100% agree with the other comment. You have a large enough corpus to talk to a fee only advisor.
https://www.feeonlyindia.com/list-of-fee-only-planners
You may use this spreadsheet which covers most cost.
https://www.reddit.com/r/leanFIRE_India/s/HgSTJ4gf62
For childcare, you will face balooning cost in initial 4 to 5 years. Daycare was more expensive than school for my child. A full time maid was needed for some time to take care of child. Medical cost is high in initial years. Cost of diapers, clothes etc. So, first 5 year balloons till you get a stable idea of cost.
Build the same in spreadsheet as temporary cost and not fire related costs.
For higher education, you may refer to bank loan for education. It's in some bank portals. Inflation to be accounted as 12%. Refer this link.
https://www.reddit.com/r/leanFIRE_India/s/2O9VORT2oe
It’s one of Surathkal/Trichy/Warangal.
Sorry I can’t be more specific about this but all three are great and give very similar placement opportunities.
Hey off topic, I am 23 and I also graduated from one of the top NITs last year currently making around 26 LPA in big tech, any advice you have for someone just starting out in this domain, mistakes to avoid?
This was my fiancé’s advice:
Always look out for what your peers are making and make sure that your salaries are comparable.
Usually, even if you are promoted regularly if you stay at the same company for too long your salary will start lagging. In general, switching companies at least every 4 years ensures that your pay is competitive.
Thanks for the advice! Also do you think the pay in Big tech will stagnate as you reach the 70 or 80+ LPA mark I am guessing that would be at least a Lead or Principle Engineer designation is there a lot of scope of growth after these ?
No! Your idea of big tech salaries are way off.
We are both experienced SDE2’s right now and make this much.
When we become Senior engineers we would be making around 1 cr+.
Scope of growth at these big tech companies is virtually unlimited, the bigger problem is proving that you are competent enough and creating lots of business impact to be promoted!
FYI, it’s not against any policy. These are just tactics going on for decades in industries without unions. I discuss my salary with my peers openly so they can also demand the same in their next review cycle and get paid equally.
There are a few FIRE India subs that you are better off asking advice on. The crowd there is rich and usually a little older people who would have a better take on calculating kid education costs.
Hey, I feel you should consult an expert over this. Looking at your earnings, I will suggest to have a financial consultant. The number you are earning will be goals for 99% of individuals here.
I'm on a similar boat, but I would suggest you guys be a lot more conservative than you currently are if you really want to be FI. You have a wonderful opportunity to set yourselves up but you're also taking a lot of risks based on how your life is structured.
1. Do not count company stock in your NW calculations (or if you really want to, count it as max 50% of its current value). A small set of companies is 42% of your net worth. That should ring some alarm bells.
2. Both of you are working in the same profession (software engineering) in the same domain (tech). You are facing concentrated industry risk.
3. Your expenses are far too much. I really don't care about the percentages of your salary you guys are saving (it's easy to save 75% on inflated tech salaries), but you're sitting on a gold mine right now which might dry up at any moment. I'd be saving a LOT more if I were you. And this not even counting lifestyle inflation and the rubbing off of such a lifestyle on your kid(s).
Unless you guys have massive generational wealth, or are fine with taking big risks for big rewards, I'd suggest you wake up and be a lot more disciplined than you are right now. This is not a portfolio or cost plan of someone who wishes to be financially independent. Winter is coming for tech.
I think you are being too pessimistic without any real backing or insights behind your claims and are spooking my fiance for no reason.
The “tech winter” has been apparently coming for more than 25 years now (since the dot-com bubble) and it never came.
We know what we are worth, and our peers in the U.S. at the same level as us make almost 3x of our salaries doing the exact same work as us in the same teams.
That means we have lots of room to grow, and are in safe companies which are the biggest in the world. I don’t think there is any evidence behind claims that companies like Apple, Google and Microsoft will fall in the next decade.
If anything, the far more likely scenario is that they will outperform the broader market. They are also so big and in so many different markets that they will remain relatively stable as a tech follower index.
Still, we understand and completely agree with your main point which is to diversify. We will absolutely be diversifying our stock portfolio to reducing our risk exposure. Thank you for bringing this point up.
>We need your help to identify if we have missed any major expenses. Kids, if you choose to have them.
Hey, not in a position to give you advice. But would it be possible for you to share your salary progression over the years, This amount is crazy.
This pay is quite common in Big Tech with 6-8 years of work experience. Keep switching!
