There was a time when a friend of mine used to say that he would retire if he had 4Cr corpus. I used to think that was a crazy amount. Forget 4Cr corpus, I didn’t even have 4L to my name at the time.
Many years later that friend comfortably has 4Cr+ and retirement isn’t anywhere in the horizon. A family of four, lifestyle inflation, wants and needs have all played a part.
But the thing is, I don’t look at him and his 4Cr number and think that’s crazy. You cannot comfortably retire with 4Cr today if you are living in a metro and you are in your 30’s.
Mathematically it might be possible, but I don’t think it will be comfortable.
If money = purchasing power, the moment you do not have a steady income stream the purchasing power of your money goes down (in your head or maybe it’s just my head).
Let me explain. When you have a salary, you might be happy to spend 100% of that in a month. Because you know it’s coming back on the 1st of the next month. Once you retire, nothing is coming back. So instantly the money you have is more precious. Add age, health issues and other factors in the picture and what you have will not feel enough.
So it’s more mental than what you actually need. There are people who are happy with 2L in their bank account and there are people who will not feel comfortable even with 1Cr in their bank account. It’s all in your head and it’s very personal. Nobody is right or wrong.
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