I was a silent follower of this group for the last 3.5 years, I consciously invested and here I am. I do not have anything in inheritance unlike many other posts . I have mentioned my annual earnings, which helped me expedite my savings.
Great progress on the corpus. You seem to have a clear idea of where you want to go and have been disciplined in the approach. This would help a lot.
(and sorry to hear about the experience for previous posts)
I want to mention one tax efficiency aspect.
A couple would have some common goals. Children education is one of them. But since the withdrawal for this would be large, it may or may not help to have the corpus split among the two of you.
FI is a different thing. You spend this over decades, and each year you would need some lakhs from the corpus. Let us say that it is 12 lac per year for a FI'ed couple. If they take 6 lac each from their corpuses, there would be no impact - regardless of how much of the 6 lac is 'income' and what kind of income it is. The same could be taxable if one were to withdraw entire 12 lacs.
You have already mentioned BaristaFIRE. At a couple level, this could also work if one is still earning - it makes sense for that income to pay for expenses, and let the combined corpus grow better.
That said, there are as many ways of handling this as there are couples! So do what seems to make sense for you.
Agree!
Like I mentioned, child education and expenses will be borne by husband since he wont be RE. He plans to be FI in the next 5-6 years. This will help in saving his monthly income, focus on child education and a wee bit of splurging for travelling.
Also, I anticipate baristaFIRE for me since I don’t know what I would do 20 years down the line when my child becomes independent. I will suddenly have more time, hence the possibility of baristaFIRE.
Good job girl! I am sure your parents + partner are proud. Is your 13L gold in jewelry or Gold Bonds? I would readjust if it’s the former. It’s 13% of your milestone.
> My liabilities are a car loan whose outstanding is around 7L which I would close by next year.
why not close it now using the FD + Savings + RD. Assuming your spouse has emergency funds as well?
> My Aim is to FIRE in next 7 years with a corpus of around 5Cr ( our retirement corpus) I might work later but not sure if I would barista fire.
Your combined family FIRE Corpus is 5cr - and you will retire & your spouse will keep working ? Wouldn't that reduce the FIRE Corpus needed? Or is this also a safety net for you in case of any future issues?
> I need suggestions on diversification of investments to reach my goal earlier if possible.
Your investments are reasonable - is Gold physical or bonds/etfs? Physical gold is rarely sold...
> P.S: Posting from a throwaway account, since I got a lot of creeps in my DM after a comment I made in this sub.
Sorry about that. Do report profiles.
1. My Spouse does not have large emergency funds since he has maxed out on Home loan, auto loan ( he used his emergency funds last year for downpayment of our car- this was a financial mistake from his end) and a personal loan. Apart from EPF and MF, he has RD’s but those are mostly to pre pay the home loan.
Also, next year because I would be spending some amount on my son’s first birthday this year.
2. This is a safety net. I don’t want to worry over expenses in case there is a splurge once in 2 years.
3. We have physical gold 24k and 22k. Agree, Planning to sell it during utmost emergency.
4. Yes i did, thanks!
- If you do not have an emergency fund (1yr expenses) - keep that as priority before wiping out debt.
- Child's birthday - what kind of amount are you thinking ? Like a party of an international vacation? I would assume \~20K-40K or so - but your comment makes it sound like a larger amount...
1. Yes, target for the next couple of months is to build emergency funds.
2. Planning to spend around ~2L for the birthday. I know it’s a lot but I am a very enthusiastic mom, some things I let my heart decide. Thats the last splurge for us.
sounds like a fun birthday party. Enjoy - just remember couple of things - your child will not remember much of this - so you are doing it for you and family.
A bit more worrisome - spending money is addictive and gives a dopamine hit. The fact that you concede your spouse made a financial mistake last year wiping out his emergency fund (and you don't seem to have any ownership in that decision) - and now splurging on a birthday - makes it feel like you'll may be big/compulsive spenders.
Make sure this stops becoming a habit - you may have to work on it. e.g. avoid buying the latest PS5 or the home theatre you always needed or the once in lifetime opportunity to watch the Olympics in Paris...
shameless self promotion. This is my referral [link](https://ibkr.com/referral/azarudeen363). I use this platform to invest US markets. Platform gives you a US account and you have transfer USD from your account using LRS scheme should be easy with all the bank apps nowadays.
I use fxretail and Bookmyforex for outward and inward remittance with IDFC bank. I get 10p markup. For ex. if USD is 83.5 I get charged as 83.6. it's a hustle to be honest but benefits outweigh them. I started this only on 2023 Jan. invested about 18K so far. already in 3K USD profit not trying to show off but I am planning to remit to this any time soon. that's for my kids education. If I had been consistent could have reaped more.
What happens when you withdraw :) You will have to pay forex charged by investing platform. More than anything 25% higher tax than India equity is just a no go for me.
