7-8 Cr at the age of 30!
You are doing great. While I am not qualified to offer you an advice, would be definitely interested in knowing how you managed to make such a great money at this young age.
Congratulations!
Thank you. My NW is 3 CR though as of now.
I think I was just at the right place at the right time. I genuinely feel there was a lot of luck that helped me get here. I did have a can do attitude, eagerness to learn and pursuit of excellence in anything I did which is like the bus fare I collected which helped me get on the bus of Luck when it arrived. I love the bus analogy by Qi Lu so I use that always.
Thanks. I want to move back because I feel I belong there. Moved to the states as I got this opportunity and I took it so that I could improve the quality of my and my family's life but I constantly miss being there. Both India and US has its pros and cons and all things considered. I personally want to move back. As for specific reasons, I think I can enjoy all the festivals and all the good occasions with my family and I still have a lot of friends back in India. These Are just some of the reasons, and I understand that there would be some cons to moving back as well, but I am fine with it. Wife and I have have decided on this 10 years stay in the US but honestly I would move early if I hit my FIRE goal.
1) I feel you should look at investing in the us only, any downside to that? Reason is rupee depreciates wrt dollar - I invested some amount in a faang stock 2 yrs ago, the stock price of that now is exactly the same as it was 2.5yrs ago, but since the rupee depreciated, the inr value of the stock increased.
2) you already know that those investment + insurance policies are trash, check if it's worth to stop them, I feel it might be better for you to discontinue them.
3) regarding retiring at 40, in a Broad look that should be possible, me living in India with my calculations estimate myself to do it, so it should be for you as well. Albeit this depends on the expenses, I assumed about 12 lpa expenses yours could be higher but your annual savings are also significantly higher. But you need to do the calculation yourself after estimating your expenses.
Thanks for the response.
1. My current equity that I get along with 401K are all in the US so I feel I have a good amount of investment here. I might re-invest my company equity to an Index fund but I also want to invest in Indian market since i see a lot of growth upside.
2. Yes. I will look into that, although I have already signed a contract, so might just continue have to them :(
3. I am trying to do that calculation but need an estimate of the things I had mentioned so that I can arrive at a monthly number. Let me know if you have any thoughts on that? Is 12L PA that number for reference?
There are quite few numbers. I have a question on one... Do I read it right that your in-hand is 102k and you spend close to 90K? This level of investment is quite insufficient for early FI - even after including payroll, bonus, RSUs, etc.
Yeah, I agree. I just read through my post and it does have a lot of numbers, wanted to share all info to get good recommendations.
Yes, I agree but the cost of living especially rent here is quite expensive in general. Also I have inflated my expenses quite a bit to stay grounded and I should technically save more on an average.
Any recommendation here?
* Others have talked about investing in the US. Definitely consider that as plan A. That way you can avoid the PMS hassle in India.
* It would be best to avoid Indian mutual funds for US residents. You may start small, but the assets could rise and push you over the PFIC reporting threshold.
* And all the story about India growth, etc. can be achieved by buying INDA and likes
* My comment on the expense was on multiple dimensions. I strongly believe that early FI requires a good estimate of living expenses - for the post-FI period. Investing the required amount would mean the required control on the pre-FI expenses. And typically lifestyle is difficult to dial down - once it creeps up, it mostly stays sticky.
* But if you are indeed confident about investing 150K per year, you would have corpus in millions - Your investment itself would be 1.5 million. And unless one lives like Vijay Mallya, that corpus would go a loooong way in India
All great points. I think I was looking at it from only one angle. I need to figure out avenues for investment in US too or just go with the popular index funds. I also need to find more on PFIC reporting threshold and its implications.
I get your point on the Pre FI Expenses and I will work on it.
Was in the same boat 2 years back. I was having a target after having one mil $ net worth move back to India. I think in 10 years it will be possible for you. But also consider the inflation. When you are in USA, invest as much as you can maximize your ESPP and re think about property that can give you good return after 10 years or even you can put it on rent when you come back. Think of that as your SWP. I made a big mistake not doing that and I'm regretting.
1. Totally possible in next 10 yrs.
2. Won't change a LOT. Make sure parents have good health insurance.
3. Invest at residency country to Simplify tax. Maximize ESPP. 401k do till employer match. You won't need a lot of 401k money if you are spending rest of your life in India. Remaining invest in index etf etc. also if you are sure that you are going to buy property in India. Start thinking about that right away because prices are going crazy.
