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Posted by Vishi Ideas First on October 25, 2007, 5:06 am
Hi this is vishwas.
I am working with a Pension administration company. and my monthly
saving in INR is 23000/- (RS) my current age is 26 year.
I do not want to work after 45 year of my age.
and want every month regionalbe amount as per inflation
Any suitable advice.
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Posted by joetaxpayer on October 25, 2007, 9:39 am
Vishi Ideas First wrote:
> Hi this is vishwas.
> I am working with a Pension administration company. and my monthly
> saving in INR is 23000/- (RS) my current age is 26 year.
> I do not want to work after 45 year of my age.
> and want every month regionalbe amount as per inflation
> Any suitable advice.
Since you offer no details such as current income or required income at
retirement, you will not receive anything specific enough to really
guide you, just attempts to understand more.
Since you are outside the US, we might not have an understanding how any
government retirement accounts work for you. Here, Social Security can
cover some portion of retirement needs, depending on income and years
worked. At 45, one is too far from drawing on that benefit to work it in
to any equation.
In general, the advice to save 10% of one's salary, and having some
match from one's employer, along with an 8%/yr return, will offer a
decent retirement at age 62 or so. To me, this is a starting point,
since it targets a final withdrawal rate that replaces 80% of final
income, and makes assumptions for each variable that cannot be known
(e.g. the rate of return, annual salary increase and inflation both set
to 3%, etc.)
I offer this spreadsheet, both online and downloadable at
http://www.joetaxpayer.com/retirement.html
linked at the bottom of the article. Again, it's just a start. To cut
one's working years in half would require a much higher savings rate, or
a return that would be far better than the 8% I assume.
JOE
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Posted by PeterL on October 25, 2007, 1:09 pm
wrote:
> Hi this is vishwas.
> I am working with a Pension administration company. and my monthly
> saving in INR is 23000/- (RS) my current age is 26 year.
> I do not want to work after 45 year of my age.
> and want every month regionalbe amount as per inflation
> Any suitable advice.
At 26 how would you what will happen when you are 45? And why do you
think you will not want to work after 45?
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Posted by on October 25, 2007, 4:37 pm
> wrote:
> > saving in INR is 23000/- (RS) my current age is 26 year.
> > I do not want to work after 45 year of my age.
> At 26 how would you what will happen when you are 45? And why do you
> think you will not want to work after 45?
I can't speak for the OP, but I'd translate "do not want to work
after 45" as shorthand for "want financial independence when I'm
45 so that whatever I'm doing, making money doesn't have to be
a priority". Whether that means he wants to surf or it means
he wants to volunteer or he wants to find a second career,
perhaps in a less lucrative field, there's no reason *not* to
aspire to financial independence. Who doesn't? The real
question is whether he can manage to save enough during the
next 19 years without having to sacrifice too much of his
current quality of life along the way.
26 - or earlier - is *exactly* when one wants to start planning
and working hard on it if one wants to achieve that before
traditional "retirement" age.
That all said, with the Rupee at about 40/USD, if he's actually
putting that much away each month - about $575/mo - and it
grows at a cost-of-living/inflation-adjusted rate of, say, 7%
per year (reasonably conservative, though not quite so when
considering that it's after-inflation), he'll have the equivalent
of some $300,000 (in inflation-adjusted money) after 20 yrs.
Who knows how that'll work out in India in 20 years, but it'd
make for a pretty rough "retirement" here in he US. If we
assume that at that point he starts taking 4% annual distributions,
that nest egg throws off about $1000/mo (again, - in inflation
adjusted current purchasing power).
On the other hand, if, at 46, he's saved that much and never
puts in another cent - suppose he downshifts to some other
job which pays just enough for him to get by but not enough
for him to keep cranking away the savings - perhaps a part-time
job or something - by the time he's 66, that nest egg will
continue to grow to some 1.2 million dollars equivalent -
very likely enough to fund a decent retirement - after having
spent that second 20 years of his working life *not* having
to worry about saving for retirement anymore and perhaps doing
something he likes a lot more than what he does now.
Anyway, this is all just quick and dirty speculation - we
obviously know nowhere near enough to do more than that. But
it's kind of fun to play with the numbers, anyway.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
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Posted by Sgt.Sausage on October 29, 2007, 7:20 pm
> At 26 how would you what will happen when you are 45? And why do you
> think you will not want to work after 45?
At 26, I didn't want to work when I was 26.
Today -- at 38, I don't want to work when I'm 38.
The odds are in favor of the answer being: At 45, I
won't want to work at 45.
My original goal was 40. I'm there today at 38. I
don't have to work another day in my life and I
wouldn't have to change my lifestyle one bit to
continue for the rest of my life (assuming, of
course, no worldwide economic/financial melt-down,
in which case we're all doomed, no matter how
careful and redundant our planning and preparation).
Unfortunately, as the original goal of 40 is
quickly sneaking up on me, we've (wife and I) pushed
it back to 45 in the last couple of years.
Why?
It all boils down to this question: How much
money is "enough".
For me, no matter the situation, no matter how
much I've got right now, the answer always seems
to be "... just a little bit more than we've got
right now."
We kinda stepped back and said "OK, we've got
enough to live on in perpetuity right now, but
lets give it another 5 years _just_in_case_).
It's quite likely that I'll retire at 45 and before
my 46th b-day I'll be knee-deep in something else
just 'cause I won't know what to do with myself
all darned day. It's probably more likely that
I'll turn 45 and we'll still be thinking " ... just
a little bit more than we've got right now ..."
.
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