Excellent advise. I listened to so many presentations to get a hang of how to plan for retirement and your systematic, lucid and balanced presentation is the most valuable one. I am a bit late in planning and behind schedule but I have a clear vision of the path I should take.
Do you know no one knows the real facts about Hinduism until date!!!! Why? Because these DAITYAS ( Muslims) steal your tapas in the beginning only, otherwise in case you wait until end of it,” it is stolen by the DAITYAS for their own betterment “. Kanchankumar anandmayi
One of the best videos that I have seen on this topic. Very nicely explained. My biggest takeway was "take your wife along in investments".. I find it very valuable and have started doing that..
Very well summarised. Only one thing as you grow old your ability to manage multiple properties will be limited. And it’s hard to delegate this entirely unless you have that kind of resources.
One more thing to be considered for rental income is the cost of maintaining (repairs) of your property - the older it gets, the more chances of repairing...also it depends if you want to live a simplistic or lavish lifestyle...you can live with the first one for far less than the second... golden simple rule is spend a bit less than you earn - in other words, keep saving as much as possible - of course, without being a miser...!!!
Periodical maintenance is a must. When a tenant vacates properties should be made weatherproof. Cleaning and revamping once in three yrs after each tenancy is a must. I'm in this rental real estate bysiness.If a tenant vacates before a year he should be liable to pay painting, toilet cleaning, chimney cleaning charges. If they stay for three yrs no need to pay painting charges. Cleaning of toilets electric chimney and general cleaning should be paid. Periodical maintenance of electrical and plumbing must be done using a network .passive income by way of rentals is a must for NRI s.investing in one bedroom two bedroom flats with all modern fittings and modular cabinets will keep the rental machine running. Don't invest in one big independent house or a big villa. It's only a drain on your purse
Small savings, recurring deposit and changing the money into gold is another investment which can be liquefied in case of emergency cash requirement. Jewel loans, at low interest is available in all banks
1. List of Assets with full identification numbers and locations: lockers, property documents, demat accounts, receivables pronotes and hand loans, partnership and LLPs in which partner, list of loans, guarantees, mortgages 2. List of Uptodate passwords and email accounts 3. Mandate on how and where to conduct last rites, body part’s donation contact details, donations 4. Living will : instructions to near relatives on extent of medical treatments and artificial prolonging of life , list of medical experts, location where soft copies of medical records kept
Take complete retirement, I mean Sanyas, when all your desires are over and done before retirement, and your money problems all sorted out, then one is good enough to live the life in total peace. Kanchan kumar
Thanks for a great presentation..... only risk I see is about rental properties being a retirement income generating assets is that the possibility of having bad tenants who don’t pay rent on time or don’t pay at all , and at that age who will fight the tenant in courts ... and the cost of refurbishing the property and taxes ... rental income is taxed at slab and property taxes are extra .. SWP of mutual funds are the best solution
There is a lot of "What Ifs" on all investments and in our lives too. That's why he mentioned that you should not have income from single property which can is risky.
The inflation in UK is 8% this year. The bank interest rates are still 0-1%. Certain events change the whole calculation so better to have a very good buffer.
Diversification is key in retirement planning.It’s important to mix a wide variety of investments within a retirement portfolio.The rationale behind this is that a portfolio of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any one holding.There is no good or bad assets.An excellent asset class can become mediocre asset class over a period of time and vice versa.Ex.Real Estate.
Sir, now your no. of subscribers is rising high as 30k. It took time to reach 10k. From 10k to 30k it didn't take time. I think it will reach 50k and 100k. I appreciate your voluntary service. It gives me a lot of benefits.
Now a days gold is also a good assest for retirement particularly in paper format. It's a good hedge against inflation. If you can pls discuss regarding the same. How much percentage of your portfolio should be gold in paper format
Three questions sir a. Is the 25 times annual expense rule valid at the age of retirement or any age? b. Is the 25 times annual expense rule valid even in India, considering that our inflation is higher than that in the US or many of the developed countries? c. Can the value of other assets be also included, like house value, gold value, etc., while considering the corpus required ..i.e., 25 times annual expense amount. So if house is 2 crore worth and savings one crore, will the corpus be 1 crore or three crores. I am asking this because it is not easy to dispose off assets such as real estate in the old age. There are taxes to consider and also the lack of mental alertness, which could lead to major mistakes.
Ideal situation according to me is 1 debt free property where you stay. 1 additional rental property and then the liquid assets that follow the 25X rule.. It will help modulate when the markets are down and you dont want to drawdown on your investments, as you will lose a lot..
It is a pretty decent advice. After retirement most of our unnecessary wants are given up . So with a proper planning one can lead a decent life and add to the corpus at the same time. However, this concept is based on an " all okay" concept. We should also keep some amount aside for unexpected needs like medical needs.
