How much is much? The ₹40 crore retirement panic

How Much is Much???
Recently, a friend called me in panic. He had just heard a #podcast where someone spoke about a ₹40 Cr #Retirement #corpus.

Problem? He wasn’t even close.
So naturally: Panic mode ON “How do I achieve #FIRE now?”!!!

Had to take him back to #PersonalFinance 101.
The first principle - Your number ≠ Someone else’s number
₹40 Cr… ₹400 Cr…All of that is irrelevant.
What matters is: Your lifestyle, Your expenses, Your goals!

A simple framework to understand, how much is much!
For most people, 30x annual expenses is a starting point
Where: x = your yearly expenses (Including regular expenses like groceries, utility bills, shopping, as well as one-time expenses like insurance, maintenance, etc.)
So:
₹10 lakh expenses → ₹3 Cr corpus
₹20 lakh expenses → ₹6 Cr corpus
30x corpus means it would be sufficient to withstand your current #inflation-adjusted lifestyle for the next 30 yrs!

What about younger folks?
If you’re in your early 40s (or younger): 30x may not be enough (you would live longer, thanks to advancements in medical tech)
So better to aim: 40–45x (longer post-retirement life)

The real problem the 'noise' all around
Every day: A new “expert” comes up with a new “number” and a new “strategy” to achieve it! Confusing the common man further!
These are all optimized for #Eyeballs, not your #Reality!

What actually works
Understand the corpus needed for you!
Invest before you spend to achieve your goal
Avoid FOMO, Noise
Focus on asset allocation and do not add every shiny object in the universe!

Boring practices work better for the majority than getting into a panic mode regularly!

What happened to my friend?
Nothing changed. Same lifestyle. Same expenses. So why change the Plan!!

If you’re figuring out your FIRE number or need help with personal finance, happy to help 👍