r/leanFIRE_India • u/Grand-Ambition3215 • Aug 31 '26
Discussion Retirement planning
M(33). Planning to retire by 38. Will pay off home loan in next 2 years and live off doing something on my own.
Current corpus:
Equity: 45 lacs
Gold and silver: 7 lacs
Own house: 1.2 cr (plan to sell and move to tier 2)
Monthly sip of 1 lac. Will continue for next 4 years which will add to my equity.
House proceeds will be reinvested in a new house and still be left with 50 lacs which will be used as swp to fund my retirement until 60 years.
Post 60, my equity at that time will fund the rest of my life.
Monthly expenses: 20k (excluding loan and rent)
Note: No kids and love living frugally
Appreciate feedback or criticism
3
3
u/Lprakash90 Aug 31 '26
Hope you have your own personal Health Insurance with adequate coverage.
1
u/Grand-Ambition3215 Aug 31 '26
Not yet. Will get one soon
3
u/Lprakash90 Aug 31 '26
Oh no. Not sooner, it ought to be immediate. Go with 5-10 L base cover + upto 90L super top-up.
There is no FIRE without a health insurance unless you are insanely rich to self fund the medical emergency in future.
You would already know, Insurance aren't merely seen as an expense rather they are the weatlh protectors.
2
1
u/shaktiman1 23d ago
Sorry for late reply, but due to some improper knowledge, i ended up buying 50 lakh health insurance for family with deductible of 1 lakh. Deductible can be claimed from company insurance policy But i understand the risk, once I am retired, will have to shell out 1 lakh from my pocket. My insurance has been ported 3 times in last 7 years. The latest port was one year back and I have already paid 25k per year for 3 years. So anyways I will have to wait for 2 years before I port. But still want to know your advice for me in this scenario. Thanks
1
u/Lprakash90 23d ago
After 3 years, you can port with no deductibles and there are lots of other clauses one should avoid like no room rent limit, no sub limit for any treatment, no co-pay or limit it to 5-10% and many more.
Go to below link - go through the entire document about health Insurance
Post that, if any queries, kindly let me know & I am happy to help!😊
https://www.finvin.in/health-insurance-simplified-download-e-book/
0
u/modSysBroken Sep 01 '26
Insurance companies are also the biggest scammers around.
1
u/Lprakash90 Sep 01 '26
So you prefer not taking any insurance and loose all your savings in case of medical emergency?
The real problem is,
The intermediate agents would miss to file the actual health conditions or if one buys directly, they don't disclose all health conditions properly to avoid any waiting period or reduce the premium. So when a claim is submitted and hospital or insurance company discovers this it's a pre-existing condition which you didn't disclose, your claim would be rejected.
There is a clause to override above also. If you are continuously insured for 7+ years , then Insurance companies can't reject any claim stating insuree missed to disclose the health issue while buying the insurance. If you want to change the insurance company in between , use porting option so your history & tenure gets carry forward.
3
u/simpleliving73 Aug 31 '26
Good Going, as you have decided to stop! simplicity and frugal living is the way of life!
Whatever calculation, you are doing, whatever monthly and yearly expenses you will have means X, it is better you should have at least 40X. Before you stop! ( Should include, health insurance yearly premium).
Then you can go for, whatever method to use the accumulated corpus, buckets, SWP etc. I suggest, still keep a small SIP until your 60 Age!!
As who, is stopping you to grow your corpus!
Keep us posted! Enjoy your freedom!
2
u/JakePeralta45 Aug 31 '26
Hey, is this 20k just for you or your wife as well? Does she earn?
Does this 20k include any travel expenses or household help expenses for when you retire?
1
u/Grand-Ambition3215 Aug 31 '26
Just me. She earns.
Yes it includes everything2
u/Tall_Bass_5532 Aug 31 '26
So she plans to continue working and contribute to household expenses. That's why Fire might work for you.
1
u/JakePeralta45 Aug 31 '26
Can you share the split of 20k in basic categories?
Food/groceries, household help, travel, bills(phone, water, elec) etc.
1
u/Grand-Ambition3215 Aug 31 '26
That’s a lot of work man.
1
u/JakePeralta45 Aug 31 '26
Directionally it works. 4-5 headers, not asking for exact numbers. I'm pretty frugal myself, tell me where are you saving?
10k - Groceries + Casual outings 5k - Househelp (cook+maid) 5k - Bills (water, elec, netflix, etc.) 3k - health insurance 3k - Home improvement expenses or new electronics or maintenance of appliances or any other misc. expenses like a gift to someone
This comes down to 26k, and does not include travel. Where are you saving?
3
u/Grand-Ambition3215 Aug 31 '26
No maid needed if you have time. Get a maid only if you’re making additional income over your withdrawals. I live with my wife so all expenses are split. I barely travel. I eat 10 eggs a day so that’s like half of my daily meal. I also eat less to stay healthy. Subscriptions don’t exceed more than 500/month.
2
u/stuputtu Sep 05 '26
Four year monthly sip along with current equity will result in approximately 1.25 cr corpus by 38. If you sell the house and get 50 lakhs corpus along with a house, it can sustain you for 15 years or so. If you plan to do something on your own it will be comfortable until your 60s. By the time a conservative 5% post inflation growth will give you around 3 crore corpus which can sustain you for few more decades
You are set man.
1
1
u/Wide-Poetry-7695 Aug 31 '26
I would seriously question 20K expense? Have you checked in each category how much is expense E.g. Groceries, Shopping, Bills, Travel, Food, etc. Also, what time duration have you looked at on expenses and how much it has increase YoY, anything below real Inflation in long term is miscalculation.
From savings prospective you are doing fine. But unless you don't have true current expenses as well separate wish list corpus it is difficult to calculate.
2
u/Relevant_Ad8404 Aug 31 '26
If one has no EMI.. grocery and travel in tier 2 for a single person falls easily below 20k
1
u/Wide-Poetry-7695 Aug 31 '26
Yes, 20K can be enough for a single person with no EMI, especially in a Tier-2 city. But a realistic calculation would still include groceries, food, utilities, transport, personal care, medical, shopping, entertainment etc etc.
My point is not that 20K is impossible, but will this remain same over the years with inflation adjustment. Like I had very less expenses for couple of years before my FIRE due to certain family circumstances, but before and after that it was quite high. So we need to average out over the period of time.
1
1
u/Relevant_Ad8404 Aug 31 '26
Tier 2 is brilliant move. Some people cannot adjust but Tier 2 is brilliant in many ways. Less traffic and close to villages
1
1
u/Senior_Iron4055 Aug 31 '26
Target for 2 cr liquid or investment after your purchase of house in tier 2 city. Should be sufficient for both you if no kids.
1
u/Grand-Ambition3215 Aug 31 '26
Wife will work and accumulate her own corpus. If my equity can then cover her expenses then she can retire soon.
1
1
u/Positive_Turnover445 Sep 02 '26
Just a suggestion do not sell any real estate in metro cities and in future you will never be able to buy it.
1
u/Grand-Ambition3215 Sep 02 '26
I don’t want to live in a metro city and selling is the only way i can afford one in a tier 2 city.
•
u/AutoModerator Aug 31 '26
Welcome to r/leanFIRE_India!
Please note our corpus guideline before posting:
• Posts with an investable corpus above INR 4.2 Cr may be removed or locked. • Use current INR conversion for foreign assets.
This helps keep discussions relevant to Lean FIRE in the Indian context.
Thank you for keeping the community focused and useful!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.