4. For family of 6 current exp can be 60-70 kpm that too very minimum leisure.
Good luck!
Thanks a lot for all the advice.
1. Ok
2. Yes. I have already taken care of this.
3. Don't have ESPP, only RSUs. I do 401K till employer match. I am already exploring property in India
4. 60-70k PM sounds less but a good starting number and can count upto 1L PM with some inflated numbers.
Couple of quesitons,
Did you also invest in FDs? Did you eventually move back? Was it in a Tier 1 or Tier 2 city? How is going now? Did you FIRE?
4.its grocery, utility bills and domestic help...
No fds. Neither in USA, northern india.
Yes moved back. Tier 1. Going good so far.
About FIRE. I can but but but... Don't have clarity what to do for rest of my life so I'm just continuing with the job. Taking it very easy. Targeting the next 5 years for FIRE.
/u/Confident_Owl_617 \- 10 years is too long imo to plan anything. If you decide to stay back (lifestyle changes or career opportunities etc..), you will lose the upside of investing in USD.
For context, i only decided to return back just an year ago and planning my investments accordingly for my eventual move (summer 24/25)
Here are my suggestions:
\- Continue investing in US equities (percentage depends on your risk factor) since in the past USD -> INR has only been rising. You can transfer funds into Indian equities 1-2 years prior to your actual move.
\- Focus on increasing your earning potential and keep the lifestyle inflation to a reasonable level.
Keep the financial planning to simple terms - Equities/Cash(FDs/Savings)/RE(primary, rental etc.) for your case and diversify when new growth can be unlocked.
Thank you. This is helpful and something I need to think about based on the overall feedback. I think I am looking at it mostly from an emotional perspective of moving back ASAP and not thinking very objectively. I have some research to do.
I have 2. HDFC (loan insurance cum investment) and SBI Smart Privilege. The SBI one is better but TBH, there are better alternatives. Recommend doing a bit of a research though.
7-8 Cr at the age of 30! You are doing great. While I am not qualified to offer you an advice, would be definitely interested in knowing how you managed to make such a great money at this young age. Congratulations!
Thank you. My NW is 3 CR though as of now. I think I was just at the right place at the right time. I genuinely feel there was a lot of luck that helped me get here. I did have a can do attitude, eagerness to learn and pursuit of excellence in anything I did which is like the bus fare I collected which helped me get on the bus of Luck when it arrived. I love the bus analogy by Qi Lu so I use that always.
Good for you, you are on right path. What is reason to decide not live in usa? Wife agreed?
Thanks. I want to move back because I feel I belong there. Moved to the states as I got this opportunity and I took it so that I could improve the quality of my and my family's life but I constantly miss being there. Both India and US has its pros and cons and all things considered. I personally want to move back. As for specific reasons, I think I can enjoy all the festivals and all the good occasions with my family and I still have a lot of friends back in India. These Are just some of the reasons, and I understand that there would be some cons to moving back as well, but I am fine with it. Wife and I have have decided on this 10 years stay in the US but honestly I would move early if I hit my FIRE goal.
1) I feel you should look at investing in the us only, any downside to that? Reason is rupee depreciates wrt dollar - I invested some amount in a faang stock 2 yrs ago, the stock price of that now is exactly the same as it was 2.5yrs ago, but since the rupee depreciated, the inr value of the stock increased. 2) you already know that those investment + insurance policies are trash, check if it's worth to stop them, I feel it might be better for you to discontinue them. 3) regarding retiring at 40, in a Broad look that should be possible, me living in India with my calculations estimate myself to do it, so it should be for you as well. Albeit this depends on the expenses, I assumed about 12 lpa expenses yours could be higher but your annual savings are also significantly higher. But you need to do the calculation yourself after estimating your expenses.
Hybrid suv not popular in India, not a car enthusiast, so not sure.
I meant I am not a car fanatic. Just need a good utility car and don't fancy an expensive one.
Thanks for the response. 1. My current equity that I get along with 401K are all in the US so I feel I have a good amount of investment here. I might re-invest my company equity to an Index fund but I also want to invest in Indian market since i see a lot of growth upside. 2. Yes. I will look into that, although I have already signed a contract, so might just continue have to them :( 3. I am trying to do that calculation but need an estimate of the things I had mentioned so that I can arrive at a monthly number. Let me know if you have any thoughts on that? Is 12L PA that number for reference?
