Can I Retire with 5 Crore Rupees?

Can I Retire on 5 Crore Rupees?

Can you retire with 5 Crore rupees? Is it possible to retire if you have Rs.5 Crores of Capital? Well, the answer is – It really depends on your life style and expenses.

Rs.5 Crore in Government Bonds or any other equivalent fixed return instrument will give you annual pre-tax return (Interest) of Rs.40 Lakhs (8% Return of GOI Bonds). Now, if your yearly household expense is Rs.20 Lakhs today than you can retire with Rs.5 Crore rupees today.

But suppose if your Annual household expense is Rs.45 Lakhs or even Rs.35-40 Lakhs than you can not retire even if you have a Net Worth of Rs.5 Crores.

Because even if your annual expense is Rs.35 Lakhs, you can not beat the inflation. Typically if you want to beat the inflation than at least 15% (Rs.6 Lakhs in our example) of your annual income MUST go for re-investing otherwise you won’t be able to beat the inflation in the long run.

So retiring with any amount of Corpus will really depend on your life style and annual expenses. If you are a High Status Kid, than you may not retire with this much amount of corpus but if you are living a frugal life style, than you can right now retire with this much amount of Corpus. Many High Income/Low Net Worth people can’t retire early even though they are earning a lot only because their annual expenses to fuel their high status life style simply don’t allow them to retire early.

So if you want to retire early than you should spend less than you earn. You should live frugal. Than and only you can retire with 5 Crore Corpus….!!!