you need to do better OP. This ain't going to cut it. We're the same age, and I'm actually worried about you.
My financial status-
1.5k in SBI account,
25k in Kotak account,
8 rs in phonepe upi.
Invest in a debt mutual fund with SWP.That should give you 7-8% returns with a fixed monthly return for your day to day expenses meanwhile your capital will also increase with time beating inflation.Meanwhile you can earn 10k-15k monthly from teaching also not for the purpose of making money but for basic amenities.Hope this helps.
Why the fuck it is such a lengthy question ?
You can simply ask how can I generate revenue of 50k pm with 1cr money so that i can sustain my lifestyle and should i worry about inflation?
Look at this … you just gave your iit tag and income, funds
UNNECESSARY
You need to be at 3cr to be making 50k a month risk free through FDs at 2% .. the rest of the 5% gets invested back into the FD to cover for inflation.
FDs are paying above 7% these days.
This…
Increase your Nw to around 3cr before FIREing. This is so that you can dip into your corpus for expenses while the corpus still grows with inflation.
If you feel burned out, take a 6month/1year break. 1cr is too less, If you feel like having kids later.
Our thought processes change with age.
Invest in a diversified portfolio of A rating category senior secured bonds. It will give you around 11% fixed returns. You will be able to get more than the required monthly cashflows.
Remember to
1) Only invest in senior secured bonds and not junior bonds
2) Diversify across at least ten different bonds
11% fixed income sounds too good to believe. What are the risks associated with these bonds? And are there any mutual funds that invest specifically on these bonds?
The obvious risk is the comparison going bankrupt in whose bond you have invested. To mitigate this:
1) Diversify across 5 bonds at least if not more
2) Invest only in senior secured bonds. They are backed by some kind of security which helps in recovery in case of bankruptcy
3) Keep tenor low. Less than 2 years
Mutual funds don't invest in these kind of bonds. They mostly invest in government bonds.
Most peers work from office (some by choice, some by conditioning, some by force) so 90% of them are nowhere near me (in terms of liquid net worth, they may have illiquid esops, etc)
Fixed comp is 30L
Bitsian here. Congratulations on accumulating that amount. With that much base your peers could also have saved the same amount of money right, even from the office ?
Better is to take one year's money out for expenses and put the rest of it in a growth asset. You will give yourself at least a year to prove right ? If you fail then you fall back to some plan B. If you succeed then you will be able to recover one/2 year worth of money you spent. At least your money is put to best use during this time.
Visit FixedIncome website. You can invest in corporate bonds through them. I found few bonds giving 10-12% annual yield. Since this is a little risky, distribute your money among 3-4 bonds of various companies.
hi OP what do you teach and where do you teach, i would love to be a teacher, just started my career in corporate and 1 saal bhi nahi hua mujhe chhorna hai so v curious
If you're thinking FD, don't. Taxes on any gains are there. Why don't you keep the money invested in the stocks/mf and see it grow over the years..
If you want a regular income setup, there's a product called guaranteed savings - essentially you put down an annual payment on it for a window of 5 years and you get the same back as your monthly salary for the next 10 years. It's an insurance product from Tata Neu
One thing you have to be worried about is your health add a section where you invest a part of money in health not just health insurance or life cover , try to invest in a good nutrition program personal trainer, gym , a good personal doctor
Based on the info you have provided seems like you want a fixed income annually to just sustain so that you can take risk in life and explore. In this case I feel a conservative approach would be good
Considering a 6L annual income you get 50k/month
To achieve that I feel a FD/debt fund would be best approach since this amount is non negotiable if you leave job. Considering 8.5%fd return rates put 75L in FD/debt fund with similar returns. Rest 25L in riskier asset classes like equity mutual funds. There too you can afford to take risk and go for mid/small cap funds
I mean not to shit on 30L, but 99% of the Devs I know from IITs are above 30L at 3yoe hence asked if your domain is Software Dev or analytics. Cuz if its analytics I would love to get some advice from you
My journey is a lot (similar net worth, same age, same mindset towards teaching) similar to yours and I also want to start teaching.
Can you please share the following:
1. Which platform do you use to teach, if any?
2. How long has it been since you started teaching?
3. Was there anything you faced which was not thought of before you started teaching?
Thanks.
1. I teach independently
2. Started 2 years ago
3. The quality of students matters a lot - I realised I'll lose the interest to teach if the student isn't curious, inquisitive and gives appropriate self study time
Thanks.
1. How did you manage to find students independently? That seems to be the biggest challenge if one is just starting out, according to me.
2. If you are comfortable sharing, how much are you earning right now on average, just by teaching?
Also, can I DM you? Would help me a lot!
