In one of the reddit posts, a reddittor who wants to retire early posted a question that what if India grows like Japan. His question was Japan has given 0% returns in 20 years. Now if India's stock market also grows like this then how can someone retire in India. They have to continue working and not retire early.
PC: Google.com
Now the question is if someone retires with 40X corpus and have their most of the income in Stock market, then it wil not grow much. And thus the redditor was worried about the same. Now the thing is there is a difference between stock market not giving any returns and the inflation.
Though Indian Stock market is giving good returns the inflation is high too. So if we see the returns are only 2 to 3% than the inflation. Now when Japan has given 0 returns, the inflation in Japan is also negligible. So that means even though your returns are not there you are not spending much. And that's the reason if India gives the return like Japan, you money will br ok till retirement.
And that's the reason, you can continue to work. But even if you want to retire, you can actually retire. One more thing is that if you see it has given 0 returns but it's not flat line, it goes up and down. We have to take small profits and keep the profit for your household expenses and in this way we can retire with good money.
So even if India grows like Japan, whoever wants to retire early they can basically retire because then the inflation will not be there and hour money can sustain for long term. And it's not only about India, it can work well with any country.
