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Retiring at 34 - in two years time (2016)
Old 03-28-2014, 09:19 AM   #1
Confused about dryer sheets
Join Date: Mar 2014
Location: New York
Posts: 2
Retiring at 34 - in two years time (2016)

Hi all,

I am currently 32 years old and soon to be married. We don't plan to have kids so there will be two of us.

Our plan is to move to India in early 2016. The reason was for this is two-fold: (i) Cost of living and (ii) Familiarity since I am India. My wife is fully onboard with the move.

All $ below is US dollar for ease.

Expenses - We believe that our annual expenses will be $55,000 a year. We believe this is super-conservative for India and includes almost $10,000 annually for traveling and another $10,000 cushion. In addition, we have a whole-life policy with annual premums of $25000 each year through 2029. We'd like to keep contributing this since it will be a source of income when we get older

Income - Assume $0 since we are not sure if our businesses (which we will start only if we are passionate about them) will generate income. At best they will be break-even.

Investments -
1. In Rupee-denomination - We have $380k today in fixed income deposits in India generating approximately 9.5% to 10.0% annually. We plan to put another $200k early 2015. They are structured such that they generate $77,000 annually (pre-tax) from 2016 to 2029. After that they are at $0 since we will have used both the principal and interest. There will be $25k left over that can be considered to have been used up as emergencies arise

2. We then have/will have by 2016 the other following investments all in USD denominaton until we transfer money back as we need it:
a. $750k in brokerage account - mostly in equities with a mix of US/emerging markets
b. $300k in a IRA account that we cannot access until 2041 (when I turn 59) - mostly in equities with a mix of US/emerging markets
c. Our insurance plan which we can get income from when I turn 60 (2042) though the longer I wait the better
d. Approximately $175k in private investments that we are not counting on (or assume $0 return) given their risky nature

I have been struggling with inflation impact primarily since I will have both dollar and rupee exposure. I am hoping but not sure whether the inflation in India will be offset by a weakening rupee and therefore I won't pull back as much money as I need from the brokerage accounts

We could use help with the following:
1. Does our annual expense number make sense?
2. Are we being too ambitious to retire early? My fear is running out of money not when I am 40 or 50 but when I am 65 or 70.

Any help, advice or feedback is much appreciated

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Old 03-28-2014, 09:25 AM   #2
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Join Date: Sep 2012
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Isn't living on $55,000 in India like being Bill Gates? I had imagined the average middle class income in India to be more like $10,000 to $20,000.

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Old 03-28-2014, 09:30 AM   #3
Confused about dryer sheets
Join Date: Mar 2014
Location: New York
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Originally Posted by Fermion View Post
Isn't living on $55,000 in India like being Bill Gates? I had imagined the average middle class income in India to be more like $10,000 to $20,000.
I have had a very difficult time nailing this down. It's something that I will know for sure once we move. The goal is to live a decent life definitely not a Bill Gates life .
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