I have a question, assuming one has a house with no loans , how much does one need in the Bank to retire in a city like Mumbai or Bangalore assuming that its a middle class life?
Re: Question
by BalaMurali krishna on Jan 04, 2011 09:55 AM
You need atleast 10 lacs bank deposit so that you can retire. You can invest this 10 lacs in FD and get 8.6% interest P.A. This is the safest way of investment.
Re: Re: Question
by BalaMurali krishna on Jan 04, 2011 09:57 AM
Considering 8.6% interest on your 10 lacs desposit, you will get 86,000 p.a interest and monthly u will get 7,166.00 interest per month.
Re: Re: Re: Question
by Dhananjay Mathur on Jan 04, 2011 10:22 AM
I think Rs 7000/- pm will not look after the expenses of a house owner in Mumbai /Bangalore. Also Rs 7000/- will depecriate over time. Need to have investment enough to pay expenses and re-invist to increase the corpous, to give more intrest later. I guess intrest of Rs 35-40 thousand is required to cater for inflation, making the savings to 50-60 lakhs at least.
Re: Question
by srinivas batni on Jan 04, 2011 02:20 PM
If one is retiring today and have a normal family size of three (You, your wife and child) and that child Son/Daughter is settled (both education and marriage), then Rs.1 crore would do, if you and your wife are keeping good health and hope to keep well for atleast another 20 years. Otherwise add another Rs.10 lakhs per every liability. If one is retiring after 5-10 years then God alone knows how the world/Mumbai/Bangalore would be at that time.By Bank deposit I presume it is savings from all sources (LIC, Post office, Scheduled banks, Fixed deposits, Investments etc.)
