This Mumbai Man Is On The Road To FIRE With Equity SIPs | Mint Money

Summary

Arunava Gwinn, a 4-year-old aiming for early retirement, is nearly halfway to his goal of achieving a 15 CR rupee corpus through savvy investing and cost-effective living. Born and raised in Mumbai, his journey includes a switch from home ownership to renting for better amenities and space, aligning with his FIRE (Financial Independence, Retire Early) aspirations. Arunava's strategy involves mutual funds, direct stock investments, and a keen focus on minimizing unnecessary expenses, while also considering the impact of lifestyle inflation on his financial goals. He emphasizes the importance of balancing desires with financial planning for a happy and productive life.

Takeaways

• 😀 Arunava Gwinn, a 4-year-old, is aiming for financial independence and early retirement with a target of 15 CR rupees corpus, and is already nearly halfway there.
• 💼 Initially, Arunava spent most of his income with little savings, but later got serious about saving after being introduced to the concept of mutual funds and the FIRE movement.
• 🏠 Arunava switched from living in his own home to renting a larger space in a more amenable area for his growing family, and now enjoys the benefits of a gated community.
• 💡 The decision to rent rather than buy was based on a strategic analysis which concluded that renting made more financial sense at the time.
• 💰 Arunava's current financial status is around 15 crores, and he is on track to reach his goal in the next 5 years, despite uncertainties about inflation and currency value.
• 🚀 Arunava's vision of retirement is not about idleness but about gaining independence to pursue more productive and interesting endeavors, possibly involving entrepreneurship or teaching.
• 🔄 Arunava started investing in stocks based on tips from colleagues, but after the 2008 financial crisis, he shifted his focus to mutual funds, eventually owning around 60 funds before consolidating.
• 📉 Arunava uses Value Research as a resource to understand the mutual fund ecosystem and has been trimming down his portfolio to a more manageable number.
• 🏦 Arunava is a firm believer in investing directly rather than through a distributor, as he finds it more cost-effective and efficient once his portfolio reached a certain size.
• 👨‍👩‍👦 Arunava's financial planning is a joint activity with his wife, and they both need to align their plans for a successful FIRE journey.
• 🌐 Arunava's investment strategy includes a mix of mutual funds, direct stocks, and a small percentage in debt investments, with no significant investment in real estate or gold.

Q & A

What is Arunava Gwinn's goal for financial independence and early retirement?

Arunava Gwinn's goal is to achieve financial independence and retire early with a target corpus of 15 crores in rupees, and he is nearly halfway there.

How did Arunava's interest in the FIRE (Financial Independence, Retire Early) movement begin?

Arunava's interest in the FIRE movement began when someone in his office introduced him to the idea of savings and mutual funds. Later, he started following people on Twitter who were part of the movement, which further piqued his interest.

What was Arunava's initial experience with investing before getting serious about it?

Initially, Arunava spent most of his income with barely any savings. It was only years later that he got serious about saving money, influenced by someone in his office who introduced him to the idea of savings, mutual funds, and other investment options.

How did Arunava's investment journey evolve after the 2008 financial crisis?

After the 2008 financial crisis, Arunava started exploring mutual funds and has had a stable investment journey since then. He also began reading about the FIRE movement and started following it more seriously.

What significant change did Arunava make in his living situation as part of his FIRE journey?

Arunava switched from living in his own home to renting a place in a gated community with more amenities and space for his growing family. He put his own house on rent to cover the cost of his new living situation.

What is Arunava's current FIRE number, and how close is he to achieving his goal?

Arunava's current FIRE number is around 15 crores, and he estimates that he is slightly short of halfway there, but he is on track to achieve his goal in about 5 years.

What is Arunava's vision for his retirement or independence?

Arunava's vision for retirement or independence is not about completely stopping work but rather gaining the freedom to explore different avenues such as entrepreneurship or teaching, which he is passionate about.

How does Arunava manage his investments, and what is his approach to mutual funds?

