Tweets on 2010-09-07

by Vinaya HS on September 7, 2010

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

A reader asks,

What should one do if one has repaid all debts, owns a home, leads a simple life (no cars, clubs, or expensive holidays), is sitting on a pile of cash (most of it in fixed deposits) and has no continuous stream of income except for paycheck. Is this person very close to financial independence? Any thoughts?

Brilliant. You’ve ticked most points in this checklist.

But have you covered the other basics — health insurance and life insurance? And will the monthly after-tax interest earned from your fixed deposits be adequate to meet your monthly expenses on a continuous basis? If not, you aren’t.

What do you think?




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 1 comment… read it below or add one }

Anoop September 7, 2010 at 6:31 PM

My opinion on financial independence if I have to associate it with a person, it would be as below
“A person who can sit the rest of his life without income but still has all the money to spend on all comforts of life like mansions, expensive cars, capable of employing people..etc etc”– He is financially independent, If I have to give an example Ambanis, Tata’s, Bill Gates etc etc.. These guys are financially independent…because economic downturn would not have any effect on their living. If I have to look outside the circle of these men, & choose normal men, irrespective of how many FD’s you have and the income after tax they generate, money would never be enough for the rest of your life.
So how does these FD’s lead to being financially independent? Do you think a person who’s monthly income is covered by interests with FD’s after tax would be sufficient for the rest of his life?(assuming ofcourse he keeps renewing it) what if the FD’s interest rates go down because govt revised its policies irrespective of opening date?(It happened outside India so no reason it wont happen in India)…

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