Last night i was reading a post on cnbc.com where a self made millionaire shared that with the prevailing interest rates that saving 1mn $ would not be enough to live a decent life in retirement.
That post you can read here
That got me thinking if that was also true from an India standpoint.. Will 7cr be not enough for retirement ?
The one big difference was the interest rate or the real rate of interest. The real rate of interest in the US ia negative while here if one assumes a 6% interest rate and 4.4% inflation rate we are 1.4% positive.
A 6% on 7 cr is a lot of money that can be used to have a good lifestyle as long as one has a house and a health plan.
However, there were some interesting comments that the writer made. He basically said that new 1mn$ is 10mn$ and one should postpone everything to ensure that they have hit the number required for retirement. Postpone things like a bigger house, holiday homes or a bigger car. ( i would suggest that you read my blog on needs and wants to understand the difference ).
The point he made on postponing the wants is the right point. Focus on getting the basics done and then splurge on the big things - you may find that later on those big things dont matter anymore.. e.g. do you need a big 4 bedroom house for two people staying in retirement ?)
Keep reading.. finance is interesting and simple
Thats why it is simplefinancialsense
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