Well not exactly a luxury, but very much there. The most important question to ask is “can you retire at an age at which you think you can”.

The answer for most of the people I meet is  NO. They cannot retire at say 49 – another favored age if not 39. So, yes it is a luxury.

Funnily most people do not love their money. IN the sense that they earn it, spend it, pay tax, and then let it rot in the savings account. Or pay interest on credit card debt. That can rip you off. I have seen personal finance experts (and books) talk about 3% p.m interest and 36% p.a. It is not 36 maam, it is 42. Get your basic math right.

To me it is shocking. These are not people earning Rs. 2L a year. These are people earning AT LEAST Rs. 2L a MONTH. So on a salary of Rs. 24L if you are not planning for your retirement, when will you? I met a 35 year old who tells me “I am not clear what sector I should choose – he is a Chartered Accountant – and rotting in a shitty job. I told him “I retired at 39”. More importantly I was financially free. This of course is a combination of frugal (minimalist) living, living rent free for long, not having any financial emergency, and of course investing in equities AND luck. Of course not everybody wants this. There are many couples who will mouth ‘early retirement’ – and have a foreign vacation every 2 years. NOTHING WRONG with a foreign vacation – but pleas do not say you want ‘early retirement’. YOU have to prioritize what you want. It is your IFA’s job to say “if A happens, B will be postponed”. He is the data provider, YOU are the decision maker. Learn to say “My priority is this vacation to the USA with my family, costing Rs. 12 lakhs funded by redeeeming my mutual fund, and I am willing to see postponing my retirement by 2 years”. Just understand the implication, say it loud,

There are many millennials who will not be able to retire at 58 or 60. Some of them know it, some do not. Trying to talk to them is not easy – why I keep saying “Retirement Time bomb”. When I say ‘you will need Rs. X for retirement’, they get into denial or anger mode. It takes them 15 minutes to grapple with the numbers. After all who wants to hear Rs. 23 crores required for retirement?

Well if your electricity bill is Rs. 19000 in a good month and Rs. 28000 in a bad month, why are you in denial about your other expenses? This is not ‘spending’ on electricity, this includes a lot of ‘wasted on electricity’ also. Who am I to tell you what to do? I am just proof that EXCEL works. Some of these people can spend days on end looking at the next I phone that they are going to buy, but will not spend half that amount of time on finding out why their portfolio return stinks. They will suddenly call me and say “I have Rs. 20L lying in my savings account” but not meet an IFA and do a sip. You tell them about an IFA and they will tell you “I prefer direct”. Great. But I am sure in 4 months time that Rs. 20L would become Rs. 80L or gone as an advance for a “retirement home” in Coimbatore or Jaipur !

It surprises me, and I start eagerly chatting about how to invest and where to put their money. They look overwhelmed, but then I just tell them: Don’t wait. You are not appreciating the cost of delay. I have a calculator for that – see hot bad it hurts. Today is already too late. Time is on your side now but it won’t be when you’re 50 and being asked to evaluate a VRS. 

I offer advise (when they seek) by writing blogs, vlogs, doing videos, appearing on television, and of course training sessions. They say “wow..you are so busy” but would not START to do something. Some haphazard SIP would be happening, but at 35 if you do not even know where to go..it is time that you took up a job in a map making company.

Yes only those people who LOVE their money, are willing to work for it, pay taxes, spend sensibly….will be able to retire.

Damn your excuses. Ask only one question “Do you want your sunset years to be Golden or burning Red”.