tag:blogger.com,1999:blog-35325760.post2707411360641184675..comments2011-01-17T22:25:58.267-06:00_noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-35325760.post-60917231065865404582011-01-17T22:25:58.267-06:002011-01-17T22:25:58.267-06:00A good discussion forum. I am also a like minded individual, looking to retire by 50 (37 is too young to even think of retiring, leave alone the uncertainities). Couple of observations.<br /><br />1. Medical Insurance - I beleieve beyond 50 or 60, this is the major expense component one has to budget for. Healthcare costs in India are sky-rocketing and will reach unimaginable highs if something is not done to curb it. Someone retiring in 2020 should plan atleast INR 300,000 hospitalization coverage per year per individual. Please bear in mind that no insurance companies offer family floater policies beyond 60.<br /><br />2. Children Education expenses - This is also something that is sky rocketing YoY. What it cost INR 50K for my engineering in 1991 costs about INR 600,000 to INR 700,000 today. That is a 10 times increase in 20 years. So retiring by 37 is just out of question especially when you have a 2 year old baby.<br /><br />It is not safe to depend only on fixed deposits or equity dividends to manage your living post retirement as fixed deposits never beat inflation and equities has the power to wipe out your net worth in a day (given the fact that our stock market is completely operator driven).<br /><br />best wy to retire is to have a combination of fixed deposits, mutual funds and 50% of net worth as house so that you can live off on the rent.Shanksbalahttp://www.blogger.com/profile/16745954057601542664noreply@blogger.comtag:blogger.com,1999:blog-35325760.post-8087467037717974342010-11-13T08:37:58.717-06:002010-11-13T08:37:58.717-06:00This is for the guy retiring at 37, firstly congrats at least someone thinks like that, anyway the solution to your situation is that only two asset classes can beat inflation one equity and the other real estate.You have close to 2.25 cr INR, historically any good mutual fund has given return close to 20%.If you withdraw 10% annually which is close to 1.75 lac per month enough to run your house in india and the balance 10% is ploughed back in the principal so it will take care of the inflation.The other solution is to to keep close to 50 lacs with you which will keep you afloat for 4-5 yrs and invest the balance in real estate in the up coming suburbs buy small properties in many projects, enjoy the rent and appreciation for few yrs then sell as per need, if done intelligently the rent will take care of your expenses as rent is also inflation adjusted and increases manifolds in yrs to come.lastly remember you can retire with any amt its the attitude which matters and the financial deficiency is in the mind and not in the amt.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-35325760.post-29209439105184367292010-08-24T10:37:25.623-05:002010-08-24T10:37:25.623-05:00friends kindly understand there are so many banks that offers medical insurance with a new S b a/c which is fairly reasonable than all these Insurance ( both Public/ private) charges a premium.<br />take a look at it.<br />i am one of the beneficiaries .G nagarajannoreply@blogger.comtag:blogger.com,1999:blog-35325760.post-78304631003361441192008-08-12T06:53:00.000-05:002008-08-12T06:53:00.000-05:00Firstly, thanks for this very informative site / forum. I was struggling to get certain imp info elsewhere for quite some time; now glad to find it here. Secondly: about, Health Insurance in India, ICICI Lombard is one of the best. Presently annual insurance premium for a 3 lakhs cover (Rs), is about Rs 11,000.<BR/>http://www.icicilombard.com/app/ilom-en/default.aspx<BR/>On this site, one can check out 'Family Floater' or 'Health Advantage'.mstarhttp://www.blogger.com/profile/12072060791569390310noreply@blogger.comtag:blogger.com,1999:blog-35325760.post-15211924313514916772008-07-14T16:11:00.000-05:002008-07-14T16:11:00.000-05:00Anon,<BR/>Thanks for the comment, for the details. I would like to know a bit more about the medical insurance plan you have. You mention that "Insurance premium is about 15,000 p.a. for 5,00,000 coverage for the family.". <BR/>- The INR 5,00,000 coverage is for one year, right? <BR/>- Are there any deductibles? In other words, if you incur an expense of INR 10,000, does the insurance pay all of it, or do you have to pay some of it yourself?<BR/>- Can you choose the doctor and hospital yourself, or are there any restrictions?<BR/>- Is the premium adjusted yearly? Any idea what it may be for older (age 50-65) folks?<BR/>- Which insurance company/plan do you use? Is it available to retirees (those who don't work)?<BR/>ThanksNigelhttp://www.retire2india.comnoreply@blogger.comtag:blogger.com,1999:blog-35325760.post-28896443589508907862008-07-14T08:22:00.000-05:002008-07-14T08:22:00.000-05:00I was in the US for 7 years and came back to India and work here for a local company. I am married and have a 6 years old.<BR/>We live in Andheri, Lokhandwala in 2BHK (purchased out rite) and have a Santro (purchased out rite) car. Our family expense per month, including school fees, etc does not exceed more than 30,000 / 40,000 INR. That includes eating out once a week in decent hotel, watch movie at home on DVD once a week. We sometimes take out of station trips once/twice a year, which costs around 2,00,000 total including air fare, etc. Insurance premium is about 15,000 p.a. for 5,00,000 coverage for the family.<BR/><BR/>Inflation is now almost close to 12%, and is expected to cool down only next year to 6% or so. Stock market for retiree should be a complete no-no, I have learned this lesson hard way. Better keep money in fixed deposits in bank, I know this is a wrong thinking, but atleast you don't loose your hard earned money when you have no other source of income.<BR/>Interest rate in banks in India for a years deposit is about 9% and is expected to go up.<BR/><BR/>Hope this helps.Anonymousnoreply@blogger.com