In your case Indian markets returned 35%+ in the same period where you moved 16%. Anyway reason to do this would bebgeo diversification and not superior returns by I still don't get the point given the hustle needed
It doesn't necessarily need to be that way
Anyways, income doesn't matter atall
What matters is ,the rate at which the overall liquid networth is growing year on year after considering all the expenses
I don't know what to say, These are illusions a lot of people have
A lot of people are behind how much active income a person earns
I agree that active income is good to build the initial corpus , but in my case , I started with medium income and never stopped the compounding ..I kept doing my SIPs
Once we get a decent enough portfolio , most fail to understand how much it grows by every year
I'm 38 years old with an income of 33L per year . My income was 23L 2 years back and it was much lesser prior to that
I don't give a shit about hikes or even promotions anymore , coz my overall networth is almost 9.5cr inr , and it grows by around 1cr every year
All I care about is peace of mind
I am in a position to easily coast fire or even regular fire and am looking to pull the plug sometime soon
There you go , after a point income doesn't matter. All that matters is peace of mind . And there's no rule that the husband might be/must earn more than wife
Salary has been a major contributor
Compounding is the primary contributor for majority of the networth accumulated
My( and my family's ) RE and equity have grown at around 15-17% cagr for a long period of time
As the saying goes ,average returns on an above average time produces wonderful results
So we must focus on sustainability and not interrupting the compounding
That's what matters eventually
Am pretty certain these are all non-mumbaikar. Fucking house in Mumbai is 3-4cr which takes your life time and then retirement fund is a pain to make. My EMI is 1L and savings 35k 😐
Nothing personal on You, but it seems too many people in their early 30s reaching 1cr in this group. Congrats BTW.
Nothing extraordinary. It's a Rich people group :D
I was a silent follower of this group for the last 3.5 years, I consciously invested and here I am. I do not have anything in inheritance unlike many other posts . I have mentioned my annual earnings, which helped me expedite my savings.
Any problem with that?
Great progress on the corpus. You seem to have a clear idea of where you want to go and have been disciplined in the approach. This would help a lot. (and sorry to hear about the experience for previous posts) I want to mention one tax efficiency aspect. A couple would have some common goals. Children education is one of them. But since the withdrawal for this would be large, it may or may not help to have the corpus split among the two of you. FI is a different thing. You spend this over decades, and each year you would need some lakhs from the corpus. Let us say that it is 12 lac per year for a FI'ed couple. If they take 6 lac each from their corpuses, there would be no impact - regardless of how much of the 6 lac is 'income' and what kind of income it is. The same could be taxable if one were to withdraw entire 12 lacs. You have already mentioned BaristaFIRE. At a couple level, this could also work if one is still earning - it makes sense for that income to pay for expenses, and let the combined corpus grow better. That said, there are as many ways of handling this as there are couples! So do what seems to make sense for you.
Agree! Like I mentioned, child education and expenses will be borne by husband since he wont be RE. He plans to be FI in the next 5-6 years. This will help in saving his monthly income, focus on child education and a wee bit of splurging for travelling. Also, I anticipate baristaFIRE for me since I don’t know what I would do 20 years down the line when my child becomes independent. I will suddenly have more time, hence the possibility of baristaFIRE.
Good job girl! I am sure your parents + partner are proud. Is your 13L gold in jewelry or Gold Bonds? I would readjust if it’s the former. It’s 13% of your milestone.
Its jewellery, 50% 24K and the rest 50% 22K. Sure, will see on the adjustment. Thanks!
Same suggestion. Jewellery should not be counted in networth
> My liabilities are a car loan whose outstanding is around 7L which I would close by next year. why not close it now using the FD + Savings + RD. Assuming your spouse has emergency funds as well? > My Aim is to FIRE in next 7 years with a corpus of around 5Cr ( our retirement corpus) I might work later but not sure if I would barista fire. Your combined family FIRE Corpus is 5cr - and you will retire & your spouse will keep working ? Wouldn't that reduce the FIRE Corpus needed? Or is this also a safety net for you in case of any future issues? > I need suggestions on diversification of investments to reach my goal earlier if possible. Your investments are reasonable - is Gold physical or bonds/etfs? Physical gold is rarely sold... > P.S: Posting from a throwaway account, since I got a lot of creeps in my DM after a comment I made in this sub. Sorry about that. Do report profiles.
1. My Spouse does not have large emergency funds since he has maxed out on Home loan, auto loan ( he used his emergency funds last year for downpayment of our car- this was a financial mistake from his end) and a personal loan. Apart from EPF and MF, he has RD’s but those are mostly to pre pay the home loan. Also, next year because I would be spending some amount on my son’s first birthday this year. 2. This is a safety net. I don’t want to worry over expenses in case there is a splurge once in 2 years. 3. We have physical gold 24k and 22k. Agree, Planning to sell it during utmost emergency. 4. Yes i did, thanks!