How about investing in blue chip companies in the stock market? With steady dividends and high liquidity, it's my choice. My dad invested during his working days, now he is 90 and bedridden. His dividends are seeing to his needs and the extra are being enjoyed by the children.
It generally is.. For eg.. I have a 3BHK flat in Bangalore that fetched 9K rent in 2009 and in 2023 the rent is 32K.. this translates into a 9% growth which is above average inflation of 6%.. obviously the property value the gone up 6 times !! which is very profitable
No. Maintenance issues and runnin behind plumbers and electricians. Avoid. Consult a financial advisor for planning. Rental income is not a great source, especially after retirement..
thank you Sir. Great information. I have a question. If you draw 4% each year and you earn 6% interest on your portfolio, will your money ever finish or not. I am 45 year old and want to retire soon. As I need at least 35 year retirement, I wnt to know if my portfolio will last or not if I earn 6% return on my investment each year and draw 4%.
Need a financial advisor for planning these sir. 6% and 4% may work for 60 age guy. Not for 45. If You live for 55 more years (most likely 😊), you ll be in soup. Should take some equity exposure.
Inflation is not 7-8% sir. It's for sure 10-11%. Before fifteen years we dint spent for internet, mobile or most probably a car, movies were cheap. Popcorns were cheaper. It ll increase as we move along. 4% rule won't work for our country.
I am from middle class family my monthly expenses might be 40-50k..I am 27 lets assume I want to improve my living std so I can say with 8% inflation every year for next 30 years my monthly expenses going to be around 550000 thousand to maintain same life style I take 8% because 6% inflation is what govt show in real life its always more what govt show.. I want to improve my life style to we can say from 50k to 2 lakh for safer side I knew I am not gonna spend that much still I gonna thik this much I gonna spend so after inflation lets take 20 lakh monthly exp so 2.4 cr yearly lets take 2.5 cr As per sir 25× is good amount so 25×2.5 means I gonna need 62.5 cr when I retire don't get me wrong but to be safe I gonna need 75cr at the time of retirement 75 after 30 years means around 7.5 cr now.. Don't be stupid by just safe 3,5,7 cr you gonna use it in few years.. Just imagine when you was young I mean 30 years ago in 1993 gold was maybe around 2-3k now its 60k Everything was so cheap 7.5 cr after 30 years is nothing so thik wisely So for 2-2.5 lakh monthly expenses now means 24 lakh to 30 lakh year exp to main great life you need to think it 10× after 30 years... If you think 50k or 1lakh is enough for you 1lakh means 10 lakh of future means 1.2 cr of future per year so 25× must be 30 cr so you atleast need 30 to 35 cr... 3 cr is nothing belive me Yeah if you gonna earn on that amount lets say you gonna earn 8% than you can maintain your retirement corpus 😂 In that case you might gonna need not 75 cr maybe 50 cr is enough..for 2-2.5 cr yearly exp
A very important thing to be added. 2% additional cost to your current standard of living must be the part of planning for future years for new component in our living style. Unlike earlier basic needs of roti kapda aur makan is not the case now..because in last 15 years addition we see in our basic needs are tv paxkage, wifi, mobile data, new devices with updated version every 3 years, netflix, amazon prime etc etc. God knows what else to come to be part of our necessary needs. What is luxury today will turn normal.and basic in few years.
I dont agree with rental livelihood, it may work in Mumbai but other places like Chennai its 0, First Rental return is low then the several costs od mntc finding tenants is not a good strategy in retirement when you need peace of mind... Agree????
A simple question is that using SWP in Future and after paying the Long Term Gain tax do i also have to pay income tax on the amount came into my bank? As the income from FDs will be in a bigger tax slab Am i correct?
In the second scenario, if the return on asset is 0% and I withdraw 4% at 85th year , will I survive at the age of 85 years despite 7% per annum inflation for 25 years (60-85 years) ( 1.07x1.07x1.07 25 times = or will my surviving spouse start begging on the road after I die due to inflation? 1 la at 60 years will become Rs 20000 at the age of 84 years. If I spend 1 lac at 60 years, the same 1 lac will become 20000 when I become 84 years
Mr. Chandrakant, kudos to you. Nicely explained how much is enough for retirement. I liked the scenario 2, because I don't need to depend on someone else to pay me. I can diversify in FD, Mutual fund and other govt retirement scheme to get 4% annual return post tax. But in scenario 1 there are difficulties to get rent on time. There may be some period when there is no tenant and in that period you will not get any rent though other expenses like maintenance, minimum electricity payment, property tax payment, some renovation must be there. We may get bad tenants too and for that you have to spend a lot if something goes wrong. You may have to go in legal proceedings if the tenant does not pay you or you want to remove him. Why should we take all such pains during retirement. Liquidity may also be an issue if your property is not in a great location. In case of urgency you may not get buyer. So scenario 1 has many loop holes. Scenario 2 is best suited to me.
