Long post. Please read and share your opinions and suggestions. Also try to answer my questions honestly. This is a serious post, please treat it as such. Thank you in advance. Family Situation - 1. ailing parents & other family members who took care of me growing up. Not enough time left for them with best years behind them. 2. Wife works in education sector, earns decent. Older daughter is 6th grader. Twins are in 2nd grade. 3. I have been in the US for last 16 years. I have engineering and MBA degrees if that matters. 4. We don’t like what our kids are going through in the school & outside. There‘s a lot of bad influence & availability of pathetic entertainment. Schooling in India is much better & we will also have support from our families. 5. We both are on visa with I140 approved & no GC in sight for several years. Kids are US citizens. We are looking to move back in 2024 or early 2025. Financial Situation - 401k - $250k combined for both of us ( minus 10% penalty for early withdrawal plus taxes) Roth 401k - about $100k (minus 10% penalty for early withdrawal) Home Equity - nearly $200k, of course it depends on the market & interest rates in 2024. Could go higher if housing market picks up. Cash & cash equivalents including stocks - roughly $200k HSA - about $20k We plan to max our 401k in 2024, making it $300k in 401k. We won’t put any money in Roth 401k now. We also have some money in inheritance from my parents. Questions - 1. What are some key things we need to keep in mind regarding the move? 2. How can we manage our financial assets? Should we transfer everything to India? India & US have tax treaty & we will be required to move all our US$ in India within 2 years to avoid taxes on foreign remittance afterwards. 3. Is there a way to manage 401k? Can we move that money into some retirement account in India without paying early withdrawal penalty? 4. What are the options with 401k? If we leave it behind then we run the risk of double taxation - US will tax at flat rate for non residents plus 10% penalty plus India will include this in earned income for taxation. How to manage this? Has anyone done this before? 5. What are some of the things we should keep in mind when selling the home? We don’t want to rent this to avoid unnecessary hassle as we will have to leave it at the mercy of real estate agents. 6. We definitely will have excess baggage when we decide to move back to India. How do we handle that? We don’t plan to take furniture or big items with us but may decide to carry our 75 inch TV, it’s a $5k TV. What are some of the options for moving the stuff to India? 7. What are the best investment options in India? I keep hearing from some friends that SIP, index funds, Indian government bonds give a good ROI around 11-12%. Is that correct? 8. We currently don’t have any property or home in India. We plan to buy a home in India. All of our money is in white whereas in India you have to pay both white & black money for property. I don’t want to convert our hard earned tax paid white money into black. What is the best option? 9. I want to keep some cash aside for trading, let’s say about 25 lacs. Is that a good idea? This will be part time without putting money into risky assets. 10. We are looking to start a small business in India, what are some good options that doesn’t require major investments? Please share your insights and your experiences. Problems with US - 1. Poor quality of food & dairy. Highly processed everything. Excessive use of chemicals on food. 2. Drugs use is on the rise. Every blue state has the same story to tell - it’s running rampant in middle & high schools. I have seen drug deals happening near the high school parking lots. 3. Poor moral, social, & ethical values. No regards for elders & lack of empathy in general among kids. 4. Too much exposure to pathetic quality content across board - Netflix, prime, YouTube, & everything else. China & Russia are putting in money to destroy the young American generation. 5. Education - school system is sub par compared to India hands down. Of course the higher education is excellent in the US, no doubt. 6. Medical system is awful & excessively expensive. 7. Insurance insurance insurance - you need insurances for anything & everything & in between. all scam. 8. Too much corruption at high levels 9. Excessive stress & tendency of getting caught up in the rat race to have fancy cars & bigger homes & high NW 10. Problems with India- 1. Pollution, excessive traffic, poor driving sense, parking problems 2. Corruption - not as much but still prevalent 3. Difficult to get your work done in government offices 4. Lack of empathy & courtesy 5. Tardiness, people generally don’t have respect for time 7. No or lack of emergency services - people don’t respect ambulances, life threatening medical situations can’t be handled properly leading to death in most cases 8. Lack of water & energy 9. Haphazard growth & infra development 10. Very hot & humid climate, & with global warming it’s getting even worse Positives in India - 1. It’s growing. India is the land of opportunity now. Even with 6% CAGR, Indian GDP will quadruple in next 20 years making India a great place to start business. 2. Cheap labor - you can easily afford 2-3 maids & a full time driver. 3. Everything gets delivered to you- grocery, food, medicines, glasses, clothes, dry cleaning & the list goes on & on. 4. You can see the specialist the same day - medical system is much better unless it’s an emergency 5. Major digital transformation happening, which is incredible 6. Schooling is excellent with several options available for kids. Most of the schools offer several extracurricular activities on campus now. 7. Strong family & cultural ties allow kids to learn our values Edit: we want our older one to complete her schooling in India & then move back to the US for higher studies. Since she’s US citizen she will be able to easily get into a good school if she has good grades & knowledge, which we believe she can do with Indian education system & support from us.
16 years in the states, why not just apply for citizenship?
DNR but do it.
When did you come to US? How come your NW (equity, home etc) are so less.
TC and level in Ms? Will you take a lateral move to IDC or switch or retire?
Level at msft ? Why can’t you guys take internal transfer.? And work for sometime before thinking of business ? And no I don’t recommend going for black and white property. Go for complete white with reputed builders
Who said you need black money to buy a property? Which city is this?
I spoke to couple of property dealers.
City? I've purchased from reputed builders, all clean.
Following, nothing to add. Best wishes and Good Luck!
Thank you so much. Please feel free to add if you have anything or any question which I may have missed.
I recently read a similar post about someone moving back to India and they were checking if they can avail social security. You can check on ssa.gov if you have 40 credits and if you can avail it.
Great questions, but for most of them, answer is - it depends Two most important things (in my opinion), rest are transactional and can be managed: 1. Your 6th grader - how is she going to cope? Do you have plans to return back for her college? How would her trajectory go - from where she is to where she would be? 2. Your / your spouse's employment situation in India. Key I think is you and your spouse have to be in lock step that the first year will be the hardest and you have to gut through. Rest of your stuff is academic and you can easily find answers as you keep going.
We & our families will do our best to support our daughter. She likes India but doesn’t want to move back for good. We want her to finish her schooling there & then come back for higher studies. Since she’s US citizen she will be able to get into good university if her grades & knowledge is good.
Your 6th grader might have a tough time adjusting. That would be my biggest concern, if I were you.
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Do it.