and 4% might be a bit too high a number. Another issue with the 4% rule is that it doesn’t account for inflation which for a country like India is a much higher number as compared to more developed countries like the United States. But the good thing is that anyone can make their own version of the 4% rule and surely would add inflation in it.
The first step is to save anywhere from 50 to 70% of one’s income every month which is a lot higher than the standard 15 to 20% savings that most financial advisors put forward. The second step under the FIRE strategy is to spend wisely. Some expense management tips include.
Driving a used car rather than a new one
Use public transportation if living in the city
Avoid credit card debt and use them for rewards etc.
Another area worth considering is the importance that’s given to passive income by the FIRE community. A number of followers use something called the FI ratio or the Financial Independence Ratio. FI Ratio = Passive Income/Expenses
For example, if you earn 2 lakh rupees as passive income and your expenses are 1.5 lakh rupees then you have an FI ratio of 133%. Now generally, anything over a 100% indicates that some real good progress has been made towards one’s financial independence.The final step in the FIRE method is investment.
WHAT’S FUELLING THE F.I.R.E. MOVEMENT?
The FIRE movement is catching on because millennials and Gen-Zees. For instance, a lot of them are questioning the utility of the current system which encourages a consumerism-led template of take a home loan, buy a car, work 9 to 5 for the next 30 years to repay these loans and accumulate enough wealth to retire in our 50s or 60s. FIRE might be the solution for the moment as it gives many of them the financial breathing room to work part-time doing something they enjoy, convert a hobby into a business, spend time with their family, travel etc.
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This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
I really need help, please. Can I ask who the financial advisor you work with is?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement and that is where Cynthia McClure Alexander comes into place because she knows how to make use of your resources to ensure you have a good retirement and planned life .
My approach towards this
1. Lead as simple as possible life with a great approach towards minimalism
2. Have a simple food and easily digestible veg food , home cooked
3. Never try to find happiness by way of spending more money
4. Happiness is not in international tours, fancy cars, fancy club memberships, and lavish life style, rather being simple, humble , having minimum expectations in life
5. Finally maintain a great concentration on your health , because you can live without enough money but not without enough health
6. If you maintain good health, you dont need more money . that's it. Make your children understand the above points and dont grow them as money making machines , life is rather more than all of these
Thanks for sharing
Simply superb points..
Great thoughts noted
Seems like I am gonna have to live like a sage
Awesome.. Just that most people realize bit later 😢
I really need help to get a financial advisor or a retirement planner. I need something to hold on to after my retirement. Can someone Advice ?
I really need aid to get one .
@@Michelle_Sanders561 More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement and that is where Cynthia McClure Alexander comes into place because she knows how to make use of your resources to ensure you have a good retirement and planned life.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement and that is where Cynthia McClure Alexander comes into place because she knows how to make use of your resources to ensure you have a good retirement and planned life .
Creating wealth and gaining financial freedom isn’t as difficult as lots of people think. Through the right information, building wealth and staying financially stable forever is way easy. Investing is the only true way to earn a great income and staying wealthy forever..
The first step in creating wealth, is figuring out your goals and risk tolerance - either on your own or with the help of a financial advisor. If you can get the facts about savings and investing with a well detailed plan, you should be able to gain financial security over the years and enjoy the benefits of managing your income.
You’re right! Working with a financial advisor will genuinely set you up for success in life. I’m glad I was able to hire a financial advisor “Lisa Ann Moberly earlier this year since while others were complaining about the downturn, I was busy cashing out from my investment, eventually making over seven figures in the first quarter alone…
Your advisor really seem to know this stuff. I found her web-page online when I google up her full names, read through her resume, educational background, qualifications and it was really impressive. I left her a note and booked a call session with her hoping she gets back to me soon
It’s unfortunate most people don’t have such information, I don’t really blame people who panic because lack of information can be a big hurdle. I’ve been making more than $100k passively investing with my adviser Lisa Ann Moberly, and I don’t have to do much work. I will always make good profits returns.
