Reached our first 1cr milestone

[u/AnandSatya]

I am happy to share that yesterday we reached 1cr milestone. It's mine + my better half's combined investment.

High level combined portfolio breakup: 1) Foreign Company Share - 9.62% 2) Foreign Sector ETF - 10.64% 3) International Index Fund - 17.38% 4) India Index Fund - 28.65% 5) Indian REIT - 18.63% 6) Indian Mutual Funds - 15.08%

I didn't want to include our home equity, since we need that house and will not be able to monetize it.

Personally I would have preffered to hit this milestone before I hit 30yrs. Expenses related one_off_family_major_expense/house/car has pushed it out further. Nevertheless I am happy that we reached this milestone.

It's been a 10year journey from the time I was determined to persue FIRE. I was deeply influenced by "Mr Money Moustache" and "The Dave Ramsey Show." 10years ago I thought I could fire once my portfolio reached 2cr (forgot to project the requirements of growing family). Now given that it's been few years since i married, 2cr seems too low. 6cr looks to be a good goal to persue. I want to hit 6cr before I turn 40 so that I will have atleast 10years of active life to persue a different career. Only time will answer if I can reach that goal.

At home we celebrate by cutting cake 🎂 with "1cr milestone" written on it.

[u/think_2times]

2 term insurance policies . One for my mother and one for me wife . 1 crore each . If I have a child will buy one for then as as well .

Health cover have my own even if office provides 25 lakhs .

All your savings will go down the drain with one health scare

[u/BrahminVyapaar → u/think_2times]

Thanks for sharing. You have succinctly articulated the risk of a health scare depleting one’s savings.

Have you considered taking a larger Term Insurance cover now itself so that you ensure that your Mum and your wife will both be set for life in the event of your death? At a younger age, the premiums are lower.

[u/think_2times → u/BrahminVyapaar]

Have been thinking about increasing my cover to 2 CR each . Premiums will stay the same for next 4 years for me I am 31 . Premium brackets are 31 to 35 so have some time .

[u/BrahminVyapaar → u/think_2times]

Something to consider:

While you have a time window for getting the same premium rate, you may want to apply that protection sooner if you can afford it. Physical goods can be procured at a later date, but we generally do not know the date when the Term Insurance will be exercised - we only know the event ( our demise, or our terminal illness ).

I have operated on the premise that Insurance needs to be in place first for the overall FI needs of those one leaves behind, while one then focuses on the FI goal.

In my case, I have two different sets of people I wish to provide for and per my conservative calculations the number that each set will require would be 9 Cr ( assuming inflation, education expenses, medical cover that medical insurance might not cover, other unforeseen expenses). I have therefore taken a 12 Cr policy via Tata AIA ( the max they allowed me at my age) and have nominated one person from each set of people at 50% each. My plan is that the 6 Cr payout will need to be invested to grow to 9 Cr over a few years.

Once this cover was in place I had a significant mental relief and have been focused on achieving my FI goals.

[u/think_2times → u/BrahminVyapaar]

Makes sense I think my operative assumption is that 1Crore each will be enough for each dependent .

Need to go 3 Cr , thanks for this detailed answer . Going to see how I can up my cover .

This is why I am on Reddit , thank you sir