Hi everyone,
The year end is here. It was a great year for my FIRE journey and I thought I'll share an update with you all.
With few days left in 2023, I've crossed 2.65 CR in net worth after touching 2 CR in May this year.
Here's the breakup:
Direct shares: 1.7 CR (this was the major driver of growth), ELSS: 0.06 CR, Company shares: 0.06 CR, Real Estate: 0.4 CR (while it is between 42-45 now, keeping this unchanged from May), EPF: 0.34 CR (interest for last year kicked in), NPS: 0.06 CR (investing because I'm in 30% bracket, getting 14.8% xirr here), SGB: 0.03 CR
The driver for growth has been a high saving rate.
In 2023, i've added 29.5 lakhs in equity, about 2.5 lakhs every month. 6 lakhs in company shares (US listed). The EPF and NPS savings are on top of this. My target was to save 36 lakhs in equity overall, and it's done! Targeting the same for next year. I'm aiming to cross 2 CR in equity before July 24.
Another change I did this year is that I've moved away from active advisory. I get the stock ideas from Twitter discussions, analyse them fundamentally and take bets based on the charts. I'm quite confident of my charting skills with max drawdown of 25-30% but upside of multiple x. I could capture 2-3 2x this year with sizable investment in them. I got this confidence after i could take my wife's account from 11 lakhs to 20 lakhs in about 2 years.
While the next year can be a huge bull run if BJP wins, I'm still trying to diversify. I'm planning to add a real estate of about 75 lakhs by paying 10%. This will help me leverage as well. The rental yield is the property is approx 5% and calculations show that I'll have to only pay 40-45% of the EMI and rest will be covered through rent. This should bring my equity exposure down from the current 65% to less than 50%. In this I'm trying to diversify and leverage while not denting my current equity corpus.
Suggestions welcome to make this FIRE journey better!
Thanks!
WOW! Thatās so impressive! When did you start your journey? And whatās your CTC currently š³
Almost 13 years now. CTC is ~70.
Oh wow, are u in tech or strategy? And what was ur CTC when u started
Last 2 years every tom dick and harry made money in equity markets. Just in case anyone is thinking about investing looking at posts like this, don't be overconfident. When the tide rises, all the boats will rise too. That's what happened to newbie investors recently. All the best.
Hello sir
First of all, congratulations
Second, what advice would you give a 27 year old techie currently working.
Any financial tips or goals to aim for to build a stable and good living by the time I reach your age?
I'm not sir! I'm Michael Scott! š I'll share the advice that i got from a Marwadi shopkeeper in a small city of Tamilnadu when I went there to buy speakers. I was about your age then. He told me to always save 1/4th of my salary for the future. The conversation stuck with me and i kind of kept doing that. I took higher risks of direct stock exposures since my risk appetite was higher with limited family commitments. But yes, in a nutshell, save 1/4th, keep investing in equity directly or MF route. Have an emergency fund, have enough health and term insurance. Don't hurry to invest in real estate. I'll say, you can avoid it also and you'll be fine. That's it! You'll do much better than me if you stick to these.
Alright Michael Scott, Iām no Jim but already have my Pam š She wants to buy a house as well eventually I want to maybe find businesses locally to invest in, rather than investing everything in equity or MF. So certainly my risk appetite is higher than a lot of folks That being said, thanks for your advice Hope you keep thriving in your Scranton.
I am assuming there will be some taxes on these when you liquidate them. Is that correct? If yes, should we look at these numbers post taxes for NW calculations or is that the general trend to look at NW pre-tax? This is especially about equity
I don't think I'll liquidate it all. My plan is to switch to SWP to meet the expenses. In that case, only the profit in the redeemed amount will be taxable. A 4-6% SWP should be able to set me up for RE.
Nonetheless, it's great to hear that you are on your way to FI. I am trying to do the FI part (don't want to retire early) but through a different route. For me, equity is limited to private stocks (ESOPs) and major portion is Real estate. Have started investing in some small but risky businesses where I am able to see proportionately good returns. Hopefully, I will be able to touch 2Cr by the end of 2024.
You should definitely post this on the reddit/fire_ind community, you will surely get a lot of suggestions.
I don't see your FIRE number in the post and the time to reach there, would be great if you can add that. For Fire, I think it is important to take only 3% as a safe withdrawal rate instead of 4% in US as Indian inflation is on the higher side. So keep that in mind when coming up with your fire number
Thanks. I was looking for a reddit community. The last community I used got deleted. Will certainly post there.
My FIRE number is about 30x of my annual expenses. Say 7-8 CR considering that my kid is young. The target is to reach there in the next 9 years. A major driver has to be a saving rate.
Assuming your yearly expenses are ~24L right now ( 7-8Cr/30), if you plan to retire by the end of 9 years, you would actually need much more than this for this to happen due to inflation.
Assuming 7% inflation, by the end of 9 years, you would need ~50L for expenses/year and ~14/15 Cr in net corpus.
Damn, now that is too insane.
Not a hard figure to reach by 36. But kudos to your financial discipline and fiscal management.
Good one. This is inspiring for many zoomers.
TC OR GTFO
How much do you plan to accumulate to retire and at what age? What kind of monthly income will let you retire peacefully?
Dimag kharab hogaya thread padhke.
I can retire once my investments and savings are worth 8Cr
Will retire with 10 cr with house paid off.
Own a house worth 3.5 Cr which is on rent Have a home loan of 2 Cr outstanding balance Have cash of about 0.8 Cr, Shares and NF of about 0.5 Cr and PF of about 0.3 Cr.
Have also gifted my parents property worth 1 Cr
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