2018 in perspective – life and finances

What with one thing and another, I have not written any blog post for quite a while now. At such times, when I feel lazy to pen down something, it is invariably the responses from the readers that gets me going again. Human ego is an amazing thing and just the feeling there are enough people to read your post is itself quite gratifying in many ways!!

2018 has been a very interesting year and I was looking at it in different perspectives in the last week. As I have written in several of my blog posts, one must look at life events and lifestyle choices in a holistic manner and plan for them – finance is a way to support these events and choices, so it necessarily plays a supporting role and not a determining one. In simpler words, availability of money and investing for the same is important but the key issue is what you are needing it for. It is this need for money that is unique to each individual, yet we often disregard this fundamental aspect. Viewed in this context, it makes sense to review the major life situations first and then look at the finances next.

To begin with, professionally the year was not really a very satisfying one for me. I had begun an assignment with an SME company under certain understanding but the owner of the company did not stick to his part of the deal. While I am sure these things happen from time to time, it was a first for me and to that extent a disappointing experience. A good learning will be to choose engagements more carefully next year. In terms of the venture idea I have been toying with, I did manage to get some ideas formulated and it is in a good spot to move ahead now, lot to be done next year. Overall though, both in terms of the activities and active income generation the year was not as good as I had hoped it would be.

On the personal front however, a lot of good things happened in 2018 and it was probably one of the best years for our family. At our stage in life a lot gets defined by how well the children are doing and this year both of them have excelled in their careers. My daughter Rinki completed her MBA from XLRI and has joined a company of her choice, where she is doing rather well. My son Ronju is in his last internship as part of his course work in BITS and he has already got a job offer. In effect, both of them are financially independent and do not need my financial support any longer. As a family, we were also staying together after a long time as both my children worked in Hyderabad for the past few months. 

Travel has been a constant theme for both Lipi and me, this year was no different. We started off with a trip to Khajuraho in February, went to Goa for a week in March with our children, visited Purulia in West Bengal for two short trips, had a family vacation to Bali in May, celebrated our silver anniversary with a Mauritius trip in September and wound up the year with an absolutely delightful trip to MP in December. As you can well imagine, all of this were rather expensive and my travel budget shot through the roof. Be that as it may, all the travel was great fun and I will do it again if I get half the chance !!

On that note, let me transition to my finances for the year. Despite my relative shortfall in active income, the cushion I had with my passive income was good enough for all my expenditure. The bulk of my cash inflows came from the below sources :-

  • Interest from Tax free bonds, InvIT funds and POMIS.
  • Dividends from Stocks and Equity Mutual funds.
  • Capital Gains made through maturity of FMP schemes.
  • Maturity proceeds of an LIC policy.
  • Rental income from my Chennai apartment.

Of course, there were other passive income such as from PPF and Debt funds but I have just let them grow as usual. Unless absolutely needed I do not want to utilize any of these for the next decade or so. For this year my passive income from part of my portfolio was enough to take care of my expenses with enhanced travel and even let me do some new investments in a secondary portfolio of stocks.

So far so good then, but what about the 2019 plans and beyond? Well, let me write about it in my next post.

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Financial independence or retirement – A template

I have been asked by many readers as to how they should be organizing their money in retirement so as to get a regular income that stands the test of inflation over a long period. In recent times I am also asked the same question by people who want to be financially independent at an earlier age and are keen to set up a passive income stream that will last their lifetime. The interesting aspect to be noted here is that the solutions are pretty much the same, though the amount of corpus will necessarily differ.

Let me explain this a little. The whole idea of retirement, early or at 55/60 years, is to get some cash inflow from the money you have invested in different financial instruments or in other assets such as a house etc. This cash inflow should be able to take care of the cash outflows that your aspired lifestyle requires. Assuming that most people retire at 60 and can expect to live till 85 in today’s context, their corpus needs to last them 25 years. Now if you decided to take an early retirement at 45 then your corpus will need to last you 40 years. The key to this is also whether you are earning any active income in early retirement. For example, many of us earn some income through consultancy or other means and this will help. However, for the purpose of this post, let us assume that a person takes an early retirement at 45 and expects to live till 85.

At a very basic level you need to understand the following calculation:-

  • Assume an expense of 10 lacs per year at present without accommodation and any children related expenses.
  • For a period of 40 years assume zero real rate of return – this means your corpus invested in various instruments will grow at the same rate as inflation.
  • With the above assumption in place the required corpus is simply a producr of your annual expenses and the number of years. In this particular instance it will be equal to 10 lacs x 40 or 4 crores.
  • So if you are 45 years old and have an amount more than 4 crores and are unlikely to spend more than 10 lacs annually, you can take an early retirement.