No social security from our govt it's high time our govt should change certain laws so that people who are paying taxes should get social security benefits from the government
@@NaNa-lt1po Anything is baseless and stupid until you know how to do it. Turning passion into money isn't something new. If u don't know then thats' your limitation
There crores at the end of the life is irrelevant. Most likely scenario is no one might be needing that. Either wards would have pestered to take it much earlier or they would have grown economically very strong to say or not even ready to know what parents have left.
Sir Thank you so much for your guidelines. Good Health insurance cover should be 20 to 25 lakhs. Base policy 10 lakhs and top up upto 25 lakhs. This is my opinion. Warm Regds, Chandrasekhar
the best way to retire is to join a Govt job with fat salaries to save and fat pensions and fully covered medical benefits for life to self and dependants.. plenty of " additional ways " to make huge money too for spending lavishly. the best advice to youngsters should be to encourage them to join Govt service somehow..
I am retired person and my wife is still working. She is have more 6 years to go for retirement. This video is very interesting. The draw down of 4 % is very good way to look for the corpus required of retirement money. Again the rental income are getting lower and lower specially for residential properties, since the property value is very high and there are enough inventory in the market. Most of us have the house we stay. How can we monitise this property. Do we have any product in India to benefit the retired person who do not have enough corpus based on the draw down factor 4%.
What I have done, I can share. I have searched for decent old age home room such that the rent I get is more than double of what I will pay there. I liked the food there. I will shift there, and stay for five to seven years, using this rent. So five to seven years, I will not touch main corpus for my basic survival, and that will compound. I will review the status then. May extend for another 3 years if need be. Right now I am not moving because of COVID.
I agree. Retirement calculators are far too general and will actually end up giving you false sense of security. Each case differs considering that people differ in their lifestyles preferences social circles etc. You would think it below you to eat in dhaba, I would be fine with it. So costs in your case would be higher, and in my case lower.
You did not take inflation into account. With 0 growth, and 4% withdrawal, adjusting for inflation, 25X corpus will get exhausted within 10-15 years depending on inflation
Medical inflation is rising at 15 percent.. In the twilight years, medical expenses are higher than your basic expenses. At the same time, insurance companies won't give you insurance coverage. How to handle such a scenario ?
Dont agree with his thoughts, here is why - How is rental income a wise investment if we get only Rs 20000 as rent for a 1.5 crore priced flat property?? On other hand, We would get 1 lakh rupees per month as interest even if we just keep the 1.5 crores in bank FD at 7% (senior citizen scheme) ... so which approach is better??? Going by his logic retirees should have 4-5 properties to generate that much rent. How many NRIs even have that much properties and what about upkeep and maintenance of those properties when in retirement age you cannot even look after yourself properly due to age??
our properties are highly valued with less roi also should invest in stocks from early age take good health insurance reduced all unnesscessary spending join black money retrieval movement by dr subramaniam swamy
@@starxd5697 Even by your calculations one would need 3 properties just to rent out, each valued around 1 Crore to reach the 1 lakh monthly of passive income at retirement. Also, assuming you paid 20% down payment and get 35K pm rent on your 1 crore property you would still be short of 40-45K per month for EMI on each of the 3 properties. If you have paid out all cash for the 1 Crore property which means you you get just 35K per month on 1 Crore. Do you still think those are the best returns? Also, I don't know where you have invested in properties but residential rents in Pune range from 25-35K for homes priced nowhere below 1 crore and often 2+ Cr. Then we have monthly maintenance to the society which is 2-3 months of rent amount, yearly property tax and other general upkeep of the flat which is 1 month rent - so effectively you are getting 8-9 months in rent for a year, not Rs. 35K X 12 months. Calculating all this, living in a rented property is anytime advisable in bigger cities now instead of buying unless you have 1-3 Cr lying around or you just want to buy a property. Commercial properties may be having different returns, I have not idea about those.
@@starxd5697 6% of simple interest on lets say FD gives you 75K per month for 1.5 Cr invested - use any online interest calculator. Rest of the 25K can come from rental income to make a total of 1 Lakh per month of passive retirement income even without touching the principle amount. All this assuming then that you have at least 2 residential properties which are fully paid off (no home loan pending) - you stay in one and rent the other (should generate 25K per month effective rent after maintenance & property taxes) and have 1.5 Cr in hard cash invested in safe bet instruments returning you at least 6%. Thus effectively to retire with 1 lakh per month of interest-amount-only utilization with completely owned property to live in (no rental charges to worry about), not utilizing the principle amount invested, one will need 2 Cr (1 Cr each for 2 properties purchased out right with no loans outstanding) + 1.5 Cr of hard cash in FD etc = at least 3.5 Cr of individual net worth.
