How to invest money if I want to go back to India?
[warning: Indian post] I started working a few years ago. I paid off education debt and saved up emergency funds. What's next if I want to go back to India in 2021? I haven't opted 401k for this reason (also because I want more liquid cash at hand). I invested in a few stocks but lost money there, that was a noob investment! Monthly cash to spare after all expenses ~2k. A part of me says I should just prepare an 8% interest rate FD in India. Or make 20k down payment on an apartment in a tier 1 city in India. Is this the right approach or should I consider something else?
You wont go back
You should have invested in 401k ( if your company matches ) even if you plan to leave the country. Even with a 10 percent penalty if you cash early you would have netted more. Dont do a FD in india while you are in US. The interest earned will be taxed in US and i can tell you from personal experience that between the tax forms and the amount you will ultimately make, this option is just not worth it. Real estate I dont knwo much about. But I personally would not go that route if I have even 1 percent doubt/chance that I wont move back to India. Stocks are usually my best bet but since you did not have a good experience with that you can probably invest in index funds to get more comfortable. They are much less risky. Can also use apps like wealthfront so that someone else can manage your money if you are not good at stocks!!
Don’t worry, you won’t
Same boat, Do 401k if employer matches. If need liquid money put it in online savings account, also put some of it in index funds or betterment etc. If you've some one in India to take care of then house, only then invest in property there
I am also in similar position. I would suggest to invest in 401k to atleast get the company match. It’s just free money and you won’t loose anything even after paying penalty and actually there are ways to avoid penalty too. To invest in market, I would also suggest to start with robo advisors like Wealthfront. Let me know if you need referral for that. And you can put emergency funds in some high yielding savings account.
FD v/s $ growth?