Hey hi ,
don't know if the question i am asking is stupid or not, but i am confused on it, Need your help on it guys. @Andy Black @Black_Dragon43 @fastlane_dad @MJ DeMarco
i was calculating my escape number, i got stuck on POM in the book MJ took example of 50% ( economic and recession insurance policy) and MJ mentioned that he uses 200%, which is
POM = Paycheck Pot x 200% =
POM = 2,00,000 x 200% =
So, what should be the number of this calculation can you guys help with me this. i mean i dint understand the calucation of this please help me with it
and then question i had is we are considering PRE TAX money or Before tax money. but as we are planning our 10 year vision, but we are not considering INFLATION , as i live in india here goverment bond rates are 6-7%, bank fd rates are 5-6% but inflation is 7-8% .
So, if lets say for example my escape number is $15 M so by next 10 year according to current inflation rate $15 M
will have purchasing power of $7 M only , if we consider this scenario i will need $30 M because if inflation is 7% then within 10 year the amount will be doubled.
don't know if the question i am asking is stupid or not, but i am confused on it, Need your help on it guys. @Andy Black @Black_Dragon43 @fastlane_dad @MJ DeMarco
i was calculating my escape number, i got stuck on POM in the book MJ took example of 50% ( economic and recession insurance policy) and MJ mentioned that he uses 200%, which is
POM = Paycheck Pot x 200% =
POM = 2,00,000 x 200% =
So, what should be the number of this calculation can you guys help with me this. i mean i dint understand the calucation of this please help me with it
and then question i had is we are considering PRE TAX money or Before tax money. but as we are planning our 10 year vision, but we are not considering INFLATION , as i live in india here goverment bond rates are 6-7%, bank fd rates are 5-6% but inflation is 7-8% .
So, if lets say for example my escape number is $15 M so by next 10 year according to current inflation rate $15 M
will have purchasing power of $7 M only , if we consider this scenario i will need $30 M because if inflation is 7% then within 10 year the amount will be doubled.
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