What if you do not have this amount but are still interested in retiring earlier than the normal age anyway? Well, there are a few alternatives you can consider in the above example that we are dealing with :-

  • If you work for another 5 years the amount of money needed annually will grow to 13.38 lacs due to 6 % inflation and the amount needed will be 4.68 crores for 35 years. This may sound fantastic but is true – reason is your money is growing for less years and your expenses have increased.
  • Take this futher to 10 years working. Now your expenses annually will be 17.91 lacs and corpus needed for 30 years is 5.37 crores.
  • Before you are worried with these figures let me also give you the good news. Suppose you are 45 and had a current portfolio of 3.2 crores. Now you cannot retire at 45 but decide to work 5 years more. At 10 % growth in 5 years your portfolio value will be 5.15 crores.
  • With a time period of 10 years the portfolio will amount to 8.3 crores.
  • Bottom line is you can retire quite peacefully in either 5 years or 10 years.
  • Apart from working longer there are two more strategies you can look at – one is to believe that your expenses will reduce when you retire. In my experience this is rather tough to achieve and therefore you should ideally not aim for this.
  • The final one is to generate a real rate of return for your portfolio. This will ensure you need a corpus less than 4 crores to begin with. If you deploy your money well, this should be quite possible to achieve.

Let us take the limiting condition where you do have 4 crores and need to deploy it in a fashion so as to last for 40 years. For the sake of simnplicity I will assume that expenses double on an average every decade. In effect you spend 20 lacs per year in decade 2 etc. In such a situation how should you deploy your money? But before we get there let us see the cash outflows and strategy of withdrawal.

  • You need 1 crore in the first decade – this should be largely from interest from PPF/VVY/SCSS  or capital gains from debt funds.
  • Your 2 crores in the second decade should largely be funded by redeeming your Debt investments.
  • Your 4 crores in decade 3 will be mostly through SWP from Mutual funds.
  • Your 8 crores in the final decade will be through redeeming both MF and stocks.

Finally let us talk of the allocation now :-

  • 60 lacs for you and your spouse in VVY and SCSS, 40 lacs in PPF.
  • 1 crore in Debt funds so that you get returns of roughly 8 lacs a year.
  • With the above 2 crores your first decade cash flows are assured.
  • In the second decade you can redeem the debt investments and still have enough surplus to take care of some indulgences.
  • Out of the original 4 crores, put 1.5 crores in equity MF and 50 lacs in Blue chip stocks which are likely to give stable returns.
  • Your MF portfolio will grow to 10 crores in 20 years even at 10 % returns.
  • Spend 4 crores out of this in decade 3 and let the rest be invested.
  • In decade 4 you will have much more than 8 crores in MF itself.
  • Your stocks are really a bonus – leave it as your legacy by donating it to worthy causes.

So when do you want to retire and will you have enough when you do? I think this post has provided a good template for this. Apply it to your own situation and see how it wotks out for you.

Taking stock of my FI state

Many of you who follow the blog will have an idea about my journey in life so far, but let me summarize for new readers. I was born and brought up in Durgapur ( West Bengal ), studied in St Xavier’s school, Jadavpur university and IIM Calcutta, worked till 2014 end in corporate world with 14 years plus at CXO level. Since then I am working in my own Management Consulting practice. I have 2 children who are doing Post graduation ( Rinki is in XLRI and is an Engineer from BITS Hyderabad) and Graduation ( Ronju is doing a dual course in BITS Goa). I have been financially independent since 2014 and thought it would be a good idea to share the stock taking which I did recently.

The interesting fact is that the last four calendar years 2014 through 2017 have been progressively the most expensive years of my life. This flies in the face of conventional wisdom which will tell you to be conservative on spending when you are no longer doing a regular job etc. When I took the plunge in 2014 end, my thinking was as below:-

  • My total expenses in 2014 was equivalent to 200 units in some scale.
  • If I left out children’s college education, the travel to Australia which we went for in October 2014 and my apartment rent in Hyderabad then the expenses would be equivalent to 100 units.
  • Now, my rent was getting covered by the rent of my Chennai apartment, I had a separate fund for my children’s graduation expenses and we would obviously not go for an Australian vacation every year.
  • Based on this it seemed reasonable that my expenses annually would be in the range of 100 units.
  • As my financial assets would generate more passive income than 100 units, I concluded I had achieved the holy grail of financial independence.

