FIRE planning exercise
Metrics and assumptions-
Current age- 27. Planned retirement age - 45, Years left -18y
CPI,WPI,education inflation, med inflation- avg taken and inflation considered as 8%
Will be alive till 90y age
Long term goals(after retirement)-
1.8Cr(taken a rough estimate from net)\2=3.6Cr~4Cr*
If i have a kid at 33 y till retirement he will be 12y (need to take care of his/her financer for 15 more years)- 1.08Cr
If i have another kid at 36 y till retirement he will be 11y (need to take care of his/her financer for 18 more years)- 1.3Cr
Total current valuation 1.08+1.3=2.38Cr ->9.6Cr(val at time of retirement)
Conlusions-
Therefore, total worth required at retirement age should be-:
One time- 4Cr(house)+9.6Cr(kids)+80L(car) =14.4 Cr ~ 15Cr
Recurring yearly=24L(lifestyle needs)+12L(trips)=36L (yearly)
Else one time at retirement 15Cr and a corpus of x which can generate 36L(yearly which also increases at 8% per year for 45 years!)
Can someone please help me understand if i have gone wrong somewhere in my calculations or if my calculations correct and the dream achievable in any way!!!!
TIA!!
Metrics and assumptions-
Current age- 27. Planned retirement age - 45, Years left -18y
CPI,WPI,education inflation, med inflation- avg taken and inflation considered as 8%
Will be alive till 90y age
Long term goals(after retirement)-
- House (current val 1Cr) ->4Cr(value when retired)
- Car (20L)->80L
- Lifestyle needs(for 2 persons after marriage) (50000)->2L\12=24L(annually)*
- Trips(3L)->12L
1.8Cr(taken a rough estimate from net)\2=3.6Cr~4Cr*
If i have a kid at 33 y till retirement he will be 12y (need to take care of his/her financer for 15 more years)- 1.08Cr
If i have another kid at 36 y till retirement he will be 11y (need to take care of his/her financer for 18 more years)- 1.3Cr
Total current valuation 1.08+1.3=2.38Cr ->9.6Cr(val at time of retirement)
Conlusions-
Therefore, total worth required at retirement age should be-:
One time- 4Cr(house)+9.6Cr(kids)+80L(car) =14.4 Cr ~ 15Cr
Recurring yearly=24L(lifestyle needs)+12L(trips)=36L (yearly)
- If this needs to be converted to cumulative amount we would need to find GP sum, where in
- a=36
- r=1.08
- n=45
- sum=139.15Cr ~140Cr
Else one time at retirement 15Cr and a corpus of x which can generate 36L(yearly which also increases at 8% per year for 45 years!)
- If i consider an investment product which gives 10% pa returns then, no!!! i am not even able to calculate x here!. can someone help me with this too?
- Marriage
- Health of family
- Parents
- Raising children
- Education of children
- etc etc!!!!
Can someone please help me understand if i have gone wrong somewhere in my calculations or if my calculations correct and the dream achievable in any way!!!!
TIA!!