Arunava manages his investments directly, having transitioned from using a distributor. He started with a few SIPs in mutual funds and eventually consolidated his investments down to around 20-25 mutual funds, focusing on tax efficiency and market conditions for buying and selling.

What is Arunava's strategy regarding real estate and gold investments?

Arunava does not consider real estate a good investment for his portfolio size, and he has not invested much in gold or fixed deposits. His primary focus is on mutual funds and direct stocks.

How does Arunava's family situation align with his FIRE goals?

Arunava's wife is also involved in the FIRE journey, and they work together on financial planning. Their joint efforts ensure that both are on the same page regarding their financial independence goals.

What are Arunava's thoughts on insurance, and what type of insurance does he have?

Arunava has term insurance and may increase his coverage this year. He also has health insurance through his company and a family floater policy for additional coverage. He believes insurance should only be for the period that one plans to be earning.

Outlines

00:00

😀 Early Retirement Ambitions

Arunava Gwinn, a 4-year-old, has set an ambitious goal to retire within the next five years with a financial independence target of 15 crores INR. He is nearly halfway to his goal, having started with minimal savings and later getting introduced to mutual funds and the FIRE (Financial Independence, Retire Early) movement. Arunava's journey includes a switch from living in his own home to renting, which has been a strategic decision to optimize his financial path. He currently pays around 40-42 thousand INR in rent annually and earns a similar amount from renting out his own property, effectively making his living space cost-neutral.

05:00

💼 Investing and FIRE Movement Insights

The script delves into Arunava's investment journey, which started with stock tips from colleagues and eventually led to significant losses during the 2008 financial crisis. This experience prompted him to explore mutual funds, where he initially invested in over 60 different funds. Through resources like Value Research, Arunava learned to consolidate and trim down his portfolio to about 20-25 funds. He also continues to invest a small percentage of his monthly savings directly into stocks, alongside his mutual fund investments. Arunava's strategy involves selling funds on good market days and transferring the money to preferred funds during downturns, although he acknowledges the tax inefficiency of this approach.

10:02

🏦 Debt Management and Financial Planning

Arunava discusses his approach to debt, mentioning that he has a small percentage of debt investments, mainly due to accumulated debt from his mutual fund journey. He is content with keeping it at around 10% of his portfolio. Additionally, he benefits from the Employees Provident Fund (EPF) for both himself and his wife, which covers a significant portion of his debt requirements. Arunava also touches on the challenges of KYC issues that his wife faced with SIPs being randomly rejected, highlighting the administrative hurdles in financial management.

15:02

👨‍👩‍👦 Family Finances and Insurance

The script covers Arunava's family's financial situation, including his wife's involvement in their FIRE journey. They have a joint approach to financial planning, which is essential for their shared goal. Arunava also discusses his experience with life and health insurance, mentioning that he has term insurance and is considering increasing his coverage. He has company-provided health insurance for his family and has also insured his mother through his corporate plan. Arunava has not made any personal claims on his private insurance but has utilized the company plan for various medical expenses.

20:02

💡 Lifestyle and FIRE Philosophy

Arunava shares his thoughts on lifestyle inflation and the evolving desires that come with different life stages. He emphasizes the importance of balancing one's aspirations with financial goals, noting that the FIRE movement is not a one-size-fits-all solution but rather a personal choice. Arunava believes in enjoying life while working and saving, with a preference for international travel while he is still in his working years, and plans to explore more of India during retirement. He also highlights the benefits of the National Pension System (NPS) and advocates for its awareness among colleagues.

🚀 Reflections on FIRE Journey and Future Goals

In the final paragraph, Arunava reflects on the dynamic nature of the FIRE journey, acknowledging that goals can change over time due to factors like family growth and lifestyle inflation. He discusses the importance of managing desires and understanding personal aspirations. Arunava also addresses the differing opinions on the FIRE movement, stating that it is a matter of personal choice and should be tailored to individual happiness and productivity.

