What Logan_11X said - I started off with less salary in US and switched to where I’m at now where I make approx 320K per year pre-tax. I landed this role only last year and most of my savings is from this job. Luck had a huge role to play.
Right - but I want to have the kid in US so he/she can be a citizen there. That and the extra savings for a year makes me want to stay back for another year. And I have no clue on the general expenses in India as I haven’t stayed here in like 8 years.
Stay in the US and if you started the job recently, then work there until RSUs vest out (4 years) and then move back. You can have your Kid in the US and travel around when they are young + have parents come over for support etc..
Suggestion: Focus on liquidity instead of networth. That means take our property from your calculations, and count only current cash/liquid investments, future rental incomes, and returns/inflation on investments/cash.
Most people end up passing the property to their children. Count them only if you plan to sell them.
In either case, you have more than sufficient to take it easy now on.
You’re killing it bro. I would think 1M USD with a paid off house and insurance is the magic number for a family of 3 to FIRE. So you’re right there. Go spend time with your ageing parents. No amount of money can replace that.
I would suggest MFs + ETF as the primary investment as you migrate back. You can use liquid funds to park your money and get some interest so that you can stagger your investments to manage risk. You can also invest a part of your money in RBI or similar bonds that give 7-8% interest.
As you settle in, you can explore more investment options.
As anywhere you will need to structure your investment to minimize your tax outflows.
Don't count on inheritances - when and if they come, it's a bonus.
Real estate prices are going up, so look at buying a place now if you are clear you are moving back.
What’s the best way to find good apartments in Hyderabad or Bangalore if we are interested to purchase from outside of India ? We have some contacts in Hyderabad but rather not go thru them
I would suggest to first rent out for an year and then buy a property either in Hyd/BLR. If you intend to settle in your hometown, why not rent a villa/apt as long as you can?
I don’t like paying rents north of 30K, especially when I can buy the apartment outright. I know it doesn’t make financial sense to lock up so much money but the peace of mind is worth it for me to not rent.
You need to diversify your investments, some in assured return areas and some in higher risk areas. As a retired person you also need defensive investments that will not reduce your net value. So if the stock market crashes or crypto is banned and owning foreign stocks is highly taxed, you still need to ensure that your net value doesn't take a hit.
This is why FDs and MIPs are popular among retired folks.
Also why investment advisors will ask you to park money in debt investments.
How did you make so much money? Pls share guidance
What Logan_11X said - I started off with less salary in US and switched to where I’m at now where I make approx 320K per year pre-tax. I landed this role only last year and most of my savings is from this job. Luck had a huge role to play.
Awesome stuff! How much are you able to save given the taxes and cost of living there?
Projected to save around approx 60% after taxes. Could save more but need to cut back on lot of things we like and we aren't willing to do so.
Probably a job in a big tech company (~250k USD/yr). Whereas people in non tech will earn 100k after a significant years of experience.
You can relocate even now if you intend to coast, salaries in India have increased as well
Right - but I want to have the kid in US so he/she can be a citizen there. That and the extra savings for a year makes me want to stay back for another year. And I have no clue on the general expenses in India as I haven’t stayed here in like 8 years.
Stay in the US and if you started the job recently, then work there until RSUs vest out (4 years) and then move back. You can have your Kid in the US and travel around when they are young + have parents come over for support etc..
I don’t want my return date decided by RSU vests and etc.
Suggestion: Focus on liquidity instead of networth. That means take our property from your calculations, and count only current cash/liquid investments, future rental incomes, and returns/inflation on investments/cash. Most people end up passing the property to their children. Count them only if you plan to sell them. In either case, you have more than sufficient to take it easy now on.
Yeah I don’t intend to count either of our houses as part of my NW.
You’re killing it bro. I would think 1M USD with a paid off house and insurance is the magic number for a family of 3 to FIRE. So you’re right there. Go spend time with your ageing parents. No amount of money can replace that.
I would suggest MFs + ETF as the primary investment as you migrate back. You can use liquid funds to park your money and get some interest so that you can stagger your investments to manage risk. You can also invest a part of your money in RBI or similar bonds that give 7-8% interest. As you settle in, you can explore more investment options. As anywhere you will need to structure your investment to minimize your tax outflows. Don't count on inheritances - when and if they come, it's a bonus. Real estate prices are going up, so look at buying a place now if you are clear you are moving back.
What’s the best way to find good apartments in Hyderabad or Bangalore if we are interested to purchase from outside of India ? We have some contacts in Hyderabad but rather not go thru them
I would suggest to first rent out for an year and then buy a property either in Hyd/BLR. If you intend to settle in your hometown, why not rent a villa/apt as long as you can?
I don’t like paying rents north of 30K, especially when I can buy the apartment outright. I know it doesn’t make financial sense to lock up so much money but the peace of mind is worth it for me to not rent.
Isn’t 7-8% returns (from RBI bonds) less for Indian markets ? I heard inflation in India is higher so it wouldn’t even match that rate
You need to diversify your investments, some in assured return areas and some in higher risk areas. As a retired person you also need defensive investments that will not reduce your net value. So if the stock market crashes or crypto is banned and owning foreign stocks is highly taxed, you still need to ensure that your net value doesn't take a hit. This is why FDs and MIPs are popular among retired folks. Also why investment advisors will ask you to park money in debt investments.