Retiring in India in 5 years timeline
I currently have NW of 1.1 M, spouse has something similar. Both in early 30s on H1B and green card don't seem possible at all. If we save around 1M more together in next 5 years will that be enough to retire in India? We don't plan to move to any software hubs in India, some tier two cities to be as close to our families. Retirement may mean either teaching in a school/ college or open some shops to keep us occupied. We have a home in Bay area without much equity so will have to sell off, current NW is without considering the equity. We have a kid on the way, and want them to school in India and have a carefree childhood with lots of play and friends around, our social circle here is very small, non existent which we think affects us mentally and don't want a qieut reticent kid, which I have seen with some friends' kids. NW breakdown is 350k in 401k and Roth IRA for me and rest in stocks/vanguard/cash. Does it sound like a viable plan, or need to grind for more than 5 years? #personalfinance #retirement
You can't take out 401k without penalty before retirement Your math should account for that
I don't know If we will need that money yet. Can keep it in 401k till age 65. Maybe start contributing less to 401k in the next 5 years to only get the company match. For Roth IRQ I can keep taking out the principal after 5 years. So that is available.
You can start withdrawing from your 401K at 59-1/2 without penalty.
Seems solid , quite a bit for tier 2. Some people can never get out of rat race will say you need 5 mn , 10 million. I also have same plan as you . Hoping you succeed
Its seems to be an easy Idea at the beginning. But you will quickly get bored in India, especially in a tier 2 city.
Nah don’t listen to this. You won’t.
You won’t
You got a lot to retire in India and work some low stress job like college professor. Just put this in either real estate and / or FD and see what is the passive income you will earn
Seems solid. One advice would be only convert amount of money you need in India, for example, 300K converted in INR could get you interest of 1.5 Lakhs per month easily. Keep rest in USD invested in ETFs.
Would there be any tax implications of that?
If you sell your investment, yes you pay taxes on gains
Sounds solid. Since you are expecting a child soon, have you thought about any difference in the quality of school/education for your child.
Schools in BLR are much better than schools in the bay
They are not moving to any tech hubs though
You guys will live a very small-time life on such a low NW even in India. Too young to pull thru adjusted to inflation.
I don’t know why this kind of user always comes in blind. Even if the post is 10 million $ they mention “not enough”. 1 million is 8.2 crore INR. People who retire in india (any sort of job govt or otherwise )don’t make that much in pensions. Your equity returns are inflation hedge . Even very conservative withdrawal will give them 25000-30000$ annually for a perpetual return. Do you mean to say some one can’t even afford decent life style ar 20 lakh rupees in a tier two city ??
@admin what's your age, and what do you think the NW is needed for a good life in India. Not an extravagant life.
Your Bay Area home equity will probably increase over the next 5 years which will help
You have a good plan OP 1M USD is enough for India IMO. Just don't scale your lifestyle too much. Also find something to do to keep yourself engaged otherwise retirement can become boring
Seems to be a solid plan.