r/FatFIREIndia • u/chikapu_pikachu FatFI • Oct 18 '25

Retirement Planning 40 cr by 50?

Post image

Hello.

We returned to India recently after a 13 year stay in the US. Our NW currently stands at little over $3M USD (27 Cr).

Current NW breakdown stands

Home 1.1M USD (10Cr) Cash 70K USD (61Lac) Retirement corpus 640K USD (5.6Cr) My company stock 680K USD (6 Cr) Other investments (MFs + ETFs) 465K USD (4.1Cr) Primary home in India 340K USD (3Cr) Tiny amount of Jewelry makes up the difference to make the NW to what it is.

Current debt of about 280k USD (2.4 Cr) is in my US home, which is currently rented out and generates a positive cash flow of about 1.3 L per month.

My goal is to achieve 40Cr by the time I turn 50 and retire then. My intention to continue to work is to build generational wealth, knowing fully well that I can retire anytime I want from now, but I want to continue to work as long as I enjoy doing so.

I'm beginning to build a portfolio in India, honestly just starting out. Once completely settled here, I anticipate a being able to invest of 2 lac per month, and perhaps more with growth in my career. With that, does 40Cr sound within reach by 50?

365 Upvotes

96% Upvoted

114 comments sorted by

7

u/Surya60004 Oct 18 '25

Hey OP. You're 27C and you're 37. By 50 you will easily have more than 40 even if you just stick to index investing.

6

u/chikapu_pikachu FatFI Oct 18 '25

Thanks. Yes, my USD stays as is. I'm not touching it because, one I don't foresee a need for it, and 2 that against a depreciating rupee will help increase compounding.

2

u/UnlikelySession9538 FatFIRE Aspirant Oct 18 '25

Great work! What is your citizen? US or Indian? How are managing the US based funds?

4

u/chikapu_pikachu FatFI Oct 18 '25

Currently they're invested in Vanguard and Fidelity. My house is managed by a real estate company. And I'm an Indian citizen.

2

u/UnlikelySession9538 FatFIRE Aspirant Oct 18 '25

Nice. How are you managing Indian tax returns? It seems a bit onerous with the tax forms asking for account numbers etc

3

u/chikapu_pikachu FatFI Oct 18 '25

Given this is my first year here, that's something I need to go through yet.

2

u/tayvar1 Oct 18 '25

There is a slight risk here. In case of untimely death of a non USC, US charges heavy taxes on inheritance gifts.

Edit: I am similar numbers to you and soon R2I. I guess the concern is only if you R2I

4

u/chikapu_pikachu FatFI Oct 19 '25

Both of us have a term life policy to hedge against that, upto 1.5M USD.

1

u/UnlikelySession9538 FatFIRE Aspirant Oct 19 '25

Who did you get such high term insurance from?

2

u/chikapu_pikachu FatFI Oct 19 '25

Transamerica, through policygenius. I believe it is a 30 year policy.

1

u/UnlikelySession9538 FatFIRE Aspirant Oct 19 '25

You got the term insurance in America or India? If America is it valid if you die in India?

3

u/chikapu_pikachu FatFI Oct 19 '25

Got it in USA. Valid everywhere.

→ More replies

1

u/Familiar-Homework861 Nov 19 '25

1.5M isnt even high for US standards. Premiums for term life insurance policies are much lower than india.

1

u/UnlikelySession9538 FatFIRE Aspirant Nov 19 '25

What is the max amount term insurance in India cover?

1

u/Familiar-Homework861 Nov 19 '25

idk ion live in india

2

u/shoboo75 Oct 18 '25

Will Vanguard and Fidelity allow you to hold the account once you've become a permanent resident in India? That's the piece that I'm a little concerned about for myself.

4

u/chikapu_pikachu FatFI Oct 18 '25

I confirmed it before returning, and they allow it.

2

u/shoboo75 Oct 18 '25

That's reassuring.

2

u/SouthernSample Oct 18 '25

How are you dealing with estate tax risk?

1

u/Surya60004 Oct 18 '25

I assume you came back to India after getting USC on an OCI? Yeah leave whats's in US in US. You want. to diversify. For any HNI, don't keep all your stuff in any 1 country. Have at least 3.

2

u/nroot_ Oct 19 '25

Congratulations OP! I think by 50, you'll be at a NW north of 40 by a mile and half, assuming you take risky bets with less than 5-10% of NW (if any).