Keywords

💡Financial Independence

Financial independence refers to a state where one has enough savings or investments to cover their living expenses without the need for active employment. In the video, Arunava Gwinn's goal of retiring early is closely tied to achieving financial independence, allowing him to pursue more productive and interesting endeavors. His journey is a testament to the importance of financial planning and investment.

💡Early Retirement

Early retirement is the concept of leaving the workforce well before the traditional retirement age, typically to enjoy a life of leisure or to pursue other interests. Arunava's aim to retire in the next 5 years, despite being only 4 years old in the script, is a central theme of the video, illustrating the planning and discipline required to achieve such a goal.

💡Mutual Funds

Mutual funds are investment vehicles that pool money from many investors to invest in a diversified portfolio of stocks, bonds, or other assets. They are a key component of Arunava's investment strategy, as he mentions having started with a few SIPs (Systematic Investment Plans) and eventually consolidating his investments into a more manageable number of funds.

💡FIRE Movement

FIRE stands for 'Financial Independence, Retire Early,' a movement that encourages saving and investing aggressively to achieve financial independence at a young age. Arunava discovered the FIRE movement through social media and it inspired him to pursue financial independence as a means to retire early and engage in more meaningful activities.

💡Portfolio Size

Portfolio size refers to the total value of investments held by an individual or institution. Arunava's portfolio size is significant, with a target corpus of 15 crores and being nearly halfway there, indicating the scale of his investment efforts and the progress he has made towards his financial goals.

💡Renting vs. Buying

The decision between renting and buying property is a significant financial choice. Arunava discusses switching from living in his own home to renting for more space and amenities, illustrating a strategic move that many people face when considering their housing needs and financial situation.

💡Investment Strategy

An investment strategy outlines the approach an investor takes to achieve their financial goals. Arunava's strategy includes a mix of mutual funds, direct stocks, and other investment vehicles. His experience with various funds and the trimming down process reflects a thoughtful and evolving strategy.

💡Debt Investments

Debt investments are financial assets that provide periodic income and the return of principal at maturity, such as bonds or fixed deposits. Arunava mentions having some debt investments as part of his portfolio, indicating a diversified approach that includes both equity and fixed-income components.

💡KYC Issue

KYC stands for 'Know Your Customer,' a process required by financial institutions to verify the identity of their clients. Arunava's wife experienced issues with KYC validation, leading to the rejection of SIPs, which is a common administrative hurdle in financial transactions.

💡Insurance

Insurance is a risk management tool used to protect against unforeseen events. Arunava discusses having term insurance and health insurance, emphasizing the importance of adequate coverage to safeguard his family's financial security.

💡NPS

NPS stands for 'National Pension System,' a government-backed pension scheme in India. Arunava appreciates the NPS as part of his retirement planning, highlighting the benefits of employer contributions and the tax advantages it offers.

💡Lifestyle Inflation

Lifestyle inflation refers to the increase in spending that occurs as income rises, often leading to a higher standard of living. Arunava talks about the changing desires and expectations as one's career progresses, such as the preference for premium economy or business class travel, which is a reflection of lifestyle inflation.

Highlights

Arunava Gwinn, a 4-year-old, is aiming for financial independence and early retirement with a target of 15 CR rupees corpus.

Initially, Arunava had minimal savings but became serious about investing after learning about mutual funds post-2008 financial crisis.

Arunava's interest in the FIRE (Financial Independence, Retire Early) movement was sparked by global trends and Twitter influencers.

He was born and raised in Mumbai and has a deep connection to the city, only leaving for his MBA.

Arunava switched from living in his own home to renting to accommodate a growing family and found it a financially sound decision.

He pays around 40-42 thousand rupees in rent and earns a similar amount from renting out his own property.

Arunava's current FIRE number is approximately 15 crores, and he is slightly less than halfway there.

His vision of retirement includes independence and exploring options like entrepreneurship and teaching, rather than complete leisure.