At the end of 2015, I was surprised to see that my overall expenses were in the range of 225 units. A closer examination revealed the following :-

  • Education expenses were higher as I had to pay two semester fees for my son instead of the one in 2014.
  • Expenses otherwise on my children were high, courtesy their being typical college students now. Also, Rinki took up a course for her MBA entrance preparations.
  • However, my other expenses were still below 100 units and this was managed easily through my passive income stream.
  • It thus seemed that my assumptions held true for 2015.

2016 was a completely different story though. My overall expenses shot up to 400 units and change. Analysis of this figure showed up the following:-

  • Educational expenses were very high in the year as Rinki got into XLRI and, after a long deliberation, I decided to fund her first year expenses. We could have taken a loan for the entire expenses but this seemed a better idea for us.
  • Other expenses of children continued to grow. I am fine with their having a good time in college as long as they have the right priorities.
  • Our travel increased a lot in the year – we took more vacations and also traveled a fair bit for Rinki’s admission process.
  • With the declining interest rates the cash flows of my parents got impacted adversely. I chipped in with a greater amount than normal this year.
  • We upgraded our timeshare and there was a one time cost of 1.7 lacs for this.
  • Furniture replacement with a new sofa set, Dining table and balcony chairs were an expense this year.
  • Purchasing a new Android tv, new internet connection, new phone for my wife and a recording set top box also happened during the year.
  • In summary, it was a year with great experiences and they often come at a fairly high cost !!

So what was the conclusion I arrived at from all of this? Well, 2016 was definitely not a typical year and I did not think it will ever repeat in our lives. With Rinki getting the rest of her course done through bank loan, asset purchases not really there except for a Fridge and lesser travel the 2017 expenses will be much lower.

The reality was quite different though. We did not spend 400 units in 2017 but it was still close to 250 units. A closer look revealed the following:-

  • As is their practice, BITS again increased the fees by 12 % and my children’s college expenses continued to rise. I have been rather indulgent on this as I believe one should have a fun college life.
  • As I was earning a pretty decent Active income, I thought it would be good to part pay the Term 4 fees of Rinki. She chipped in with some of her internship earning and this has resulted in the loan amount being only 6.5 lacs.
  • Even though we had not planned for it, Lipi and I went for a vacation to Italy in May for a week. It was a great trip and I was quite happy to pay for it.
  • We also upgraded our Timeshare once again to a one bedroom unit and this too was an unplanned expenditure.
  • Travel within India too was more than we had anticipated. We went to Kumarokom in February, Vizag and Aruku valley in June, Goa in August, Durgapur in September for Pujas and finally Konkan beaches in November. While all these were expensive they created great memories and was totally worth the effort and money.
  • Other than the above, most of our expenses were the regular ones. We did exceed on the Entertainment and dining out part but not alarmingly.

At the same time, the experience of 4 years now set me thinking as to whether I should look at financial independence and retirement cash flows differently. After a lot of reading and deliberation I came up with a better model. You can read about it in this post

I am also working out my likely cash flows in 2018, based on the above model. Should be writing a post on it this week.

Cash flows in retirement – A personal perspective

In a previous post, I had outlined about the 3 decades in retirement and how one could have a simple framework to explain the dynamics of how they will be lived. The first one is the Go-Go decade where you try to fulfil many aspirations you had over the years gone by, the second is the Slow-Go decade where you still do many of your activities but on a significantly reduced scale and the final one is the No-Go decade where you are virtually winding down and kind of waiting for the inevitable end. Of course, this is assuming you are retiring in your 50’s and will need to be expanded in case you retire earlier. 

In the Indian context, however, this framework will work quite well as most people do retire in their 50’s and, despite medical advances, few live to be beyond 90. Once you have understood the framework, it will be fairly easy to outline how these decades will go in terms of your life activities and plan out your cash flows for the same. Understand that this is an individual exercise and cannot be reduced to formulae and calculators !!