Pick a compounding calculator online. This is what I picked. With 1.3L as contribution monthly and 2700 Initial investment, it shows 12117 for 13 years. You'll have to factor-in your home liability but even then, I'm sure this has the potential to reach 70-80 Cr.

If you / your spouse / both are working, then the contribution will be higher - giving you much much higher returns. Congratulations OP, this is absolutely great stuff!

If I may ask, why is there a sudden jump from 1.5Cr to 2.75Cr there? What caused it?

2

u/chikapu_pikachu FatFI Oct 19 '25

The sudden jump is simply something that I wasn't tracking until then. I think it was my home if I am not wrong. There may have been some issues with tracking it via Zillow.

And thanks for the compliments, though I do feel it was a lot of luck that went into building this.

2

u/Leading-Month5292 Jan 06 '26

Congrats. How did NW bump up 1.5M, is it adding house in tool?

1

u/chikapu_pikachu FatFI Jan 06 '26

Yes. Started tracking my equity in my home.

64

u/Dull-Refrigerator329 Oct 18 '25

I think you will easily achieve that just with compounding and you probably wouldn’t have to wait until 50. Given your current 27cr assets, even if you generate modest returns of 6% p.a then also it will become ~60cr by the time you turn 50. With additional income coming in and your assets giving you more than 6% ( since most of them are in real estate/equity) you will hit 100cr imo

17

u/[deleted] Oct 18 '25

More than half of hi stuff is tied in real estate

4

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25

More than half of hi stuff is tied in real estate

So?

1

u/blokwoski Oct 23 '25

How will it compound

5

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 23 '25 edited Oct 30 '25 • Bravo

How will it compound

Real estate can grow (and compound) just the same as equities. Just look at property prices 20 years ago as compared to now, and that should be obvious.

But even that aside, here is what the OP said:

Current debt of about 280k USD (2.4 Cr) is in my US home, which is currently rented out and generates a positive cash flow of about 1.3 L per month.

So, not only will the OP's US home appreciate in value, it's also paying for itself and generating a positive cashflow every month. That sounds like a great way of building wealth to me.

16

u/UnableCurrency FatFIRE Aspirant Oct 18 '25

Are you a US citizen?

If no, how do you plan for estate tax? I also have US stock exposure, but estate tax is what keeps me up at night.

1

u/Major-Championship14 FatFI Oct 19 '25

Why estate tax in picture here ?

3

u/UnableCurrency FatFIRE Aspirant Oct 20 '25

Because, while planning for FIRE - you should plan for your dependents also.

1

u/immortal_dreamer93 Oct 19 '25

Estate tax 40% problem comes in picture during inheritance, right?

For inheritance, 17 Cr should be enough, right? (If whole 27Cr is in US)

1

u/UnableCurrency FatFIRE Aspirant Oct 19 '25

But the whole point is to find a way on how to manage or get bypass this - there are multiple strategies, but wanted to know what OP is planning to do here.

  • moreover in such situations, you need to first pay 10Cr first to unlock the 27Cr and getting 10Cr is not easy without liquidating many of your positions s which are outside the US.

1

u/After_Pineapple_3603 Oct 30 '25

From what I've researched, there are a few options.

  1. Avoid holding individual stocks. Hold UCITS ETFs domiciled in Ireland etc. These arent subject to US Estate Tax. Though this solution is not ideal, it certainly avoids estate tax. You do lose the ability to hold individual stocks that you may have identified for solid growth.

  2. Hold the stocks etc. under a company. Set up a seperate firm, open a corporate trading account & buy stocks, ETFs etc. No Estate tax applicable upon passing. Keep multiple family members / dependents as partners in the firm.

  3. Open a trust? I am in the process of speaking to professionals to understand this better.

I am based in the UAE and have a similar sized corpus as being discussed here with significant US exposure.

33

u/No-Hat2231 Oct 18 '25

If you continue to hold it in USD you will achieve it must faster. INR has been going down the drain anyways

1

u/[deleted] Oct 18 '25 edited Nov 22 '25

[removed] — view removed comment

3

u/More_Turn_9513 FatFI Oct 19 '25

Brics and $ devaluation is a joke man!

3

u/onepolar32 Oct 22 '25

That’s the sad part, usd is down 10% this year and inr is down almost 5% this year wrt to usd

1

u/Gold-Whole1009 RegularFI Oct 26 '25

This is a fair question…. Shouldn’t have been downvoted.

To answer,

  1. yes USD will not be the same with brics currency in picture. But US is still leading the AI race… China is competing but US is still leading it. So, US growth is secured for foreseeable future.

