Target corpus @ age 40
If you were to retire by the age of 40, how much of a savings corpus do you think you would need (in today's value terms)? For consistency, if you already own a home, please include its current value in your "corpus" calculations on a best-estimate basis.
Please do share your math and assumptions as comment if possible, as it might help others plan their financial goals better.
For the sake of this poll, this is NOT about actually retiring at age 40, but just about having the option to do so. Just a financial planning perspective.
How does age 40 matter to your Qn? If you want to know about corpus for today’s date , then just ask that. 🤔
Maybe OP hit 40 and feeling low… ❤️
The reason is more mathematical, I am afraid. :D
a) If you are 20 today, your corpus will have to cover living expenses for 55 years (till 75). b) If you are 35 today, your corpus will have to cover living expenses only for 40 years.
This means that unless you anchor all responses on a common age, the data is not comparable and will become age-specific.
As to why I picked 40 as that anchor age for consistency, by 40, typically most would have their family plans figured out (no/1/2/more kids) and thereby, ideally a stable view into future expenses and possibly where you want to live etc. So even if you are 25 today, putting you in your 40-year old self's shoes nudges you to think about some of these which is great.
Home purchase: 4cr Kids' education: 2cr2 Kids' marriage: 0.5cr2 Medical emergency: 1cr Annual expenses (w/o rent): 20L/yr*35y Other large spends: 1cr
A very conservative investment assumption is that the corpus grows at the same post-tax interest rate as your lifestyle inflation.
With those stretch assumptions, we are looking at: With one kid, a corpus of 15cr With two kids, maybe 18cr
For those citing 20+cr, what're your assumptions? Or what key expense head are we missing?
How are you guys deciding. I mean how to differentiate between 16 cr or 25 cr?
There's some calculations by FIRE influencers. They usually suggest 30-35 times of your current annual expenses+ a home for living+ expenses for child education+ marriage
Depends upon your expenses.
Can everyone also explain how are they planning to achieve the mentioned numbers?
Anything less than 25 cr is a L.