Yes you are absolutely right , like my personal adviser Mr Robert who helped me to make 1 billion dollars from just 1 dollar in 1 years all thanks to his great knowledge about crypto investing he is very good at what he does
I didn’t know about FIRE movement, but I always wanted to be financially independent at young age. So my journey began 9 years ago when I immigrated to Israel, I started investing 90% of my income in mutual funds from April 2014 and I’m so proud to inform that I made my last investment in March 2022, I’m 33 years young and I have invested enough corpus in mutual funds to retire comfortably. I won’t retire completely yet but I will do something where I will have complete freedom where I can decide if I want to work on particular day or not, how many hours, what hours, etc. I will be fulfilling my hobbies which includes travelling, fishing, hiking trips and outdoor adventures in the coming years. ET Money videos has empowered me with knowledge hugely, so big thank You to you guys.
Thanks for sharing your experience. We are happy to have played a small part in your inspiring financial journey.
What is 8 years mutual fund returns generated sir...
My Annualised return for past 9 years is 16%
@@bharatbhogesara123 i have started 61k plus 10k is stocks and 20k fd each month so for coming 5 years my retirement financial free plan.. working in IT..AGE 33 NOW NEED GUIDANCE...1 DAUGHTER NEW BORN
Rakesh I'm no financial advisor, but I will tell you how I planned my retirement is I used retirement calculator (icici mutual fund), and it helped me to figure out how much corpus I will require at my chosen retirement age.
Much awaited video. Thanks for upload
Most welcome 😊
I ve read n heard many material regarding FIRE
BUT this is the best👍
Thank you
Yes Frugality and Not falling prey to social ,peer pressure of "showbazy" saves lot of money 👍
Plus having a sharper focus on growing one's income. Rising income & falling expenditure is the perfect FIRE concoction
Falling in love with your content!
Thank you very much
Very Helpful Thanks and Gratitude
You're most welcome. So nice of you
Very good narration and helpful video! Thnx.
Glad you enjoyed it!
@@ETMONEY Superb work by ur team and u Sir! Thnx.
Very well presented and informative video. I FIREd 6 years back and am living comfortably on my passive income (predominantly rental). I do spend a lot of time talking and writing about Financial literacy, FI and FIRE. I know further details are beyond the scope of this introductory video but touching on the bucket strategy would definitely help. Also, in India a 2.5% swr (ie 40X corpus) is likely to provide a good buffer, but nobody knows the answer.
Hello All,
I was not aware about FIRE before. I worked lot on achieving financial freedom but after doing lot research i started it with deciplinary way and found it intresting. And even i increased my income lot than before but still i work on reducing my unwanted expenses by focusing on needs instead of wants.
Thanks for sharing
Thank you for sharing book of f.i.r.e method.
Most welcome
Very useful information.
Thank you
Main issue that you missed - Once you retire early, where do you invest safely which can give you 12% returns (considering Inflation at 7-8%) yearly and enables you to withdraw 4% for your expenses. Inflation is the greatest enemy of FIRE and you need to keep generating the returns so as to not touch the corpus.
If we are talking about MUTUAL FUNDS / STOCKS the yearly returns are not guaranteed and will fluctuate. So in a year where the return is only 1% , I still need to withdraw 4% for my expenses thereby reducing the corpus
I think the 12% is applicable for building corpus only.
Once you take a decision to retire, expecting 12% with peace is not possible. Hence a lower and safer option of 5 to 6% must be expected from the corpus and from this 4% withdrawal every year is what is explained
@@fanofkimi That's the isssue. But inflation will be around 8% easily . So based on that 4% won't suffice your needs.
@@GamerInVoid hence right corpus is important.
The more you plan to live, the higher will be the need of corpus.
But keep in mind the 4% you withdraw is not eating your corpus still so that's on top.
Use the ETM calculator, it helps to bring more clarity
Buy a farm where you earn from the produce and also keep yourself active and healthy...as long as you are healthy you are rich.
After retirement you have to consider only the food inflation not overall inflation and you can invest in bonds after retirement which gives around 9to 10% interests which is enough
Very helpful content
Glad it was helpful!
I have retired from active working life in Apr-2022. I used all 3 guidelines without knowing they are FIRE principles. I have used the approach of Zero Debt; Zero Responsibilities towards kids education as main guiding principles. Apart from that I used to track every paise I spend since last 7 years. Also ensured there is enough Health Insurance for my family. I used same 4% withdrawal rule to dip into my corpus. These things helped me arrive at my retirement when I turned 50 in Dec-2022. As I had to serve notice period in my organization My retirement came by the End of the FY2021-22.
