Jagoinvestor

August 12, 2010

Review of Retirement Book “Retire Rich Invest Rs 40 a day”

How important is Retirement ? If you are not asking this question to yourself today, You are bound to pay for this in future. Thinking about retirement in early age is considered Joke in our country, every body is just running around buying cars, home, may be invest in couple of mutual funds without any plan and buy life insurance, but Planning for retirement is still a very untouched activity. With the advent of “Financial Planning” word in our country, Financial Planners are now doing Retirement Planning for clients , however even that Retirement Planning is not proper Retirement Planning is true sense .

Retirement Planning is a much much more complex process than we think and deserves a lot of effort and time if you want to successfully plan for your Retirement years . We are living in a different era, and uncertainity of not reaching our Target in retirement is much more in these times . We need a much well planned approach and systematic planning for every goal of our life and Retirement is a classic case of it.

PV Subramanyam, a CA by Education and a trainer by Profession has written a wonderful book, named “Retire Rich Invest Rs 40 a day” . I bought this book and read it and here are some of my thoughts on the book.

Review of Book

Easy to Understand : The first thing which amazed me about the book was that it was written in very very simple language, It was easy to understand all the chapters of the book. The book starts with a very nice Introduction of why Retirement is more important in these days to plan and how we under estimate our retirement needs. I am reading Subra’s Blog from a long time now and his way of writing is very different than his way of writing on blog . I must say that I consider his book to be very simple than what I had expected πŸ™‚

No Complex Calculations : The book gives all the calculations in a easy to implement “tabular” format and its easy for anyone to actually implement the learning from the book without diving into the complex calculations .

Step by Step Guide for self-planning : The book goes through all the steps of retirement planning in easy way and anyone can easily understand and do their Retirement Planning. It would require dedication to really go through the book and understand the various concepts the author has tried to explain. With some effort and dedicated mind its a great way to plan your own retirement.

Good Examples but lacks Graphs/Charts : The book have good examples in between , which woul be very helpful in understanding the chapters and what they try to convey. But if you are a kind of reader who like to see lots of Images/Charts along with text, the book misses on that part.

Introduction of Investment options : While it might sound that the book is only for readers who already know a lot of stuff , Its not true . In between, there is good insight about various investment products one can invest in and it givesΒ  a fair understanding of what should be the action plan after one plans for his/her retirement.\

Book reading Session in Pune

There is a book reading session conducted in Pune on this coming Sunday on 15th Aug and Subra mailed me personally to invite all the readers of this blog who wants to join them . The entry is FREE .

When : Sun , 15th Aug , 10:30 am – 12:30 pm

Where : Season’s Hotel , Aundh, Pune (Map)

You can meet PV Subramanyam and Deepa Venkatraghavan, Editor Moneycontrol.com there . I would say who ever can go should definately go to the Book reading session and make the most out of it .

Buy the Book

You can now get the book shipped FREE to your Home at Rs 299 , and thats 25% discount on the price, Click to buy , Buy the Book : Retire Rich Invest from Flipkart.com

Buy from Infibeam : 30% Discount (Thanks to Rakesh for the link)

Conclusion

I am not an expert on any topic by any means and this review should be taken as my views on the book only. Overall The book is very good and is recommended to all. While the book targets people at any stage of life , Its must have for people who are in early stage of their life.

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Five Best Personal Finance Books which You should Read Today
7 years ago

[…] In this regard, methods of creating annuities and what options are available and the works about annuity are also covered in the book. You can also check out the review by Jagoinvestor. […]

Rakesh
Rakesh
11 years ago

Hi Manish,

Now we can get the book at homeshop18 for 239/-

That’s a good deal. We can save 15% more than the flipkart

Anil
Anil
12 years ago

Hi Manish, I got to know about Jagoinvestor.com last week while searching on Best Term Plans on net and am getting impressed. However guess there is lot of archives and not sure how much time i will take to browse all entries and hence thoy to give a shot by checking with you of related posts for my queries. I am specifically interested in below :
1) Best Mutual funds in today sceneario under various categories
2) Term Insurance plans
3) Medical insurance plans

Mahesh
Mahesh
13 years ago

Sunil,

I have read the books under the Happionaire series – Invest The Happionaire Way (even the new soft-cover one with the extra preface) as well as Happionaire’s Cash The Crash and I suggest you immediately read it. You will realize how to look at investing from a totally new perspective, and you really can’t call yourself an investor if you haven’t read it. I benefited a lot from the first book, because it got me started in the journey of investing. But Cash The Crash gave me a lot of insight to benefit from every time something negative happens.

