Few of my colleguaues are working for more than 15 to 20 years in the same company. They are into the IT industry for so long but still they cannot think of retirement. It's not that they are big spender, they are too frugal.
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The one who is working for 20 years is still coming by bus and wears same clothes as we was wearing 5 years back. He has not taken vacation other than going to his native and coming back. The one who is having 15 years in the same company, he is little better in terms of spending but still lives frugally. Now for both the colleague's, they are having hige real estate property.
One has a land in Bangalore, a villa in Bangalore and 2 plots in his hometown. The other has around 3 plots in his hometown as well as 1 apartment in Bangalore. If I calculate the total amount of their real estare it would be around 3 to 4 CR easily for both of them. I have casually asked their monthly expenses, and it was coming around 1.1 Lakhs per month. That means they are financially free basically.
But since the real estate properties are illiquid, they are cannot think of retirement anytime soon. But someone who might have invested in equity and have invested around 4 Crore, he could easily take out 1 Lakh per month and his money will continue to rise but this is not the case when you are real estate heavy guy. And that's why it's absolutely necessary to not keep all your eggs in one basket.
Real estate is good but only if it's generating any income for you. If it's not generating any income then you cannot think of it as a retirement money. Yeah you can sell it off but again selling also is a big task. Instead if you would equally invest in all the assets then retiring early or financially free is a better option.