Thanks for sharing
Congratulations 🎊
Thanks ETM team for this lovely content
Infact, these videos take us to your original roots which was one of the main reason for many of us to follow ETM journey long back.
Thank you very much!
I've been keeping a substantial amount of my savings in cash. It feels safe, but I wonder if it's the right approach for retirement. I want to invest roughly *$400,000* in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.
When you hold cash, you miss out on potential investment opportunities in the stock market, bonds, or other assets that could yield higher returns over the long term. Having an advisor assisted me in saving up to $3 million for retirement.
I get it, but I'm concerned about risk. What if I lose my savings in the market? Please who is this advisor that guides you?
I work with *Sharon Louise Count* , just look her up yourself online to message her, she’s proficient
Thank you. I just checked her out. She seems really proficient. I'll follow up with an email.
😂
I'm 56 and my wife and I are very worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, all those years of work just to loose it all to a crisis you didn't cause.
I feel your pain mate, as a fellow retiree I'd suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor this year for assistance, and following her advice, I poured $180k in passive diversified safe-haven assets and its yielded $375k so far. Nothing special, just proper diversification and a cut loss and take profit strategy.
who is your expert advisor if this is not too much I’m asking? I've been looking into advisors lately myself,my 401k has particularly lost everything gained since 2019
I love your videos on FIRE movement, Given an opportunity, I would love to be part of ET money shoe sharing my version of FIRE
Always love the different variety of useful content from ET Money team. This F.I.R.E. method is fire 🔥
Glad you enjoyed! Thanks
GOOD ONE
Thanks
I am already on FIRE movement and my target date is 2024. Much needed awareness in INDIA around FIRE movement . Thank you !!!
Wonderful to hear and thanks for sharing your progress
Now I am a gamer and have my job..Also like to animate. I am single (may be will be so in future) and have no extra expenses other than Broadbands, Electric bills, Pc setups (as I have the channel as you can see) and foods (and journeys etc) . But I am still not convinced that I will retire early.. I have interest to retire early but without having your passive income it is not possible to retire early for sure.
Wow etmoney I am getting financial knowledge which I never learned in college
Good to hear. Wishing you the best
Good information, but I was not able to understand how to implement it in my case.
I have a home loan monthly maximum emi around 38k in a normal home account but I have a home loan OD account , so I credit salary to OD account and I do my expenses from that account, so within 1.5 years I have paid of max 3.5 lak principle and few amount interest which is calculate based on outstanding amount , generally I pay home loan interest 28k monthly, it will be reduced in future.
Here is my question what is the suggestion you can give me to save and retire earlier. Thanks
Thank you, Shri Shankar Nath ji for such an informative video. I am so convinced by your way of communication, that I wish to meet you personally, some day. आपको मेरा साधूवाद प्रणाम। 🙏
Could you please explain me meaning and use of DMA in stock market
Retiring from public service made me realize that I had no means of passive income, and in 35 years, I had only moved round in circles financially. I needed to make investments immediately despite retirement and that led me to looking for ways out. I feel very accomplished every time I remember my journey and how I've been able to grow my portfolio to 7 figures, with the help of my broker James Fletcher Brennan. Mind-blowing experience really. Thanks for this video by the way, I think this year was a big win for us investors. Go stocks!!
Truly It’s all about accumulating wealth through compound interest investments.
I did read about James Fletcher Brennan, quite an interesting man to look up on the web.
Consistently investing in quality dividend paying companies over the long term is a relatively easy strategy to create generational wealth
Did a quick web search, he has a pretty decent bio, I wrote him and I'm waiting on his reply.
You’re really killing the FIRE game. I wish to have this someday
If the living expenses are covered through the rentals from real estate, can that be considered as a financial independence as real estate is safe instrument and inflation proof?
Please make a video on VPF
Save but also live your life
Is home loan EMI to be considered an expense?
Who will talk about the stress and anxity one will go through in 20-25 years to achieve this fire number.
Sir iam in Chennai Tamil Nadu . Well explained Thanks
Thanks and welcome
being a CA I totally agree with FIRE..
we are not born to do job for a whole lifetime
You explain things in a very nice manner. Easy to understand and good on ears 👂👂👂👂👂... Kudos 👍👍👍👍👍
Thank you! 😃
What about children? Their education? Their upbringing? The numbers change drastically if you have a second child.
