Meet Rohit: Planning for Early Retirement

Rohit Patel is a 45-year-old IT professional working in Bengaluru. After a successful 20+ year career in the technology sector, he's eager to retire early at age 55 and enjoy life on his own terms. But a critical question remains: Will his money last until he turns 90?

Rohit has been diligently saving and investing for years. Let's break down his current asset allocation:

Rohit's Current Asset Allocation

Rohit's Future Financial Commitments

Rohit has several major expenses planned in the coming years:

These large expenses will significantly impact Rohit's financial runway if not planned for properly.

The Retirement Calculation

Using our Financial Runway Calculator, we can project Rohit's financial future based on his current situation.

Let's visualize how Rohit's assets might grow and deplete over time:

Analysis: Will Rohit's Money Last?

Based on our calculations, Rohit's financial situation looks promising, but with some important caveats:

Updated Scenario: Can Rohit Make It to 90?

If Rohit implements the recommendations above, let's see how his financial outlook changes:

Key Takeaways for Your Own Retirement Planning

Rohit's case study demonstrates several important principles applicable to anyone planning for retirement:

1. Start Early: The power of compounding works best over longer time horizons. Rohit's 20+ years of disciplined investing built a substantial corpus.
2. Account for Inflation: At 6% annual inflation, expenses double roughly every 12 years. Your retirement planning must factor this in.
3. Plan for Major Expenses: One-time large expenses can significantly impact your financial runway if not accounted for separately.
4. Optimize Asset Allocation: The right investment mix can dramatically extend your financial runway through better returns.
5. Consider Post-Retirement Income: Even modest income after retirement can have an outsized impact on how long your money lasts.