I have been a bike and car Enthusiast I have my dream car that I to purchase it's a beamer the starting model should cost around 60 lakhs something I would need like 1 lakh per month to maintain my same lifestyle what I have when I'm earning our goal is to retire 4 with corpus with no income right that totals of good 16 and financial planning eventually this couple wants to retire from corporate Life by 40 but they have no idea how so we brought in watel our CEO's financial adviser to sort their finances and help them retire early what is your biggest Financial so my biggest Financial goal is to retire by 40 uh to retire at 40 so there's a balance that I have to create in like what I earn and what I want to do right so earning part is high now and what I want to do is somewhat bit lower but I want to reach a time a position where this what I want to do should be higher and earning will eventually get there do you think your partner spends more than you obviously yes me I'm the one who spends more have you and your partner ever had a money or Finance related disagreement of find night a disagreement sometimes we take the decision and then think of the consequences later that's what it's more of a credit cycle that goes on right a 50 days of credit cycle that there and we take a decision and then we figure out how to pay it and then what are adjustments we have to do later in the next month or something it never led to a disagreement because whatever is done is done on a scale of 1 to 10 how would you wait your personal finance planning I think seven I quite do good uh planning four I actually haven't done any personal finance planning hey rash hey RTI so I come to know that you know you guys want to retire by 40 yeah is that right yeah the amount of money that I have been getting right it varied along the my whole journey what I feel like I'm not able to keep up with it okay so what I felt would be enough for me like 3 years back is not enough for me now so I think it's quite crucial now that I actually get a help in this financial thing right this typically what we call out as like lifestyle inflation three star hotel fourar you know you'll take a bigger car all but we'll come to that right so um how much you guys combined make today we around 70 to 75 to 80 sounds good to around 4 4 and a half LS hits your bank account and if you are to you know think of all your expenses right some small breakup of it Essentials would be around 1 lakh 120ish the major component would be rent over there so rent is around like 38k earlier like we were too much into shopping and moving around exploring new place within Bangalore but now I think we have seen enough uh but uh now we would be spending around 20 or 25k by that logic I think 75% of the money that you get you save no obviously we don't save all so the major component goes to in our Emi oh so you guys have already bought a house yeah I see the house cost is 1 CR 34 lakhs I see how how much is the Emi right now so right now is 90,000 we have not done the full dispersal of the loan so I think that's yet to go up take we discuss about that tell us about your Investments if you take our individual part like P has most of the investments in her name uh but combinely like I think we would have invested around 40 to 45 lakhs okay uh out of which I'll say 75% would be in uh mutual funds okay and mostly hybrid mutual funds 20% uh would be in stocks okay and then rest I think uh it's liquid I see FD and RDS right you mentioned you you know working out on you know business opportunity right so it's a cafe okay uh and it has like uh I think hundreds of franchises in India okay I think it has been seven eight months now okay how much Capital would you have invested there so it's in a partnership and totally I think 20 lakhs 20 lakhs we would have invested in that all right and you see that you'll need further pumping or the business is now taking care of itself business is taking care of itself since like we are employed all the money will be pumped back to the business and the idea is to grow the business and hopefully so by my 40 this business would begin now uh let's get into details of it our goal is to retire 40 with the corpus with no income right let's see how what track are on house being the biggest financial decision that you'll ever take right uh uh let's try to understand you know what are the numbers behind that so you said 1.33 Gres of house how much is the sanctioned home loan I'm assuming it's not disable once year once year and how much is this was 75 lakhs and how much is already given to the Builder so far so Builder uh I think 97 lakhs that includes our contribution also sounds so the Builder is yet to receive another 36 lakhs the loan disbursement is another 25 lakhs left for you guys right all right uh this 13 1 133 lakhs includes the registry or it doesn't no you guys have any furniture budgets for the house in mind or not yet we have not thought about it I think it will cost us a anything around 10 to 15 lakhs it would be less only like 15 lakhs I'm not sure you said you have taken a 1 CR loan how much is the EM working out today 90,000 per month all right so by full disbursement should cross 1 lak2 yeah uh that's pretty much high right what what's the 10 years have opted for 10 years we want to retire early that's why it's like 10 years of tenure so when we get 40 uh we will be like loan free but a bank did not know you want to retire by 40 you could have got a 20 30 so uh retiring by 40 right but that's that's a long short 9 years what are the you know are there any other minor goals along the way we travel quite a lot we have aggressive goal ke at least we should cover two countries in a year but let's see how it will go and what countries have you guys covered so far so I I think like I would have covered around eight countries okay mostly domestic trips I I won't say it's expensive because like I'm a tourer so we tour using our bike what bike do you uh so it's a adventure tourer from BMW how expensive is that no is the starting model I'll say it's not expensive but yeah it will cost you around around five lakhs so you mean it's not expensive for a