Mastering the FIRE Method: The Ultimate Guide to Early Retirement & Financial Independence

30% saving on expense in NOT 30% increase in salary.

Dear @shankarnath, Thanks for the video, it is really good and very well explained.
I have one query, while finding our current monthly expenses, how do we need to take into consideration of the future expenses in account like kids education, their higher education, marriage and buying house/vehicles etc. because this could vary based upon phase of life. please advise.

Thanks
Veeresh.

Thank you @shankarnath for the detailed FIRE tool. I have 1 clarifying question - The monthly expenses in Year 1 of retirement needs to be inflation adjusted right? i.e. 1L monthly expense in today's money needs to be inputed at ~2.75 L in terms of expense in year 15 ( assuming 7 % inflation)

Hello Mr. Nath. A very well-made video on the topic. Please correct me if I am wrong, but I believe there might be a mistake in the calculator for calculating the corpus at the beginning of each year. The formula right now is C[Cell Number]+D[Cell Number]+E[Cell Number] - (F[Cell Number]*(1+$D$13)).

Should it not simply be C[Cell Number]+D[Cell Number]+E[Cell Number] - F[Cell Number]) since the capital gains tax has already been taken into account while calculating the value in the returns column? Otherwise, we are subtracting the tax twice from the corpus?

Also, once we retire and start making withdrawals, we have to decide if the withdrawal is done at the start of the year (for the sake of simplicity). In that case, the withdrawn amount should not count towards the corpus that is used for calculating returns for that year. In other words, we should subtract the withdrawn amount from the corpus at the beginning of the year before we calculate returns for that year. Does that make sense?

Hi Shankar, love your content.
Would love to see a video on how to invest in Index funds

Excel sheet not found??

I think in 2050 one person will need abt 1 lakh rupee per month to live a satisfactory life ... given that he has his own house and a good health insurance ... what say?

Excellent as always. Such a compelling subject be it early or normal retirement. Request you to make follow-up videos on this subject that includes SWP, managing market downturns etc.

😀

If you retire early, it will be quite boring

Thanks for the excel sir much appreciated.☺

thank you for the excel!

Can you do a video on how to spend my salary of Rs 30000 a month

Thank you sir

I guess if the rate growth of the saved corpus covers inflation / taxes / withdrawal percentage then this corpus will last for ever.
Please correct my understanding.

Excellent video .. must watch .. much needed

Hi Shankar, Can you make a video on tax efficient withdrawal strategies in retirement, from accumulated capital consisting of FDs, Mutual Funds, Stocks and Bonds.

Thank you so much for the simple yet amazing FIRE calculator

Simple thing - 60 years or 50 years- 18 cr. Retire , enjoy

Well you really are very creative👌

Thank you!
Couldn't download Xls from link

Thank you so much sir ❤❤❤

Should i put the inflation adjusted value on my future expenses or it is already inflation adjusted

Meri toh job hi 30 me lagi 😅

@shankarnath Dear sir while calculating returns on invested why did you take Capital gains tax? Shouldn't it be only taken into account on withdrawals?

Is that worksheet in excel ? Uneditable

Sir, the spreadsheet has a defect. post retirement monthly expenses did not include inflation. A big thanks for the spreadsheet though

Very much thrilled by this video. Controlling once mind and regulating investments would be crucial part for success of F I R E

This man is a genius. Why isn’t he popular!!

Can I have the excel, pls..?

thanks for his video. i am also on path of FIRE in coming 1 2 years..

A fantastic insight ! Very useful for creative people who want to productively contribute at some point in their life- not necessarily after 60 !

Hi sir I can't able to edit or download the sheet can you provide edit access

Must watch for almost anyone & everyone across age groups & financial status 👏🎉

Hey just wanted to highlight one thing that in calculator you have done double taxation(once at return generation stage and second on withdrawal stage). I may be wrong but still no harm in checking it.

Hi Shankar sir,
Your custom FIRE calculator is extremely helpful! Thanks a lot!

Thanks for the detailed explanation using simple terms, there are no calculators out there which account for capital gains tax and inflation in a single calculator. This spreadsheet is simple yet very powerful.

Regarding your calculation, I would like to know why you are deducting Capital Gains taxes twice: once in column C (CORPUS AT BEGINNING OF YEAR) and once again in column E (RETURN ON INVESTED AMOUNT). If Capital Gains are already deducted in column E, shouldn't the formula in column C be (=C+D+E-F).

Apologies in advance if I missed something in my understanding.

I find this tool very interesting. Thank you!
CORPUS AT BEGINNING OF YEAR is given by the formula "=C28+D28+E28-(F28*(1+$D$13))". I think it should be "=C28+D28+E28-(F28*(1+$D$16))". Please correct me if I'm wrong. Thank you!!

Is it advisable to invest in the market after retirement to achieve a 12% return on investment?

Where is the link to the Excel file?

Thanks for this sheet - absolute gold.

Hi Mr Shanker.

The video is amazing and very helpful. Clear & concise.

One doubt i want to clarify. As i dont have a finance background.

Just wanted to confirm, in the calculator. The LTCG tax - is being applied on the capital appreciation from the day 1. But shouldn't it be applied from the day you actually start a SWP.

Let say we start with age 35 and retirement/start withdrawl at 45.

Q1. Should the tax be applicable from age 36-37 ... Or should the corpus be increased until 45 without tax implications... And the tax applicable after withdrawal start from age 45.

Q2. Also, the 10% tax be applied on the yearly SWP amount total only or the entire capital appreciation amount?

Not sure if i am correct. Kindly help me understand this.

Thanks and regards.

Capital gains 10%😢
BTW i feel now have our own Ashwath Damodaran in India

RETURN ON INVESTMENT (PRE-TAX) cannot stay same for
Before Retirement VS
After Retirement
For example:
Before retirement, you can invest - asset allocation in equity:debt in 70:30 ratio.
After retirement, one can, but should not invest in the same asset allocation.

Thank you, Shankar, for the video and calculator. I'm a bit confused about why withdrawals decrease the retirement corpus. I thought the idea was that passive income would cover my expenses, preventing the corpus from shrinking. That way, I could earn monthly income from interest, etc., while the overall amount remains relatively untouched.

@shankarnath: Suggest that the value acell which shows monthly income at retirement should be auto-computed depending on inflation and current monthly expenses

Sir sheet showing 'view only'

Your video presentation style is best ❤

Super useful❤