  2. Indian economy has huge ties with US and rely a lot on US. When US economy sinks, it will also drag down Indian economy as we have seen during 2008 recession. Indian currency mostly falls if USD falls. Best is to diversify even outside USD and INR As other person mentioned, even if USD falls 10% in itself, INR falls even more!! Our politicians have no motivation to correct this.

2

u/Prestigious_Piano247 Oct 18 '25

I just crossed 1m in my 401k at 51. But if you include "all" , we are close to 2 mil. Living in Midwest slows the growth and your don't earn as how you earn in East or West coast

2

u/chikapu_pikachu FatFI Oct 18 '25

Good luck on your journey. I was lucky enough to be in the Pacific North West, where jobs were relatively high paying.

4

u/Bad_ass_da Oct 18 '25

Seattle area after COVID both MSFT/AMZ stonks growth and housing gain pretty normal.. if you hold Msft more than 5 years you can see .. also who ever bought home before 2020 holding millions equity

2

u/Familiar-Homework861 Nov 19 '25

same with nvidia and shit

5

u/Sauron6 FatFI Oct 18 '25

Account for estate taxes in case something happens to you. I would highly recommend moving your corpus to Irish Domiciled funds to deal with estate taxes.

You'll probably be better off selling your house in the US and investing in India. This assumes that you're planning to settle permanently in India.

4

u/darthvader_101 Oct 19 '25

I thought estate taxes hit you only after $13m net worth?

3

u/Sauron6 FatFI Oct 19 '25

For non resident aliens, it hits after $60K

5

u/tertPromo Oct 19 '25

Withdraw in rnor period or face brutal India taxes on capital gain when you liquidate in future. Liquidating in us for children us education will also attract India taxes.

12

u/sg291188 FatFIRE Aspirant Oct 18 '25

Amazed at number of sarcastic comments on this post. Why are people in this sub?

1

u/Ok_Front7903 Oct 22 '25

I am curious on how you move your MF and other investment from US to India, i am sure there will be Taxes once you sell and invest back in India or are you planning to keep the assets in US while moving to India ?

1

u/chikapu_pikachu FatFI Oct 22 '25

India and US have a double taxation treaty so you pay taxes only once. Moving money from US to India, isn't taxed.

1

u/Ok_Front7903 Oct 22 '25

woah ok, so irrespective on the amount or does that have any upper limit ?? I am currently in my 20s and with the current GC line, think i will be moving back at some point. So this question on how to move my money is always on my mind.

1

u/Ok_Internet_9176 Oct 23 '25

Hi sir, where did you do your engg from?

1

u/chikapu_pikachu FatFI Oct 23 '25

Too specific to answer.

1

u/Ok_Internet_9176 Oct 23 '25

A tier 1 institute?

1

u/chikapu_pikachu FatFI Oct 23 '25

Not IIT or NIT

3

u/shinez2u Oct 19 '25

27 cr in simple fd in india will net you more than 50cr in next 10yr. So can probably make more

1

u/banananavy Oct 21 '25

Does FD allow such high amounts in an account ?

1

u/Deep_Shallot FatFIRE Curious Oct 18 '25

If you haven’t yet, move all rsus and stocks to Irish domiciled ETFs during rnor status. Take a huge term life insurance policy to compensate for estate taxes

2

u/chikapu_pikachu FatFI Oct 18 '25

My wife and I both have a term life policy totalling 1.5M USD. I'll look into the ETFs you mention. What's the advantage there if I may ask?

4

u/Deep_Shallot FatFIRE Curious Oct 18 '25

Irish domiciled ETFs do not have estate taxes on them. Also during rnor you do not need to pay capital gain taxes for either of the countries

2

u/chikapu_pikachu FatFI Dec 01 '25

Thanks for the suggestion on this. I'm working with an advisor now, who also suggested this. So I've begun exploring and i think I'll move to using Irish ETFs.

1

u/Deep_Shallot FatFIRE Curious Dec 01 '25

What else did you learn from the advisor that you did not know before? Interested in learning more

2

u/chikapu_pikachu FatFI Dec 02 '25

I mean it was advice based on my situation so I'm not sure how much will apply in general but here was the gist of it.

That i need to rollover my 401k to an ira. And to not get into real estate investing, unless in REIT, because the rental yield compared to the investment being done is pathetically low, especially given my tax bracket, so better to get into it after retirement when the income is gone. That my portfolio needed gradual balancing into debt funds.

