Anybody returned/will return/planning to return to India for an early retirement after working outside of India for a number of years?

What kind of financial planning you have done for your future?

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  • Originally Posted by Magadh_Pride
    Buy a farmhouse and a penthouse. Live in one and live off the other

    I dont think NRI or PIO can buy Agricutral land/Farm House. They CAN buy N/A land N/A Plot or Flat .
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  • Dear @Gangaram, these are notified R zones now and are no longer classified as agricultural land. You can download the Delhi 2021 master plan from the DDA website.
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  • Originally Posted by vivhunter
    Hi, I am an NRI and living abroad for almost 10 yrs now. Targetting to retire by 42-43(6-7 yrs to go). When planning early retirement I would first suggest to look at what responsibilites you have and how much liability is there then target accordingly.

    I am trying to do following :
    (1) Buying 20gms gold every year (atleast till I retire)
    This will greatly help as its most liquid in nature, and if you have child then cost of his/her marriage goes down drastically in future with accumulated gold
    (2) Buy property with reputed developer , first property should be with an aim of your family living so kind of decent size and location
    (3) Buy second property in a location which has good upside potential in future and is relatively cheap, this will be a good hedge for your child education e.g. studying abroad
    (4) If you have extra cash say 50Lacs and you need 40K per month for living expenses divide that as below:
    60months x 40000 = 24Lacs
    Put rest in FD i.e. 26Lacs 11% you get 52Lacs in 6.54 years
    This method helps to some extend to cover monthly expenses at the same time you grow the money ensuring you maintain liquidity in case of emergency
    (5) Create an SIP which should include 5 to 10 stocks to top companies of each sector and do monthly investment
    (6) Buy commercial space if you can afford to get good rental yield and appreciation.

    Other tips :
    - Folks with less age should think about regular savings(in FD) which has far more compounding effect
    - Pick funds to get exposure to any of the asset class there are multiple varities present

    Above all note 1 think which Mr Buffet says "Price of anything is the cost of hedge" , in our context it means that
    - Cover your life by insurance (pure insurance is cheaper)
    - Ensure your property is insured as well with self and third party

    cheers
    Viks

    Hi Viv,

    I agree to invest in the real estate for passive income during your retirement age. Rental income is inflation proof and the property will give you good returns in 5-6 years if you intend to sell. If possible try to pay off your home loan and make it loan free.

    I have been living abroad as well for past 10 years, and planning to R2I in next 3- 4 years (will be be 45-46 then). Purpose of returning is get rid of the rat race and do something which I would enjoy. Don't want to worry anymore about the monthly pay cheque to take care of my family. Have invested so far in such a way that it will (or rather should) start generating the monthly rental income of about 60K. Will also have sufficient amount as emergency fund and in FDs which will not be touched. So all monthly expenses will be taken care by the rental income. Hopefully it will work as planned (atleast so far on the track). As per my understanding 60K per month should be enough for 2 person family without any other financial obligation.

    Pure term insurance + Health insurance is a MUST so please plan accordingly.

    @Viv : Just want to verify that you are not saying to insure the home loan? - Ensure your property is insured as well with self and third party
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  • hi

    Originally Posted by Stots2708
    Please Please do not take it personal.... :) Advance sorry agar thoda sa bhi galat lage to..

    Yei Raaja banane ke chhakar mai hi maza aaraha hai life mai...Har koi King type banana chahata hai yaa apni next generation ko banana chahata hai...

    You said it exact word but I have heard from many persons tht they want to enjoy like a rich/king etc etc....;)



    sorry to rply late --

    i mean king means in our country we have freedom to talk.and do as u want ( in kayda kanon )--

    but when u stay outside there is to much rules and regulation for expat-th
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  • A topic something which I do not take it too serious probably because my situation is a bit different because I am in UK from last 10 year.

    I am not too planned and not too much worried about the future. I have my own 2 bed in Mumbai without loan. And I have a property in London(5 year at least to clear the loan) which may seems GREAT. Although my house in London is much better (with garden etc) but strangely my flat in Mumbai is more expensive than the my property in London. when I plan to move to India (hopefully very soon) I would stay in 1 and rent the other.
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  • Here is a beautiful message for most of you which I humbly believe not only as to be nice to have but how nice if we are able to practice!



