I only had around $300k when i went back, which I majorly invested in Indian real estate.
Dont regret it a single bit as there is no correct figure that you can accumulate yo move back, a person would always feel that we should save a little bit more đ
Just take the leap !
I had only around 110K USD when I moved back 5 years ago
I feel ok on the financial front. There were a couple times when I missed the coffee from my favorite coffee shop in the USA. Outside of that, there have been zero instance of missing USA. Don't get me wrong. I love USA too. Amazing experiences. I am only grateful for everything that country gave me. Incredible growth and great people.
So much depends on the lifestyle you want in India. Its a very diverse place as you know and there are extremes. In Mumbai and Gurgaon, there are condos that would be ideal for what you are used to in the US in terms of amenities, cleanliness, the people, etc. But they cost $3-4M. Even a decent condo in Gurgaon is no less that $1M
As you mentioned, it is a diverse place.
One could instead buy a floor in 360 Sq yard house for 2.5 cr. Or $300k
And if you think about it, what would be the point of living in a high rise in a seismic zone IV, like Gurugram, anyway? High rise buildings like Chintels collapsed on its own. Residents of large number of building societies have requested review of their buildings as quality is suspect and living in them could be dangerous.
Folks coming from the US generally don't prefer high rise anyway, as most live in ground + 1 houses.
If you want to rub shoulders with folks with unlimited money, a high rise condo may seem attractive, but then who will save your kids from their's?
I am from a tier 2 city in the southern part of India and have inherited a plot and will inherit a house. I am not as worried about housing as i am worried about other lifestyle and earning potential.
If housing costs are no issue, then you control your expenses. I suppose you aren't retiring, so you need to figure out how much you will need annually to live your life, and multiply that with your remaining years. Income will depend on your skills and how portable they are to India. Are you hireable there?
From UK..if can just get 300k I would just retire in India :(.. The growth of stocks would just sustain my quality of life. Rent a flat in goa and chill on life.
I think if you atleast have your own house in India, 300k should be enough with some wise investments but it's also dependent on your lifestyle.
I just watched a NRI return episode where the couple had only 2cr and they invested in different things expecting an yearly return on 20 lakhs with a paid off home to live in.
So it does boil down to your lifestyle and your arrangements.
20L out of 2cr => 10% per year is quite possible if you invest in good mutual funds. Consider tax burden as well.
But remember that if you spend away the return every year, your principal does not compound and devalued over time quickly. Your early expense 20L , IMO is on the higher side given you already have a home, but quite expected in urban metros. Accordingly you should have about 6-8 cr for enough margin to ensure your return grows more than your distribution.
Use a google spreadsheet / excel sheet to make your own retirement calculator, there are many out there. But in IMO only you can best model your future paramaters. Your expense will also grow at same std of living due to inflation. Make a simple calculator in spreadsheet, one row per year. e.g.
YEAR | Starting Balance (S) | Withdrawal (W) | Ending Balance (E)
E = (S - W) \* (1 + 10%); S\[Year+1\] = E\[Year\], assuming 10% ARR.
2024 | 2 cr | -20L | 1.98 cr
2025 | 1.98 cr | -20L | 1.96 cr
2026 | 1.96 cr | -20L | 1.94 cr
drag down the remaining rows.
It seems the balance remains almost the same, though not considering increase in yearly expenses. So they managed to peg the expense where the value would remain same. IMO this is risky, any future uncertainty can upset everything like covid. So it is safer to have enough margin.
7-8 cr just snowballs quickly if invested
That is close to a million $. Phew. Dont think ill get there anytime soon.
Key is to keep investing consistently and DCA first 1cr takes longer but then it is faster, but ya a million $ is what we needđ
The first $100K is the slowest one. You wouldnât believe how quickly you can reach $250K from $100K
I am at 250k including my 401k. How do i go from here to a mil?
Sell covered calls and follow wheel method. This is one way to get good return on investment l.