Nice analysis. Subscribed. Agricultural land is a good investment for retirement. One can get long-term benefits from fruit trees. The price of fruit can beat inflation.
@@dadu251 Mutual funds diversify their investments through a variety of businesses in order to minimize risk and maximize benefit. Similarly, various fruit trees may fulfill the same purpose. Different seasonal fruit trees would be better because they will produce fruit throughout the year, allowing you to earn money throughout the year. It would be difficult to sell all of the fruits in a local market if we invest in only one kind of fruit tree. Start with local fruits and work your way up to international fruits. If the land is far from home, masala trees like bay leaf and the cinnamon tree would be more suitable.
Dr.Chandrakant , Thank you for your detailed explanation about retirement and Investments. I have learnt a lot from your good advice . I live in Canada and I visit Dubai/India every year. Hope to meet you in Dubai to discuss about investment.
The phone number you gave is 00971 - seems to be an error. India’s country code is 91 not 971. Secondly you should not put 00, you should put a plus sign. Why? 00 is number is India to dial STD, in Singapore it is 001, in US it is 011. But if you put + then it means insert your national ISD code and follow by this number.
Middle class Monthly Income avg 1940 - 10Rs 1960 - 100Rs 1980 - 1000Rs 2000 - 10,000Rs 2020 - 100,000Rs 2040 - 10 lacks Assuming I retire in 2040 then I need 50% of projected income which is 5 lacks of passive income (without any liabilities) to have very comfortable golden years.
Good one. What you have not included is reverse mortgage of property if you are a single or have no children/wife behind.
Excellent advise. I listened to so many presentations to get a hang of how to plan for retirement and your systematic, lucid and balanced presentation is the most valuable one. I am a bit late in planning and behind schedule but I have a clear vision of the path I should take.
Do you know no one knows the real facts about Hinduism until date!!!!
Why?
Because these DAITYAS ( Muslims) steal your tapas in the beginning only, otherwise in case you wait until end of it,” it is stolen by the DAITYAS for their own betterment “.
Kanchankumar anandmayi
One of the best videos that I have seen on this topic. Very nicely explained. My biggest takeway was "take your wife along in investments".. I find it very valuable and have started doing that..
Very well summarised. Only one thing as you grow old your ability to manage multiple properties will be limited. And it’s hard to delegate this entirely unless you have that kind of resources.
Am a practical person pertaining to budgeting. Spend within my means & cautious not to fall into the over spending with impulse purchases.
When you are too old it is hard to chase tenants
Great are the people who make complex things look simple. Good guide to prepare oneself to retire .
The problem with rental income is many times the tenants don't pay any rent at all or pay whenever they feel like
New subbie! When you pulled out that 100 envelope challenge is a beast. I vote summer challenge Great job!!
One more thing to be considered for rental income is the cost of maintaining (repairs) of your property - the older it gets, the more chances of repairing...also it depends if you want to live a simplistic or lavish lifestyle...you can live with the first one for far less than the second... golden simple rule is spend a bit less than you earn - in other words, keep saving as much as possible - of course, without being a miser...!!!
Periodical maintenance is a must. When a tenant vacates properties should be made weatherproof. Cleaning and revamping once in three yrs after each tenancy is a must. I'm in this rental real estate bysiness.If a tenant vacates before a year he should be liable to pay painting, toilet cleaning, chimney cleaning charges. If they stay for three yrs no need to pay painting charges. Cleaning of toilets electric chimney and general cleaning should be paid. Periodical maintenance of electrical and plumbing must be done using a network .passive income by way of rentals is a must for NRI s.investing in one bedroom two bedroom flats with all modern fittings and modular cabinets will keep the rental machine running. Don't invest in one big independent house or a big villa. It's only a drain on your purse
Small savings, recurring deposit and changing the money into gold is another investment which can be liquefied in case of emergency cash requirement. Jewel loans, at low interest is available in all banks
Nice video i have got best information about retirement
Thankyou Sir
1. List of Assets with full identification numbers and locations: lockers, property documents, demat accounts, receivables pronotes and hand loans, partnership and LLPs in which partner, list of loans, guarantees, mortgages
2. List of Uptodate passwords and email accounts
3. Mandate on how and where to conduct last rites, body part’s donation contact details, donations
4. Living will : instructions to near relatives on extent of medical treatments and artificial prolonging of life , list of medical experts, location where soft copies of medical records kept
Simple, easy to understand for people like me from non-finance background. Thank you for your tips. 🙏🙏🙏
Take complete retirement, I mean Sanyas, when all your desires are over and done before retirement, and your money problems all sorted out, then one is good enough to live the life in total peace. Kanchan kumar
You still need to eat and have medical treatment.
