I get asked this question at least ONCE A WEEK, if not once a day….
There is a huge advantage in writing a book on Retirement….almost everybody who knows about the book walks up to ask :
When do you think I can retire?
The answer is so simple. I need to know the following figures of your life:
a. Your Earned Income
b. Your UNEARNED INDEXED Income
c. Your EXPENSES
d. Whether your Investments will give a REAL RETURN?
THAT IS ALL.
Your total income is Earned income + Unearned Income.
If your expenses are > your total income, BOY, you can NEVER retire. Of course assuming that nobody else is saving for you – wealthy parents (either side!), or by some magic.
If your expenses are < your UNEARNED indexed income, YOU can retire TODAY. It is as simple.
Of course the truth lies in between these 2 extremes…..
I am now meeting a zillion kids who are saving or investing to buy a house, car, a foreign trip, buy Rashtrapati Bhavan, but nothing towards creating an annuity or investing. I have no objection to anything like this – but I like to see unanimity between husband and wife about the strategy.
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