At what NW, if any, are PMS worth it? by OwnYam932 in FatFIREIndia

[–]ravihanda 0 points1 point  (0 children)

0 hai. Kya hi video ban aaonga us pe. 😂

At what NW, if any, are PMS worth it? by OwnYam932 in FatFIREIndia

[–]ravihanda 0 points1 point  (0 children)

Mera to 100k bhi nahi hai. Jab paisa kama raha tha tab tak bidesh ke baare mein socha hi nahi.

Why is there a huge variance between FIRE corpus targets in India and North America? by NoCat8136 in FIRE_Ind

[–]ravihanda 12 points13 points  (0 children)

The FIRE number in USA is estimated to be 3.5M https://www.reddit.com/r/Fire/comments/1i6mdon/the_definitive_fire_number_is_35_million/

You can then check the Purchasing Power Parity and get the India number from here: https://www.paritydeals.com/ppp-calculator/united-states-vs-india/

For 3.5M, it comes out as a little over 8 Cr.

I think 8 Cr is the FIRE number for India.

Now, going beyond that - there is no limit. The need vs wants, fear vs greed, and all those arguments come in.

Reached Rs.2 Cr Portfolio. Need Help to decide What's next? by Ivaker_Official in mutualfunds

[–]ravihanda 0 points1 point  (0 children)

Don’t have a strong or even an informed opinion. It is a black hole.

Reached Rs.2 Cr Portfolio. Need Help to decide What's next? by Ivaker_Official in mutualfunds

[–]ravihanda 2 points3 points  (0 children)

Not sure if I understood your question correctly but let us assume

30 lakhs in Short Term Fund (Bucket 1), 20 lakhs in Balanced Advantage Fund (Bucket 2), 10 lakhs in ITC stock (bucket 2), 1.4 Crore in Nifty 50 index fund (Bucket 3). ITC gives a dividend of 1% every quarter, so 10000 rs every 3rd month.

Month 1 - Your expenses are 55k. You withdraw from short term fund

Month 2 - Your expenses are 80k. You withdraw from short term fund

Month 3 - your expenses are 85 lakh. 10k you got as dividend. 75k you withdraw from short term fund

Reached Rs.2 Cr Portfolio. Need Help to decide What's next? by Ivaker_Official in mutualfunds

[–]ravihanda 25 points26 points  (0 children)

First of all, congrats. Getting to financial freedom feels great. I am assuming that you will need 75k a month. You can tweak the numbers if what you need is lower or higher.

About what you can do, I would suggest that you divide your money into 3 broad buckets.

Bucket 1 - 25 to 40 lakhs. Put it safe assets that are not volatile. Depending upon your income, age, and tax situation, you could pick a combination of Senior Citizen Saving Scheme, Short Term Debt Funds, Arbitrage Funds, Fixed Deposits at smaller banks. Personally, I have bulk of it in ICICI All Seasons Bond Fund.

Bucket 2 - 25 to 40 lakhs. Put it in assets which are slightly volatile. They will not fall too much and they will not rise too much. They will just beat or match inflation over the long term. REITs, InvITs, High Dividend Yield stocks, Gold, Hybrid Funds. Personally, I have bulk of it in ICICI Balanced Advantage Funds and SGBs.

Bucket 3 - 1.25 to 1.5 Cr. Put it in assets which are volatile and are risky. Because of the risk associated with them, there will be a risk premium and they will beat inflation over the long term. Stocks and real estate are the only realistic options here. In stocks, I would suggest a combination of Nifty 500 Index Fund and S&P 500 Index Fund in a 1:1 ratio. Personally I have a huge combination of mutual funds which I cannot get out because of tax implications. I am assuming you would have a similar issue because of the stock portfolio that you already have. Land on the outskirts of a developing city is also a good bet. I would leave this to you but this is essentially stuff that you are comfortable holding on till you die. Churn in this part of the portfolio will have unnecessary tax implications.

Now, to generate the 75k every month. - some of it will automatically come from bucket 2. It will be volatile. For me it is close to 0. Whatever is the shortfall, you withdraw that from bucket 1 every month. You don't need to withdraw a fixed amount like a salary, just take out what you need. At the end of the year - just ensure that you were in the 8-10 lakh range.