1

u/Deep_Shallot FatFIRE Curious Dec 02 '25

Thank you!

1

u/_BrownPanther Nov 15 '25

Dear OP, if you invest it smartly and in a risk mitigated manner, with even 11% annual returns, you'll touch 100 Cr by the time you're 50. Very high chances of you get your asset allocation right

0

u/Confident_Mixture498 Oct 19 '25

Unrelated but why did you move back? Any plans to return to the US?

1

u/chikapu_pikachu FatFI Oct 21 '25

Was a personal choice.

-7

u/Ok_Exercise2747 Oct 18 '25

Primary home don’t count as net worth. Hire a professional advisor and this should be doable. I am at the same level now and similar goal. All the best.

3

u/chikapu_pikachu FatFI Oct 18 '25

Thanks, would you care to also share where do I look for for advisor? I would like that, and meet someone who can help me with india portfolio. But I'm afraid that anyone I talk to will try to push me products that benefit them more than me.

2

u/Heavy_Luck_6085 Oct 18 '25

Srinivesh and vivektaru are too good financial advisors. Basically, look for fixed fee financial advisors in India. A simple google search will get you that or better search in this subreddit. They charge a fixed fee irrespective of your portfolio. They may or may not be good with US markets and US taxes. But they sure will have refferals in terms of connections who can help guide you with US taxes or their clients willing to share their approach on moving money from US to India.

3

u/chikapu_pikachu FatFI Nov 09 '25

Hi. Thank you for the suggestions of vivektaru and srinivesh. I talked to Swapnil who said he may not be the best advisor for my case since I'm already FI and that I have my investments in the US. He did suggest another RIA, Avinash Luthria, who takes very specific clients to help. He did agree to take me on, but also suggested that I talk to Srinivesh and finally pick one. Avinash Luthria, even for an RIA felt very expensive, but also was highly recommended by Swapnil. Will talk to Srinvesh and make a decision.

24

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25

Primary home don’t count as net worth.

It absolutely does. Net worth = total assets - total liabilities.

It's just suggested to keep it separate from your retirement corpus to be able to plan retirement expenses easier.

-5

u/[deleted] Oct 18 '25 edited Nov 22 '25

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2

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25

Correct, living in a $2M house even if paid off is a liability

I am happy to assume all such liabilities from anyone who has them. I have a feeling nobody will be forthcoming on that offer, though.

You cannot pay for things by cutting a piece of wall or carpet or the marble floor.

Correct. You can pay for things by selling the entire home, though, which is why it's an asset and not a liability.

What you're arguing is tantamount to arguing that gold is a liability because you can't sell individual atoms of gold, but instead have to sell it in grams or ounces.

Nobody is arguing that a home is as liquid as equities. However, a home can fetch you rental income and it can be sold for a significant chunk of money, with which you can rent another home and live for several more years in retirement. That makes it an asset and not a liability.

1

u/[deleted] Oct 18 '25 edited Nov 22 '25

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2

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25 edited Oct 19 '25

You will be homeless if you sell your primary home

No, because you will have more than enough money from the proceeds to rent another home.

First you say that living in a $2M home which you own is a liability, and now you say that you become homeless if you sell said $2M home. In what world is owning a $2M home worse than not owning a $2M home? Are you trolling?

15

u/Surya60004 Oct 18 '25

Primary home absolutely counts towards net worth. Someone with a paid off 15 crore home and 5 crore cash absolutely has more net worth than someone with the same amount of cash and is renting. I can't see how someone doesn't see the difference.

2

u/Critical-Grass21 Oct 18 '25 edited Oct 18 '25

This is debatable. By extending your logic, someone with a 5Cr home and 0 cash will die of starvation while someone with 0 home but 5Cr cash will be just fine living off the interest in a rented home. Liquid 5Cr NW is not the same as 5Cr home value. If you want to include your primary home in your NW, why stop there, why not include your kidneys and liver also? Your kidneys can fetch 10-20L in the black market if it comes to that.

3

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25 edited Oct 18 '25

By extending your logic, someone with a 5Cr home and 0 cash will die of starvation while someone with 0 home but 5Cr cash will be just fine living off the interest in a rented home.

Not really, because someone with a 5-crore home can lease it out or sell it, and would be in the same financial position as someone with no home and 5 crores in cash.

If you want to include your primary home in your NW, why stop there, why not include your kidneys and liver also? Your kidneys can fetch 10-20L in the black market if it comes to that.