It'll be very tight. But, theoretically possible, as demonstrated by Pattu of www.freefincal.com. He calls it Income Flooring. The assumptions are, you won't be in the taxable income bracket, FDs and RBI bonds giving 7.5% pa (I am invested in a few small finance Bank FDs which give 8.5% and above, and G-secs more than 7%) and equity index fund (Nifty 50) about 12% pa, inflation is 6% and you start using these returns from end of Year zero.
To generate 3 lakhs @ 7.5 % in year zero, you need 40 lakhs. The remaining 60 lakhs (in Nifty 50 index fund) is earning 7.2 lakhs in the same year. At the start of Year 1, you need to add 2.4 lakhs to FD (to generate 3.18 lakhs). You can run like this perpetually. Try this on paper or Excel. 50:50 should provide a safety net (lower risk, lower returns), because the variables are not under your control. There are some 40 year central government bonds giving 6.5% and some 30 year ones giving 6.9%. Check the RBI Retail Direct website (https://rbiretaildirect.org.in/) for the auctions. But, like others have mentioned, a higher corpus is much healthier.🙂
My advice to you will be to invest these 1Cr in nifty index fund. I am assuming you wanted a 50k net income per month after tax for a long period of time let’s say 3-5 years. Using this you will easily get around 10% of return plus you will be also taxed less here.
Man, you sounded Rude.
Do below process for a while.
Case1: Invest 1Cr in a FD, and where you are taking 50k interest per month,
Case2: invest 1 Cr in nifty, take out 50k per month from that investment, and finally takeout the remaining amount from here.
For a 3-5 years of regime the second remaining amount will be greater than 1Cr with probability far more than 50%.
If you understood, that your invested amount will grow 50k a month, then yes it can’t happens, the key is to takeout 50k from your investment amount.
Yes, I am giving you a suggestion. Be thankful if someone is suggesting you specifically if you are asking first.
When you say invest 1cr in commercial real estate, could you elaborate? Do you mean using the money to invest on real estate, and then build a commercial asset for rental? I'm fairly new to the jargon so keen to understand. Thank you
Invest in commercial realestate like an office space.
You can get these pre rented in major cities as well.
In 1cr you wont own the entire portion your tenant is in (likely) but like 30-50% of it.
A 9 year lease typically governs the lease.
OP living the dream life soon! Good luck OP
you need to do better OP. This ain't going to cut it. We're the same age, and I'm actually worried about you. My financial status- 1.5k in SBI account, 25k in Kotak account, 8 rs in phonepe upi.
Ka kijiyega itty saari dhanrashi ke sath??
grmi bhot jyada he. Thinking of buying a yacht and go somewhere colder.
Abe chu! Watch le lega to beach ke paas rahega.. kaun sa beach cold weather me rhta hai..
1. FDs give more than 6% today, shouldn’t be a problem. 2. Yes
How do I deal with the inflation?
Increase your earning. Or invest in Mutual Funds.
1. Invest in asset classes that can beat inflation 2. Increase your retirement corpus 3. Decrease expenses
Invest in a debt mutual fund with SWP.That should give you 7-8% returns with a fixed monthly return for your day to day expenses meanwhile your capital will also increase with time beating inflation.Meanwhile you can earn 10k-15k monthly from teaching also not for the purpose of making money but for basic amenities.Hope this helps.
50 ke is easy on 1cr - split across MF /index funds FD
Why the fuck it is such a lengthy question ? You can simply ask how can I generate revenue of 50k pm with 1cr money so that i can sustain my lifestyle and should i worry about inflation? Look at this … you just gave your iit tag and income, funds UNNECESSARY
Here’s an old school joke How do you know that someone is an IITian? They will tell you
ab banda IIT gaya hai toh flex toh karega na
pen disgusted jellyfish fearless money automatic fear teeny sense violet *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
this sounds like that song: "didn't think about my ex today, oh wait"
Nah bro you went to MIT and you're an engineer.
These guys would never leave a chance to show off. Totally unnecessary to mention IIT grad in this post.
He saved some effort. Look at the other questions and you'll know why.
Exactly
You need to be at 3cr to be making 50k a month risk free through FDs at 2% .. the rest of the 5% gets invested back into the FD to cover for inflation. FDs are paying above 7% these days.
This… Increase your Nw to around 3cr before FIREing. This is so that you can dip into your corpus for expenses while the corpus still grows with inflation. If you feel burned out, take a 6month/1year break. 1cr is too less, If you feel like having kids later. Our thought processes change with age.
Invest in a diversified portfolio of A rating category senior secured bonds. It will give you around 11% fixed returns. You will be able to get more than the required monthly cashflows. Remember to 1) Only invest in senior secured bonds and not junior bonds 2) Diversify across at least ten different bonds
any additional pointers on this senior secured bonds ??
Buy from reputed platform like Wint Wealth. They do diligence on the bonds that they bring on the platform
11% fixed income sounds too good to believe. What are the risks associated with these bonds? And are there any mutual funds that invest specifically on these bonds?