Hi. This point was addressed in video in the form of upping one's income. For FIRE followers, a higher income more than compensates for incremental expenses. I know a blogger whose income is increasing by 15-20% every year while his fixed income is more-or-less constant. Ofcourse, while these guys have done their math .. everyone needs to do the math for themselves.
Anyway our country is over populated. Better to not have any children at all.
As a software engineer, I really don't think normal people can FIRE. Maybe bankers at best but nobody else.
You are right. People who want to live normally will not be able to FIRE. This requires a lot of discipline and sticking to the plan to achieve. I've met only 3 people who have reached their FIRE goal without having to build some elaborate business. They're all in their late 30s and have relied on their active income, savings, passive income & investments to get there. Two of them are software engineers and one is a machine learning expert
i dont feel here its possible to retire early, because we can never predict what govt can do to loot our money (each time they find a way to screw us, PPF tax, EPF tax, crypto tax are few examples of that)
this is just my opinion, would love to hear other thoughts :)
Great video. Your content is so crisp and covering all important points. 11:30 is very important
Thanks!
Hi am a genius user
I have two questions
I invested 10000 through genius and am a beginner
But u are charging for genius which appears to be less now because of the discount offered by u but in coming years it may be increase because of which there will be a comparatively an increase in expense ratio so request u to look into it accordingly
My second question ace investor Monish pibrai is saying we are going to see a bubble that is equivalent to Great Depression if it is so
Even then should I continue investing
nice video , FIRE is really useful
Thanks!
Thanks a lot for your video on early retirement. I was planning to take retirement on my 40th birthday which is coming this year, but somewhere I have many questions, whether can I manage expenses with passive income? Am I taking correct decision? etc.. etc. I got 100% clarity now and all the rules that you pointed out 4% rule, 7% rule, PI Expenses ratio, everything met very well.
Once again thanks a lot for making such a valuable video.
Thank you and wishing you the best
@@ETMONEY Hello can you please explain what is 7% rule ?
Sir if we invest in genius 14 year
Frugality, investing wisely, reviewing your investments regularly helps a lot. I am in my late 40s and practically happily retired and only work about 2 to 3 hours in a day now just to keep myself busy. Though was never aware of FIRE concept when I started but almost followed the same principles. I started mainly with small cap fund direct options and investing daily instead of doing SIPs, which grew substantially over a period of time. Still continue to invest in small cap fund direct option. Once investment options like InvITs and REITs came in India, I jumped ship and invested in them. Now, I regularly receive quarterly distributions from these instruments which is a major passive earning, additionally the price of the units/stocks of InvITs have grown 1.3x to 1.5x over the period which is an added bonus. Also I continue to invest daily in ELSS fund direct option which gives me a good cushion in form of monthly withdrawals after 3 years plus the tax benefit.
Thanks for sharing
Sir. In which small Cap fund are you investing
@@AD-iu2hr In the past few years Quant Small Cap Fund Direct Growth.
Quant Active Fund Direct Growth is also good fund to consider.
Great explanation. This is one of the best explanations of the FIRE movement and strategy I’ve seen. As a reference, 6 crores is about US$780,000. I’m assuming that would be a high standard of living in India?
Yes
Much needed awareness around FIRE movement. Thanks for the video.
Our pleasure! Glad it was useful
And combine coffe can invest by our self
If salary package is big then it is possible
Now i am unmarried so low salty also possible but after marriage don't know expenses
As you touched upon this topic, it's high time you make an exclusive video on FRUGAL LIVING.. :)
I don't live frugally.. maybe later :)
Your advice to adjust the FIRE steps according to individual needs & capabilities is the important thing
Agreed 👍
FIRE - very meticulously explained . Mr. Nath , you should come out with a series of Books on Financial Management. Excellent video . Keep up the good work Sir
Thank you very much. Not sure people are keen on reading books, attention spans are diminishing. Maybe an email newsletter. Would that format work for you?
Absolutely Mr. Nath . Any and every piece of Wisdom and value knowledge from you is ALWAYS WELCOME AND HIGHLY APPRECIATED .