BMW H not expensive for a BMW okay good way to cover it all right how how much would you pin down in annual budget too so around 20% of our combin income expense what income I think yeah 20% like for for for month for annual is six lakhs then annualize figure to I think all right so that's roughly what about 7 and half 8% of your income right okay so apart from the international travels I have been a as I said right bike and car Enthusiast so I have my dream card that I to purchase which one is that it's a beamer okay and how much does it cost the starting model should cost around 60 lak something so um how how soon do you plan to purchase one so I think I have already crossed my deadline okay but yeah so as soon as I make up for it I will plan so maybe next year something how are you I'm not sure but I think I I would need like one lakh per month to maintain my same lifestyle what I have when I'm earning so one L per month or and about the household expenses right do you guys plan to have kids we have not thought about it no all right but would be good to budget for a one workings I think that's eventuality okay so based on the numbers we've Shar and based on the some documents that we taken from you if you guys want to retire by 40 you know just to take care of your current household expenses until the your own life expectancy say 85 years of age you guys need to save 8 crores just for your common expenses by the age of 40 to top it up if PR wants to spend one lakh per month in two days terms for the rest of her life from 40 to 85 she needs to save for another five crores and if you guys were to continue with the same travel budgets in your retirement you guys need another two crores if you combine all these three together right that totals up to a good 16 crores till the time you know the age of 40 you guys need to do a sip of 8 and a half LS per month any any thoughts on how do you still see your retirement uh it's impossible it's a waking call I guess okay let let's work towards it right so are you guys open to pushing your retirement age no the thing is uh the whole purpose of this retirement is to actually pursue what I want it doesn't mean that pursuing what I want won't lead some money to me okay right so I think I see a s lining there ke if not from my corporate world when I retire I should be able to work out something so all right so age is something that you guys don't want to push right before we even start speaking on the Investments right um how how are you guys insured you know health insurance life insurance what do you guys have is up today we have the company owned health insurance that's it do you guys have any emergency funds emergency f is Rd FD what what I have known about emergency fund is like more of a fall back and cushion that I should be able to sustain my expenses for a given time when I'm not earning so think of it this way right today you guys are thinking that whatever savings I have I'll first put it towards my house but say God forbid there's an emergency in terms of income loss due to job loss attration you don't want to sell your house because you did not have money to pay for emis right so important to keep that Pion with you guys right at the same time you know um insurance is something really important that your emergency fund should not get disturbed by medical expenditure because you already have a health insurance to take care of it and same like for likewise for life insurance that you know the other partner should not sacrifice on goal just because something happened to the other thing right so you know you take that as an active decision today itself so how much it should be the life insurance cover the corporate should be big enough to cover up for the income either of you is not going to contribute now how do we compute it we can technically use like a calculator of sorts which we call it out like a human life value calculator I can give you the calculators later and you know you can input your figures and you guys will know how much ter Insurance you need right before we try to work towards an achievable solution towards retirement right let's look at this shorter things and minor goals that we had right so the most immediate thing is your house right out of which 25 LS of disbursement is has to be done from the home loan right so 11 LS is something that you still have to pay to the Builder uh you mentioned registry is over and number 1.7 that makes it another 8 lakhs so that takes your total more payable amount to 18 19 lakhs and furniture how much was it I think around 15 lakhs do you guys have any money over and about your mutual funds for house yeah we have set aside 10 lakhs 10 lakhs 10 lakhs so that that takes care of it so this 35 LS has to go over 6 month even if you have to cut down all other Investments right now and say we save the 2 lakhs per month that takes care of another 10 12 lakhs how do we arrange the balance 10 15 lakhs 15 lakhs okay yeah so mutual F I mean that's something that we'll have to do right and let's assume that whatever Corpus we have left for our retirement is 18 lakhs less of what the current 40 lakhs of mutual funds are right moving to the second expect of the home purchase house purchase itself you guys took a home loan right home loan may you guys are paying a 90,000 Emi get full dispersal it'll go to20 how about we propose an alternate solution here where we say that rather than taking a 10year tenure we take a 30-year tenure but it will contradict our plan to retire at 40 right so how about this so if I to run some numbers right if you increase the 10 from 10 years to 30 years what will happen your existing home loan Amis of 1 lak2 1 l25 will come down to 1 76,000 to 80,000 per month okay that leads to a direct Savings of 40 50 55,000 per month it's a basic Finance right you know if you're borrowing the money at say x rate of percentage and you're investing that at a X Plus 3% X plus 4 person you'll bound to make money by the age of 40 the outstanding home Lo home loan amount will still be 90 85 to 90 lakhs what ends up happening is that uh to save that 90 lakhs over the8 year next 8 years you guys will have to save 47,000 