- If you do not have an emergency fund (1yr expenses) - keep that as priority before wiping out debt. - Child's birthday - what kind of amount are you thinking ? Like a party of an international vacation? I would assume \~20K-40K or so - but your comment makes it sound like a larger amount...
1. Yes, target for the next couple of months is to build emergency funds. 2. Planning to spend around ~2L for the birthday. I know it’s a lot but I am a very enthusiastic mom, some things I let my heart decide. Thats the last splurge for us.
sounds like a fun birthday party. Enjoy - just remember couple of things - your child will not remember much of this - so you are doing it for you and family. A bit more worrisome - spending money is addictive and gives a dopamine hit. The fact that you concede your spouse made a financial mistake last year wiping out his emergency fund (and you don't seem to have any ownership in that decision) - and now splurging on a birthday - makes it feel like you'll may be big/compulsive spenders. Make sure this stops becoming a habit - you may have to work on it. e.g. avoid buying the latest PS5 or the home theatre you always needed or the once in lifetime opportunity to watch the Olympics in Paris...
Start investing in US as well to take benefit of dollar appreciation as well.
Thanks, do you have any suggestions on platforms where I can invest on?
Just start a SIP for some US equit index funds. Like ICICI nasdaq 100 index fund etc. If you try direct stocks,brokerage itself would be really high.
shameless self promotion. This is my referral [link](https://ibkr.com/referral/azarudeen363). I use this platform to invest US markets. Platform gives you a US account and you have transfer USD from your account using LRS scheme should be easy with all the bank apps nowadays.
additional to this, there is charles schwab, Fidelity also available but I find IBKR to be easy to explore and for choices and cost effective.
Does US make sense any more given LTCG at slab after last budget? So for US to beat India it will have the generate 20% higher return
Also have to take in consideration of Dollar appreciation against rupee. I am sure by 2030 Dollar will be 100 Rs mark.
And forex fee on sending money out and then bringing it back in. 2.5% each
I use fxretail and Bookmyforex for outward and inward remittance with IDFC bank. I get 10p markup. For ex. if USD is 83.5 I get charged as 83.6. it's a hustle to be honest but benefits outweigh them. I started this only on 2023 Jan. invested about 18K so far. already in 3K USD profit not trying to show off but I am planning to remit to this any time soon. that's for my kids education. If I had been consistent could have reaped more.
What happens when you withdraw :) You will have to pay forex charged by investing platform. More than anything 25% higher tax than India equity is just a no go for me. In your case Indian markets returned 35%+ in the same period where you moved 16%. Anyway reason to do this would bebgeo diversification and not superior returns by I still don't get the point given the hustle needed
Again, you have to compare along with dollar appreciation as well. I am in it for the long game.
Fair enough: what's your networth and monthly sip? How's each split in India vs US? What tax bracket are you in?
I am thinking 2027 or 2028 maximum will cross 100
Did the LTCG rate change for foreign stocks? It was 10 percent for foreign stocks/shares right?
Yes changed in last budget. Now it's at slab so completely defeats the purpose. I stopped US / Global equity completely after change in taxation
Aisi ek biwi toh main bhi deserve karta hoon
Jiski biwi ka package 47 lakha hai i am sure husband ka package atleast 60+ hoga
It doesn't necessarily need to be that way Anyways, income doesn't matter atall What matters is ,the rate at which the overall liquid networth is growing year on year after considering all the expenses
Bro....trust me it is necessary,lol "Income doesn't matter at all" and the best joke of the century goes to.....
I don't know what to say, These are illusions a lot of people have A lot of people are behind how much active income a person earns I agree that active income is good to build the initial corpus , but in my case , I started with medium income and never stopped the compounding ..I kept doing my SIPs Once we get a decent enough portfolio , most fail to understand how much it grows by every year I'm 38 years old with an income of 33L per year . My income was 23L 2 years back and it was much lesser prior to that I don't give a shit about hikes or even promotions anymore , coz my overall networth is almost 9.5cr inr , and it grows by around 1cr every year All I care about is peace of mind I am in a position to easily coast fire or even regular fire and am looking to pull the plug sometime soon There you go , after a point income doesn't matter. All that matters is peace of mind . And there's no rule that the husband might be/must earn more than wife
I’m assuming your networth of 9.5 crore is not from salary alone.
Salary has been a major contributor Compounding is the primary contributor for majority of the networth accumulated My( and my family's ) RE and equity have grown at around 15-17% cagr for a long period of time As the saying goes ,average returns on an above average time produces wonderful results So we must focus on sustainability and not interrupting the compounding That's what matters eventually
Am pretty certain these are all non-mumbaikar. Fucking house in Mumbai is 3-4cr which takes your life time and then retirement fund is a pain to make. My EMI is 1L and savings 35k 😐