Dear Pattu sir, When I did calculations, I see the amount required to invest is almost 90% of my take home salary. How to evaluate this type of situation?
Sir why components like Reality and Gold is not considered in Robo advisory calculator. Does is not suppose to be part of retirement corpus ? Please clarify
One can understand asset allocation when starting out, but why re-balance once the equity portion compounds? As long as the fixed income part is large enough to take care of basic expenses, why not let the equity portion compound forever? (given that the dividends from a typical stock (div yield 1.5%) that grows 5X will be around 7-8% of the principal amount)
The black swan events can wipe out a substantial amount of compounding. Suppose you were to retire on 15-Mar-2019 then due to the fall in markets due to nCov-19 the gains made over the last decade have been wiped out in equity and you dont want that to happen. Hence, as your retirement draws near you reduce exposure to equity
This is where knowledge of economics comes handy. A high growth, developing economy like India would have high demand driven inflation. However, as the economy matures the growth rate as well as the inflation rates come down. A developed country like the US for example has very low inflation. Also where did you get the inflation and equity growth numbers from? Like you said you don't have to give a shit about what others think but at the end the results you show also look very shitty. GIGO
Useful explanation. Thanks.
Dear Pattu sir,
When I did calculations, I see the amount required to invest is almost 90% of my take home salary. How to evaluate this type of situation?
Hi Mahesh, dont worry. Just invest as much as possible. Things will become better in a few years
freefincal - Prudent DIY Investing thank you sir
Sir why components like Reality and Gold is not considered in Robo advisory calculator. Does is not suppose to be part of retirement corpus ? Please clarify
you can incorporate rent as income in the calculator. And RE that you will sell as a lumpsum amt.
One can understand asset allocation when starting out, but why re-balance once the equity portion compounds? As long as the fixed income part is large enough to take care of basic expenses, why not let the equity portion compound forever? (given that the dividends from a typical stock (div yield 1.5%) that grows 5X will be around 7-8% of the principal amount)
The black swan events can wipe out a substantial amount of compounding. Suppose you were to retire on 15-Mar-2019 then due to the fall in markets due to nCov-19 the gains made over the last decade have been wiped out in equity and you dont want that to happen. Hence, as your retirement draws near you reduce exposure to equity
Wonder what would be the situation if Amar’s wife was earning!! Retirement isn’t one man’s game in India!
Just add relevant income!
50000 per mnth for ivnestment..🤔😥
Scary
This is where knowledge of economics comes handy. A high growth, developing economy like India would have high demand driven inflation. However, as the economy matures the growth rate as well as the inflation rates come down. A developed country like the US for example has very low inflation.
Also where did you get the inflation and equity growth numbers from? Like you said you don't have to give a shit about what others think but at the end the results you show
also look very shitty. GIGO
Ok