Thank You very much Mr. Nath
👍
Get into options the world will be yours
Very good video to guide people who want to achieve financial freedom in early age ..thanks
Most welcome, glad you liked it
I retired in Africa my dollar goes lot further and I wish I retired earlier Best decision I have ever made in my life
How do you FIRE in India?
I was done my lean fire and it was so so wonderful feeling but i did not struggle much as i earned good salary. Now My decision making and speaking bold with boss as lot changed.. i still love my job makes my life bit meaningful. but doing retirement still bit scary( not money ..but passing time, social disconnection). Now I m going for fat fire . In that way I taking more time think of my retirement .
Thank you for the wonderful content.FIRE is important but to that we need enormous amount and less spending.
Maybe, maybe not. Depends from person to person .. afterall there are many people who have joined the FIRE movement and successfully achieving financial independence
I will be 32 in September, single hopefully get married in a year or two. have a corpus of 33 lakhs in shares, mutual funds, gold, nps, ulips as of 31st march 2022 this does not include my parents house. If I don't find a wife, I am planning to retire by 50. if I find a wife may be take a semi retirement by 45 and keep a booster for 5 years depending on how many kids I have in the future. I haven't added my fathers portfolio, he has started investing last year and he has a post office Fd. want your guidance, i am investing 50 to 60k per month and my father is investing 50k can i retire early.
Easily if you are living a modest life with no foreign vacations every year and new car every 5 years. Just ensure your investments grow at atleast 10% CAGR. Infact in 18 years is a long period to invest. You may realize your goal within next 12-13 years if your investments grow at 12-13% per annum. And your fathers investment are not accounted in this.
How much the 4 % rule will increase by if we add 7 % inflation in India?
Not much because gain is also higher in India to the proportion.
My target amount is one car only...is it ok to retire by this amount
Your car, your call
Truly knowledgeable information Sir. one request i am a genius member and have invested in mf high growth and growth portfolio 8000 and 5000 respectively. I still need to invest 8000 more. can you please make one video of et money genius on how to invest 20k 30k in genius plans. sip and lumpsum. please
Hi. Actually Genius has been made in a way that there is no different strategy one needs to put small or big monies in SIP or lumpsum mode. That's because Genius is continously looking at the portfolio, changing asset allocation and rebalancing it. This helps and I'm sure you would have seen the effects of that in your Genius portfolio in terms of high performance. I will have a follow-up video on Genius in the next 2-3 weeks, will try to address this and a few more commonly asked questions.
I am not FIRE for my own startup , not to retire.
Why you guys don't have step up sip feature in your app?????
instead of cutting everything ,
to retire early change jobs ...add skills which get you higher salary / income ... buy rental commercials
EXCELLENT EXPLANATION.. Need to reach more young people.
Thank you
Great content as always.. Would be good to have a couple of SWP portfolio in genius to manage a large lump sums such as 5 CR etc..
Thank you
Unfortunately et money genius is not making any profits its been a year Only 2% return
I can do this because I'm 21 year old right now I started earning money 🤑🤑 and I started investing 18 months ago .
I need 2cr rs in my 40 so mu question is how much I need to invest monthly any ware
Check out the SIP calculator on etmoney.com
@@ETMONEY thank you sir ❤️
How to reach ur office in Bangalore
Sorry. No office in Bangalore or anywhere else. Our head office/tech development centre/customer services is in Gurgaon, Haryana
Do house flipping and put that money in idcw
Such an in-depth and useful video Shankar Nath, kudos to the entire team for educating us towards our financial literacy and needs 💯
Our pleasure! Glad you liked it
सर हिन्दी में जानकारी दीजिए प्लीज़
How would you do this if you work in a field that pays considerably less i.e. hospitality? The median pay compared to STEM jobs is shockingly low. A lot of examples of folks doing this are from those fields.
Sir, if the income is low, then what are the alternatives for this plan?
Hi. Earning more income is key here, we shared an few examples in the video including a personal experience of a friend who doubled his income and hence increased his saving rate from 20% to 70%
Why real estate is not considered in your calculations of 2 to 6 Cr net assests. If someone bought additional apartment for investment can it be considered?
You couldn’t become financially free unless you own a house…
Keep fixed amount for at least 10 years. Equity can hopefully give returns by the 10th year.