When I started to look at my situation in the Go-Go decade in terms of my life, this is what I came up with. Some of it is, of course, not completely certain but it seems very likely to me that things are very likely to pan out as I write them here:-

  • I will still be actively engaged in professional activities in the first half of the decade but it will taper down over the next part.
  • Both my children will be relatively settled in their careers at the start of the decade and are likely to get married within it.
  • I am fortunate that my parents are living and in reasonably good health. However, another 10 years will be probably too much to hope for.
  • We will definitely shift from Hyderabad to Kolkata in this period, quite possibly in the next year or so. It is possible we will buy an apartment in Kolkata unless we get very good renting option.
  • As both Lipi and I love travel and we have time now, this decade is likely to see a lot of it. I estimate 1 trip out of India annually apart from another 3 within the country.  Most of these will have the two of us, hopefully there will be some family vacations too.
  • Our other lifestyle choices like entertainment, dining out, engaging in our hobbies will probably remain the same as it is now.
  • Both Lipi and I will probably engage in some non-commercial activities which are beneficial to the society at large.

What will be the cash flow impact of the above? I looked at my present context and tried to look at all categories of cash outflow at current prices. I am assuming that the first decade starts in 2019 and ends in 2028 – calendar years both, for simplicity. I will estimate cash flows in terms of Retirement Units ( RU ), as I am not very comfortable providing actual numbers. Intelligent readers should have no difficulty in figuring out the Rupee value of each RU !!

Here is how I divided up my cash outflow categories and estimates of amounts:-

  • Monthly recurring costs : This head includes everything that happens monthly namely food, groceries, eating out, entertainment, parental support, utility bills, subscriptions and maintenance etc. In the present context we spend about 5000 RU annually here and it will remain the same.
  • Accommodation : Presently our rent in Hyderabad is annually at 2500 RU. This gets taken care by the rent we receive from our Chennai apartment. We may buy something in Kolkata if we sell that.
  • Travel : in 2017 our spending on this was about 4000 RU. With increased travel I am estimating this to be 5000 RU annually for the first decade.
  • Emergency kitty : I am estimating this to be 2500 RU annually.

So in the first decade we are looking at annual cash outflow of 14000 RU. As long as our passive income generates this kind of cash inflow we should be fine. Let us then take a look at the same. My idea here is to generate these amounts from the Debt side as I want my equity investments to grow for the next decade. Of course, dividends are welcome. I am expecting cash inflow from these avenues :-

  • Rent from Chennai Apartment – 3000 RU
  • Interest from tax free bonds and InvIT – 2500 RU
  • Dividends from MF schemes – 2000 RU
  • Capital gains from FMP – 5000 RU
  • Dividends from stocks – 1500 RU

So with the above inflows I should be able to meet the needs without really having to redeem the principal amounts in most cases. From a financial asset standpoint there are a few things I am not using in this plan. They are as follows:-

  • Entire stock and MF portfolio which is 60 % of my net worth.
  • PPF interest – currently it will have an annual value of 3500 RU
  • POMIS interest – it is only 600 RU and can be used for minor emergencies
  • Any active income – difficult to put a value but for the next few years it should be in the range of 10000 RU and more. The plan is to use it for children’s marriage cost.

Based on all of these, I feel quite well covered for the next decade. Yes, we do not know what all can happen but so far so good. What about the next 2 decades? Well, with my equity portfolio growing at a faster pace that inflation, I do not think there is really a need to worry about them. 

If you are in retirement or are going to be retired shortly, try to work out your figures based on this post. You will gain a lot of confidence from it, assuming of course you are invested in the right manner.

Cash flow planning is key to a good financial plan

Many of my readers keep asking me as to why I do not have different portfolios allocated to different goals of mine. I have explained this in other posts so will not repeat the basic arguments here. Suffice it to say, multiple portfolios will most likely lead to sub-optimal returns and I do not look upon it as smart financial planning at all. In fact if you really look at how you go about your life and the finances you need ta take care of your plans, the most important aspect is really cash flows.

While cash flows are kind of implicit in goal based planning – we are asked to redeem our financial investments to cater for the expenses linked to a goal – it is important to understand the true nature of it. In a recent discussion with a friend it struck me that most people do not have a clear idea about it at all and do not understand how to go about it. When I was thinking of how to explain this to my readers, I thought of how we use water in our daily lives. This is an analogy I have used in one of my earlier posts and can be used well here.

Let us assume a normal middle class household in India where we have different types of expenses such as listed below:-

  • Regular monthly expenses such as food, groceries, utility bills, transportation etc.
  • Quarterly or biannual expenses such as school or college fees.
  • Annual expenses such as Insurance premiums, TV subscription etc.
  • Irregular expenses such as clothing, purchases of personal discretion.
  • Large expenses such as White goods, Vacations abroad etc
  • Goals such as College admission, marriages etc.