Regards,

Sunil
Sunil
13 years ago

Hello Manish,
I want to know your comments on the below books.. could you please let me know befor atually buying them.

Author : Yogesh Chabria

Happionaires Cash The Crash
Happionaire

subramanyam
subramanyam
13 years ago

Milind you are right. However do you expect the impact of one book to be such that EVERYBODY in the country will start doing that? Well even a Prime Minister who is so good cannot have such an impact on his own cabinet! Using your own argument if all individuals spent all the money the economy would be still greater? Actually no. Not at all. This is the American thought process, and is wrong.

And my argument is create your corpus. If somebody wants to smoke 20 cigarettes a day, well it is his choice. I benefit as a shareholder of ITC, and the smoker benefits, he will not need a retirement corpus.

Milind Kotibhaskar
Milind Kotibhaskar
13 years ago

Dear Manish,

I purchased the book and have read it. Of course , the book is quite good and guides us about retirement planning but I have a specific comment. In the chapter 5 ( Retire reach by Investing Rs 40 a day ), the author gives some suggetions about how to raise Rs 40 per day. These suggetions include,
1. Stop smoking ( very good suggetion from health point only )
2. Do not visit the restaurants.
3. Avoid shopping
4. Use Energy carefully and save money ( again a very good suggetion from Green earth point only ).

Ok. Now my simple question is . If the Indian consumer stops doing all of above things and starts saving money, how are we going to expect a return of 18 and 21 percent from the equities? I mean if we stop buying things, spending money, how the companies will make profits, how new jobs will be generated, how te economy will grow? When I was young, owning a car was a big thing and ordinary salary man like me could not afford a car. Today, the young employees working under me are having better cars than me. That is why Indian economy is growing and equities are able to give good returns.

So I feel that the author should not harp on saving but simply state the fact that readers should manage to raise Rs 40/80/120 per day.

What is your opinion Manish?

N.BHARANIDHARAN
N.BHARANIDHARAN
13 years ago

Hi This is bharani. I want to buy the book “Retire Rich Invest Rs.40/- per day.

Kindly suggest me how to get the book.

Waiting for your Reply at the earliest.

Regards,
N.BHARANIDHARAN

Tarun Jain
Tarun Jain
13 years ago

Just got “Retire Rich: Invest Rs. 40 a day” via Flipkart…

I am impressed .. Hardcover binding, glossy paper and effective contest in simple language, all in just 277 Rs at my door step in 36 hours of ordering πŸ™‚

T.S.ASHOK
T.S.ASHOK
Reply to  Tarun Jain
13 years ago

Hi,

I got through “infibeam” for Rs.200 within a week.. Started Reading.. Nice..I am reading very slowly as I need to follow..

Balbir
Balbir
13 years ago

Hi Manish,

I am curios to know the investment option for the senior citizen (60+ age). Usually they get the lump-sum amount from PF after their retirement. I understand that investment on this age group should be done in the debt fund and should not be too exposed to the equity market. I am wondering if I can recommend ‘UTI Mahila unit’ fund as debt fund to my relatives (senior citizen). I also heard post office has 9% interest rate for the senior citizen.

Please let me know if you have written some article on this topic also πŸ™‚

The basic thing need to consider the security of capital and handsome consistent return, may be Monthly income.

Please let me know know on your recommendation on how to proceed in this.

Thank you,
Balbir

subramanyam
subramanyam
13 years ago

Ujwal,

One of the thumb rules (and I hate them!) is to say you require 50 times your annual expenses at retirement. That means you require about Rs. 3 crores. This will fetch you an income of approximately 15 lakhs – post tax. After using 6 lakhs, the balance has to be added back to the corpus…

Ujjwal
Ujjwal
13 years ago

Manish/ Subramanyam,

I am 45 and want to retire when I am 50. I have my wife( she is 44) and we do not have any kid. Our life expectancy is 85 years. Our monthly expenses are about 50K. I have no pension.
What should be my target Retirement corpus considering we need cashflow from the retirement corpus for the next 35 years.

