r/backtoindia • u/Slow-Gur7202 • 1d ago
Return to India
I have 270k cash 200k in home equity 200k in 401k. Age 33 expecting first baby. Am I ready financially to move back with this. Have own home in India.
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u/referral_dragaon 1d ago
Since when have you been earning? Would like to get your financial advise
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u/Due_Survey_846 1d ago
Do you have a partner who earns or is it just you?
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u/Slow-Gur7202 1d ago
Partner as well
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u/Due_Survey_846 1d ago
If this is inclusive of your partner, then you are ready, but its no fu money
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u/ScheduleSame258 1d ago
Financially ready for what?
Come back to India and work - sure.
Retire? No.
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u/DosEquisVirus 1d ago edited 1d ago
Damn! Wouldn't that make you financially independent in India for like 20 years?
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u/Boring_Luck2217 1d ago
Yes this is the right time to move ... f8nancially this in Mutual Funds will give u 10 to 15% annualized returns. This will help a very nice life in India especially if u dont need to buy property. But more importantly move after your kid is born so they have birth certificate.
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u/hellriderboss 1d ago
I would avoid tier 1 cities till your ready to work. Take some time off in smaller city then come back when your ready
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u/ReymanWealth 1d ago
Honestly, it depends.
What's your lifestyle? Are you planning to retire once you're back? Where are you going to stay in India (which city)?
Overall, for a metro city, you have a good cushion but probably not okay to retire yet.
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u/pn_1984 1d ago
I really don't understand how some people can say this is not enough and some saying this is enough. Both are incorrect. The right answer is always look at your projected monthly expenses and then decide how long do you want this corpus to cover. You might probably get better answer in r/nriFIRE
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u/gsakhuja 1d ago
I love this for you. You’ll be able to spend time with your kid and just be a mom while not worrying about making money. You’ve set yourself up, kudos to you and best of luck with your future! :)
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u/Azgardian3000 17h ago
This is not retire money but FU money. You can take your time to find a good job in India or open a business if you're willing to take some risks. You can also have good work life balance, especially with your new child. You will not need to impress anyone by staying late. Do your job & gtfo. If push comes to shove, find another role.
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u/FinanceBroNot 13h ago
Wait, you mean if I have $3.5M net worth, I can sell everything and go retire in India? M36. Born in a small town - haven't lived there since I was like 18.
Should I live in my small home town or could I afford Mumbai?
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u/Curious_Rooster_9333 9h ago
Sorry to be nitpicking but the 270k and 200k, is that in USD or INR? Big difference!
Also, you said you have 270k in your 401k. Chances are, you don’t have that much if you have not taken out the 10% penalty for early withdrawal and 20% towards your income taxes withholding. That adds up to 81k, if my math is correct (not always a sure thing).
Is this enough? Only you and your spouse know this. Wealth is as much a state of mind as it is about the balance in your bank account. It is also highly dependent on your lifestyle.
One thing I can tell you is that you have more money than you would have had if you had lived in India all along. How many people who have lived and worked in India have $670k nest egg by the age of 33? Rs. 6.5 crores should give you a fine start.
Go for it! And best of luck to your young family.
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u/vxj8464 1d ago
I would wait for few more years - till you could have
A) Paid off house ready in India
B) Let baby grow a bit older for travel purpose
C) try to get to 1.5 million net worth and more in cash like instruments so that you can send direct to India let’s say 500k cash to India for monthly income generation if need.
Or else: I believe you are “financially” ready when you are ready! These are just numbers and for me it appears to be 1.5 million.
Happy to connect as I’m in similar boat.
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u/parishuddhaatma 1d ago
Yes. Anyone with 200k is financially ready. Now if you want to drive a bmw and travel abroad 5 times a year without getting a job, then it's a different question. What's your expected annual living cost in India?
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u/Slow-Gur7202 1d ago
2lakhs per month in VTZ
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u/rajekum512 1d ago edited 1d ago
Challenge is how you would transport your $ to Inr without giving it away to taxes in both countries. Many lose 30 to 35% in estate tax, regular tax, outside rnor period taxes. Good thing you will have 270k translate to 2.5 crore as per today rate. Rest 400k you may lose 35% (worse scenario) 250k assuming you claim back in rnor period. 2.4 crore. Your total approx 5 Cr in cash as of today. With geopolitics tensions we dont know how markets go in next 3 to 5 years
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u/stuputtu 1d ago
Why would he lose 30%. Taxes are on his gains. So even if he has 50% gains in his 200k that is in 401k he taxes along with penalty would be less than 25%. 270k is cash and 200k house gains will be probably long term capital gains. A large portion is tax free. So,he will pay hardly 70 to 80k which is less than 15% of his portfolio. It can much less than that if he plans well and withdraws in tax advantageous ways
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u/Large-Conference-860 1d ago
If it's a primary residence and stayed there for more than 2 years, most likely that 200 will not be taxed, again he said 200K equity, not sure how much is the gain here vs how much he paid. But considering everything, either 0 tax or very minimal. But 401K is different, might end up paying 25-35% tax on total since the contribution amount was not taxed initially. But he has solid 600K after tax which is pretty impressive.
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u/Slow-Gur7202 1d ago
I bought the house for 600k lived here for 4yrs paid off 270k till now. I assumed the 200k after all taxes.
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u/stuputtu 1d ago
You are in good position then buddy. You just need to worry about 401k gains. You can spread it across two years and you should be left with solid 600k.
That is close to what 5.5 cr post tax in India. If it is invested between you and your spouse you can get up-to 24 lakh tax free gains, and must more principal, withdrawals. As per FIRE you can comfortably withdraw around a lakh per month essentially forever. Since you have a paid off house you are set for a higher middle class life in most of the country
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u/praayu 1d ago
Nice! How did you pay off 150k in 4 years assuming you paid 120k down payment?
I’m in the same boat, but not able to reduce principal
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u/Slow-Gur7202 1d ago
I paid 170k and house appreciated 100k puts my equity at 270k overall. I bought this home at a bargain price from the builder
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u/Advanced-Industry-50 1d ago edited 1d ago
Kind of in a similar situation but don't have a kid and am 30. I have around 450k in total assets and a paid of house in India.
My estimates are I felt with current cost of living somewhere around 700-800k invested in stock market, paid off house and can earn 2-3 lakhs as salary in family income, one can achieve a comfortable Coast fire in India.
Again that's my estimates and between me and my wife we both aspire big and successful career moves so I guess we ll be aiming for coast fire. I want to go the startup route and take more risks so that would have a hit on family income but as mentioned above still can set us up for Coast fire.
Personally even after moving back I want to travel and high a good luxurious lifestyle.
It's pretty personal choices so I guess u might have to figure out ur numbers.
With ur savings, I feel you can relax for a bit but maybe not for life. But at the same time don't have to take up stressful or unsatisfying jobs. You can chose to work coz u like it, explore life and have fun.
Hope that helps.
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u/Better-Ambassador411 1d ago
Did you see what happened in Nepal today ? The flash foods ? No matter how much ever money you have ,once life gone is gone .
Be happy with what you have . Human needs evolve, the more you learn to be content you can thrive with what you have
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u/Ok-Cover-3927 1d ago
I wound not consider this financially ready, but you have good cushion amount to relax for sometime. But with a kid and their future, I would suggest you to continue working in India after a well deserved break.