The ₹40 Crore Wealth Plan That Pays You ₹1.8 Crore a Year for Life
Issue # 190
A few weeks ago, I did a simple thought experiment. Put the numbers on ChatGPT
What if I invest ₹50,000 every month, increase that amount by 10% each year, and earn an annual return of 10% for the next 30 years? 10% is realistic if we see BSE and NSE since inception. The returns have been in the range of 12-17%.
The result?
₹30 crore.
From just starting with ₹50,000 per month and gradually increasing it over time. No trading. No hacks. Just long-term discipline.
But here's where it gets more interesting.
Suppose I start withdrawing 6% per year from that ₹30 crore nest egg, about ₹1.8 crore annually and increase that withdrawal by 5% each year to account for inflation. That’s a comfortable, growing income stream. But what happens to the corpus?
After 20 years of such withdrawals, the remaining balance would still be:
₹40.59 crore.
In other words, I could spend more each year and still be rich. That’s the kind of financial freedom that most people don’t realise is possible. And this mental model was sparked by one of the most practical finance books I’ve read: Nick Murray’s Simple Wealth, Inevitable Wealth.
It’s not about timing the market or picking winners. It’s about mastering behaviour, trusting equity, and sticking to a plan. Here’s what the book taught me and why every investor should pay attention.
Lessons from Simple Wealth, Inevitable Wealth
1. The Market Works. If You Let It
The stock market is the most powerful wealth creation tool in history. But you only benefit if you stay invested and don’t let fear knock you off course.
2. Volatility ≠ Risk
Murray drives this home: volatility is temporary. Real risk is panicking and selling when the market drops.
3. You Don’t Need to Be Brilliant. You Need to Be Consistent
You don’t have to predict the future. You just need to keep investing, even when it feels uncomfortable.
4. Financial Advisors Aren’t Stock Pickers. They’re Behaviour Coaches
A good advisor doesn’t just pick funds. They stop you from making self-destructive choices at the worst moments.
5. Equities Are the Only Long-Term Growth Engine
Fixed deposits won’t build wealth. Gold might preserve value. But if you want to grow money over decades, equity is non-negotiable.
6. Your Biggest Enemy Is Fear
The market doesn’t ruin most investors. Their emotions do. Master your fear, and the rest becomes surprisingly straightforward.
The Toolkit I Designed for Myself (Inspired by Murray’s Philosophy)
To follow through on this philosophy, you don’t need complexity. You need a few solid tools:
1) Invest Through Index and Flexi-Cap Mutual Funds. Example Funds:
Nifty 50 Index Funds
Flexi Cap Funds for diversified growth
Large and Mid-cap Funds
2) Automate SIPs and Stay the Course - Set it. Forget it. Don’t skip SIPs because the market ‘feels high.’ That’s not your job. Compounding doesn’t care about your feelings.
3) Track Progress, Don’t React to Headlines - Use apps like Moneycontrol Portfolio to monitor your portfolio, not to react to every market twitch.
4) Work With a Fee-Only Financial Advisor - Skip commission-driven sellers. Work with SEBI-registered advisors from platforms like FeeOnlyIndia.com who align with your goals.
Final Thought: Wealth Isn’t Complicated
If you invest steadily, increase your contributions over time, and let equity markets work their magic, wealth isn’t just possible. It’s inevitable.
And if you structure your withdrawals smartly, like a 6% SWP with 5% yearly increases to keep up with inflation, you can live richly without running out of money.
Here’s what I am advising my sons to aim for:
Invest ₹50K/month, grow it by 10% each year for 30 years → ₹30 crore
Start 6% SWP → ₹1.8 crore/year
Increase withdrawals 5% per year → ₹40.59 crore still left after 20 years
This is what real financial freedom looks like. Not just having money, but having a system that builds wealth, supports your lifestyle, and keeps growing long after you stop working.
And all it takes is a little clarity, a little patience, and a commitment to the long game.
Disclaimer: I’m not a financial advisor. This is a simple example to show that building wealth doesn’t have to be complicated. Your investment strategy is your decision.
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Meet you on the Twenty Seventh Sunday (27/52) of 2025. Take care