per month and that will make you reach that Corpus but what happens is that you have another 8 9,000 of sips unlocked for your goal with this we optimize house to the extent possible right next major thing that I see is you know buying a expensive car right a luxury car or are you open don't need it now but you know um giving that we are trying to bridge that deficit right is genuinely speaking car something that you're willing to let go no I can't that's the purpose I'm driven with are you open to deferring it I don't or how many side have you how many times how will I answer it to back to myself you have to take make a choice right tough one but I think what needs to need to be done yeah car is something you can defer don't want car the car is done and the you know last of the most you know discretionary thing was traveling right uh traveling is like we want to travel you we we we you know on a serious note you know how do you guys look at you know travel Vis the retirement per maybe international trip once a year there's a Midway I guess like we can have a that how we can budget more better it's not something that can move mountains but that saves another say 8 10,000 per month so far on things that we have discussed homel loan saves us another 10,000 of sips moving on the car for the next 5 years it at least roughly saves you around 6 65,000 a month so so far we are at you know we have already brid that Gap by 90,000 all combined right moving on to the last part right PRI mentioned that you know she wants to spend 1 lakh per month right we can cut it down if we if our main goal is retire at 40 so I can cut it down to that's more like a balancing balancing yeah let's take those numbers are you open to something like semi- retirement yeah I think that's the kind of retirement looking for obviously I'll be working but on my own thing that will generate money that semi- retirement the way I trying to say until the age of 40 you continue with corporates you try to be at the peak of your potential try to save as much as possible right from the age of 41 to 60 you continue to work work enough to take care of your expenses or you restrict your expenses to the extent of what you want mhm so in a way you're not buring your income with that you have to manually do these savings but at the same time you're not burdening your corpuses with some kind of you know withdrawals okay you know I need these money for my expenses and then from the age of 61 to 85 just like any other conventional time you just purely rely on your investment Corpus to take care of uh you know all your expenses so this covers the deficit no I'll come to the deficit but you know in this case what's happening is that we are left f a very longer runway for growth in the investments in the earlier uh working right we needed 16 and a half crores and we starting the withdrawals from the age of 41 but now we are deferring the withdrawals till the age of 61 if you do that right uh the requirements to save you know that Corpus until the age of 40 drastically reduces originally the figure was 16 and a half cres right for all the three goals now before I even tell you those figures right I'd like to know your estimates of how drastically it could reduce I'll say four to five cres same four to five so you guys are banging on target so what that 16 and half crores was there it trickles down to 4.75 crores in the respective asset class right your EPF your ppf your mutual funds your all your instent it keeps compounding compounding compounding by the age of 60 that figure compounds to hoping 36 cres oh 30 but now let's come to the monthly targets right how much that does that come to any guesses for that should be less than what we are earning at least you know that deficit of 8 lakhs now comes down to as low as 15,000 per month you know now the 230s that you guys were saving mhm ideally to meet all these things right you just need to save 245,000 per month so you're like in a 15,000 deficit maybe your next hike will cover for it right that that does now sound achievable right what what use on it I'm happy and maybe deficit of 15,000 when it crosses you know into the positive territory and when it say crosses 80 or 70,000 per month that's the right time for you to look at a car even a 15% hike will make you reach towards that affordability of car right that's the way to look at it now that we are done with all the number crunching and financial planning right uh how what's the before after of the exercise you know what are your thoughts before this discussion we have to retire at 40 we had this plan but we didn't think how we are going to retire at 40 what did the dis question led to is actually the clarity on where we are standing now right at least we have a benchmark to compare key where we have to go and how we fairing now I think what he said like uh it's like semi one right so it's achievable right we can we can do and if you look at it like early retirement at like 40 doesn't come so easily right so I mean you will have to figure out to do something in your life otherwi you just find board maybe you know figure out something which you know figure out your passion in something that can that doesn't need to pay you so handsomely what it pays today but it keeps you occupied and keeps taking care of the expenses right and that's a better quality of life compared to just staying at home or just spending key takeway for me would be like just having goal won't help you need to plan for that goal and I I would like to correct my uh previous uh ratings what I was doing I thought it's good uh I mean deep down I never thought okay that's so I said it was it will be seven but after all this discussion with watel I think I what I was doing it was five with this conversation I think we are in a better position if you follow this then our financial planning for the long term is in sight and I think we can be comfortably around on scale of 10 we'll be at 9 right yeah so how would you rate your personal finances from 1 to 10 if you're not sure of that answer then let's talk fill out the form in the pin comment below and maybe you can be in the next video with watel
