Let’s define ENOUGH.

If you are having to travel from point A to point B and you have no expenses to be incurred at point B, you need to just have travel money. Assume for a minute that your travel costs are Rs. 200 for the journey, my question is, NORMALLY how much do you travel with? Options

  1. With Rs. 400 – just in case
  2. With Rs. 5000 – what if I am stuck somewhere…etc.
  3. With Rs. 4000 cash, credit card, debit card, …etc.
  4. With Rs. 200. Period.

Very few people fall in the category of (4). Most of us would fall in the 2nd and 3rd category, right?

Now Lets assume you are 40 years of age and you expect your monthly expenses at 55 when you retire your monthly expenses are likely to be Rs. 2L per month.

You have gone to all the calculators in the world and all formulae tell you that you need about Rs. 7.2 crores in investments. Great you have a decent amount stashed away – you have Rs. 6 crores already and have a decent chance that you will have more than Rs. 15 crores at retirement.


Fair enough as a person who has enough money to retire…should you retire and sit at home? How much of your portfolio should be invested in equity and deb? currently 70% of your money is in equity and the balance is in ppf, bank fixed deposits, etc.

What should he do with his asset allocation?

He is likely to have about 80 times his income at retirement. Should he shift to much more conservative portfolio?

Should he continue to earn more?

Should he take up a job that is more enjoyable and perhaps less paying?

Should his wife quit her job – I forgot that this corpus does not include her PF, PPF, etc…which would be another Rs. 2 crores

Should he ASSUME that over the next 50 years That his ASSUMPTIONS WILL surely hold true?

Should he think that his theory of ’40 times X’ will work for the rest of his life?

Should he keep increasing the size of the corpus to such an extent that he will leave a bigger corpus for his children?

Not easy questions to answer. So man at age 40 or 45 decides that he will keep increasing the size of the corpus as much as he can. Some of them have even lost the zest to spend or do something to travel, etc.

Lets see on what he should do……


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  1. Small point.
    We all assume that future expenses are going to skyrocket. Mostly agree with this. But then if u look at biscuits for example, their price has not gone up in the last decade. In fact entry level biscuits have had a time correction(price remaining same over years is actually a drop)

    Likewise their are some essential items that havehad a time correctionwho knows with research in genetics we might dramatically increase the per hectare crop n essential food items might become very cheap.

    I am sure their would be other costs that might go up exponentially. Basically its very difficult to predict future expenses. With the pace of disruptive technologies i dont think anyone will be able to predict n most will go with an over conservative estimate

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