The kind of questions that I get – I don’t normally respond. I will let the readers react.

  1. Why does this couple need Rs. 280,000 a month at the age of 80? (in the year 2033) – are they going on a world tour every month? – Ms R, Chennai.
  2. Why do you write about such rich people whose parents are so well off? It is just a luck of the womb. Such people don’t deserve a mention. – Mr. M, Baroda.
  3. You are exaggerating the need for a retirement corpus. I do not think I will live beyond the age of 65. I hope to be working till the age of 62 anyway.
  4. The one thing you did not mention is that it has been proven that spending tends to naturally decrease with age, even accounting for higher medical care costs. This itself means we will need less money for retirement.
  5. Subra – great post. The good thing about including inflation in your plan is you can stress test. I like your use of inflation by spending categories. In our plan we have knobs for base spending, healthcare, and travel. Just like using average investing returns could overstate the size of your future nest egg using.an average inflation rate could overstate spending. So you have to be agile and review your plans assumptions over time and adjust as necessary. As I entered retirement I have started looking closer at five years of projected cash flow which allows me to make adjustments to the next couple of years of spending patterns, returns, etc.
  6.  Today many seem to take an inflation rate of 3-6% for granted like it will always be that way but you lay out some compelling considerations. To me it also raises the question of how you stimulate the economy further when you are in the midst of the longest bull market in history? One way is to make holding cash expensive meaning low interest rates and higher inflation making it painful to hold cash that reduces in value every year.
  7. I find it curious that the folks in the early retirement  movement talk about assumptions on cost of living increases and what they anticipate needing in the future. But my concern for them is that we will see the market dip by 50% or more in the next few years AND THEN WHAT ? It might be a sad day when you realize the Rs. twenty million or two you have saved is now 10 million and your 5% withdrawal becomes 5L instead of Rs. 10L that you need for your expenses! How will you BRAVELY draw enough for a comfortable life? So should I eat well or sleep well – back to the classic question.

readers are welcome to write their comments…mostly retirement and inflation comments is what I have picked up…lets make it interesting by seeing your comments…on these comments.

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  1. 1. Why does this couple need Rs. 280,000 a month at the age of 80? (in the year 2033) – are they going on a world tour every month?
    Because the inflation of 8% is an average figure (different sectors have different percentage and unfortunately health care inflation is around 13% year on year), secondly one may have to pay cost for the daily support as well.
    When I was abusing the NPS and expectation to even buying annuity my father (aged 65) mentioned he may need someone’s help to go and withdraw money for ATM in 5-10 years then what will you do with all your bucketing strategy and all.

  2. Hi Sir, Your posts are valuable. I m not so sure you are reading the comments, especially if the comment is over 2 -3 sentences. I dont agree with any of the 7 points except (2). What most of us are interested in knowing is a story of how a person made it from scratch. If one is born with silver spoon, he already has a big advantage being rich. His focus is in staying rich.. Whereas avg person has to get rich first. Of course, your blog is ALSO for the rich people who need to know how to stay rich.

  3. Met a Doctor who was saying that one of his patient who was bed ridden pays monthly payment of Rs.25000/- (tier 2 city / town) to the caretaker. May be after a decade or so people may have to shell out 70k per month. These type of expenditure is not planned by any person. Will drain the retirement kitty faster!!

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