    The Art Of Giving

    "Rivers do not drink their own water, nor do tree eat their own fruit, nor do rain clouds eat the grains reared by them. The wealth of the noble is used solely for the benefit of others!
    Even after accepting that giving is good and that one must learn to give, several questions need to be answered.

    The first question is:
    When should one give?

    We all know the famous incident from Mahabharat.
    Yudhisthir asks a beggar seeking alms to come the next day. On this, Bhim rejoices that Yudhisthir his brother, has conquered death! For he is sure that he will be around the next day to give. Yudhisthir gets the message.
    One does not know really whether one will be there tomorrow to give!
    The time to give, therefore, is now.

    The next question is:
    'How much to give?'

    One recalls the famous incident from history.
    Rana Pratap was reeling after defeat from the Moghals. He had lost his army, he had lost his wealth, and most important, he had lost hope, his will to fight. At that time, in his darkest hour, his erstwhile minister, Bhamasha, came seeking him and placed his entire fortune at the disposal of Rana Pratap. With this, Rana Pratap raised an army and lived to fight another day.
    The answer to this question how much to give is:
    "Give as much as one can!

    The next question is:
    'What to give?'

    It is not only money that can be given away. It could be a flower or even a smile.

    It is not how much one gives but how one gives that really matters. When you give a smile to a stranger that may be the only good thing received by him in days and weeks!


    "You can give anything but you must give with all your heart!"


    One also needs answer to this question
    Whom to give?

    Many times we avoid giving by finding fault with the person who is seeking. However, being judgmental and rejecting a person on the presumption that he may not be the most deserving, is not justified.

    “Give without being judgmental!"

    Next we have to answer:
    'How to give?'

    Coming to the manner of giving, one has to ensure that the receiver does not feel humiliated, nor the giver feels proud by giving.

    In giving, follow the advice 'Let not your left hand know what your right hand gives? Charity without publicity and fanfare is the highest form of charity.'

    'Give quietly!'
    While giving, let not the recipient feel small or humiliated. After all, what we give never really belonged to us. We come to this world with nothing and will go with nothing. The thing gifted was only with us for a temporary period. Why then take pride in giving away something which really did not belong to us?
    Give with grace and with a feeling of gratitude.

    "What should one feel after giving?"

    We all know the story of Eklavya. When Dronacharya asked him for his right thumb as "Guru Dakshina, he unhesitatingly cut off the thumb and gave it to Dronacharya.
    There is a little known sequel to this story.
    Eklavya was asked whether he ever regretted the act of giving away his thumb. He replied, and the reply has to be believed to be true, as it was asked to him when he was dying.

    His reply was "Yes! I regretted this only once in my life. It was when Pandavas were coming in to kill Dronacharya who was broken hearted on the false news of death of his son, Ashwathama, and had stopped fighting. It was then that I regretted the loss of my thumb. If the thumb was there, no one could have dared hurt my Guru?

    The message to us is clear.

    Give and never regret giving!

    And the last question is:
    ‘How much should we provide for our heirs?'


    Ask yourself 'are we taking away from them the gift of work? - A source of happiness?
    The answer is given by Warren Buffett:
    "Leave your kids enough to do anything, but not enough to do nothing!"

    I would conclude by saying:

    Let us learn the Art of Giving,
    and quoting the Saint Kabir:

    "When the wealth in the house increases, when water fills a boat, throw them out (for good causes) with both hands!"
    This is the wise thing to do!

    --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Truth is always like oil in water.
    No matter how much water you add to depress it,
    it always floats on Top...
    ========================================================



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  • Originally Posted by Mefrommumbai
    Hi Viv,

    I agree to invest in the real estate for passive income during your retirement age. Rental income is inflation proof and the property will give you good returns in 5-6 years if you intend to sell. If possible try to pay off your home loan and make it loan free.