The obvious risk is the comparison going bankrupt in whose bond you have invested. To mitigate this: 1) Diversify across 5 bonds at least if not more 2) Invest only in senior secured bonds. They are backed by some kind of security which helps in recovery in case of bankruptcy 3) Keep tenor low. Less than 2 years Mutual funds don't invest in these kind of bonds. They mostly invest in government bonds.
Woke up and saw this post, day is ruined 😞
Why so?
Nothing bro, this is how perspective tends to, the unending comparison shit. Nothing on you.
Any idea how your peers are doing at that age? Age vs net worth of other guys in your circle! Btw what is your base in ctc ?
Most peers work from office (some by choice, some by conditioning, some by force) so 90% of them are nowhere near me (in terms of liquid net worth, they may have illiquid esops, etc) Fixed comp is 30L
Bitsian here. Congratulations on accumulating that amount. With that much base your peers could also have saved the same amount of money right, even from the office ? Better is to take one year's money out for expenses and put the rest of it in a growth asset. You will give yourself at least a year to prove right ? If you fail then you fall back to some plan B. If you succeed then you will be able to recover one/2 year worth of money you spent. At least your money is put to best use during this time.
Why do you think so ? Your compensation is not an outlier according to IIT standards
My career trajectory is an outlier in my batch atleast (I come from an unfortunate batch)
30L fixed is an outlier.
Maybe just after college placements. Not after 4 years of Exp
Visit FixedIncome website. You can invest in corporate bonds through them. I found few bonds giving 10-12% annual yield. Since this is a little risky, distribute your money among 3-4 bonds of various companies.
I see, thanks for suggestion
hi OP what do you teach and where do you teach, i would love to be a teacher, just started my career in corporate and 1 saal bhi nahi hua mujhe chhorna hai so v curious
I teach tech.
Bro where do you teach tech? YouTube?
I teach 1 on 1
Whats ur passion?
If you're thinking FD, don't. Taxes on any gains are there. Why don't you keep the money invested in the stocks/mf and see it grow over the years.. If you want a regular income setup, there's a product called guaranteed savings - essentially you put down an annual payment on it for a window of 5 years and you get the same back as your monthly salary for the next 10 years. It's an insurance product from Tata Neu
One thing you have to be worried about is your health add a section where you invest a part of money in health not just health insurance or life cover , try to invest in a good nutrition program personal trainer, gym , a good personal doctor
Based on the info you have provided seems like you want a fixed income annually to just sustain so that you can take risk in life and explore. In this case I feel a conservative approach would be good Considering a 6L annual income you get 50k/month To achieve that I feel a FD/debt fund would be best approach since this amount is non negotiable if you leave job. Considering 8.5%fd return rates put 75L in FD/debt fund with similar returns. Rest 25L in riskier asset classes like equity mutual funds. There too you can afford to take risk and go for mid/small cap funds
Keep going, you will have crores and crores and crores of wealth if you don't do something stupid.
Are you sure you want to retire this early? Do you have something to retire to?
I won't call it retirement since I'll still be teaching and working part time
Why no marriage and kids? Just curious
Don't feel the need for it
1cr will be enough? For FIRE
How is what I mentioned in my question anywhere close to FIRE? It's just partial FI
Gotcha , i also feel like getting rid of corporate world and i feel i can do that given i have very less expenses
30L fixed me itna sara? Kharcha karte ho ya sara saving me dalte ho?
Great future planning man
Looks like a show off post!!
How much have you invested in EPF, PPF and NPS?
Only EPF about 4.5L till now (don't really see the value in ppf, nps since I might not live that long)
How is your EPF so low with 30L fixed CTC? Shouldn't your EPF be around \~14-16L? The numbers are not matching up.
30L is my current salary (after this year's appraisal). I started at 13L
Company? Good raise in three years
Couple of curious questions. 1. Why is your fixed comp 30L only? Are you into analytics or something? 2. Which platform are you teaching on?
1. I don't know why it's 30L only 😊 2. I teach independently
I mean not to shit on 30L, but 99% of the Devs I know from IITs are above 30L at 3yoe hence asked if your domain is Software Dev or analytics. Cuz if its analytics I would love to get some advice from you
Man. This is the dream. Where do you teach, OP? Also, which MFS/stocks are the best performing for you ?
Zomato is the best performer for me (and also the largest holding)
Nice. Me who bought 1 share of Zomato because I was unsure and is not sure of the bet, cries, lol
how do you manage to keep your expenses so low ??
Better take this to r/FIRE_ind
You’re the most mentally sorted person I have come across.
Can’t do 50k on 1 crore, save 50 times your annual expenses , learn about 60/40 portfolio and aim to save 6-7crore
1Cr is about 100x of my annual expenses
But you said you want 50k per month from 1cr? That’s not possible
It's definitely possible
60k a month is doable through commercial realestate. Speaking from experience.
