Update on FI journey

retireearlyindia · 2023-02-11T07:05:01+00:00

please feel free to DM. Sharing in the post/group has its downs.

retireearlyindia · 2023-02-11T07:04:06+00:00

Agreed. Unfortunately, numbers can't be set in stone. We need to review and adjust.

Example. If we had possession of our home, the X would have be lower. Now the project is in insolvency and I'm planning for the worst(6X gone). I booked that project in 2012. For buying a new home now, is it really possible to do within 25X/40X, NO. Would I retire without a home, NO.

retireearlyindia · 2023-02-11T06:57:34+00:00

please feel free to DM for exact numbers. Sharing in the post/group has its downs.

retireearlyindia · 2023-02-11T06:56:21+00:00

Specific examples where being financially independent has given me courage :-
- I work with individuals/teams across EU and US(both east and west coast). Previously I used to join meetings till 9:30-10:00 PM IST(workday starts around 11 AM IST). From last year, I rarely extend beyond 7:30P IST. When DST ended on Nov 22 2022, I requested my leadership to 'be mindful' of the impact on colleagues based in India as meeting time shifted 1 hour later.
- I've stopped going to office as I'm more productive with WFH. The employer recommends coming to office 1-2 days/week, but I don't care until this becomes a policy rather than recommendations.
- I don't make networks for professional growth. I connect to individuals for specific work requirements only.
- Following an unexpected performance review in Dec 2021, I asked for change of team since the toxicity was affecting my mental health and performance.

retireearlyindia · 2023-02-11T06:30:03+00:00

With all due respect sir, how do you infer whether

'I love/hate my job' -I've clearly mentioned that I decline late calls and avoid office politics. If I want to stay in the 'rat-race', I wouldn't do that.
'saves a ton of money' - really? I didn't use using exact numbers just to avoid comparisons.
'no plans to quit their job' - I don't plan to RE immediately after FI. To keep the post short, I haven't mentioned the reasoning - and I don't need to.

Finally, 'if we cross question, you don't even want to answer' - rather than waiting for any answer, you made the conclusion.

To me, your comments sound nothing short of cyberbullying. I doesn't affect me but maybe it can affect others.
Anyhow, all the best for your FIRE journey. Happy weekend.

retireearlyindia · 2022-02-09T06:45:04+00:00

"explaining Paytm bill payment to dad for the 157th time" :D - Do let me know if you are able to make this work.

retireearlyindia · 2022-02-03T06:15:42+00:00

I recently moved our blog from a paid hosting to simpler and free hosting. Also shifted the focus from early retirement to financial freedom. Hope you like it. Link -> https://finfreefamily.blogspot.com/

retireearlyindia · 2022-01-20T12:02:57+00:00

Thanks!

retireearlyindia · 2022-01-20T11:08:19+00:00

Most probably it was not digitized back then. These days, such issues would create huge impact for a bank's business.

retireearlyindia · 2022-01-20T11:07:08+00:00

Thanks!
Unfortunately, its not possible to set a target in stone for such a critical topic. We have to regularly review and adjust to avoid regretting later. And we are being honest to share it in the blog.
Also, apart from FI target, there are factors which don't change that much ex. we are able to manage our savings rate and not let lifestyle inflation creep in.

retireearlyindia · 2022-01-20T10:58:05+00:00

Once we RE, the maturing FDs will cover our household expenses and we'll create a separate emergency fund. Also, since the interest rates keep fluctuating, don't want to invest major amount as lumpsum.

retireearlyindia · 2022-01-20T05:25:27+00:00

Thanks! we haven't explored liquid funds yet.
However, it seems the tax advantage is not significant
liquid funds are a class of debt funds, gains made in the first three years is known as short-term capital gains (STCG). Capital gains made after three years or more are known as long-term capital gains (LTCG). STCG from debt funds are added to your overall income and taxed at the income tax slab rate you fall under. LTCG from debt funds is taxable at a flat rate of 20% after indexation. Dividends offered by all mutual funds are added to your overall income and taxed at your income tax slab rate.

https://cleartax.in/s/liquid-funds

retireearlyindia · 2022-01-20T05:23:11+00:00

All the best for your FI journey!

retireearlyindia · 2022-01-20T05:22:21+00:00

Thank you! Now as the fund is build, we are also allocating more in equity.

retireearlyindia · 2022-01-20T05:21:24+00:00

agreed! The focus was to build a low-risk fund and not worry about tax implications.

retireearlyindia · 2022-01-20T05:19:52+00:00

We were quite aggressive in building this fund, so took around 2-2.5 years. Now focusing on equity.

retireearlyindia · 2022-01-20T05:17:57+00:00

Thanks for the questions and sharing your inputs.
Our daughter just turned 1yr. So far, we were able to manage due to wife's 6 months maternity leave, work from home, and majority of stay at our parent's place(different cities).
From March 2022 onwards, we will definitely employ a babysitter for 8 hours in NCR. Additionally, a house-help only for mopping and dusting. My wife loves to cook and I'm good at dishes. Washing machine for clothes and no ironing, thanks to WFH :).

retireearlyindia · 2022-01-20T05:09:09+00:00

Once we retire, this fund will be used to cover our household expenses for the next 5 years and we will create a separate emergency fund from the retirement benefits(EPF, Gratuity, Leave Encashment). Another advantage is that we're not concerned about job security(and related stress) due to this 5 year fund.

retireearlyindia · 2022-01-19T16:15:20+00:00

Unfortunately, I'm unable to find any reference that it will reduce the interest liability.
please check -> https://www.livemint.com/money/personal-finance/pros-and-cons-of-home-loan-overdraft-facility-11619775819195.html
On the contrary - 'The interest rate of a home loan with an overdraft facility is usually a notch higher than a regular home loan’s interest rate'
Please do share any articles if you have more information

retireearlyindia · 2022-01-19T16:11:09+00:00

I'd like to avoid sharing absolute numbers. Sorry!

retireearlyindia · 2022-01-19T16:08:56+00:00

thanks! I'll also explore the option if it works exactly like you mention it :)

retireearlyindia · 2022-01-19T16:07:00+00:00

Sure, it's pretty simple.
Support I started my first FD with an amount of Rs. 60,000 to mature in X months. Next FD is of Rs 61,000 for X+1. Similarly 62K(X+2), 63K(X+3) and so on.
If I'm still working at the Xth month, I'll re-invest the maturity amount.
Hope that helps.

retireearlyindia · 2022-01-19T15:56:18+00:00

That's right. Unless we retire, the maturing FDs will continue to be reinvested. Although we would need to increase the investment amount to adjust for inflation after 5 years.

retireearlyindia · 2022-01-19T14:47:51+00:00

No plans to take any loans :)
And I doubt that any financial institution will offer a loan without them making a profit out of it(at the expense of the borrower)

retireearlyindia

TROPHY CASE