One million Dollars used to be considered a safe harbor for most people. Becoming a Millionaire in the US of A, and becoming a ‘Crorepati’ in India were considered to be ‘Rich’.
Today if you plan to live in the stupidly overpriced cities of India, you will be living in a house which is worth ‘Rs. 5 million’ at least!
So is US $ 1 Million enough to retire in the USA? I think not.
In India last week I met a senior executive of an M N C who wanted to retire. As he was just 53 years of age…and spending Rs. 70k a month, my calculator said…’Sir you will need Rs. 3.25 crores as a corpus’. Luckily he was already there…so it was not a difficult call for him or for me. Otherwise most people need a lot of drumming about why they need Rs. 3.25 crores when his father needed less than Rs. 15 lakhs – about 25 years back. L O L that is the power of compounding. Please remember that good quality independent research is NOT AVAILABLE for Indian conditions…so here is a link to good research in UK…
if you find articles in the US and UK context …and you want a short cut, just multiply (for US $ use Rs. 30 for conversion) and for the Pound use Rs. 50 ….
so if this article inspires you…you will need 600, 000 Pound i.e. Rs. 3 crore.
qed, i REST MY CASE.
I find 2 things very difficult to understand. People have small salaries, they get themselves insured. Very good. However as their monthly spending increases, THEY do not increase their sum assured. Also as income increases and their consumption increases…THEY do NOT increase the amount to be set aside for Retirement either. This is stunning. In my book…I have created a table…showing how much to set aside per month…if your current expenditure is X and you are 30 you need to save say 1X…but if you start at 45 it may have become 2X…..
Post Footer automatically generated by Add Post Footer Plugin for wordpress.