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22 Mar, 7 tweets, 3 min read
Many new Twitter followers are (understandably) asking questions that I've answered sometime in the past.

Hence, I hope this collection of threads and posts will be useful. I intend to keep this updated over time.

//THREAD// 👇
About me: In 40s, achieved #FinancialIndependence in Oct 2020 through a regular 9-to-5 large corporate job and disciplined investing in Mutual Funds & Index ETFs over 2 decades.

Worked more years in India than abroad, if that matters.
How much money is needed for #FinancialIndependence in India?

Spoiler: It is more than 25x current annual expenses.

Read More:
No journey is without mistakes and I made my fair share on road to Financial Independence.

Read More:
You don't need to read a 100 books on personal finance. Read a few but implement them consistently for 100 months!

My recommended books on personal finance:
Direct stock picking requires more skill and mature temperament.

#MutualFundsSahiHai is true for many.

So how to choose a direct mutual fund in India?
Why Lean FIRE is hard!

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More from @LifeAfterFI

LifeAfterFI Profile picture
14 Feb
How to choose a direct mutual fund?

1. Start with the basics - what are your goals, time horizon, and risk appetite? Your dream vacation fund can take more risk than your kids education fund, for example.
2. Once you know that, determine the asset allocation between equity & debt.

For equity, figure out how much you'd like to invest in large, mid, small cap and understand the risk-reward profile for each.
3. Personally, I would like to go with funds focused on LC, MC, SC than a flexi fund, but that's my preference.

When shortlisting funds, check for the following: how long fund has been active, 5/10 year returns, expense ratio, turnover, frequency of change in fund manager...cont
Read 11 tweets
LifeAfterFI Profile picture
4 Jan
How to select a good financial advisor? 👇

Caveat: I've not used a financial advisor and learnt things the hard way and / or with tons of research. I wish I had used a fee only advisor earlier. I may have avoided at least some mistakes.

Feel free to add.
1. Pick a fee only financial planner / advisor. That way they have no conflict of interest and no interest to peddle products to you.
2. Ask what they will discuss with you in the first session. Anyone who doesn't start with wanting to know your goals, aspirations, fears should be a red flag.

Money must fit into life. Life shouldn't revolve around money.
Read 7 tweets
LifeAfterFI Profile picture
3 Jan
Q: Why do you continue with a full time job when you've reached #financialindependence?

Answer below:

👇
First, I've reached FI only a few months ago. Yes, I had a buffer in my target number and felt FI only once I reached 105% of that "buffered" target.

Nonetheless, it's been a raging bull market and I'm aware that a deep correction can reduce my net worth to non-FI status.
Second, assuming market stays flat or goes up, my savings rate will get me to #financialfreedom in next few years.

By FF, I mean that I will have a fat(ter) emergency fund, enough saved up to go for a few dream vacations, plus some other life goals.
Read 5 tweets
LifeAfterFI Profile picture
11 Dec 20
Have had many ask how much money is enough for (presumably early) #financialindependence in India. Is it 25x, 30x, or 40x of current annual expenses?

My opinion.

//THREAD// 👇
1/ The first thing we come across when researching financial independence is the 4% rule – 25x your current annual expenses saved = FI. Many early retirement bloggers also preach this so let’s dig into this a little bit.
2/ This is the result of the 1998 US-based Trinity University study which found that using a 4% withdrawal rate on a 75:25 stock:bond portfolio over 30 years had a success rate of 98%.

Let’s understand the assumptions therein.
Read 26 tweets
LifeAfterFI Profile picture
7 Dec 20
Nothing worthwhile is achieved without mistakes. I’ve made my fair share on the path to #financialindependence

//THREAD// 👇
1/ When I first started investing, I didn’t have clear goals. I’d simply save up. While that’s not the worst thing, it meant my capital allocation was not in line with (then non existent) time-based goals and hence, I didn’t take enough risks for first 1-2 years.
2/ At one point, I probably had 30-40 different funds but without enough understanding of the underlying investment strategy, ideal investment horizon, risk, or tax implications. I was a sucker for NFOs. It took me over 12 years to prune my MF portfolio
Read 15 tweets
LifeAfterFI Profile picture
1 Jan 20
Started the new year by watching Playing With Fire documentary (@PlayWithFIRECo). Very well made with many nuggets of #FinancialFreedom wisdom which I'm putting down here as thread for handy reading. (1/n)
@PlayWithFIRECo It's more important to be rich than look rich because it allows you to focus on the things important in your life. (2/n)
@PlayWithFIRECo Spend lavishly on things that you care about, but cut back ruthlessly in other areas. Don't get swayed by society's expectations of what you should spend on. (3/n)
Read 18 tweets

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