When Paychecks Stop: Are We Financially Ready

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Twitter - @niteen_india
Niteen S Dharmawat
High Income ≠ Wealth
(When Paychecks Stop: Are We Financially Ready?)
Dec 15, 2025
Co-Founder, Aurum Capital
Website: https://aurumcapital.in
Twitter: @CapitalAurum / @niteen_india
Email: info@aurumcapital.in

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IMPORTANT DISCLAIMER:
The information herein is used as per the available sources of bseindia.com/nseindia.com/brokers websites, company’s annual reports & other
public/private database sources. Aurum Capital is not responsible for any discrepancy in the data. Investors should seek advice of their
independent financial advisor prior to taking any investment decision based on this report or for necessary explanation of its contents.
I am neither a Financial Planner nor an Investment Advisor. For Financial Planning and Investment Advisory please take the help of registered
entities and professionals. I am just sharing my experience.
Future estimates mentioned herein are personal opinions & views of the analyst. Analyst Name – Niteen S Dharmawat. For queries / grievances –
support@aurumcapital.in. SEBI registration No: INH000008118
Readers/attendees/viewers are responsible for all outcomes arising of buying / selling particular scrip/ scrips mentioned here in. This
presentation indicates opinion of the author to understand the company and its business operations and it is not a recommendation to buy or
sell securities. Aurum Capital & its representatives have vested interest in above mentioned security/ies at the time of this publication, and its
partners / company have positions / financial interest in the security/ies mentioned above.
Aurum Capital, or its associates are not paid or compensated at any point of time, in last 12 months by any way from the companies mentioned in
the report.
Aurum Capital, or its representatives do not have more than 1% of the company’s total shareholding. Ownership of the stock: not applicable.
Recommendation to client: not applicable. Served as a director / employee of mentioned companies in report: No. Any material conflict of
interest at the time of publishing report: No
The views expressed in this post accurately reflect the author’s personal views about any and all of the subject securities or issuers; and no part of
the compensations, if any was, is or will be, directly indirectly, related to specific recommendation or views expressed in the report.

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Aurum Capital is a SEBI registered Research Analyst (SEBI Registration No:
INH000008118) services company. Started by Jiten Parmar and Niteen
Dharmawat, who together have more than 4 decades of experience investing in
equities and guiding and mentoring fellow investors.
This rich industry background helps us understand companies, complexities of
business and tipping points that make or break a company. Our approach is not
limited to just number crunching but going beyond. We focus on the business,
strategic direction, the competitive landscape, the governance process, the
background of the promoters, turnarounds, to name a few. Often these are more
critical items than just numbers. Jiten and Niteen have successfully waded through
multiple bear and bull market cycles.

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Agenda
• How much is sufficient to retire today?
• The Stanford Marshmallow Experiment
• Magic of Compounding
• Cases from Real Life
• Lessons
• One Idiot
• What Truly Matters for Financial Success

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How much is sufficient?
Objective
• Life expectancy: 85 years
• Inflation: 6% p.a.
• Post-retirement return: 8% p.a.
• Real return: ~2% p.a.
• Withdrawals are inflation-adjusted
• Includes safety margin (no aggressive investing)
I want to retire today

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Retirement Corpus Needed (Different methods)
Different methods followed globally
• 25 X annual expenses
• 4% withdrawal rule
• Replacement Ratio Method
• Consumption Smoothing Method
• Annuity-Based Method
• Monte Carlo Simulation
• Life-Expectancy Multiple Method
• Keep It Simple Stupid (KISS)

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Retirement Corpus Needed in India (If You Retire Today)
Current
Age
Corpus Needed
(₹ crore)
40 6.5
45 5.8
50 5.0
60 3.6
Annual
Expenses
12 (₹ lakh)
Current
Age
Corpus Needed
(₹ crore)
40 8.1
45 7.2
50 6.3
60 4.5
Annual
Expenses
15 (₹ lakh)
Current
Age
Corpus Needed
(₹ crore)
40 10.8
45 9.6
50 8.4
60 6.0
Annual
Expenses
20 (₹ lakh)
Current
Age
Corpus Needed
(₹ crore)
40 13.5
45 12.0
50 10.5
60 07.5
Annual
Expenses
25 (₹ lakh)
Golden formula (rule of thumb)
Corpus needed= (85-Current Age) X Current Annual Expenses X 1.20

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Agenda
• Lessons
• One Idiot

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The Power of delayed gratification
The Stanford Marshmallow Experiment
(The Test of Impulse Control/Will Power)

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https://vimeo.com/6591011

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Agenda
• Lessons
• One Idiot

Magic of Compounding
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Right Focus – Right results
“Compound interest is the
eighth wonder of the world.
He who understands it,
earns it…
He who doesn’t…
Pays it.”
- Albert Einstein

The Wealth Creation Formula
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If a horse covers 10kms in 1 hour and
speed is maintained then how much
distance will it cover in 2nd hour and 3rd
hour?
How much will ₹10 lakh invested at a
26% CAGR grow to in
- 10 years
- 20 years
- 30 years
Question to answer
Wealth
Creation
Formula
What investors
focus on
What investors
ignore