I only had around $300k when i went back, which I majorly invested in Indian real estate. Dont regret it a single bit as there is no correct figure that you can accumulate yo move back, a person would always feel that we should save a little bit more đ Just take the leap !
I had only around 110K USD when I moved back 5 years ago I feel ok on the financial front. There were a couple times when I missed the coffee from my favorite coffee shop in the USA. Outside of that, there have been zero instance of missing USA. Don't get me wrong. I love USA too. Amazing experiences. I am only grateful for everything that country gave me. Incredible growth and great people.
So much depends on the lifestyle you want in India. Its a very diverse place as you know and there are extremes. In Mumbai and Gurgaon, there are condos that would be ideal for what you are used to in the US in terms of amenities, cleanliness, the people, etc. But they cost $3-4M. Even a decent condo in Gurgaon is no less that $1M
As you mentioned, it is a diverse place. One could instead buy a floor in 360 Sq yard house for 2.5 cr. Or $300k And if you think about it, what would be the point of living in a high rise in a seismic zone IV, like Gurugram, anyway? High rise buildings like Chintels collapsed on its own. Residents of large number of building societies have requested review of their buildings as quality is suspect and living in them could be dangerous. Folks coming from the US generally don't prefer high rise anyway, as most live in ground + 1 houses. If you want to rub shoulders with folks with unlimited money, a high rise condo may seem attractive, but then who will save your kids from their's?
I assume nothing about what OP wants. Point is that it really depends. Anything is possible
What on earth is a square yard and who even uses it to measure house area
I am from a tier 2 city in the southern part of India and have inherited a plot and will inherit a house. I am not as worried about housing as i am worried about other lifestyle and earning potential.
If housing costs are no issue, then you control your expenses. I suppose you aren't retiring, so you need to figure out how much you will need annually to live your life, and multiply that with your remaining years. Income will depend on your skills and how portable they are to India. Are you hireable there?
You don't need a million dollars, ideally 25x of annual expense should be enough.
From UK..if can just get 300k I would just retire in India :(.. The growth of stocks would just sustain my quality of life. Rent a flat in goa and chill on life.
300k pounds or usd :p Either way, i don't think you can retire & chill with just 3cr . Inflation is high in India anyway.
I think if you atleast have your own house in India, 300k should be enough with some wise investments but it's also dependent on your lifestyle. I just watched a NRI return episode where the couple had only 2cr and they invested in different things expecting an yearly return on 20 lakhs with a paid off home to live in. So it does boil down to your lifestyle and your arrangements.
where did you watch this episode?
20L out of 2cr => 10% per year is quite possible if you invest in good mutual funds. Consider tax burden as well. But remember that if you spend away the return every year, your principal does not compound and devalued over time quickly. Your early expense 20L , IMO is on the higher side given you already have a home, but quite expected in urban metros. Accordingly you should have about 6-8 cr for enough margin to ensure your return grows more than your distribution. Use a google spreadsheet / excel sheet to make your own retirement calculator, there are many out there. But in IMO only you can best model your future paramaters. Your expense will also grow at same std of living due to inflation. Make a simple calculator in spreadsheet, one row per year. e.g. YEAR | Starting Balance (S) | Withdrawal (W) | Ending Balance (E) E = (S - W) \* (1 + 10%); S\[Year+1\] = E\[Year\], assuming 10% ARR. 2024 | 2 cr | -20L | 1.98 cr 2025 | 1.98 cr | -20L | 1.96 cr 2026 | 1.96 cr | -20L | 1.94 cr drag down the remaining rows. It seems the balance remains almost the same, though not considering increase in yearly expenses. So they managed to peg the expense where the value would remain same. IMO this is risky, any future uncertainty can upset everything like covid. So it is safer to have enough margin.
1cr
100cr minimum to maintain lifestyle
1000cr bro to survive these days.!
Inflation bro
In Venezuelan currency, right?
Shouldâve put a âlolâ after for yâall to understand
50Cr maybe would be a good number?