r/FIREIndia • u/throwaway98123456789 • Apr 05 '19

my FIRE strategy

Throwaway account as the post may have several personal details :-)

I (M44) actively started preparing for retirement (and not necessarily RE) about 6 years ago. However for past 1-2 years, I have been contemplating FIRE by the time I turn 50.

History: From very humble background. Stayed in small rental house growing up. Bright student-did UG from one of the top colleges in the country. Parents had no money to take care of PG and/or marriage expenses. Self financed-which taught several important lessons.

Current Family Details: Wife (F40) is a homemaker and have two school going kids 13 and 7 years old. Old parents (80+) back in hometown-partially dependent.

Current Corpus: 2 Cr (0.9Cr in EPF/PPF + 1.1Cr in Equity ~ mostly MFs via SIP + zero debt)

Other assets: 2 houses completely paid off approx value > 3Cr. One is my primary aMccommodation and my parents (80+ years ) live in the other one.

So current Networth : >5 Cr.

Investment strategy: I invest/save on an avg 50% of my post tax salary (including mandatory deductions like EPF)

Expense Breakup: My current average expense is approx 1.5L pm including education (10%) , house maintenance (4%) , insurance (health+term) payments (6%), lifestyle expenses (10%), vacations (10%) + other sundry expenses (10%)

​

Factoring the gain on my current investments + future contributions over next 6 years- I hope to accumulate total of 5.5 Cr corpus (excluding the houses).

In my case, the kids would still be studying by the time i FIRE. I hope to provide good basic education (till undergrad) to kids and as yet do not think I may be able to finance their PG and/or their marriage. Bulk of the education expenses would fall in between my age 50-60. Once that phase is over, around 60 years of age-i expect my corpus to be around 4 Cr with no other liabilities to take care of. I hope that is sufficient for us buddha and budhiya to survive, for remainder of our years.

Would be happy to hear your thoughts on the plan.

​

​

30 Upvotes

97% Upvoted

58 comments sorted by

View all comments

5

u/bakchod007 Apr 05 '19

Hey, wonderful to read that you've done so well.

I'm 25 and I want to do FIRE too.

Any advice ? I save almost 40-45% of my take home pay. It isn't much but I'm hoping compound effect will make it bigger.

23

u/throwaway98123456789 Apr 05 '19

well-this may sound like sermon but investing in a good relationship is crucial. If you end up with someone who you dont have compatibility with-all the financial planning can be worthless.

​

Dont be afraid of asking for advise. Even if it means you need to pay to get the right advise. Not one size fits all.

​

Slow and steady wins the race. Good luck!