To: people who are aware of Indian market. After all the latest updates(many) am feeling uncomfortable to work here anymore. It’s been more then six years and I had wonderful time here. I am liquidating all my earnings and it will be around INR 2.5 crores after clearing all my loans. I have calculated my monthly expenses and it would be around 1.5 lakhs per month excluding inflation. I don’t have house or any other assets. Please suggest me the decent options to make 1.5 Lakhs per month from 2.5 crores investment. After going back, will work for the betterment of my surroundings but not for the money. I will live in Bangalore.
Congrats!! More power to you
U want to make 1.5 lakhs/month for betterment of surroundings but not for the money?
He meant. He wants 1.5 L per month from his investment. He will continue to work for betterment of surroundings and not to earn money.
It is complex. Let’s focus on 1.5lakhs. The work am going to do may give me around 20-30k per month. Not guaranteed.
Please share what you plan to do with your 401K.
You have to take inflation into consideration. It’s not like US in India. If you need 1.5L today to address monthly you may need 2L plus on couple of years. Make sure your investment should handle that too. Static income like the ones from FD won’t work beyond few years.
Thought about it. But don’t know many options. That’s why I am asking here
Usually fd keeps pace with inflation. It is usually a little bit lower so you can think of it as maybe negative 1% interest if you want to calculate how long you can survive off fd.
Dividend paying mutual funds. In India, dividends have 0% tax rate.
Put your money in mutual funds( Seek advice from CA on high performing ones). Find a job that meets your goals not in tech
How are you planning to liquidate huge amount and convert from USD to INR?
More then 1 crore is there in NRI account in India...(fd,rd). There are many options to transfer money from USA bank to bank in India. After going there will change that NRI account as saving account.
Don’t break your 401k.. do it in 3 yrs (33%each year)once you moved there. That way you will only pay penalty and not tax
What's specific about 3 years?
I think what parent means is to take distributions over a period of time such that your taxable income is low enough to be tax free. I’ve also heard of converting funds into a roll-over ira after leaving your job to avoid the penalty, but I’m not super clear on what that involves.
I don’t see any more fun there. I do have an offer (45lakh base+ bonus + stocks) from a company in Bangalore. But I don’t want to get into that vicious circle anymore.
FD gets you 6% these days. You are looking for something better?
I am not sure.. collecting all the advices and then will finalize
6% on 2.5cr should get 1.25l per month pre tax. That would become 90k per month.