Follow this rule again after 10 years.
please provide your feedback on Index Fund
UTI Nifty Index Fund
HDFC Index Fund Nifty 50
UTI Nifty Next 50 Index Fund
Axis Nifty 100 Index Fund
Motilal Oswal S&P 500 Index Fund
Living while constantly worrying bout money isn't living
This is my math....
Accumulate 1.2 crores
Do SWP in mutual funds.....
SWP amount 50k
Inflation 6%
Rate of return expected 10.5%
This will last for 50 years....
Now the question is, 50k enough ( with monthly increase of 6%)
For me its enough.....
The expected difference of 4.5% between inflation and ROI for next 50 years is very high. I won’t consider anything beyond 2%.
@@sanjibrawat ya may be... But expected return or 10.5% is conservative in a growing economy like ours...over a period of 50 years.... If we look at the 10 year yield of good mutual funds its above 15%.... Even index return is above 12% I guess.... Also for me 50k per month is also a conservative value.... My current family expenses is 30-35k.... Also I have considered 6% inflation on a monthly basis.... I guess its only required to consider it yearly....
Thanks for sharing your views, Sumith P Mathew
@sumit p Mathew.. hope you calculated kids expenses going forward. Your thought process and calculations are almost inline with mine.
Hello Sir,
Please review my portfolio...
Uti Index Fund - 1000
Mirae asset emerg bluechip - 1500
Axis small cap - 500
wrong video for me
After imf loan provided, what will happen ro the fd rates???
Why retirement age is 50 years for women in China.
They grossly over populated like us in India not enough job for next generation
I hope, we don't reach a time in future where people will be mocked for loving their job😅 all I can see the main reason behind this kind of strategy is to move out of the so called rat race. Yes one can derive all sorts of mathematical calculations and come up with a percentage and figure about how much to sacrifice now for gains of future. How does one account for uncertainties in this method?
I am in a form of FIRE and target is 2033. I save 60% now..
Good to know. Well done!
Nice story but won't possible for 99.99% people
I never understood couple of things in any of these retirement calculator
First; why the retirement cash flow is considered as how much it is now, many of your expenses would not continue like Transport, Shopping..
Secondly why should the inflation be constant across expenses Head which is not the case example items like Cable/DTH, broadband, Mobile bills,, utility bills don't go up by same high % yoy (almost 30% of your expenses inflate not more than 2-3%
And the very most important is you need to live this moment too and not just survive and planning for tomorrow. You should limit your savings max to 50% of your earnings and with rest 50% learn to spend to enjoy the life every moment
Hindi
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Nice video, but can you please turnoff that music at every section please
Should do videos in Hindi will be better.
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Sorry but this whole retiring at 30 or 40 thing is something that you should contemplate much deeply. Are you really ready to actually retire ie not work anymore for the next 30-40 years??? I for one, cannot imagine myself retiring at 45 and just aimlessless travelling or just living. I will die of boredom before my money runs out. And many people who retired early have discovered that they curpus they thought was enough is not, after all. And they end up working again. This whole concept is over hyped and is for very very few people.
Why everyone is so negative about the job and address it as a rat race. Without that no can even save the money and plan retirement. And someone might be interested in that environment, I mean who don't like to go to office and have some coffee, socialize with people etc?
Who wants to do that for 30-40 years? Don't you also want some flexibility in your life where you don't have to always be under the command of a person "boss".
@@wakandanlivesmatter3501 Till the time when you work and save to plan retirement at 40, do you want to get demotivated every day by thinking it's rat race?
Yes, everyone wants to retire early but keep the energy and interest maintained when you work. Without interest you'll not be able to grow and earn more, to save more.
This guy is calculating for Ultra rich people, bro discuss for 50k salary people also.
FIRE can be done by anyone, you just have to make more sacrifices if your income is less, and spend lesser post retirement, FIRE is not a retire RICH scheme, its a strategy to achieve piece of mind, if you need luxury keep working post planned retirement age
Absolutely @@jaygeo1592. Come to think of it, for an ultra-rich to follow the FIRE principles will be a lot more difficult than for a moderate income individual.
Lol if a person is ultra rich.. then why even watch this video?? They are already FI
A lot of people with similar dreams turned 40 this year and everybody knows what happened to their finances of funds and markets
😂😂😂😂😂
Haha .. shows that the concept of "FIRE in the belly" is still alive -- only a few make it in every field although a lot more could have attained it.