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?

Thanks
Read more
Reply
90 Replies
Sort by :Filter by :
  • Buy a farmhouse and a penthouse. Live in one and live off the other
    CommentQuote
  • Good thought... We all have at some point of time in our lives...

    Depends upon your lifestyle. If you want to maintain the same lifestyle in Indian Metros, you need more money than what you need in countries like US, Canada etc..

    But, buying a nice penthouse home/ultra luxury apt for yourself and a good rental income from some business, would be awesome start.
    CommentQuote
  • Originally Posted by investgreat
    Good thought... We all have at some point of time in our lives...

    Depends upon your lifestyle. If you want to maintain the same lifestyle in Indian Metros, you need more money than what you need in countries like US, Canada etc..

    But, buying a nice penthouse home/ultra luxury apt for yourself and a good rental income from some business, would be awesome start.


    If somebody can suggest me a return of just 10-11%( yearly basis) on a capital of 2-3 crore with reasonable safety , i may be able to retire soonest.
    CommentQuote
  • hi

    good topic--

    as i think safest to retire in present senario make a fd of 1crore at 8% per annum------------for a couple --
    nearly getting 8lakhs per annum--8*12=66.000 per month.
    CommentQuote
  • Originally Posted by surya2089
    good topic--

    as i think safest to retire in present senario make a fd of 1crore at 8% per annum------------for a couple --
    nearly getting 8lakhs per annum--8*12=66.000 per month.


    For a DINK for next 2-3 years...may be.

    Otherwise imagine following expense (per month)
    TAX -> 5K
    2 Kids going to school -> 10K
    CAR -> 6K
    Electricity/Water/LPG/etc -> 10K
    Food -> 10K
    Other expenses (movies/outings) -> 10K
    Inflation ??
    ----------------------
    net savings ->15K (assuming no loans)
    ----------------------
    Expenses may vary depending on individual preferences, locality, but 66K per month is just decent. Not good enough.

    May be 90K per month with 30K going to savings is good enough for next 10 years.
    CommentQuote
  • Originally Posted by gandabaccha
    If somebody can suggest me a return of just 10-11%( yearly basis) on a capital of 2-3 crore with reasonable safety , i may be able to retire soonest.


    It is very easy to earn 10-11% risk free on 2-3 crores, you can invest in Shri Ram Transport FDs they yield 12.5% for 5 years, if you manage to get it in name of Senior citizen then I think they offer 13%
    CommentQuote
  • Originally Posted by pande1
    It is very easy to earn 10-11% risk free on 2-3 crores, you can invest in Shri Ram Transport FDs they yield 12.5% for 5 years, if you manage to get it in name of Senior citizen then I think they offer 13%




    Yar

    i think 35 lakhs will be a max investment in sriram transport FD's.
    i need more avenues to invest my money...real estate is a complete no-no
    as i do not have to live in it , rental yields are pathetic all across NCR or say india. and i do not see much capital appreciation happeneing.
    Also the dallas of india make me sick.
    CommentQuote
  • How many years of retirement life? 30-40 years if you are in your 40s-50s

    I agree 2-3C is lot of money right now but if that would be sufficient for such long a term when things such as inflation etc. are so unpredictable

    Originally Posted by gandabaccha
    If somebody can suggest me a return of just 10-11%( yearly basis) on a capital of 2-3 crore with reasonable safety , i may be able to retire soonest.
    CommentQuote
  • Assuming one will be living in his own house/flat , option of Reverse Mortgage is open in case , is required.
    CommentQuote
  • I didnt explore reverse mortgage completely but from what I know it should be used only in extreme emergency situation and shouldnt be a part of financial planning itself. It is kind of new product in India but is not viewed very kindly elsewhere.
    CommentQuote
  • The issue is How much is enough?

    Or more specifically how much is enough today?

    Will it still be enough for tomorrow?

    Problem is, it may be enough for today, but may not be enough for tomorrow. Around 10 years back, my target was 20L to retire. I thought I could easily earn minimally 10% from stock and that will suffice my day to day expenses. Few of my friends are running their normal expenses from daily trading. It is doable.

    Today I thank God that I did not had that 20L then ... otherwise, 20L today is not even enough to retire in a village. Then again, there are many people retired as teacher with 5-6L and sustaining their life.

    I guess one option to factor in inflation is house only. Buy few rentable houses and rent out. Rent will be adjusted as per inflation and your earning will be maintained as per market price.
    FD, etc are slow dying.. you are actually loosing money.
    CommentQuote
  • Originally Posted by gharondabhai
    The issue is How much is enough?

    Or more specifically how much is enough today?

    Will it still be enough for tomorrow?

