People ask me some very simple questions and expect to get a ‘yes’ or ‘no’ answer. Many a times I give it too. It is just meaningless.
Let me tackle with 2 such questions, and I hope you appreciate that the answers are not so simple after all.
The first question is “Subra I have about Rs. 3 crores…do you think it is enough for me to retire?”. The second question is “In how much time do you think I can finish the half marathon?”.
Simple questions, yes, sure, but very very damn complicated answers.
Easiest answer? No application of the mind, say a yes or a no. The person asking is very happy, and I am amused that they have no clue that I did not say anything. Hey I did not apply my mind to that question!!
If you are 49 years of age and you have Rs. 3 crores, HOW THE HELL will I know whether you can retire NOW?
Seriously, please think before you ask such a question. I need to ask you the following questions:
1. What does this Rs. 3 crore consist of? The Rs. 2 crore house with Rs. 40 lakhs furnishing? The one which you bought last year?
2. How long do you expect to live (no matter that your answer is wrong, but I can plan only with a number).
3. When will you actually retire?
4. What will be corpus when you retire?
5. What are your liabilities?
6. How much are your monthly expenses……………….the list just goes on and on…It would be about 40 questions well asked, and well articulated.
If you do all that I will give you an answer. This answer could be off the correct answer by 90%. Sorry but Retirement calculations need to be done on a monthly basis till about 5 years into retirement.
EVEN after that you need to keep checking whether the assumptions are working.
Nos some homework for you: If a person asks a stupid question :”In how much time will I be able to run a half marathon’ – what questions do you think you can ask?
Post Footer automatically generated by Add Post Footer Plugin for wordpress.