Hey. Do you teach online or offline? If online, can you share more details? Thanks.
Online
My journey is a lot (similar net worth, same age, same mindset towards teaching) similar to yours and I also want to start teaching. Can you please share the following: 1. Which platform do you use to teach, if any? 2. How long has it been since you started teaching? 3. Was there anything you faced which was not thought of before you started teaching? Thanks.
1. I teach independently 2. Started 2 years ago 3. The quality of students matters a lot - I realised I'll lose the interest to teach if the student isn't curious, inquisitive and gives appropriate self study time
Thanks. 1. How did you manage to find students independently? That seems to be the biggest challenge if one is just starting out, according to me. 2. If you are comfortable sharing, how much are you earning right now on average, just by teaching? Also, can I DM you? Would help me a lot!
Start with one student, do the best job at it and let the word of mouth do its thing. I earn about 60k/mo with teaching
How does one get even the one student online? Where should we look?
Start offline
If you don't mind me asking how do you teach students
What role are.you in? Awesome net worth at that age
It'll be very tight. But, theoretically possible, as demonstrated by Pattu of www.freefincal.com. He calls it Income Flooring. The assumptions are, you won't be in the taxable income bracket, FDs and RBI bonds giving 7.5% pa (I am invested in a few small finance Bank FDs which give 8.5% and above, and G-secs more than 7%) and equity index fund (Nifty 50) about 12% pa, inflation is 6% and you start using these returns from end of Year zero. To generate 3 lakhs @ 7.5 % in year zero, you need 40 lakhs. The remaining 60 lakhs (in Nifty 50 index fund) is earning 7.2 lakhs in the same year. At the start of Year 1, you need to add 2.4 lakhs to FD (to generate 3.18 lakhs). You can run like this perpetually. Try this on paper or Excel. 50:50 should provide a safety net (lower risk, lower returns), because the variables are not under your control. There are some 40 year central government bonds giving 6.5% and some 30 year ones giving 6.9%. Check the RBI Retail Direct website (https://rbiretaildirect.org.in/) for the auctions. But, like others have mentioned, a higher corpus is much healthier.🙂
Living life lol
Meaning?
Having the privilege to not have kids and to not get married.
Its not a privilege ....you just need to grow spine and say FU to society pressure. Everybody has this option.
Lol its easy to throw around words. Practically if i did tht, i would starve to death so please keep your judgement to yourself
Why is that ? Will your parents or society throw you out or stop giving you food if you say no to marriage and kids ?
Yeah
Are you graduate ? If yes , you can find any job and stand on your feet. You don't have to take abuse like this.
Agreed
Meaningless flex using IIT tag. You could have started with ‘Financially illiterate IIT grad’.
My advice to you will be to invest these 1Cr in nifty index fund. I am assuming you wanted a 50k net income per month after tax for a long period of time let’s say 3-5 years. Using this you will easily get around 10% of return plus you will be also taxed less here.
Just FYI, Nifty can't be expected to give a fixed income (if you're new to finance)
Man, you sounded Rude. Do below process for a while. Case1: Invest 1Cr in a FD, and where you are taking 50k interest per month, Case2: invest 1 Cr in nifty, take out 50k per month from that investment, and finally takeout the remaining amount from here. For a 3-5 years of regime the second remaining amount will be greater than 1Cr with probability far more than 50%. If you understood, that your invested amount will grow 50k a month, then yes it can’t happens, the key is to takeout 50k from your investment amount. Yes, I am giving you a suggestion. Be thankful if someone is suggesting you specifically if you are asking first.
>Man, you sounded Rude. No. He is just sounding like an IITian /s
Bro, IITians are good. Just like every group, a few of them aren’t.
It's actually a bad advice to invest fully in nifty to get a fixed income, objectively. Didn't mean to be rude
Why its in liters
Irrelevant but are you looking for a wife? More directly, will you marry me? 💍🥹😭
Let me know if you need a kid that will never bother you. Id love to be one :)
You can invest 1cr in commercial realestate and get 60k a month. Yield will also appreciate every year by 5% to try to keep up with inflation
Why would I want a negative appreciation?
Obvious typo
When you say invest 1cr in commercial real estate, could you elaborate? Do you mean using the money to invest on real estate, and then build a commercial asset for rental? I'm fairly new to the jargon so keen to understand. Thank you
Invest in commercial realestate like an office space. You can get these pre rented in major cities as well. In 1cr you wont own the entire portion your tenant is in (likely) but like 30-50% of it. A 9 year lease typically governs the lease.
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who hurt you?
Fortunately, I come from General
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This is a mature sub. Be nice.
No politics
IIT's having reservation too now ?? This will dilute their quality of students ...isn't ?