@@tintunbirha ddddz
Vanaprastha
Sanyas ashram 😂😂
If you dont splurge money after retirement, you will be fine. Spend only on necessities.
Thanks for a great presentation..... only risk I see is about rental properties being a retirement income generating assets is that the possibility of having bad tenants who don’t pay rent on time or don’t pay at all , and at that age who will fight the tenant in courts ... and the cost of refurbishing the property and taxes ... rental income is taxed at slab and property taxes are extra .. SWP of mutual funds are the best solution
Wats SWP of mutual funds
Thanks for your feedback. Please subscribe and keep sharing the videos
Model tenants act is here...if your state passes it .. it may help
@@rajprema.6425 = Systematic Withdrawal Plan
There is a lot of "What Ifs" on all investments and in our lives too. That's why he mentioned that you should not have income from single property which can is risky.
Theoretically right. We have to pay taxes to live. One has to consider taxes when calculating. G ST, TDS etc. burden.
Agreed.
Very well explained Thanks
my guru
Very very appropriate and rational advice for retirement planning
The inflation in UK is 8% this year. The bank interest rates are still 0-1%. Certain events change the whole calculation so better to have a very good buffer.
Diversification is key in retirement planning.It’s important to mix a wide variety of investments within a retirement portfolio.The rationale behind this is that a portfolio of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any one holding.There is no good or bad assets.An excellent asset class can become mediocre asset class over a period of time and vice versa.Ex.Real Estate.
Thank you for your feedback . Please subscribe and keep sharing the videos
Pomp⁰0.
Thank you Dr for sharing.
May God Bless you and your family.
Woth love from Malaysia 👍
Dr Chandrakant, thank you for a very good insight on financial planning. Your 4% rule gives good confidence to me.
Great & very Deep FA On our Retirement goal
Very practical presentation. Even a layman can understand very well.
I agree with you
Thank you so much . Please subscribe and keep sharing the videos
Sir you are Simply the Best Guide & Guru regarding Financial Advices.
Hare Krishna
Hare Rama
Almighty Bless You.
🙏👌👍
So nice of you. Hare Krishna . Please subscribe and keep sharing the videos
Sir, now your no. of subscribers is rising high as 30k. It took time to reach 10k. From 10k to 30k it didn't take time. I think it will reach 50k and 100k. I appreciate your voluntary service. It gives me a lot of benefits.
So nice of you. Please subscribe and keep sharing the videos
@@NRIMoneyClinic Sir, when I see your video first time I became your subscriber. I cleared some doubs through your WhatsApp no.
Now a days gold is also a good assest for retirement particularly in paper format. It's a good hedge against inflation. If you can pls discuss regarding the same. How much percentage of your portfolio should be gold in paper format
Money is of less of an issue these days. Bigger issue is food, maintenance of home, planning your days engaging friends
Excellent informative topic. Thanks👍
Very well presented. It should be a part of the financial education for everyobody.
Three questions sir
a. Is the 25 times annual expense rule valid at the age of retirement or any age?
b. Is the 25 times annual expense rule valid even in India, considering that our inflation is higher than that in the US or many of the developed countries?
c. Can the value of other assets be also included, like house value, gold value, etc., while considering the corpus required ..i.e., 25 times annual expense amount. So if house is 2 crore worth and savings one crore, will the corpus be 1 crore or three crores. I am asking this because it is not easy to dispose off assets such as real estate in the old age. There are taxes to consider and also the lack of mental alertness, which could lead to major mistakes.
He’s gone purely on liquid assets. Having real estate assets would be an addition and could be used as a buffer
@@abhijitnaik1695 Thank you for clarifying that. :)
Leave the house you live in, and gold you consume, always when you calculate your networth.
@@GetYourselfALife Oh great...makes sense..
Ideal situation according to me is 1 debt free property where you stay. 1 additional rental property and then the liquid assets that follow the 25X rule.. It will help modulate when the markets are down and you dont want to drawdown on your investments, as you will lose a lot..
You are GOOD Dr Bhat
If my present monthly expenditure = my present monthly government pension how much money should I have?
It is a pretty decent advice. After retirement most of our unnecessary wants are given up . So with a proper planning one can lead a decent life and add to the corpus at the same time.
However, this concept is based on an " all okay" concept. We should also keep some amount aside for unexpected needs like medical needs.
Unfortunately world changes and no one’s plan can be good.
It’s the best thing if we look after each other, money or no money
How about investing in blue chip companies in the stock market? With steady dividends and high liquidity, it's my choice. My dad invested during his working days, now he is 90 and bedridden. His dividends are seeing to his needs and the extra are being enjoyed by the children.
Wow awesome
Thanks sir, you are 99% correct. I say this because these days rental income is not inflation proof, specially in INDIA. Thanks once again.
