Tech Industry
Yesterday
1119
How common is it actually to earn more than 300K TC?
India
Yesterday
1297
Modi is a legend, will be remembered for centuries to come
Working Parents
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Closed now - thank you all
Tech Industry
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Women, help me understand why this is inspirational
Tech Industry
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What happens when most of your team is Indian?
Hi All, Just to clarify this is not a humblebrag story. I am aware that I am fortunate enough to be in my situation. Problem: I want to quit my job for a few years to build a small startup. I have money in hand to sustain myself but I don’t want to touch my nest egg while I do so. I have spent lot of effort building it and would hate to reduce it. I understand inflation will still depreciate it but I am ok with it in the short term (3 years is what I am targeting) Advice needed: I have come up with a few ways to sustain myself for the next few years without putting a dent on my current savings but I am not very sure which approach to follow. Details of assets: $700k in India (This is in form of inheritance, savings etc) Cash in US: $320k Wife’s income: $2500 (after paying for family’s health insurance) I own a condo on which I am breaking even right now but if I pay it off ($300k left) I will net close to $2k/month (after factoring in all expenses etc). Stock investments in US: Given how stocks have tanked over the past year, I don’t want to touch these and let it ride for the longer run. Monthly expenses: Max $7500. We spend close to $6k month but factoring in exigencies, travel etc to get it to $7500. So with wife contributing $2500, I am in need of $5000/month. Thankfully in India, fixed deposits yield 7% interest which after taxes comes to about 5% return risk free. Below are my options: 1. Don’t do anything. Just put the million dollar cash in india FDs. Get about 4.2k/month from that. Remaining dig into stock investments if needed. There is some forex risk here as rupee is depreciating. 2. Pay off the condo and invest $700k in India FD which will give about 3k month. So $1800/month from condo and 3k/month from FDs. Forex risk reduces but then I am paying off a property which I have at a low interest rate. 3. Pay-off the condo and find another property for around $500k which can net you 3k/month. Property rates are over inflated right now so I am not very sure if this would be wise. 4. Invest cleverly: Do FDs in the short term but as markets bottom out, reinvest in equity. Cash is king at this point in time. Risk is we don’t know how much will it take for recovery and when can I make money from it. 5. You are overthinking. If you are risking it only for 3 years the it is only about $180k. Just keep on spending from on hand cash. You will probably start earning 5k/month from your startup in a year and this would no longer be a problem. Which options do you think would be wise? Any other options I should look out for. Sorry, if I sound like an entitled piece of shit but I have put in lot of efforts to get to what I have and don’t want it to go away.
I don't know but I don't blame you for wanting to preserve your hard earned cash!
None of these. What's your TC right now? You seem to be on some sort of high that your startup will net money. 95% of the startups fail. Convince me why yours would not
My TC is 300k and I know it will work because I am not trying to build a billion dollar tech startup. I am trying to build Indian food franchise business. I have huge interest and some experience in food industry so I know I can make it work.
Well you know what's best for you. You are losing not only 300k per yr your company doesn't make money but also eating up interest that can further show compounding growth. I know someone who has been in restaurant business for 25 yrs and is now bankrupt. Basically first two restaurants were success, then next 3 were a bust, then covid happened etc. I mean to say risks are too great. Think carefully. I can't recommend it in all honesty. Food business is super competitive and there are factors outside of your confidence and knowledge that contribute to success or failure
I agree. #2 is what I am hinting towards as well.
You have to examine why in India you can get a 7% interest rate... The issue is inflation & the weakening rupee ... So if you plan on spending in dollars, holding rupees and earning 7% there, to then convert to USD, is not a free lunch
I would say no stocks. Only investment properties here and in India. Stocks should be played with spare money only
Curious why?
You don’t want your entire wealth burn down because of some wrong decision. One day is enough to bring you down. Don’t let that happen. Instead go for tangible assets like apartment, land etc.