    Problem is, it may be enough for today, but may not be enough for tomorrow. Around 10 years back, my target was 20L to retire. I thought I could easily earn minimally 10% from stock and that will suffice my day to day expenses. Few of my friends are running their normal expenses from daily trading. It is doable.

    Today I thank God that I did not had that 20L then ... otherwise, 20L today is not even enough to retire in a village. Then again, there are many people retired as teacher with 5-6L and sustaining their life.

    I guess one option to factor in inflation is house only. Buy few rentable houses and rent out. Rent will be adjusted as per inflation and your earning will be maintained as per market price.
    FD, etc are slow dying.. you are actually loosing money.



    10 years back u were going to make a wrong decision.
    If u buy some houses and try to retire off rent recieved ,again after 10 years you will again say that u made a wrong decision.

    Nobody can invest in a very popular investment theme and make money,yes may be he can make in a short run but in a long term like 10 years he can not do well.
    CommentQuote
  • Friends,

    All view points expressed so far are valid in themselves. However, to make a complete plan, a few points may be looked at to see what suits you:

    Two major objectives to be achieved: 1. Regular Income; 2. Wealth creation (to beat inflation over 30-40 years)

    Answers to above may lie in the following...exact amount and allocation ratio would depend on individual needs, aspirations and circumstances:

    1. Regular income, uninterrupted, ...which can sustain inflation for the next 5-10 years...that is to begin with. This may come from investments into

    A. Rent from 2nd House Property or floor in the same house
    B. Debt Funds - part amount
    C. FDs - part amount - they do not beat inflation but are ALWAYS available on regular basis
    D. Put in about 25-30 Lacs in a safe commercial bet - say, an ATM space...where the rent to investment ratio is more favourable than others in general.

    2. The 2nd and equally important issue is create wealth to be able to beat inflation in the longer run...and to do that:

    A. Real Estate - in the long run, a more stable way to enhance your wealth. Does not give you liquidity at short notice...but does multiply your net worth...invariably more than the inflation.

    B. To overcome the shortcoming of il-liquidity in above, keep some money in balanced funds - they have typically roughly 50 debt: 50 equity portions in them...the debt part would give stability to the overall exposure...and equity part will give inflation beating growth...

    For any emergencies..one can draw from this fund at a notice of, say, 3 days....otherwise, allow this to grow over longer time....draw when the market peaks and put part of this back into Debt and part come back to do SIPs in balanced funds...

    Broadly, I would do the planning on above lines...rest, as I said, individual circumstances play an important role in arriving at the exact combination.

    One important rider....

    Above planning requires some knowledge into these instruments of investment...and both the partners should be well oriented in it...otherwise in the case of untimely demise of the one managing all this...the other should not be left high n dry to handle all the nuances involved.

    If both are educated/ well versed...nothing like it...but if not...go for well defined and stable methods...FD / rentals for regular income and RE for wealth creation...at least in later years.

    Lastly, reverse mortgage is an option...but should be looked at in later years...as it is this works in India post 60 plus...2ndly, it is not so matured till now as an instrument...3rdly, amounts allowed to be drawn are much lower vis-a-vis the value of the house and would mean a lot of interest liablity in toto...hence, as it stands, should be used as a last resort ...that too in later years.

    Cheers!!!
    CommentQuote
  • I am looking in that direction too. Buying properties for rental yield and not capital appreciation. It is difficult to come up with a number(20L or 3C), especially if you are targeting to retire early in 40s and 50s.

    But I think it is very traditional and somewhat oversimplistic way. What could be other sources of these kind of passive income ?

    I am in early 30s and have a 15 years horizon

    Originally Posted by gharondabhai
    The issue is How much is enough?

    Or more specifically how much is enough today?

    Will it still be enough for tomorrow?

    Problem is, it may be enough for today, but may not be enough for tomorrow. Around 10 years back, my target was 20L to retire. I thought I could easily earn minimally 10% from stock and that will suffice my day to day expenses. Few of my friends are running their normal expenses from daily trading. It is doable.

    Today I thank God that I did not had that 20L then ... otherwise, 20L today is not even enough to retire in a village. Then again, there are many people retired as teacher with 5-6L and sustaining their life.

    I guess one option to factor in inflation is house only. Buy few rentable houses and rent out. Rent will be adjusted as per inflation and your earning will be maintained as per market price.
    FD, etc are slow dying.. you are actually loosing money.
    CommentQuote
  • What to do after early retirement.... why we do not want to work and want to retire... is overload of work is asking us to retire early... :)

    I'm happy to see many person want to retire.. atleast with security.. this will bring some good work out of them which they do not want to do for money....

    NRI plz return back asap els u need to struggle again for Green card of India.. :)
    CommentQuote