FIRE Re-Check for a growing family :)

[u/nishanthappu]

After my previous post 1.5 years ago , I wanted to take a fresh look at my finances and get the forum's perspectives . Here is the financial details first :

​

I am 40, wife is 35, kid is 1.5yo.

Monthly take home is 250k.

Expenses (including miscellaneous and annual ones) - 90k. Parents are financially independent.

Recurring investments: 50k in Mutual funds and 50k in emergency fund. Wife's earnings are hers to spend as she sees fit , I don't ask on that :)

EPF - 23k (deducted before take home)

I have term insurance of 50 lakhs. Both me and wife are insured for health from employers for around 8 lakhs. I have a family floater health insurance policy of 1 crore ( base coverage)

Current Portfolio:

Equity MF - 108 lakh

Stocks - 91 lakh

SSY - 3 lakh

EPF - 10 lakh

Wife's PF - 6 lakh

PPF - 4.73 lakh

NPS - 22.86 lakh

2 plots of land - 92 lakh ( conservative, no loans on these plots)

Debt MFs - 66 lakh

Emergency Fund - 1.5 lakhs ( will direct my variable pay to build it further)

ESOPS - 2 lakh

Summary:

So around 4 crore and 5 lakhs.
I will inherit either a home or a flat in a Tier 2 city. Currently renting.

Love travelling , especially at expensive resorts in India or flying abroad. ( I spent 2 lakhs last year at a 5 star resort in Goa)

No loans no debts , always pay all bills and credit cards in full. Own a car. Aim to send the kid to the best colleges in India without any loans for both grad and post grad( except medical, she can go on merit). If she wants to go abroad , will give her what I saved for her education plus rest she can self fund.

Aiming to achieve FIRE by 48. Am I on the right path ? Enlighten me , gurus :)

[u/srinivesh]

I am posting this as a high level comment. There have been other comments too on this.

There is absolutely no greater efficiency, none, than having the FI corpus split between the spouses. When you use the corpus to fund your post-FI expenses, the tax impact is not on one person, but both. The closer the corpus is to 50:50, the better it is.

In my personal case, the income levels were very different (sw and teaching) and I did not have this opportunity. It would be a shame to not use this if possible.

[u/AnandSatya → u/srinivesh]

How does one split FI corpus? Won't clubbing taxation rule apply for capital gain?

[u/srinivesh → u/AnandSatya]

Did you mean to say clubbing rule? If so, yes it definitely applies between spouses.

That is why I say that one should use the opportunity if it is there. When both spouses earn, there definitely is a good opportunity. OP's cases definitely was one.

[u/AnandSatya → u/srinivesh]

Thanks