Arunava and his wife plan their FIRE journey together, ensuring both are aligned with the lifestyle changes.

Arunava's investment journey began with stock tips from colleagues before the 2008 crisis, leading to losses and a shift to mutual funds.

He initially had over 60 mutual funds but has since trimmed down to around 20-25, using value research for guidance.

Arunava continues to invest in direct stocks, allocating 10-15% of his monthly savings to them.

He does not invest in real estate or gold, believing they are not suitable for his portfolio size.

Arunava's portfolio includes a mix of equity and debt, with a preference for direct investment over debt.

He has faced issues with KYC validation affecting SIPs and redemptions, a common frustration for investors.

Arunava invests directly rather than through a distributor, valuing the cost savings and control over his investments.

He has a separate consideration for his son's education within his FIRE number, acknowledging the dynamic nature of education costs.

Arunava holds term life insurance and is considering increasing his coverage, avoiding legacy policies with cash back features.

He has a comprehensive health insurance plan covering his family and himself, with no significant claim issues.

Arunava's monthly expenses are between 15-20% of his joint income, with a significant portion allocated to travel.

He is enrolled in the NPS, utilizing both the company's contribution and his own, appreciating the benefits it offers.

Arunava emphasizes the importance of managing desires and lifestyle inflation when pursuing financial independence.

He acknowledges the personal nature of the FIRE movement, stating it's about finding happiness and productivity, not a lack of ambition.

Transcripts

[Music]

arunava Gwinn is 4 years old and he

wants to retire in the next 5 years

basically he has his eyes set on fire

financial Independence retire early his

Target is a 15 CR rupe Corpus and in

fact he's nearly halfway there but how

exactly is he doing this let's find out

[Music]

