My Net Worth Hits 50 Lakhs! Retire in 3 Years?

The last update to my retirement plans was in 2012 when my net worth was just 17 lakhs or so. Here towards the end of 2015, I’ve finally crossed the old retirement target I set for myself in 2010 of Rs. 50 L in today’s value. Here’s a complete summary of my assets:

My net worth

My net worth

So over the years, my net worth has expanded thus:

2009 – 8 Lakh

2010 – 12 Lakh

2012 – 17 Lakh

2015 – 51 Lakh

Quite  a big jump in the past three years eh? The stock market has been good to me. I’m quickly reaching a stage where any money I invest is small compared to the daily fluctuations in the market itself. The best thing now is time. I had initially planned to retire at 55, but the way things are going now, I think I need just 3 years more! I should be able to start living off the interest after that. I’m 33 years old right now…

The secret to financial security? No kids :)

3 years, and then peace from the never ending toil of work. Aaaaaahhh!

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Comments

  1. good plan bhagwad…
    I am 39, planning to retire at my home town 2-tier city in Gujarat (currently at delhi ) with 1.3 crores with own house and another investment of joint property, value of which is close to 35 lacs as of now. ( cant monetize on my need only, as its joint, but surely after 15-17 years ). Family of 4, wife ,one boy 10 years old and a mother 58 years old.
    Would like your serious comments please.
    Thanks

    Reply

    • In reply to tiri

      How are your assets distributed? Shares, debt? Is your wife working?

      Unfortunately, the picture becomes very complicated with dependents like children and (possibly) a spouse…

      Reply

      • In reply to bhagwad

        Dear bhagwad
        thanks very much for quick reply.
        Could you please guide me further.
        My investments are mostly in bank FD for next 10 years at average 7.25 to 7.5 post tax. ( amount distributed in mine and wife’s account with around 65:35 ratio to lower tax bracket ). some are in PPF ( for longer term ).
        Yet to takeout PF amount which i am planning in Apr16, once the interest gets credited. ( will be leaving job mostly in Apr or May16 ).
        The total amount will be close to 1.3 crores.
        I am using monthly / quarterly interest payout.
        Have been tracking expenses for last 1 year and it is close to INR 35000 max, considering routine daily expenses, insurance, schooling and others. ( no rent or other expensive stuff )
        With 1.3 crores, I will be getting close to 75K every month.
        I will be saving around 40K from next year every month.
        I am using 7.25% post tax return with 6 to 6.5% inflation for next 20 years.
        and have used numerous retirement calculation excel sheets, searched from almost every forum.
        I have an investment in property from which i am not getting anything at present. But may be after 15-20 years. ( the present value of the property is around 35-40 lacs )
        My wife is not working at present. The reason for leaving job and getting settled in hometown are mostly financial independence from highly stressful job at present and being away from my family and ailing mother.
        Would appreciate your sincere view on this.
        Thank you very much.

        Reply

      • In reply to tiri

        Sounds pretty good. But fixed deposits will at best keep you up with current inflation. If I were you, I’d move to equity for long term investments. At least that way you’re growing your money instead of just allowing it to keep up…

        Reply

      • In reply to bhagwad

        Dear bhagwad,
        Thank you very much for your reply.
        Yes i will be starting to invest in other instruments once i get settled next year. May be after 6 months to a year, once i get assurance that i had been going as per plan.
        Thank you very much for your support
        Regards

        Reply

  2. Hi, Bhagvad.

    I came looking for this particular post after 2 years. I started an SIP about that much time ago after reading about them all over the net and being convinced after reading your post

    May I ask if you are still as diligent with SIPs? Have you been adding any new funds? I see that most of your portfolio consists of Franklin Templeton. I have only one fund from them, and it’s the best one in mine. Unfortunately, I’m not super happy with my investments. I invested some 2,20,000 so far and have made only about 2,50,000. That’s less than FDs for some funds. Do you think MFs are not as lucrative now? I’m totally clueless, so appreciate any insight.
    Cheers!

    Reply

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