Ok, so I'm currently 31 years old and have saved up 23 lakhs in equity based mutual funds. My goal is to retire by 35, and put my money into some scheme that will support me for the rest of my life. I earn around 60k per month with no children and no one to support. It's just me. I don't even have to pay house rent.
Here are my calculations. I would appreciate anyone pointing out errors, flaws, and advice as to the best way to achieve my goals.
I want a regular income of 40-50k (in today's value) per month. This is just for my peace of mind. My actual expenses will be around 20k (in today's' value) and I'll continue investing whatever I don't spend to fend off inflation. Here are two strategies:
1. Reach 60 lakh (in today's value) in 4 years by continuing to invest in equity mutual funds as I've been doing all along. When I hit 35, I'll put it into debt instruments that will give me 8-10% returns p.a and I can live off the income for the rest of my life.
2. Reach 60L and just keep withdrawing for my requirements whenever I want. It's tax free since long term capital gains from equity investments are exempt and I won't spend it faster than it's growing and should easily keep up with inflation.
I would appreciate any insights, advice as to how to better achieve my goals, or anyone pointing out flaws in my calculations. Thank you in advance!
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