when it comes to you know investing and

saving money like with most uh you know

single men the first few years were

barely any savings was all spent off but

it's I think many years down the line

actually got serious somebody in office

introduced me to the idea of savings

mutual funds Etc I gone through the

whole journey before the 2008 financial

crisis bought some brilliant names at

2,000 Rupees which are today penny

stocks even or even Dlisted some Burt by

fingers Etc then finally jumped in the

world of mutual funds and since then it

has been a stable uh Journey thank uh

thank God for that and uh thus I feel

over the last few years you I started

reading a bit about this whole fire

movement globally uh started following a

few people on Twitter got me intrigued

uh more you know it really interested me

about the whole piece of being

financially independent retire you know

retiring earlier retiring towards more

productive and more interesting things

to you for yourself so that really

piqued my interest and I said you know

let me try and make a shot for it have

you always lived in Mumbai I have always

been a mumbiker I've been born brought

up uh T bre Mumbai uh in fact my gener

my family has been here for now 90 years

or so possibly the only time I've lived

away from the city is when I did my MBA

apart from that it's always been Mumbai

right and part of your uh your fire

Journey has been the switch from um

living in your own home to renting so

can you tell us about that yes so uh as

you know being a hard you know mumbiker

for so many years I did have a home in

Mumbai uh but it was more in the in the

you know in the older part of town more

was the older suburbs uh typical Mumbai

house which is small uh doesn't have too

many amenities uh we had we were blessed

with a baby during Co during the

pandemic we decided that's a time when

you need some more space you need a

place for the child to grow up to and

that's when we thought of moving a

little bit further out of the city so

that we get bigger space a more more

ities Etc we went through the whole

journey of buy versus rent thought of

buying Etc uh put it down to maths and

uh you know being a strategy person I

tried modeling it out and it just didn't

make sense to buy anything so that's

when we decided to rent so we swapped

rents you know basically put this on

rent put my own house on rent put this

on and went here on rent and it's been a

good journey so far you know it's been

nice staying in a gated community a big

Housing Society gives a lot of uh

Avenues to and things to do for my

parents uh for and especially for the

child lot of open areas to play Etc so

it's been good so currently it's 40,000

year yeah I pay a rent of around 40

42,000 over here and you make more in

rent why rending it's more or less the

same but yeah it's marginally marginally

higher by renting that out nice so

essentially you don't have to pay

anything for your State uh technically

yes technically yes nice okay so what is

your fire number fire number uh as of

things stand today it's anywhere between

around around 15 cres or so uh plus or

minus and that's what things stand today

you know 5 years 6 years down the line

we don't know where the dollar will be

where inflation will be so the number

may move but as things stand today it's

around 1550 and how much of the way are

you there I would say slightly short of

maybe halfway around there or something

but I think I'm on track to be at uh get

there in 5 years or so right and when

you do have that status what's your

ideal vision of retirement or just

Independence uh so there are two pieces

to it one is the as you correctly said

it's the whole idea of Independence uh

we've gone through some uh you know

Financial uncertainities in the past

when I was a child want to get away from

want to get away from that also free up

your uh open up different Avenues and

options for options for you uh it's not

that my retirement is like you know 45 I

want to kick up my boots and go and stay

in a Goa Shack and sip weer all day yeah

that's like fun that's that's actually

not what I envision myself doing maybe

at 60 or 65 but definitely not at 45

it's more a psychological block to get

there and then maybe uh maybe explore

different ideas some things around could

be entrepreneurship could be giving back

to society I have a passion for teaching

a lot so maybe I will explore that as an

Avenue but it's not just you know okay

I'm done you know that I can't go to

office I can't see an office absolutely

not that kind of situation correct and

I'm assuming your wife will also want to

work a lot more years and uh yeah so the

thing is whatever we talk about whether

it is the number it's the planning it's

all a joint uh activity it's not that I

mean it's going to be pretty pointless

if one person is you know as fired and

the other person is is still doing 9 to

9 to8 kind of jobs right so it's worth

both together yeah so you have to align

both your

plans so tell me about how you began

investing where did so you mentioned a

few stocks that you picked randomly the

4 2007 uh was that like tips from

colleagues or how did that journey start

so that was usual the tips from

colleagues you know and this was during

that whole rally before the 2008 crisis

you know uh where in those days you

would have the sensex move thousand

thousand seems like part for the course

today but you know I'm talking when the

sensex was at 17,000 it used to move a

th a day uh so you pick up anything

whatever is hot you hear tips you hear

from U People You Meet Etc we would do