It generally is.. For eg.. I have a 3BHK flat in Bangalore that fetched 9K rent in 2009 and in 2023 the rent is 32K.. this translates into a 9% growth which is above average inflation of 6%.. obviously the property value the gone up 6 times !! which is very profitable
Very well presented .
Thanks a lot 🙏
👍👍👍
So nice of you. Please subscribe and keep sharing the videos
Nice one sir......your language is so soothing.
Thanks a ton. Please subscribe and keep sharing the videos
is it advisable to buy a house and lot with retirement money?
No. Maintenance issues and runnin behind plumbers and electricians.
Avoid. Consult a financial advisor for planning. Rental income is not a great source, especially after retirement..
Superb, realistic & approachable explanation.
thank you Sir. Great information. I have a question. If you draw 4% each year and you earn 6% interest on your portfolio, will your money ever finish or not. I am 45 year old and want to retire soon. As I need at least 35 year retirement, I wnt to know if my portfolio will last or not if I earn 6% return on my investment each year and draw 4%.
Need a financial advisor for planning these sir.
6% and 4% may work for 60 age guy. Not for 45. If You live for 55 more years (most likely 😊), you ll be in soup.
Should take some equity exposure.
Inflation is not 7-8% sir. It's for sure 10-11%.
Before fifteen years we dint spent for internet, mobile or most probably a car, movies were cheap. Popcorns were cheaper.
It ll increase as we move along. 4% rule won't work for our country.
Great, useful looking forward to meet you soon.
excellent sir on the retirement advice . Thanks Narayan raghavendra
Nowadays in covid era rental yield is very low. Please advise 🙏
It is temporary phase, it will pass. :)
I am from middle class family my monthly expenses might be 40-50k..I am 27 lets assume I want to improve my living std so I can say with 8% inflation every year for next 30 years my monthly expenses going to be around 550000 thousand to maintain same life style I take 8% because 6% inflation is what govt show in real life its always more what govt show..
I want to improve my life style to we can say from 50k to 2 lakh for safer side I knew I am not gonna spend that much still I gonna thik this much I gonna spend so after inflation lets take 20 lakh monthly exp so 2.4 cr yearly lets take 2.5 cr
As per sir 25× is good amount so 25×2.5 means I gonna need 62.5 cr when I retire don't get me wrong but to be safe I gonna need 75cr at the time of retirement 75 after 30 years means around 7.5 cr now..
Don't be stupid by just safe 3,5,7 cr you gonna use it in few years..
Just imagine when you was young I mean 30 years ago in 1993 gold was maybe around 2-3k now its 60k
Everything was so cheap 7.5 cr after 30 years is nothing so thik wisely
So for 2-2.5 lakh monthly expenses now means 24 lakh to 30 lakh year exp to main great life you need to think it 10× after 30 years...
If you think 50k or 1lakh is enough for you
1lakh means 10 lakh of future means 1.2 cr of future per year so 25× must be 30 cr so you atleast need 30 to 35 cr...
3 cr is nothing belive me
Yeah if you gonna earn on that amount lets say you gonna earn 8% than you can maintain your retirement corpus 😂
In that case you might gonna need not 75 cr maybe 50 cr is enough..for 2-2.5 cr yearly exp
A very important thing to be added. 2% additional cost to your current standard of living must be the part of planning for future years for new component in our living style. Unlike earlier basic needs of roti kapda aur makan is not the case now..because in last 15 years addition we see in our basic needs are tv paxkage, wifi, mobile data, new devices with updated version every 3 years, netflix, amazon prime etc etc. God knows what else to come to be part of our necessary needs. What is luxury today will turn normal.and basic in few years.
Point noted , Thank you Please subscribe and keep sharing the videos
True
Point to be noted.
I dont agree with rental livelihood, it may work in Mumbai but other places like Chennai its 0, First Rental return is low then the several costs od mntc finding tenants is not a good strategy in retirement when you need peace of mind... Agree????
Very good informatiom
A simple question is that using SWP in Future and after paying the Long Term Gain tax do i also have to pay income tax on the amount came into my bank? As the income from FDs will be in a bigger tax slab Am i correct?