Subramanyam
Subramanyam
13 years ago

try ebay and infibeam. Somebody said he has bought it from ebay…not sure though πŸ™‚

sukumaran
sukumaran
13 years ago

i think infibeam delivers it ….not sure..here is the linke..

http://www.infibeam.com/Books/info/network-18-publications-p-ltd/retire-rich-invest-rs-40-day/9789380200071.html
infibeam has a list of countries where it will deliver..

Deliverable Countries: This product ships to United Arab Emirates, Antigua, Austria, Australia, Barbados, Bangladesh, Belgium, Bahrain, Bahamas, Bhutan, Canada, Switzerland, China, Cyprus, Czech Republic, Germany, Denmark, Dominca, Egypt, Spain, Finland, Fiji, France, United Kingdom, Grenada/Carricou, Greece, Guyana, Hong Kong, Indonesia, Ireland (Irish Republic; Eire), Israel, India, Italy, Jamaica, Japan, Kenya, South Korea, Kuwait, Cayman Islands, Sri Lanka, Luxembourg, Monaco, Mali, Montserrat, Mauritius, Maldives, Malaysia, Netherlands, Norway, Nepal, New Zealand, Oman, Philippines, Pakistan, Poland, Portugal, Qatar, Yemen, Russia, Saudi Arabia, Sweden, Singapore, St. Kitts/Nevis, Syria, Thailand, Turkey, Trinidad and Tobago, Taiwan, United States, Saint Vincent, South Africa, Zimbabwe.

kamlesh
kamlesh
13 years ago

Subra/Manish,

Do you have the book available for sell for an overseas (indian)crowd. Through amazon or some other online merchant ?

kamlesh

subramanyam
subramanyam
Reply to  kamlesh
13 years ago

there are some websites like infibeam, and perhaps flipkart which might ship it for you. Or there is always the trusted ebay!

subramanyam
subramanyam
13 years ago

Manish,

Pattu is one person with an IQ of 140+ – now I have warned you :). Pattu Franklin Templeton has a calculator on their website and so does I Pru. Check the difference in their final answers. Too many calculators are available and it makes the reader either too scared or too cocky. Frankly calculators are sales tools – unless a prof. of IIT creates it (sorry I had to take a dig). One more issue is that in imperfect sciences like Economics, markets, etc. excel projections are a joke – assumptions are vague and go wrong. Read my article in MoneyMantra about illustrations, you will know what i Mean. Manish – Pattu reads Markowitz’s Nobel Prize winning paper on volatility – do i need to say more?

gowri
gowri
Reply to  Jagoinvestor
13 years ago
pattu
pattu
13 years ago

I know the formulae involved (in any case one has your calculators). My point is if the formulae were included in an appendix then one can arrive at a corpus. At present its difficult using the book since I feel the excel instructions are unclear.
A formulae will make a calculation precise.

pattu
pattu
13 years ago

I got Shubra’s books only to find out what to do with the corpus when you retire. I got it after Shubras response to your post
http://jagoinvestor.dev.diginnovators.site/2010/05/how-to-think-about-retirement-planning-video.html

There is one chapter on this which is good. However aspects like annuity/FD ladders which he mentions in the comment, are not covered. Of course not all aspects can be covered since the book aims at the layman.

I have one major criticism: No formulae are given for calculating corpus. Steps to use excel are given which are not clear without screenshots.
I think an online calculator link should be provided. The tabular format helps get an estimate only with several assumptions which may not be valid for all.

I hope Shubra writes a more advanced followup book. May have difficulty with publishers I guess!

Joseph Anand
Joseph Anand
13 years ago

Hello Manish,
I wish to congratulate you for all your articles on PERSONAL FINANCE . Needless to say, they are written in simple language that every Tom, Dick and harry can understand easily. I expect more such articles from you.

Chandra
Chandra
13 years ago

is there anyway we can get soft copy of the book.