that a bit a little bit of elss Etc as

you said you know 2008 everything

started going going down and uh after

which when uh you know when things were

down you kind of lost most of the money

Etc then you then I thought know let's

look at something some different avenu

started speaking to about mutual funds

heard a lot about from it from a few

colleagues started off with my first few

sips you know the first sip I still

remember I started off with I think one

of 1,000 rupes and one of 2,000 Rupees

you know and I said oh is it am I doing

the right thing so that's that's when it

started off and then balloon to six

mutual funds of 2,000 Rupees each and so

on you hit the point of 60 mutual funds

right yes I I I at one stage I had I had

around 60 plus mutual funds because

every few every few months there would

be a new flavor you know sometimes it's

an fmcg fund sometime it's some other

fund PSU fund Etc 2009 when the when the

government when the UPA government

returned there was a whole Buzz that you

know psus are really going to take off

so all mutual funds started off with the

PSU scheme so I to locked off PSU PSU

scheme unfortunately those PSU have

taken off now after after 10 years but

yeah that's been the journey so create

this some thematic fund some large gaps

and they were just off by a mere 10

years yes yeah so that's how you land up

at 60 plus mutual funds and when did you

start trimming them down like what were

the resources that you accessed how did

your thought process so I started this

you know oh I don't know if I should say

this but uh value research has been a

go-to place for me to understand uh the

mutual fund uh industry the mutual fund

ecosystem really well uh that's where I

understood the idea of you know let us

start trimming things out and I started

seeing some of these things and I

realized that like a lot of funds will

have certain particular like the HDFC

Rel liances ICS of the world are there

with everybody and I'm like you know

what am I doing with this and I realized

that I need to start trimming uh

trimming it down value research helped

me a lot in understanding and around 3 4

years back uh during covid is when I

started putting attention to trim this

down my idea has always been that you

know uh

whenever I have time and whenever it's a

good day in the market sell uh get out

whenever there's a bad day I transfer it

to whatever funds I I like uh trimming

down unfortunately is a bit tax uh is

not tax efficient which I think should

be something hopefully we change in the

next few years but it's it is what it is

but trimming down really helps and now

how many funds do you want now I think

it's come down to around 20 25 or so the

ideal I I know experts it should be five

or six but I think I'll still be there

around 15 or so or so over the next few

years I don't see going below 10 but I'm

assuming that it's not all uniform

you'll have some funds which dominate

your for yeah yeah yeah that is

obviously there some some will really

Dominate and the only reason I don't see

it going significantly down from this

number is because as you have trimmed

down and Consolidated rather the the

number in each fund is significant as I

said you know selling anything is tax

and is a tax inefficient so either you

stop investments into it or you just or

you let it be when you actually need the

money you sell otherwise selling now and

paying taxes on it is is pointless just

to get you know the the magic number of

10 mutual funds yeah yeah so apart from

MFS you also still do stocks I do a bit

of I do a bit of stocks I would say um

maybe 10 to 15% uh on a monthly basis is

in is in direct stocks I have uh tried

to do a mix of that thing but that is

more a DIY kind of a thing with the end

some a little bit of advisory Services

right as intend to% of your monthly

savings you

talk and the rest in funds yeah and uh

apart from these two they would do

anything else gold uh real estate and

anything else no I I am a firm believer

that real estate is not uh a good

investment for someone at my portfolio

you know once you are a portfolio size

of 500 crores it's definitely has it has

some solid reasons to do so but at the

sub 10 CR portfolio I personally don't

think real estate is a good idea to do

so uh gold uh you know uh fixed deposits

Etc not not much honestly not much the

entire at debt sometimes I do do do a

bit of debt Investments on off uh

majorly I again not don't touch debt

much because again in the mutual fund

Journey I've accumulated some debt which

I'm happy to keep it at us so it would

be less than 10% right now as of my

portfolio I Think Mutual in mutual funds

it would be around 14% or so would be on

deck and that I'm happy to it and you

have your uh employees Provident fund

account yeah so that is anyways there so

you've got your employees Provident fund

for both my wife and me going on so that

is that itself covers the debt piece and

yes the ppf that we do a religious every

year so in fact if you include those uh

together probably that 4% much much High

much higher yes the ppf EPF covers a lot

of the debt requirements how much do you

think about half or third no I would it

wouldn't yet become half it would still

be I think then maybe hit around 25% or

so maybe 25 I don't have the exact

numbers but right 25 30 or so and you

never withdrawn from either EPF or

ppf uh no I ended up withdrawing once

from EPF for a mistake when I changed

one of my jobs I signed up a form and I

suddenly got them some money back but

never taken a conscious decision to