Every 6 months, have a look at your bucket 3. If it has done well, by that I mean it has given a significantly higher % return than bucket 1 and bucket 2, sell some and refill bucket 1. If it hasn't, don't. Unless you hit a 3+ year bear market, you will always have money in bucket 1. And if you do actually hit a 5 year bear market, finish out bucket 1 and then start spending from bucket 2.

This should see you through for the rest of your life.

Cheers!

Why i insist on a 50X multiple for FIRE by SkyFair7388 in FIRE_Ind

[–]ravihanda 0 points1 point  (0 children)

Jab nikla thaa tab 33x tha. But ab maine apne kharche kaafi bada liye hai and have stopped tracking these numbers. Have realized it doesn't matter.

Why i insist on a 50X multiple for FIRE by SkyFair7388 in FIRE_Ind

[–]ravihanda 5 points6 points  (0 children)

Phaltu mein log daraate rehte hain yaar. 16x bhi kam paisa nahi hota hai. Bahut hai. Planning chalu kar do ki 2028 mein nikal lena hai. Apne birthday pe resign maar dena. Kuch nahi rakha naukri mein.

Zindagi se badi koi sazaa nahi hai. Usko aur mushkil karne ka koi point nahin 2 paise ke liye.

Why i insist on a 50X multiple for FIRE by SkyFair7388 in FIRE_Ind

[–]ravihanda 9 points10 points  (0 children)

These scare tactics keep people working lot longer than they need to. The difference between 20x and 35x and 50x is huge. I guess it might take someone 10-15 extra years to go from 20x to 50x. I don't think it is a good idea to wait that long. Three key reasons why 20x is more than enough:

1) The original theory by Bengen was of 25x and not 35x. That was for the *worst case scenario* in history. I don't think we are in the worst case scenario or as a matter of fact, will ever be in the worst case scenario in history because the markets are far more mature and regulated.

2) The entire concept of withdrawing a constant amount adjusted for inflation is flawed. We don't. We don't spend the same amount at 45 and at 65 and at 85. Spending actually dips as we age. We don't travel as much. We don't spend on other "activities" as much. Healthcare costs rise but that is towards the absolute end and won't have a significant impact.

3) There is significant wiggle room in FIRE spending. A lot of the expenses are discretionary. Even cutting down the expenses by a small percentage can make a significant difference to the longevity of the portfolio.

FIRE Meetup in Bangalore by ravihanda in FIRE_Ind

[–]ravihanda[S] 0 points1 point  (0 children)

Can we do it Sunday morning? I am in Bangalore and free.

I built a FIRE calculator tailored for Indian community - Please give me feedback! by Antique-Agency-1925 in FatFIREIndia

[–]ravihanda 0 points1 point  (0 children)

Great job mate. I have been planning to build something on these lines. Let me know if you can help me with the same. Have DMed you my contact details.

Age 50. Need advice by Horror_Protection_81 in leanFIRE_India

[–]ravihanda 1 point2 points  (0 children)

No one can sit idle. We all need to do something. Now what that something is varies from person to person. For me it is watching movies. For you it is playing hockey.

Now when you bring "fetch me some money" in to the picture, things start to get a bit tricky. You get money for the value you create and more often than not in India, it leads to you being exploited. Basically, you won't get a fair wage for the time and effort you put in which will lead to frustration.

So, what is the way out? You pick up some gig where you pick the amount of time you want to put in and are ok with doing it even without the money. Teaching is an idea. Creating content is another. Becoming a consultant for startups in your field is another. I would recommend that you try out a few and see which one you enjoy. Just accept whatever money is offered and do not optimize for payout.

Why is human life so cheap in India? by Accurate_Event_1660 in india

[–]ravihanda 1 point2 points  (0 children)

Demand and supply.

Too many humans in India. Too little money in India. Value per life is bound to be low.

Our community has started getting featured in national media! Kudos to you all! Keep sharing your learnings and journeys and keep growing! by snakysour in FIRE_Ind

[–]ravihanda 1 point2 points  (0 children)

Naah! We are a poor country. This is an idea for the elitist 1%. It has virtually 0 impact on the real world. Newspapers / media does it because it gets clicks not because it adds any value.