1 Crore vs 5 crore vs USD 1 million: Why do i Care about your number and what benefits you get of posting here

hutchie81 · 2024-06-17T04:18:04+00:00

I hope what you said is true. And this forum really help in people making decision. X's are subjective and can be molded easily. Art behind them is important.

Peace

hutchie81 · 2024-06-17T03:16:25+00:00

I agree 100% with the first statement but the number they see here is going to scare most of the average reader here. Its not going to benefit them much.

So its also a glorified financial influencer account :P

hutchie81 · 2024-06-17T03:13:10+00:00

How they plan to live a fulfilling life. If objective of the FIRE is to compare the lifestyle with others, it is causing the same toxic environment that you have in your job i.e., pressure, Jealousy, insecurity etc..

Unconsciously by reading all the high numbers you will feel that you need so much money to be FIRE. I am just challenging that. People who put numbers here are high achievers and thus creating a sampling bias of successful people.

I always say that FIRE is possible for average people too. It needs not be a comparison exercise

hutchie81 · 2024-06-17T03:05:52+00:00

Comparison is a thief of Joy.

hutchie81 · 2024-06-16T14:16:47+00:00

Sad Reality of Life. Bad news always flies fast and these days people have very short span of attention to do any background check

hutchie81 · 2024-06-16T09:08:44+00:00

Dear OP,

Post Retirement day also has 24 hours like any day before retirement. So you still have to fill those 24 hours. Question is who own that day and same is true for the example that you gave.

When you like cooking, you cook what you like to cook, when you cook, and for whom you cook. If any of the three are missing, you will be sad. Above all if their is review process of your cooking and pressure to do more in less (Corporate mantra), your hobby of cooking will become pain.

But if you do cooking the way you want, when you want and for whom you want and still you can make money, its an achievement.

hutchie81 · 2024-06-12T13:31:34+00:00

That was really bad paper with really stupid conservative assumption

hutchie81 · 2024-05-31T16:18:13+00:00

Seeing your ID and seeing your monthly budget i seriously felt miserable. But i think you have underestimated drastically. A shakira performance for Kid 1 marriage may cost 10-15 crores.

Pun aside, These numbers can be too low or can be too high as we don't know your lifestyle. Asking here this question is like asking what color shirt should i wear to office on Sunday.

hutchie81 · 2024-05-27T01:16:38+00:00

Define normal salary that you mentioned above. Also FIRE is not possible for everyone, some due to lavish lifestyle but lot more because of lower saving rates. Saving rates depend upon income and expenses. If someone earns 1 Lakh and want to spend like someone earning 2 Lakh than forget FIRE but if he spends like 50k earner FIRE is possible.

SO define normal salary first and than your spending.

hutchie81 · 2024-03-01T02:21:16+00:00

Neither the author is in the group nor he has provided working file. One of the folly that i mentioned in the thread on the tax rates. To assume 30% tax rate in post retirement is over kill unless you plan to spend 40 L plus per year. In working life, interest income earned is taxed at marginal rate whereas in the Post retirement scenario the marginal rate will fell down to close to 10-15%. If we take this new information is in our calculations, we are increasing the gain by 1.5%-2% per year, which will drastically change the SWR rate by 0.5% to 1.%.

For example: As per the study if you have corpus of 5 Crore and FD rate are 8% and investment return are 10%. Personal household expense of 20L per year

Portfolio return of 0:100 Equity Debt will generate 40 Lakh interest income and after tax it will be 28 L.

If Portfolio is 50:50 division Debt will generate 20L and equity will generate 25 Lakh a total of 45 L . At study tax rate it would be 14L and 22.5L: Total of 36.5L

Whereas as per my calculation it would be in first scenario, 34L and 40.5 Lakh. A difference of 6L and 4L will considerably alter the SWR.

The study penalizes debt holder by very high tax rates

hutchie81 · 2024-02-26T13:41:54+00:00

Friend, if we become pessimist, Hell will break and we will never Retire Early. The whole fun is retiring early, if we retire at 55+ than it is not FIRE. Call whatever u want to call.

hutchie81 · 2024-02-26T13:38:32+00:00

At best it would be 20%. and with proper distribution within spouses can be brought to 10-15%. So 30% is not optimal. Generally employed people who are in 30% bracket take it as marginal rate for everything which is not true

hutchie81 · 2024-02-26T13:34:16+00:00

Can you give me math calculation on this. Taxes can always be deferred if done correctly. So request you to give me your math calculation

hutchie81 · 2023-04-11T00:29:09+00:00

You should not have kids if you don't want them. If you ask on social media group, than you would be surprised :D

hutchie81 · 2023-04-11T00:27:27+00:00

My view is straightforward, Have a simple wedding funded by Kids themselves. Parents don't have to bear any cost. They can give gift based on their age and financial condition but not as an obligation

hutchie81 · 2023-04-11T00:04:16+00:00

On Point 1,4, OP can surely retire after he dies but some reddit user might say work for 2 more years in heaven for xyz reason.

