High-level numbers below
- My Age: 36
- % Saved for Early Retirement :
38%34% (target % reduced due to 10.4% LTCG tax announced in the budget after this post was originally published. I’ll write a detailed article on this new tax’s impact next month)
- Next year we are hoping to reach
50%46% of our target. Fingers crossed!
- I’ll update the progress bar on the right-hand sidebar every year with our progress
- Current Monthly Saving rate : 25%
- single-income household as mentioned in the NRI post.
- this savings is from my business income
- Effective Monthly Saving rate : 50%
- wife is moving her low-return F.Ds to mutual funds via SIP so we are effectively saving 50% of income in mutual funds towards retirement.
- We currently have a 60:40 split between active Mutual Funds & inactive EPF/PPF.
- more SIP in the coming years will tilt this balance towards equity
- Our Total Portfolio Return is approximately 14%. Our Expected return is lower at 12%.
- Our Large-Cap fund returned 18% as of Dec 2017. We are taking this as indicative of our equity returns even though we have some mid-caps that performed better because only our large cap fund shows the XIRR 🙂 For accurate numbers we have to calculate manually and we haven’t done that yet.
- Our PPF interest rate was 7.6% as of Dec 2017. Using this as indicative of debt returns. I’m deliberately using the lowest PPF rate since I’m approximating here.
- So with a equity:debt ratio of 60:40, our total portfolio return is around 14%. (60×18% + 40×7.6%)
- I’m sharing our returns only to document the numbers so we can look back many years from now on the ups-and-downs in returns. We are not really worried about the ups-and-downs as it will get smoothed out over the years like I explain in my blog post 12% return from stock market every year?