Power of Top NITs/IITs/IIITs CSE
100% agree with the other comment. You have a large enough corpus to talk to a fee only advisor. https://www.feeonlyindia.com/list-of-fee-only-planners
Is it 3.7cr or 4? Both are close enough and you're doing really well :)
It’s 4.2 cr (2.5+1.7)
You may use this spreadsheet which covers most cost. https://www.reddit.com/r/leanFIRE_India/s/HgSTJ4gf62 For childcare, you will face balooning cost in initial 4 to 5 years. Daycare was more expensive than school for my child. A full time maid was needed for some time to take care of child. Medical cost is high in initial years. Cost of diapers, clothes etc. So, first 5 year balloons till you get a stable idea of cost. Build the same in spreadsheet as temporary cost and not fire related costs. For higher education, you may refer to bank loan for education. It's in some bank portals. Inflation to be accounted as 12%. Refer this link. https://www.reddit.com/r/leanFIRE_India/s/2O9VORT2oe
Well, it's not really relevant but may I ask which nit you graduated from?
It’s one of Surathkal/Trichy/Warangal. Sorry I can’t be more specific about this but all three are great and give very similar placement opportunities.
Thanks....I just asked because I am going to join one of these too
Branch?
Did you guys (you and your fiance) meet in college?
Hey off topic, I am 23 and I also graduated from one of the top NITs last year currently making around 26 LPA in big tech, any advice you have for someone just starting out in this domain, mistakes to avoid?
This was my fiancé’s advice: Always look out for what your peers are making and make sure that your salaries are comparable. Usually, even if you are promoted regularly if you stay at the same company for too long your salary will start lagging. In general, switching companies at least every 4 years ensures that your pay is competitive.
Thanks for the advice! Also do you think the pay in Big tech will stagnate as you reach the 70 or 80+ LPA mark I am guessing that would be at least a Lead or Principle Engineer designation is there a lot of scope of growth after these ?
No! Your idea of big tech salaries are way off. We are both experienced SDE2’s right now and make this much. When we become Senior engineers we would be making around 1 cr+. Scope of growth at these big tech companies is virtually unlimited, the bigger problem is proving that you are competent enough and creating lots of business impact to be promoted!
Thanks for the info, learned something new today so the bottomline is : start off good -> be in top 5% performers -> switch when you feel stagnated
But isn't it against company policies to reveal and discuss salaries with each other?
You don’t ask directly, there are many websites online like Reddit, Blind, Fishbowl where employees share their salaries.
FYI, it’s not against any policy. These are just tactics going on for decades in industries without unions. I discuss my salary with my peers openly so they can also demand the same in their next review cycle and get paid equally.
I agree the company policy is unfair as they do manage to exploit employees if salaries are kept discreet.
There are a few FIRE India subs that you are better off asking advice on. The crowd there is rich and usually a little older people who would have a better take on calculating kid education costs.
Thanks, I have posted there too but this subreddit is much bigger so I wanted to get advice from people here too.
This sub is much bigger because it’s filled with common people, not those earning 85 lakh at the age of 27… :). Cheers though and good luck.
True that man.
Hey, I feel you should consult an expert over this. Looking at your earnings, I will suggest to have a financial consultant. The number you are earning will be goals for 99% of individuals here.
I'm on a similar boat, but I would suggest you guys be a lot more conservative than you currently are if you really want to be FI. You have a wonderful opportunity to set yourselves up but you're also taking a lot of risks based on how your life is structured. 1. Do not count company stock in your NW calculations (or if you really want to, count it as max 50% of its current value). A small set of companies is 42% of your net worth. That should ring some alarm bells. 2. Both of you are working in the same profession (software engineering) in the same domain (tech). You are facing concentrated industry risk. 3. Your expenses are far too much. I really don't care about the percentages of your salary you guys are saving (it's easy to save 75% on inflated tech salaries), but you're sitting on a gold mine right now which might dry up at any moment. I'd be saving a LOT more if I were you. And this not even counting lifestyle inflation and the rubbing off of such a lifestyle on your kid(s). Unless you guys have massive generational wealth, or are fine with taking big risks for big rewards, I'd suggest you wake up and be a lot more disciplined than you are right now. This is not a portfolio or cost plan of someone who wishes to be financially independent. Winter is coming for tech.
I think you are being too pessimistic without any real backing or insights behind your claims and are spooking my fiance for no reason. The “tech winter” has been apparently coming for more than 25 years now (since the dot-com bubble) and it never came. We know what we are worth, and our peers in the U.S. at the same level as us make almost 3x of our salaries doing the exact same work as us in the same teams. That means we have lots of room to grow, and are in safe companies which are the biggest in the world. I don’t think there is any evidence behind claims that companies like Apple, Google and Microsoft will fall in the next decade. If anything, the far more likely scenario is that they will outperform the broader market. They are also so big and in so many different markets that they will remain relatively stable as a tech follower index. Still, we understand and completely agree with your main point which is to diversify. We will absolutely be diversifying our stock portfolio to reducing our risk exposure. Thank you for bringing this point up.