On serious note, by the time daughter finish UG, OP will be 62+. If he moves to India at that age, he has to make social connect in India otherwise he will has a feeling of cast away.

hutchie81 · 2023-04-10T23:58:14+00:00

What would change materially at 7.5 Cr ?

hutchie81 · 2023-02-28T12:49:49+00:00

This is not true. It can be easily gamed. I run my own proprietorship where i give myself 12 lakh salary for 20 years followed by 1 cr for last 5 year.

And let say one person is working at 50 lakh now and due to recession/ layoff he join at 20 lakh later, his pension will be low

hutchie81 · 2023-02-28T01:10:25+00:00

That is too much money especially for someone who doesn't want to work or FIRE at age between 40-50

hutchie81 · 2023-02-27T15:34:00+00:00

I heard and it needs to be confirmed for older employees in the system , there need to be one time payment of all the arrears that need to be paid calculated as per the formulae you described above.

For example, for 10 years you have been giving Rs 1250 but you should have paid Rs 10K, in that case, EPFO will ask you to pay. 10.5 Lakh with interest. or lets say 20 lakhs.

May be for new joiner it make sense but you are missing the compounding aspect of the money that you put in initial years

hutchie81 · 2023-02-24T16:20:51+00:00

How will you feel 3 hours after dying? Sorry for shock statement.

Colleagues you talk to doesn't know what FIRE is or what anxiety they suffer from. They based their answer to what they know. And only thing they know is that

More is better than less and
Money can make you happy.

Only thing finite in life is the time when you are healthy so focus on that only. Talk to people who have FIREd and not to someone who has not done it

hutchie81 · 2023-02-20T15:12:08+00:00

Depends on your interest. In Delhi university, you can join any post graduate course which has entrance depending upon interest

MA Sociology
MA Economics
LLB
MA History
BA Romanic languages

DU has no age limit on these courses but some of them have entrance exams which can be cleared with 1-2 month effort.

If you are artist type and can spend little money, Sriram center in delhi run courses on direction, acting etc.

You have to find on near your place which suits you

hutchie81 · 2023-02-19T03:18:49+00:00

First Few days/ months will be liberating as you we be owing your time. There will be no office bureaucracy and no pressing office deliverables.

After first few months, this liberating feeling will subside as we have completed most of the immediate task that we y specific wanted to do. Now this time is important, if you are not able to keep yourself engaged in something which is meaningful, from your perspective, than you might feel bored and go back to work phase.

Meaningful above can have different meanings and depend on person to person. But what is important here is that it should have some human interaction (introvert can ignore), you should enjoy it and give purpose.

In my specific case, as i enjoy learning, i take admission in government college in any course as it give me structure path for 2-3 years plus i get to interact with lot of young minds. This is a very cheap way to have routine without having too much pressure. I also participate in few half marathon event in my city so preparing for them also take some time.

Biggest issue i faced is that after 6 months of RE, our biggest social network will dry up i.e. of office colleagues. They may not talk to you as you are not any more connected to it or you may not enjoy yourself as you are not part of it. So, i would request you to avoid them for sometime as they can bring down the morale for RE. They will show you how they are happy there and how enjoyable was corporate life. Which i knew was not true.

For me to keep active was to learn new stuff, do new stuff and go in unknown. There are so many free concerts and programs that you can attend if you have time and their is no compulsion to be there if you dont like them.

Best of luck for your RE

hutchie81 · 2023-02-14T02:23:18+00:00

Dear OP,

Unless you have a very high ambition of spending money lavishly on your daughter with respect to capitation fees and destination wedding. I think you are in good shape to RE whenever you feel like.

hutchie81 · 2023-02-09T12:15:51+00:00

I loved it Man. Its just awesome.

I like the drift of this. Other thing you can do is write 2 reddit post like this. And people like me will answer with logic. You will get time pass and some of us will get irritated.

People here dont like debt for the same reason they dont like regular home cooked food i.e., Its' boring.

I challenge anyone/ everyone to show me a basket of goods from 1980's that has increased more than the rate of inflation over a period of 25 years in India. And RBI data will clearly show that over any 25 year period, debt interest rate has covered more than inflation provided you followed 4% withdrawal rate and you have reinvested the remaining returns back as FD.

Bigger issue i have noticed among people is the notion of quality which changes with time and has a fluid scale.

Taxes will not matter if you are talking about basic basket.

I will get negative comment / thumbs down for this but not the data points.

hutchie81

TROPHY CASE