withdraw from EPF you actually got the

money back that's the people get all

kinds of rejections these days um have

you been hit by the kyc issue at all uh

not so much myself but my wife was hit

uh you know all her sips for last uh

month were rejected and it was very

randomly rejected you know some went

through some were rejected so we don't

know what happened thankfully it got

sorted out uh but I still need to figure

out but I think my status is the kyc

status where I can't do any redemptions

right now I think it's all kyc validated

or there are some four five criteria

right I think I'm not yet at the top

most criteria but we'll get that sorted

hopefully but it is it is a unnecessary

pain yeah so do you invest through a

distributor agent or directly I do only

directly I I I strongly believe directly

I again as myour Journey had started has

started with a distributor very good

gentleman uh he helped me a lot but then

after while you realize once your

portfolio of a certain size you know a

1% outflow every year uh there isn't

much of a value at data distributed as I

said most of the research I was doing I

was reading up I was saying I need to

invest this and I didn't even get C

correction so I said you know there's no

point paying a percent every year uh for

the for you know filling up forms and

now with everything digital and at the

touch of of your laptop or your or your

mobile digital to um direct is what it

is now you have a son uh 3 years older 3

years yeah so uh when you have a fire

number of 15

crores for his education Etc you have a

separate number in mind like how do you

factor that's a very uh good question

you know because education is a very uh

Dynamic uh scenario because uh you know

like my sister my elder sister is an

engineer she did her entire engine she

graduated when the last century so to

say 99 she completed her engineering at

a cost of 16,000 rupees uh I was on in

Mumbai has was a free seat paid seat I

was on a paid seat my annual fees were

16 14,000 Rupees at that time today I

think engineering is upwards of multiple

lacks you know so and that is in India

and if you go abroad it's under the

question altogether so education

inflation is Beats any other inflation

in the in in the entire ecosystem of

Finance so you really don't know while

to a cut you know short answer is 12 to

50 15 crores should consider consider

his education yes uh but we don't know

because it may happen that we may end up

spending much more than that we may end

up spending much less than that so we

have to have that flexibility and given

that he's just three we really don't

know how the future is going to pan so

essentially you factored it in when you

calculated your factored it in but we

have some but we are open to the idea

that it may change drastically

understood tell me what insurance do you

have life insurance yes I do I had

purchased life insurance long back a

term insurance have continued with that

have term insurance from my employer

which also continues I have I may this

year uh I mean ever since the child is

born I've been thinking I'm not yet done

it actually but I may this year go on

top of my term insurance but that's it

how much is it currently right now I'm

covered for barely uh I mean with my

employer and with my and with what I

have I'm covered with upwards of 2 and a

half crores I may top top it up a bit

more but honestly that's vage there very

interesting thought about insurance that

insurance is something that you should

do only for the time of period that you

plan to be earning anyways so lot of the

companies s plans still 70 80 but if I'm

planning to work work around 45 even

even 50 you know you don't need

insurance beyond that technically so

let's see how the insurance so you may

stop it after I may I may stop it after

and what kind of premiums do you

currently pay uh currently because I

taken it long back the premium is a

little on the higher side I pay around 8

or 10,000 rupes or so I think nowadays

you get even a CR insurance at 6 5 or

6,000 rupees from ter I'm not sure if

the numbers have not validated it but

it's around around 10 8 10,000 a year a

year right pure term no money back no

cash back nothing that's also very

unusual most people have these Legacy

policies of LC and all no no no so I've

stayed away from all of all of that um

health insurance yes health insurance we

do uh again company provided insurance

covers Us decently for both my spouse

and myself in addition to that I I have

insured my mother also by the company

because for senior citizens Insurance

outside are as good as you I mean there

are plans but once you put in all the

disclaimers and the tnc's it's not so

good so I cover my mother through my

through my corporate Insurance uh in

addition to that for my wife and for my

kid we uh I have again added a family

floater cover kind of a situation with a

topup with you know in these products B

and thens have done that I think we are

insured up to 50 lakhs or so on that

apart from what was there from the compy

50 or 60 lakhs or so with Bas plus top

off got it and Company separate company

separate company separate for myself

company separate for my wife so together

we'll have easily have like a CR of

around for health insurance have you had

to claim it in the past any experiences

uh so only company I had to claim uh

when my child was uh born the the

maternity expenses that's it uh no

actually company plans I have I have

claimed I have claimed a few a few times

you know um with my mother with myself

Etc over the last 10 years or so but

I've so far claimed only company I've