Magic of Compounding
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United by birthdate, Separated by Investments
SIP kid
- 10K per month
- 18 years
- 15% XIRR
FD kid
- 10K per month
- 18 years
- 7% XIRR
Corpus x @15% x for 18 yrs =
Invested 21.60L
Returns 88.82L
Total = ~₹ 1.10Crs
Corpus x @7% x for 18 yrs =
Invested 21.60L
Returns 21.72L
Total = ~₹ 43.32Lacs
Citation: Sensex has returned 17.89% since inception.
https://www.sbisecurities.in/calculators/sip-calculator

Magic of Compounding: Spend or Save @ 25 age
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Citation: Sensex has returned 17.89% since inception.
Assumption taken: Investor’s current age is 25 and retirement age is 60 years
₹1.25 Lac
If Spent If Invested
Price of iPhone x @15% x for 35 yrs =
₹1,66,46,940 (~₹1.66 Cr)
When you retire at 60,
invest that Rs 1.66 Cr @7% F.D on
Systematic Withdrawal Plan (SWP) =
1.3L per month for 20 years

Agenda
• Lessons
• One Idiot

The Prodigy. The Champion. A Tennis Legend.
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Boris Becker
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• Unbroken record till date: At just 17 years old (1985), Boris Becker won Wimbledon,
becoming the youngest men’s singles champion in the tournament’s history.
• He was also the first unseeded player ever to win Wimbledon.
• Earned over $130M in tennis career (Retired in 1999)
(Today’s value terms: ~5000Crs)
• Earned through Prize money, Endorsements, Commentary, and Coaching
• Accumulated large debts and liabilities
• Declared bankrupt due to mismanagement
• Lavish spending far beyond sustainable level
• Ignored long-term financial security

Do You Recognize This Boxing Legend?
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Mike Tyson
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• One of the greatest boxers ever
• Earned over $430M lifetime (Retired in 2005)
(Today’s value terms: ~6000Crs)
• Overspending on luxury, entourage, lifestyle
• Filed for bankruptcy despite massive earnings
• Poor money management and lack of discipline

The Legend. The Rebel. The Man with the Golden Hand.
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Diego Maradona
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• Among world’s highest-paid athletes
• Huge unpaid taxes and debts
• Financial chaos throughout career
• Very little wealth remaining at death
• Mismanagement overshadowed massive income

Once Amitabh Bachchan of Punjabi movies
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Satish Kaul
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• A prolific star in Punjabi cinema with over 300 films
• Successful TV & Punjabi actor in prime years
• Failed to save and invest despite high earnings
• Later lived in an old-age home dependent on donations
• Struggled for medicines and basic needs
• Died in 2021 at the age of 74
• Lack of financial planning during peak career

Recognizing the Tragedy Queen?
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Meena Kumari
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• Iconic actress with 92 films and multiple
awards
• One of the highest paid actresses of her era
• No financial planning despite long career
• Died penniless without money for hospital
bills

High Income ≠ Wealth (1/5)
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• Earning more does not create wealth
automatically.
• Wealth requires saving and investing.
• Income reduces over time.
• Savings protect you when earnings fall.
Save During
Peak Years

Financial Planning Matters (2/5)
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• Budgeting and investing are essential.
• Lack of planning leads to instability.
• Emotional choices cause financial harm.
• Poor advice leads to money loss.
EQ >>>> IQ

Debt Makes Things Worse (3/5)
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• Loans and taxes pile up quickly.
• Forces asset liquidation.
• Income drops but expenses stay.
• Mismatch leads to financial collapse.
Fame is Temporary
Saving is critical

Passive, Passive, Passive (4/5)
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• Depending on one income is risky.
• Passive income provides security.
• Spending to impress destroys savings.
• Impulsive decisions harm long-term goals.
Diversification is
Key
Avoid Emotional
Spending

Avoid Lifestyle Inflation (5/5)
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• Growing expenses limit wealth creation.
• Luxury habits become long-term burdens.
• Success often leads to bad decisions.
• High-risk choices can destroy finances.
Overconfidence &
Risk:
A deadly
combination

Twitter - @niteen_india 34
One Idiot
Savings, Investments, Long term planning
and
Delayed Gratification

https://www.youtube.com/watch?v=vU1l1TB7GzI
A person walking down the street
AI-generated content may be incorrect.

What To Do
• Save consistently during high-earning years
• Invest regularly to benefit from compounding
• Maintain a budget and track expenses
• Build multiple income streams
• Seek professional financial advice
• Maintain an emergency fund
• Live below your means

What NOT To Do
• Do not assume high income will last forever
• Avoid overspending and lifestyle inflation
• Don’t depend on a single source of income
• Avoid emotional or impulsive spending
• Do not trust unqualified people for money decisions
• Avoid taking unnecessary financial risks
• Do not ignore taxes, debts, and obligations

Thank you
Email: info@aurumcapital.in
Twitter: @niteen_india
@CapitalAurum
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