Investoshashtra!!!📜📜📜
ईन्वेस्टोशाष्त्र!!!📜📜📜
Today is one of the most happiest day of my life - yesssss it's RETIREMENT hip hip hurray...
Today is the day I waited for life...with lot of dreams and aspirations of doing a whole lot of things.
Today I don't have a fixed schedule or daily commute or any stress related to job or profession.
Today I can spend time with friends and loved ones, time for hobbies, travel and exploration, giving back to society, personal growth and a lot more.
But only worrying thought I have amidst all this celebration is, will my kitty be sufficient to live and pursue my and my spouse's dreams happily and comfortably, Will it last for my lifetime?
So,I can't plan it haphazardly which I might regret later with no time left for course correction..
I need to understand today all the variables which can affect my life.
Like a Rs.2 crore retirement kitty gets wiped out or will be zero by the time I will reach 82 assuming total monthly expense of Rs.70k (including medical, travel, festivals, kids and grand kids etc.) and my own inflation rate of 8% (Including lifestyle inflation) with 7% rate of return (post tax).
Why did it happen??
The only reason is while planning I forgot the biggest devil for my retirement life i.e. inflation and taxes...
I invested assuming that interest earned today on my corpus of 2 crore is much more than the present expense of 70k/month. So my corpus will keep growing and I can comfortably live on interest component.
The fact is even though in initial years interest earned on kitty is going to be much higher than monthly expenses. But slowly with passing years expenses will keep scaling higher, whereas interest income will remain stagnant or might reduce due to reduction in interest rate.
It will eventually result in eating up capital or need compromise on life style or/and living standard.
I need to ensure that my retirement for which I was waiting for life, shouldn't convert into a curse due to rising medical cost, inflation,taxes and higher life expectancy.
It is very important while planning the retirement that I earn a return higher than my inflation (not what the government declares) and that too net of taxes so that capital can remain intact rather keep growing.
Retirement planning is not a one-time task but a lifelong process.
So, let's discuss clear cut layout, plan it and ensure that my retirement remains a happy vacation and not only today every day becomes a golden day of my life......
Regards,
Raj Talati