Basant's story is an excellent Riches to Rags to Riches story. What were you mining in J&K? Anyway, it's good that you are now mining gold sitting in Kolkata.
According to me, if one wants to quit the job and 'live off' the stock market, one needs to have a large networth. If you are a fairly convervative person with a family to feed -
- Maintain an XL sheet for one year to see what your average monthly expenses are (including EMIs for loans). Let's assume that your average monthly expenses are Rs. 30,000.
- Get yourself and your dependants insured (health and life)
- Make sure you have 6 months expenses (Rs. 1.8 lacs) in CASH in your savings account all the time.
- Your fixed returns investments should yield a minimum of Rs. 40,000 per month as income. This could include rent from an apartment you own plus investments in Fixed Deposits or Liquid/Debt mutual funds. So if you own an apartment that gives Rs. 10,000 per month as rent, then you need to invest around Rs. 50 Lakhs in liquid/debt/arbitrage mutual funds.
- You should also have atleast Rs. 30 Lakhs invested in equities. Assuming 25% CAGR returns, you should be increasing your portfolio size by atleast Rs. 50,000 per month. This should take care of your future expenses like bigger car, children's education, vacation expenses etc.
So if your monthly expenses are around Rs. 30,000 per month, your current networth should be alteast Rs. 1.5 crores (incl real estate value). That's 500 times the monthly expenses. But based on your risk apetitite, you could make appropriate changes.
It would be helpful if your spouse is working.
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
