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Exactly. firstly You need to have 75 lakh corpus, secondly delay the possession of car by 7 years, assuming that car price will be constant (this is a wrong assumption here).
Third, he is not sharing the assumption rate of interest of 15% at which the money will grow. 15% every year for 7years is a myth, only this guy can sell
Pratik, you are a genius!! Thank you... Start the SIP, continue the SIP, once you hit the corpus, you start SWP, in few years the asset is yours, stop the SWP but, continue with the SIP. It is a win-win. Simple.
i found one intresting thing about SWP. say i have X amount in corpus. i can withdraw 6% of it monthly assuming 8% is my returns. then at then end of tenure, i left with same X amount with ~1-2% of X as gains. i may be wrong with calculation but i was very intruged like i felt this as pension plan with zero deprecation in corpus.
Very interesting video. It will surely help to understand our priorities. Two thoughts after watching this video. 1. After 7 years Mercedes cost will be also double or at least 1.5x. 2. We will have to wait 7 years and in these seven years most of us change our desires. . Personally I believe in investing that's why I bought a second hand car and waiting for ev prices to come down. 🙏
Exactly. firstly You need to have 75 lakh corpus, secondly delay the possession of car by 7 years, assuming that car price will be constant (this is a wrong assumption here).
Nice idea but a bit impractical I think. Firstly, the car price will be much more in 7 years. Second, there will be taxes on SWP amount. Third, your EMI payments are fixed but the Nifty returns are variable, it is risky.
If I continue my SIP as suggested, but instead of taking a loan and using SWP, if I just upfront buy the car with the 75L i have, I'd have 66L instead of 21L at the end of 7 years. If I have the money and I am continuing to invest, why should I share my returns with the bank?
One more method is if you have 75L in Mutual Funds. You can take a loan up 70%-80% against your MF and continue paying EMI on that. Your investments are protected and continues to grow, you own a car, and you have a low-interest-rate loan (9%)
@@norvinmenezes1545 It depends on what type of MF you want to get a loan against, on Debt mutual funds the loan value is higher 70%. For equity it might be between 50-70% again depending on which Mf's you have (blue chip, mid cap or small caps)
@@norvinmenezes1545 and yes 50-70% on your MF value, if you have Rs.100 worth of MF you may get Rs.50-70 worth of loan, also it should be noted the overall tenure maybe slightly lesser
Assuming 12%CAGR and calculating SWP is not at all a good idea because if there is a big down fall in the 1st year of SWP the whole calculation will change and forget about 20L , whole money will be exhausted far before completing 7 years. Please backtest the calculation for such events. I am not telling the calculation is wrong but can be done with fixed income funds.
Pehle 75 lac full bhi to invest hua hai installment and sip Main sirf installment gai ab sip Main bhi gadi 7 sal ke baad aayegi bhai sara concept hi galat hogaya aapka.
Explain me if i am wrong but the calculation doesnt make sense. Imagine i have 75l as corpus invested in markets. By your 12% return,it should turn into 16580000..right? And i can just buy the car in cash after 7 yrs and still have around 90 lakhs. Makes sense?
but you have to wait 7 years to buy and you are not taking into consideration inflation of car and fuel rise rates after 7 years.Also the taxi expenses incurred and pleasure/comfort/ease you could have had for 7 yrs
12% maybe the cagr but that doesnt mean every year will be 12%. If your initial years are dog years that will reduce your corpus drastically and you may not earn anything in the end if not losing.
When taking SIP for 7 years is taken into consideration we need to take in account that after 7 years the car will cost much more than 75L. Also when talking abt SWP ur not taking capital gain into consideration on withdrawal of 120K I think ur concept of making the video is good but a bit misleading
What about taxes? A person with 75L in bank will high likely be in 30% slab. So his return is not 12% but 8%. Is it worth playing this game to earn 8% and pay 8% interest 🤨
Great video but you didn't take into account the fact that the price of the car would go up because of inflation. So in 7 yrs assuming an inflation rate of ~6% the price of the car would be about 1.5X what the price is today. So you would actually need more the buy the same kind of car in 7 years.
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Not good strategy.. one who is having 75L cash can easily invest in some good stock or safer side rented income property and let it grow for few years.. these financial vedio's from influencer have hidden agenda and want to sell some products... Retailers pls do ur own research and Invest wisely..
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Salaried individuals should stay away from such expensive cars even if they have the cash lying in the bank....as they cannot get to encase upon the depreciation benifit of 15% what business owners have...so if you see a business owner having a merc...remember the by the end of the 4th year they would have got back 60% value of the car and as well get their gst waived of to a certain extent by showing the car was bought for business ....I know this coz my uncle is a business owner and he changes cars every 4th year....and on contrary my father being in 30% tax bracket salaried individual still doesn't have a car.......
what a stupid idea .taking a risk and pain for sip to buy a horribly depreciating asset.and then it assumes the car price will be same after 7 years.instead buy a good used e class merc for 12 lacs .and if you have 75 lacs keep that invested in the market.take a 12 lac od from 20 lacs mf of the 75 lac mutual fund investment and keep it as a collateral. just withdraw the interest of 8 to 9k per month as a swp to pay the interest of 12 lacs. sell the car after 5 years for 6 lacs. buy another one and the 6-8 lac gap to buy another one can come from the gains of 75 lac investment for 5 years.repeat cycle
If we have to have 75lacs we need to earn first 75 lacs spare money which is impossible for most of the salaried persons in India. This is not idea. It’s a joke
@@PrateekSinghLearnApp Agreed. And personally i am not interested to waste money on highly depreciable things. Rather I will spend this money in installments for travelling to whole world.
@@PrateekSinghLearnApp Bhai if someone has 75 Lakhs, the most obvious thing that one would be doing is putting it in the market to get returns, now you can call the redemption as SWPing every month or simply redeeming to pay EMIs. Besides your video titles are getting click baity with every passing day, and at times completely incorrect. The Merc wont be free as you state in the thumbnail here, you'll still be paying close to 55Lakhs, (75 Lakhs of Downpayment into the investment fund - 20 lakhs remaining at the end of 7 year period). How is that free? Your content was pretty top notch but now its depreciating faster than one accelerated depreciation. Nothing personal, I love the founder, his candid interviews, and the learnapp premium modules; but the free youtube content is occasionally a joke and clickbaity. You can expect to drive some youtube earnings through it, but if your PM anticipates its a good funnel to get premium users, then No.
@@PrateekSinghLearnAppyou didn’t consider the inflation. Seeing the pattern where Luxury brands are increasing the prices of their models. That 75L model would be priced at 1.2 CR in 7 yrs and you still need to pay the exorbitant amount of down payment for that exact model.