never claimed my own personal thing yous

of no claim bonuses add up yes that has

standed and what was the experience like

the claim so I have so far taken it I've

been with on my own private insurance

just for 2 or 3 years the process has

been okay I mean we have not yet gone

through a claim so we really don't know

about that part but the sale process has

been pretty okay right no I mean the

company part but company part has been

completely smooth no no major issues

only issu the hospital and to process

paperwork and all but otherwise it's

been completely smooth tell me a bit

about your spending uh do you think

about ways to cut down how much do you

roughly spend a month so me uh we end up

spending around between my wife and

myself around uh 15 or% of our of our

joint income 15 20% of our joint income

as you said our rent expenses are pretty

much negligible because we SW SWA in the

rents uh that said uh so so that's why

our monthly our otherwise day-to-day

expenses are pretty low because of the

because the rent is not there uh that

said we I don't think we curb down on on

any expenses uh this is a day-to-day

expenses we both love traveling a lot so

our major expenses go towards TR uh go

towards traveling uh that's uh how often

do you travel we generally try to do a

trip a year a trip out of India a year

uh the hope is to you know augment that

with one or two more India Trips Again

the the philosophy we both share is

because we are uh we are planning to you

know at the time that we work then that

we are working and we have good jobs is

the time we should do the international

trips the the moment we go go we retire

actually retire is when we will say okay

let us look at more of India yeah yeah

and also as you get older it's harder to

travel exactly it's harder to travel you

know you can't you can't walk you can't

like like going to a typical European

city will involve 20,000 steps 25,000

steps a day you you may not be able to

do that once you're beyond 50 uh so

you'll need cars everywhere and India is

better for

that do you have NPS also yes I do uh

NPS has been a revelation to me you know

because uh in my previous companies we

didn't have that 10% basic NPS so uh

that's something that I'm that I'm

having here I'm very grateful and

thankful to it so I have I really loved

that product and that offering totally

and apart from the company do you do the

50,000 that also 50,000 so that I was

anyways continuing for many years but

the 10 % I just started 2 3 years back

and one of the things I keep doing

whenever we are talking Finance at work

is to tell people that you know this is

something and it's surprising the number

of people who are not aware of it yes a

lot of people uh who are senior and who

obviously whose compensation is higher

they are not eligible for the tax

benefit because of the 7 and a half lakh

limit but uh but for many it is it is

very much possible to do that and many

of those don't know M very true and in

fact it's also available in the new

regime so it is it is it is that's

actually a very good thing that's there

are you planning to switch to new regime

or how do you think about that if I'm

not uh if I'm not wrong me I think it

was your one article in mint which said

uh if your income is between 14 lakhs to

5 Crow old suits and Beyond five is when

new suits and less than 14 so I'm very

much at that threshold I don't see

myself going out of that threshold

anytime soon so old is where it it will

remain yeah so actually the math is the

amount of you claim so above um 15 lakh

income if the number of deductions you

claim including the basic exceeds 4.25 L

than um the than old otherwise new

otherwise yeah and we are still there so

it makes sense so far to stick to the to

the old okay great uh arov anything else

You' like to add about your journey

before we control so on on fire I think

one very important thing to understand

is you know the goal can often keep uh

ends up moving uh you know when we when

we were a double income no kid family

the goal was much much lower uh we

practically reached that goal today but

then we have a kid so we realize that

things change so that that is one thing

that changes the other thing that

changes is actually both a lifestyle

inflation and in one way your own desire

inflation you know when you start off on

this journey you will think that you

know I can live my life happily at 100

rupees a month for example but as you

move ahead in your life you're exposed

to so many other things that you won't

desire so I'll give you an example

example you can when you're younger you

will travel in you'll be able to take

red red eyee flights you'll say okay

I'll do a layover of 8 hours Etc as you

grow it in your career Etc you say I

want to fly if not business at least

premium economy after a few years it'll

be like I want to travel business no

these things then end up shifting so

it's very important to manage that that

balance between your desires I uh I see

a lot of chatter online where there are

people who like you know fire is the way

to go and there are other people who

like you know fire is for losers you

know you have no ambition in your life

Etc so I think it's not that it's to

each his own uh it's about understanding

what you want for yourself very

important what you are going to willing

to balance what are the trade-offs you

do and at the end of the day it's about

keeping yourself happy and productive

yeah very true thank you so much it was

lovely steing J thank you

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