To personalise this example let me relate it to you as a reader. For the next 12 months, list out all possible cash needs you have out of these categories. For example you may have something looking like this:-

  • Monthly household expenses @ 40000, Annual costs = 4.8 lacs
  • School fees @ 10000, Annual costs = 1.2 lacs
  • Insurance premiums, TV service etc, Annual costs = 1 lac
  • Vacations, White goods, Annual costs = 1 lac
  • No large goals in next 12 months.

What does this really mean? In cash flow terms, your outflow will be to the tune of 8 lacs. So if you have got 8 lacs and more from your salary or business you are fine, right? This is unfortunately not true at all – understand that your outflows on large goals are not there now but they will occur at some point in time. When it does you have to spend and that amount may not be possible from your normal cash inflow. Let us say your son will go to a college that costs 5 lacs a year for 4 years. If this amount can be catered for through your active income, you are home and dry. If not then you must invest in the years before he gets to college so that when the time comes you have access to the money. Similarly you need to plan for your retirement – at that time you have no active income but your household expenses remain there. So, you must have some alternate source of cash inflow so that you are able to sustain your expenses.

Where does cash inflow come from? Well, there can be several sources, but some of the more common ones are as follows:-

  • Salary from your job
  • Income from business or profession
  • Income from hobbies or other interests ( blogging etc)
  • Interest income, dividends
  • Rental income
  • Capital gains from selling an asset
  • Redeeming financial instruments

Where does the water analogy come in? Well, you can think of regular cash flows as the water that is supplied to your house every day by the City corporation. Most of your needs are met by that. However, you also store some water for an emergency that may occur. In case you are planning to clean your house thoroughly, you will plan to arrange for availability of water etc. What happens if you are having a big function at your house and you need to have a lot of water? Well, in case you have stored it in a tank etc you can use that. Alternately you can get some water tankers to get water for you. This is similar to redeeming financial instruments for a large goal. You can also stretch the thought process to look at these tankers as a loan – in that case you have to pay back the water just as you pay back through EMI for the loans.

The bottom line is this – your cash inflows either in term of current income or income from past investments or loans must match your cash outflow needs at all points in time. With the water analogy we have to look at running water, water stored earlier or water obtained from external sources such as tankers to take care of our needed consumption.

Pretty simple really, if you think of it a little and then the entire financial planning just becomes an exercise in cash flow management. How do we factor in investments into this? Well, I will cover that in another post as this one has already got quite long.

My experiences with Tour operator Kesari

A lot of people have contacted me on my blog and Facebook and wanted to know more about my experiences with Kesari, the tour operator I had chosen for our Italy trip. Let me try and address all the queries in this post.

To begin with, this is the first time I was looking at an end-to-end tour operator. So far we had been to Thailand, Sri Lanka, Nepal, Bhutan, Netherlands, France and Australia and in all these travels we had booked the travel and the local tours mostly on our own. I am a firm believer that you should have a certain flexibility when you travel, for there may be things you want to do on your own and a group tour can be constraining in some ways. However, the reason we wanted to do this travel through a group tour was simple – it was difficult to cover all the places we wanted to see on our own within one week. If I was staying in Rome for 3 days I would definitely do it on my own but as we wanted to see Italy properly in the current trip a tour operator with a group tour was a better option. It also gives you the option of just enjoying the trip while the tour leader takes care of all the necessary arrangements.

Once we had identified the places we wanted to see, there was really only one tour that covered them all. It was Flavours of Italy by Kesari. When we contacted them with our queries, they were very prompt in their responses and we were quite satisfied with the inputs we received. The fact that they were covering all the meal costs and had local guides for the important tours was a definite plus point. As we were booking early there was a reasonably good discount that we got. Once we paid the 2.71 lacs as a one time fee we got into the process of arranging for the visa documents etc.

During the period between January and April we continued to interact with Kesari for purposes of visa documentation and application. They helped us with validating all the documents, taking appointment with VFS and keeping us updated about the reservations as well as the travel regulations that had come into vogue newly. The Tour leader sent us a WhatsApp message with details of how we had to meet in Mumbai and how things will proceed from that point. Kesari also provided us with the following for the travel :-

  • A stroller and a shoulder bag which were very useful during our travel.
  • A raincoat and a cap
  • A snacks hamper with Tea/coffee sachets
  • An Electric kettle
  • A power adaptor suited for Europe

From the time we checked in at Mumbai for our first leg of the flight to Abu Dhabi, our tour leader was in complete control of the situation. She got us to the transit flight in Abu Dhabi and once we were in Rome, guided us through immigration. Having travelled abroad frequently, these were no issues for me but there were many who were going out of India for the first time and were happy to get the kind of guidance she provided.