Once you pay capital gains tax , it will not again suffer income tax
Thanks for a very quick response. @@NRIMoneyClinic
In the second scenario, if the return on asset is 0% and I withdraw 4% at 85th year , will I survive at the age of 85 years despite 7% per annum inflation for 25 years (60-85 years) ( 1.07x1.07x1.07 25 times = or will my surviving spouse start begging on the road after I die due to inflation? 1 la at 60 years will become Rs 20000 at the age of 84 years. If I spend 1 lac at 60 years, the same 1 lac will become 20000 when I become 84 years
Mr. Chandrakant, kudos to you. Nicely explained how much is enough for retirement. I liked the scenario 2, because I don't need to depend on someone else to pay me. I can diversify in FD, Mutual fund and other govt retirement scheme to get 4% annual return post tax. But in scenario 1 there are difficulties to get rent on time. There may be some period when there is no tenant and in that period you will not get any rent though other expenses like maintenance, minimum electricity payment, property tax payment, some renovation must be there. We may get bad tenants too and for that you have to spend a lot if something goes wrong. You may have to go in legal proceedings if the tenant does not pay you or you want to remove him. Why should we take all such pains during retirement. Liquidity may also be an issue if your property is not in a great location. In case of urgency you may not get buyer. So scenario 1 has many loop holes. Scenario 2 is best suited to me.
No social security from our govt it's high time our govt should change certain laws so that people who are paying taxes should get social security benefits from the government
How well u explain.....
DR BHAT U R GREAT MAN
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Good one. But of late, interest rates were kept low whereas real inflation is pretty high. Traditional rules seems not really working.
It is a real risk during modern times ...unreal interest rates
Good eye opener 👍
Very informative!
Very nice illustration. Effective Presentation style.
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Thank you! I liked the way you explained it.
Very well explained. Thanks..
Excellent and very dignified advise for people 🙏
When you have been going after your passion there is no need to worry about pension and retirement.
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Absolutely stupid baseless statement.. unless one has learnt to monetize hoa/her passion... ridiculous.
Passion doesn't pay bills..
@@NaNa-lt1po Anything is baseless and stupid until you know how to do it. Turning passion into money isn't something new. If u don't know then thats' your limitation
shukran , thank you, Dhanyavad, Abhar, Shukriya..
Very very useful guidance 👌
Superb one. Great eye opener
There crores at the end of the life is irrelevant. Most likely scenario is no one might be needing that. Either wards would have pestered to take it much earlier or they would have grown economically very strong to say or not even ready to know what parents have left.
Namaskaara Bhattare. Very good video. Will hope to meet you when I am in Bengaluru.
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Sir Thank you so much for your guidelines. Good Health insurance cover should be 20 to 25 lakhs. Base policy 10 lakhs and top up upto 25 lakhs. This is my opinion. Warm Regds, Chandrasekhar
Inflation is picking up. Official inflation figures is around 6%..but the real inflation on the street is today 12-15% minimum for everyday items.
Inflation is a reality of life . You can add any numbers as you like ..only truth matters
Very very nice Sir Excellent
the best way to retire is to join a Govt job with fat salaries to save and fat pensions and fully covered medical benefits for life to self and dependants.. plenty of " additional ways " to make huge money too for spending lavishly. the best advice to youngsters should be to encourage them to join Govt service somehow..
Exactly. LOL
I am retired person and my wife is still working. She is have more 6 years to go for retirement. This video is very interesting. The draw down of 4 % is very good way to look for the corpus required of retirement money. Again the rental income are getting lower and lower specially for residential properties, since the property value is very high and there are enough inventory in the market. Most of us have the house we stay. How can we monitise this property. Do we have any product in India to benefit the retired person who do not have enough corpus based on the draw down factor 4%.
What I have done, I can share. I have searched for decent old age home room such that the rent I get is more than double of what I will pay there. I liked the food there. I will shift there, and stay for five to seven years, using this rent. So five to seven years, I will not touch main corpus for my basic survival, and that will compound. I will review the status then. May extend for another 3 years if need be. Right now I am not moving because of COVID.
Very nice explanation in favour the topic.Thank you.
Bhatta Ji,
This video is very useful. Among your best videos.
A very nice presentation and guidance.
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Good presentation. Easily understandable.
Hi, could you pl. shar some retirement calculator applicable for India ?
Follow common sense method discussed here . Calculators are useless . Please subscribe and keep sharing the videos
I agree. Retirement calculators are far too general and will actually end up giving you false sense of security. Each case differs considering that people differ in their lifestyles preferences social circles etc. You would think it below you to eat in dhaba, I would be fine with it. So costs in your case would be higher, and in my case lower.
Great to hear your advice. May God bless you Sir
Super Advise. Thank you, Sir.
Thank you sir for great knowledge
You did not take inflation into account. With 0 growth, and 4% withdrawal, adjusting for inflation, 25X corpus will get exhausted within 10-15 years depending on inflation
Medical inflation is rising at 15 percent.. In the twilight years, medical expenses are higher than your basic expenses. At the same time, insurance companies won't give you insurance coverage. How to handle such a scenario ?
dont do unnecessary spending like marriages expenses etc etc etc
be careful in spending from early days invest in stock market etc etc
Corpus of 30 times your annual planned expenses is good enough.
One must live frugally.
Dont agree with his thoughts, here is why -
How is rental income a wise investment if we get only Rs 20000 as rent for a 1.5 crore priced flat property??