    I have been living abroad as well for past 10 years, and planning to R2I in next 3- 4 years (will be be 45-46 then). Purpose of returning is get rid of the rat race and do something which I would enjoy. Don't want to worry anymore about the monthly pay cheque to take care of my family. Have invested so far in such a way that it will (or rather should) start generating the monthly rental income of about 60K. Will also have sufficient amount as emergency fund and in FDs which will not be touched. So all monthly expenses will be taken care by the rental income. Hopefully it will work as planned (atleast so far on the track). As per my understanding 60K per month should be enough for 2 person family without any other financial obligation.

    Pure term insurance + Health insurance is a MUST so please plan accordingly.

    @Viv : Just want to verify that you are not saying to insure the home loan? - Ensure your property is insured as well with self and third party



    Sorry I am replying so late, I dont know how to get notified for replies that we receive on this forum.

    meformumbai for your question, I meant that Property and goods inside property should be insured, also we should insure for any damages that may occur due to mistake of owner (e.g. fire broke out in apartment may damage neighbour so a third party insurance is must)

    I am in HK and have bought this insurance, though here the insurance company cover the damage from earthquake but in India I heard its considered as "act of god" :(
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  • I am trying to revive this thread with a slight modification. Please share your experiences if you have returned to India whether to retire OR for other compelling reasons, a better job, family circumstances or both.
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  • hi

    what kind of education plans have all done--for child-cause to get retire its not a big thing -

    we can have insurance
    we can have 1 room extra for rent (for budha and buddi)


    but what about child edcuation
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  • Originally Posted by surya2089
    what kind of education plans have all done--for child-cause to get retire its not a big thing -

    we can have insurance
    we can have 1 room extra for rent (for budha and buddi)


    but what about child edcuation



    If somebody is retiring early then s(he) and the spouse is not budha n buddi yet :)
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  • hi

    Originally Posted by sidhuRE
    If somebody is retiring early then s(he) and the spouse is not budha n buddi yet :)



    i mean at the age of 45 or 46 what u do--and what kind of child education plans.
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  • Consider present expenses as followings. (Average good living - service class)

    1. House Rent - 20 K (3BHK + servent) - (consider parents + kids - 3 BHK needed city like GGN)
    2. Light+Maintenance - 4 K
    3. Car Expenses - 6 K
    4. Telephone +Intenert + TV - 2.5 K
    5. Grocery - 15 K
    6. Children education (2) - 12 K
    7. Miscellaneous - 5 K
    8. Relatives, Friends, Festival average monthly - 3 K

    Approximately total = 68 K, say 70 K

    Need now 70 K, consider this as baseline and plan for next 10 years with following assumption.

    1. Inlfation approximately 10%
    2. Medical Challenges

    Every year inclease of 10% on 70K ie - in 10 years it will tentatively become 140 K but consider it would not be less than 120 K.

    Say u are retiring at the age of 45 yrs and one may live till the age of 75 average life.

    Considering your need for 2013 is 70 K

    U may need 120 K during 2023
    U may need 200 K during 2033
    U may need 300 K during 2043

    (Consider medical challenges, family issues, childern independency, etc..)

    Correct me if wrong interpretation.

    Accordingly one need to plan standby money and investment to bit the requirement.

    One should have conservatively at the age of 45 yrs in 2013 = 3-4 cr + house and need to plan the investment sensibly.
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  • Early retirement is not a good preposition for developing country like India with high inflation rates and changing life style.
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  • how you can plan for child education and plan to retire atleast 45 to 48
    today i read toi article says in navimumbai for radilogist seat pays 1.70 cr
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  • If I am not wrong that is bribe to be paid in order to get the governmant job, if that is what you are aiming for your child then you should not retire, not only because you have to pay bribe but you would never know what would be the amount of bribe when your child would be in the state to take it up.

    But there is a competetive world in India as well named as Private industries where one can get job without bribe as well.

    Disclaimer: I am not saying that there is no bribe in private sectors but at least some jobs without bribes are up for grabs.

    Originally Posted by surya2089
    how you can plan for child education and plan to retire atleast 45 to 48
    today i read toi article says in navimumbai for radilogist seat pays 1.70 cr
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