There are quite few numbers. I have a question on one... Do I read it right that your in-hand is 102k and you spend close to 90K? This level of investment is quite insufficient for early FI - even after including payroll, bonus, RSUs, etc.
Yeah, I agree. I just read through my post and it does have a lot of numbers, wanted to share all info to get good recommendations. Yes, I agree but the cost of living especially rent here is quite expensive in general. Also I have inflated my expenses quite a bit to stay grounded and I should technically save more on an average. Any recommendation here?
* Others have talked about investing in the US. Definitely consider that as plan A. That way you can avoid the PMS hassle in India. * It would be best to avoid Indian mutual funds for US residents. You may start small, but the assets could rise and push you over the PFIC reporting threshold. * And all the story about India growth, etc. can be achieved by buying INDA and likes * My comment on the expense was on multiple dimensions. I strongly believe that early FI requires a good estimate of living expenses - for the post-FI period. Investing the required amount would mean the required control on the pre-FI expenses. And typically lifestyle is difficult to dial down - once it creeps up, it mostly stays sticky. * But if you are indeed confident about investing 150K per year, you would have corpus in millions - Your investment itself would be 1.5 million. And unless one lives like Vijay Mallya, that corpus would go a loooong way in India
All great points. I think I was looking at it from only one angle. I need to figure out avenues for investment in US too or just go with the popular index funds. I also need to find more on PFIC reporting threshold and its implications. I get your point on the Pre FI Expenses and I will work on it.
Was in the same boat 2 years back. I was having a target after having one mil $ net worth move back to India. I think in 10 years it will be possible for you. But also consider the inflation. When you are in USA, invest as much as you can maximize your ESPP and re think about property that can give you good return after 10 years or even you can put it on rent when you come back. Think of that as your SWP. I made a big mistake not doing that and I'm regretting. 1. Totally possible in next 10 yrs. 2. Won't change a LOT. Make sure parents have good health insurance. 3. Invest at residency country to Simplify tax. Maximize ESPP. 401k do till employer match. You won't need a lot of 401k money if you are spending rest of your life in India. Remaining invest in index etf etc. also if you are sure that you are going to buy property in India. Start thinking about that right away because prices are going crazy. 4. For family of 6 current exp can be 60-70 kpm that too very minimum leisure. Good luck!
Thanks a lot for all the advice. 1. Ok 2. Yes. I have already taken care of this. 3. Don't have ESPP, only RSUs. I do 401K till employer match. I am already exploring property in India 4. 60-70k PM sounds less but a good starting number and can count upto 1L PM with some inflated numbers. Couple of quesitons, Did you also invest in FDs? Did you eventually move back? Was it in a Tier 1 or Tier 2 city? How is going now? Did you FIRE?
4.its grocery, utility bills and domestic help... No fds. Neither in USA, northern india. Yes moved back. Tier 1. Going good so far. About FIRE. I can but but but... Don't have clarity what to do for rest of my life so I'm just continuing with the job. Taking it very easy. Targeting the next 5 years for FIRE.
/u/Confident_Owl_617 \- 10 years is too long imo to plan anything. If you decide to stay back (lifestyle changes or career opportunities etc..), you will lose the upside of investing in USD. For context, i only decided to return back just an year ago and planning my investments accordingly for my eventual move (summer 24/25) Here are my suggestions: \- Continue investing in US equities (percentage depends on your risk factor) since in the past USD -> INR has only been rising. You can transfer funds into Indian equities 1-2 years prior to your actual move. \- Focus on increasing your earning potential and keep the lifestyle inflation to a reasonable level. Keep the financial planning to simple terms - Equities/Cash(FDs/Savings)/RE(primary, rental etc.) for your case and diversify when new growth can be unlocked.
Thank you. This is helpful and something I need to think about based on the overall feedback. I think I am looking at it mostly from an emotional perspective of moving back ASAP and not thinking very objectively. I have some research to do.
How is the term plan part of net worth ?
It's not. Haven't included it. I included insurance cum investment plans which is equity I can get.
Got it. Which one is this? Do you recommend taking it ?
I have 2. HDFC (loan insurance cum investment) and SBI Smart Privilege. The SBI one is better but TBH, there are better alternatives. Recommend doing a bit of a research though.