On other hand, We would get 1 lakh rupees per month as interest even if we just keep the 1.5 crores in bank FD at 7% (senior citizen scheme) ... so which approach is better???
Going by his logic retirees should have 4-5 properties to generate that much rent. How many NRIs even have that much properties and what about upkeep and maintenance of those properties when in retirement age you cannot even look after yourself properly due to age??
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@@starxd5697 . See yes ur rite. Den how generate income? All of the pepl cannot own properties n rent out na...wat r other ways to sustain?...
our properties are highly valued with less roi also should invest in stocks from early age take good health insurance reduced all unnesscessary spending join black money retrieval movement by dr subramaniam swamy
@@starxd5697 Even by your calculations one would need 3 properties just to rent out, each valued around 1 Crore to reach the 1 lakh monthly of passive income at retirement. Also, assuming you paid 20% down payment and get 35K pm rent on your 1 crore property you would still be short of 40-45K per month for EMI on each of the 3 properties. If you have paid out all cash for the 1 Crore property which means you you get just 35K per month on 1 Crore. Do you still think those are the best returns?
Also, I don't know where you have invested in properties but residential rents in Pune range from 25-35K for homes priced nowhere below 1 crore and often 2+ Cr. Then we have monthly maintenance to the society which is 2-3 months of rent amount, yearly property tax and other general upkeep of the flat which is 1 month rent - so effectively you are getting 8-9 months in rent for a year, not Rs. 35K X 12 months. Calculating all this, living in a rented property is anytime advisable in bigger cities now instead of buying unless you have 1-3 Cr lying around or you just want to buy a property. Commercial properties may be having different returns, I have not idea about those.
@@starxd5697 6% of simple interest on lets say FD gives you 75K per month for 1.5 Cr invested - use any online interest calculator. Rest of the 25K can come from rental income to make a total of 1 Lakh per month of passive retirement income even without touching the principle amount. All this assuming then that you have at least 2 residential properties which are fully paid off (no home loan pending) - you stay in one and rent the other (should generate 25K per month effective rent after maintenance & property taxes) and have 1.5 Cr in hard cash invested in safe bet instruments returning you at least 6%.
Thus effectively to retire with 1 lakh per month of interest-amount-only utilization with completely owned property to live in (no rental charges to worry about), not utilizing the principle amount invested, one will need 2 Cr (1 Cr each for 2 properties purchased out right with no loans outstanding) + 1.5 Cr of hard cash in FD etc = at least 3.5 Cr of individual net worth.
Good summary. However, investment planning needs to be elaborate...
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Agreed. But is it possible to do so in less than 20 minutes podcast? People's attention span is limited.
Great video sir!!!!!! Thank you 🙏🏻
Nice analysis. Subscribed.
Agricultural land is a good investment for retirement. One can get long-term benefits from fruit trees. The price of fruit can beat inflation.
That sounds interesting.
Which fruits you are talking about?
@@dadu251 Mutual funds diversify their investments through a variety of businesses in order to minimize risk and maximize benefit. Similarly, various fruit trees may fulfill the same purpose. Different seasonal fruit trees would be better because they will produce fruit throughout the year, allowing you to earn money throughout the year. It would be difficult to sell all of the fruits in a local market if we invest in only one kind of fruit tree. Start with local fruits and work your way up to international fruits.
If the land is far from home, masala trees like bay leaf and the cinnamon tree would be more suitable.
Nicely presented the plan
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Thank you for vaulable insights. Will contact you to discuss further.
Good advice by Mr Bhatt Saab
Dr.Chandrakant ,
Thank you for your detailed explanation about retirement and Investments. I have learnt a lot from your good advice . I live in Canada and I visit Dubai/India every year. Hope to meet you in Dubai to discuss about investment.
You are always welcome
Good. Health. Maintained by a human,,,does not need any money, investment,
There is no proper health insurance for Hiv patient at age 55yrs pls recommend if now to u r knowledge pls recommend regarding this pls suggest best
Couldn’t agree more. Excellent advice
The phone number you gave is 00971 - seems to be an error. India’s country code is 91 not 971. Secondly you should not put 00, you should put a plus sign. Why? 00 is number is India to dial STD, in Singapore it is 001, in US it is 011. But if you put + then it means insert your national ISD code and follow by this number.
Middle class Monthly Income avg
1940 - 10Rs
1960 - 100Rs
1980 - 1000Rs
2000 - 10,000Rs
2020 - 100,000Rs
2040 - 10 lacks
Assuming I retire in 2040 then I need 50% of projected income which is 5 lacks of passive income (without any liabilities) to have very comfortable golden years.
So eventually we need 10% return in india assuming an inflation of 4%
Thanks for the useful info.
Excellent explanation sir