Over the next 7 days the tour leader was omnipresent in everything we did and she also let people do their own things if they so desired. The whole itinerary was managed very professionally – be it the hotel check-in’s, the meals, the transportation, the local guides and all the crises. For example when we went to Capri it was told to us that the Blue Grotto ( an underwater cave ) was not possible to visit due to the high tide in the seas. While many of us were disappointed at this, our tour leader took stock of the situation quickly and arranged an alternate activity of a chair lift ride, which we liked a lot. Through the long coach rides, she played the perfect hostess and got the group to know it’s members and to play games that were of common interest. She also had an plethora of stories, movies and music to keep people occupied.

So was it all good then? That rarely happens in real life and I would have liked to do some things had I done it on my own. For example, I would have definitely seen some museums in Rome and Florence. However, to be fair, that would have been impossible to squeeze into one week. On the whole, I think the itinerary planned out by Kesari was a really good one. Each day was an unique experience and if the objective was to give us the Flavours of Italy, I think the tour did achieve that.

The best part of the tour was definitely the tour leader and how everything was managed well. We could just focus on enjoying ourselves without worrying about any of the logistics. The worst part was we had to move as a group to see everything and sometimes that caused issues of timing and coordination.

Overall, I am happy to have taken the tour and may repeat it with the same operator in the future. If you have enough time and money along with an inclination to plan your own travel, you can definitely do so. However, most people do not have the above luxury and for those a group tour with a standard tour operator can be a great option.

Our travel to Italy – The plan

As all my readers will know by now, travel is one of the aspects I and my family are really keen on. We try to do it as much as possible and look for all possible opportunities to travel both within and out of India. A lot of my readers and connections in Facebook have asked me to write a travelogue on our recent Italy trip. However, I think it will be a better idea to do a few posts on it, this is the first of the series.

To begin with, after our last significant tour to Australia in 2014, our idea of the next trip out to Europe was really in 2018. The Australian tour was on a big scale as we took out two weeks for it and also had significant expenses – in the range of 6 lacs for both of us. The plan to do an European tour in 2018 was to celebrate our 25th wedding year. The reason I wanted to advance it in 2017 was that we wanted to get away from the Hyderabad heat in May for some time. Also, while our Australia trip was a great one, 2 weeks at a go is difficult, especially when I am working as a CSO in a company. After we took a fundamental decision to travel in segments of one week, it was easier to think in terms of a holiday outside India every alternate year. My wife was obviously quite pleased with the advancement and we got down to searching for places.

Our first idea was to look at South Africa but there were some difficulties involved in it. This was a place where we wanted to travel with our children and that was tough in 2017, due to their academic and other engagements. Also, both the trip costs as well as the time needed for it were more in the range of 12 days or so. Finally, we were unable to go in March etc as there was a little gap after our Kumarokom vacation in February. Based on all of this and the need to get away in May, we wanted to look at Europe for a week. Over the months of December and January we did extensive search of several tours in order to see which one would be suitable for us.

In terms of Europe, the following aspects were important for us:-

  • As we had already seen Amsterdam and Paris we wanted to avoid tours that spent time in these two cities.
  • We were good with the idea of Switzerland but here again, we would prefer the children to travel with us.
  • Eastern Europe or Spain were good options.
  • Italy was another good option.
  • We wanted to go with a tour operator this time as we had to cover several cities in the span of a week.

On going through all of the above, it seemed that a trip to Italy covering all the major cities over a week would be a good idea. We searched for such offers from all the reputed tour operators and settled on the Flavours of Italy tour by Kesari. It was covering all the places we wanted to cover – Pompeii, Capri, Vatican City, Rome, Florence, San Gimignano and Venice. The one advantage with Kesari is that they give you an all inclusive cost, so what you spend extra is only on indulgences and shopping. We got a Bonanza offer, similar to an Early bird thing, which came to 2.72 lacs for the two of us. On the flip side all Kesari tours start from Mumbai, so we had to make that arrangement on our own.

Once we decided on the tour and paid the money, the rest of the activities were coordinated very well by Kesari. I am sure a lot of readers might want to go on similar trips , so I will do a separate post on that. It will be right to say that the entire plan went smoothly and in the end we were really happy that we had chosen Kesari.

As far as the experience of the trip goes, for both Lipi and me it was a dream come true to see the places we have read so much about and seen so much in movies and news. We did manage to get away from the Hyderabad heat in a nice manner too.

But more details of our Italy trip in a future post.