how much is enough?

nautanki · May 2nd, 2009, 22:57

Hello-

I am in my late 30s. I have moved back to Mumbai, India (from the USA) about 3 years back. I am married and have a 7 years old kid, who goes to school. I own 2 bhk flat and a car (no loan). And I work from home (takes care of my monthly expenses + small saving). My current monthly expense runs to some Rs. 50,000.

I want to know how much money I must collect in my bank Fixed Deposits to live off of bank interest and not worry about the future and may be work for some non-profit community service?

Thanks...

Hal · May 3rd, 2009, 01:24

A quick calculation at an 8% interest rate, and requiring a Rs 600,000 annual return gives Rs 7,500,000 in principal.

Haylo · May 3rd, 2009, 01:39

Yes, Hal's figure would be fine in the short term. If you were looking to live off the capital for the rest of your life, you would also have to allow for inflation both eroding the real value of your capital and increasing your monthly expenses, and also be prepared for the current interest rate of 8% to fluctuate - sometimes downwards.

nautanki · May 3rd, 2009, 20:05

So if I have to take inflation into account, is it close to 1,00,00,000 Rs. (1 crore) to live off of interest and maintain current lifestyle and also not have to eat into capital?

Darn, why do we have this so called thing money, in the first place? I wish the society goes back to early people generation. :-D

jituyadav · May 3rd, 2009, 20:19

Hal and Haylo (oh, that rhymes

) have given you the answer to your original question.I would like to add that medical expenses are the first thing that empty your purse in old age and the premiums are high for full medical cover. Take that into account if you have not done so. For the next query, stay in some secluded Himalayan peak for a few months and most probably you will get the answer.

nautanki · May 3rd, 2009, 20:50

I am sure there are people, still living the old way of life. Self sufficient community. :d

May 2nd, 2009, 22:57	#1
nautanki Saala Nautanki... Ghadi Ghadi Drama Karta Hai Join Date: Mar 2009 Location: Mumbai, India Posts: 45	how much is enough? Hello- I am in my late 30s. I have moved back to Mumbai, India (from the USA) about 3 years back. I am married and have a 7 years old kid, who goes to school. I own 2 bhk flat and a car (no loan). And I work from home (takes care of my monthly expenses + small saving). My current monthly expense runs to some Rs. 50,000. I want to know how much money I must collect in my bank Fixed Deposits to live off of bank interest and not worry about the future and may be work for some non-profit community service? Thanks...

May 3rd, 2009, 01:39	#3
Haylo Structural Member Join Date: May 2008 Location: Middle East and heading Easter Posts: 5,804	Yes, Hal's figure would be fine in the short term. If you were looking to live off the capital for the rest of your life, you would also have to allow for inflation both eroding the real value of your capital and increasing your monthly expenses, and also be prepared for the current interest rate of 8% to fluctuate - sometimes downwards. __________________ The world is mud-luscious and puddle-wonderful - E.E. Cummings, poet (1894-1962)

May 3rd, 2009, 20:19	#5
jituyadav Humble servant of the self Join Date: Apr 2009 Location: Delhi Posts: 613	Hal and Haylo (oh, that rhymes ) have given you the answer to your original question.I would like to add that medical expenses are the first thing that empty your purse in old age and the premiums are high for full medical cover. Take that into account if you have not done so. For the next query, stay in some secluded Himalayan peak for a few months and most probably you will get the answer. __________________ I started with nothing and I still have most of it!

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May 3rd, 2009, 01:24	#2
Hal . . . _ _ _ . . . Join Date: Jun 2008 Location: Toronto Posts: 2,302	A quick calculation at an 8% interest rate, and requiring a Rs 600,000 annual return gives Rs 7,500,000 in principal.

May 3rd, 2009, 20:05	#4
nautanki Saala Nautanki... Ghadi Ghadi Drama Karta Hai Join Date: Mar 2009 Location: Mumbai, India Posts: 45	So if I have to take inflation into account, is it close to 1,00,00,000 Rs. (1 crore) to live off of interest and maintain current lifestyle and also not have to eat into capital? Darn, why do we have this so called thing money, in the first place? I wish the society goes back to early people generation. :-D

May 3rd, 2009, 20:50	#6
nautanki Saala Nautanki... Ghadi Ghadi Drama Karta Hai Join Date: Mar 2009 Location: Mumbai, India Posts: 45	I am sure there are people, still living the old way of life. Self sufficient community. :d