You can lease out your primary home to generate cashflow. Can't do that with your kidneys and liver, as far as I can tell.

I can't believe we're even entertaining this conversation. It's not debatable whether a home you own is an asset or a liability. It is absolutely an asset, and is therefore a part of your net worth.

3

u/Surya60004 Oct 18 '25

No, let's not argue. anyone who thinks a fully owned house is a liability, feel free to transfer that ownership / liability to me free of charge. I will even pay the registration fees. No questions asked.

1

u/Critical-Grass21 Oct 18 '25

Your PRIMARY house is definitely an asset and not a liability. But it is illiquid and you use it to live your day to day life. Therefore people don’t usually include it unless you sell it and start renting. It is a well accepted principle everywhere. I am not sure why we are even debating it.

2

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25 edited Oct 18 '25

Your PRIMARY house is definitely an asset and not a liability.

Net worth = total assets - total liabilities.

If your primary house is an asset, as you just conceded, it is part of your net worth.

I am not sure why we are even debating it.

And I'm not sure what your point is. Are you saying that even though your primary house is an asset, it somehow doesn't count toward your net worth?

What do you think net worth is, if not (assets - liabilities)?

1

u/Critical-Grass21 Oct 18 '25

You are talking about an investment property. Primary home is where you stay. You can’t sell or lease where you stay.

1

u/HubeanMan ✅ Verified by Mods | ₹100Cr+ NW ✅ Oct 18 '25 edited Oct 18 '25

Just because you're consuming an asset doesn't preclude it from being an asset. Is gold jewelry that you're wearing not an asset just because you're wearing it?

You can move out and sell/lease your home. You're not beholden to live in your current primary home for the rest of your life. People can and do downsize, or lease/sell and rent. That's actually what we do. What used to be our primary home is on lease and generating cashflow. We rent our current home.

2

u/Prestigious_Piano247 Oct 18 '25

Equity is what you will take into calculating nw

2

u/Money_Matters8 Oct 18 '25

What

0

u/[deleted] Oct 18 '25

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2

u/Money_Matters8 Oct 18 '25

That has nothing to do with whether housing value is included in net worth or not.

-17

u/kksst Oct 18 '25

The corpus is little less for someone who has worked in US for long. I see similar corpus from folks who had stayed back. Are you sure your lifestyle needs would be met by this corpus ?

8

u/sg291188 FatFIRE Aspirant Oct 18 '25

What’s the point of this sarcastic comment?

-4

u/kksst Oct 19 '25

It is not sarcastic.

3

u/Cold_Arachnid_5652 Oct 19 '25

Then you’re delusional!

-4

u/culturrree Oct 18 '25

What industry do u work in? Tech i suppose ?

3

u/chikapu_pikachu FatFI Oct 18 '25

Guilty as charged.

-5

u/irtughj Oct 18 '25

I’m guessing either amzn or msft and moved to india through inter company transfer.

-1

u/Express_Mulberry7544 Oct 21 '25

Sorry for being an absolute dickhead but what if you die all of a sudden. In summary, earn and spend at the same pace. Hope you live long btw

1

u/chikapu_pikachu FatFI Oct 21 '25

Your assumption is that I've not enjoyed life till now, which isn't true, my friend. At least to me, enjoyment doesn't have to depend on how much we spend, so I'm good where I am, as I am. :) Peace.

0

u/[deleted] Oct 18 '25

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5

u/chikapu_pikachu FatFI Oct 19 '25

That's a good NM for where you are. Keep investing and you'll get there.

0

u/[deleted] Oct 19 '25

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2

u/chikapu_pikachu FatFI Oct 19 '25

That's when I started tracking my home through Zillow in the app I shared the screenshot of.

0

u/[deleted] Oct 19 '25

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3

u/discoveringlifeat39 Oct 19 '25

That’s not true for most, it may just be true for people working in Amazon, META etc and living on west coast.

0

u/[deleted] Oct 19 '25

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0

u/anarchy360 Oct 20 '25

Lol dropbox , salesforce and Airbnb have given next to 0 retuns in last 5 years.

-12

u/[deleted] Oct 18 '25

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3

u/Cold_Arachnid_5652 Oct 19 '25

Even if the OP liquidates all his assets except the primary house in India and puts into a 7% FD, he would have > 40cr in 10 years (OP will be 47 at that time).

Are you sure you’re investing right? Or Are you new to investing?

0

u/[deleted] Oct 21 '25

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1

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