How much is enough ? - 2009 discussion

[Pune_dude]

Hi Guys, its been almost a year since I started this question thread and thanks all for an enormous response with valued and varied inputs. While there wont be any definite answer, I thought I would share with you all my answer which I formed after R2I'ing last year and being in india for some time now. Living in Pune city, I could see that a bank balance of 80LK is perfectly decent enough assuming that your house/apt are paid off, you dont have an urge to drive a Merc/BMW (which you cant drive in pune's narrow roads anyway), and dont plan to live extravagent life-style.
I kept on talking to most of my friends who R2I'ed in past 3 yrs and either working in MNC, or started their own small firm. When I followed their footsteps, this question still haunted me to see how much we really need?
One more comment One thing is for sure....if you have 200K in USA, still you will have huge amount of stress from the perspective of planning future, than having 90Lks and being in india (converting USD 200K to INR at existing rate). There could be many reasons why one gets stressed in USA but this is a fact I realised from my own experience as well as that of my friends who R2I'ed.
I will keep on bringing more and more accuracy to the answer of this question and will post here. Thanks again for contributing on this question.

[R2I_OneDay]

Nice of you Pune_dude to post some basic information; since my destination is also Pune, it gives me some idea.
I strongly believe that its upto an individual how much he/she can be content/satisfied with and also what the individual plans to do in future.

[vnksuresh]

A house that is paid off plus 80-lakhs cash is enough to make a good living UNTIL SOMEONE FALLS SICK or YOUR KIDS GET READY TO GO TO COLLEGE. In my opinion, 80-lakhs is not enough to pay for undergraduate studies and medical insurance. I am trying to figure out how much is enough. If someone has any experiences, please share.

[vizagdesi]

A house that is paid off plus 80-lakhs cash is enough to make a good living UNTIL SOMEONE FALLS SICK or YOUR KIDS GET READY TO GO TO COLLEGE. In my opinion, 80-lakhs is not enough to pay for undergraduate studies and medical insurance. I am trying to figure out how much is enough. If someone has any experiences, please share.

How much do you think medical insurance costs in India (For a 5 Lakh policy, which is enough for most treatments in India, even at the best hospitals)?

Assuming that most of us will have at least 6-10years before sending our kids to college, how much do you think, the money will grow if invested properly in India?

80 Lakhs hard cash in today's terms with prudent investment is more than enough.

[NoChaos]

I am trying to figure out how much is enough. If someone has any experiences, please share.

How much you have at this moment? And what's your current age and future earning potential? Few $Billion is not enough for ambani, but $thousand is enough for RRK. Similarly 20-30 Lakhs INR is enough for a bachelor of 25 yrs with excellent future earning pontential but few Crores is not enough for middle age R2Iers with two grown-up kids.

[mn_op]

A house that is paid off plus 80-lakhs cash is enough to make a good living UNTIL SOMEONE FALLS SICK or YOUR KIDS GET READY TO GO TO COLLEGE. In my opinion, 80-lakhs is not enough to pay for undergraduate studies and medical insurance. I am trying to figure out how much is enough. If someone has any experiences, please share.

vnksuresh, It all depends. Undergraduate studies are expensive but not that expensive that nobody can afford. If the parent is hellbent on converting their average kid into an incompetent doctor then education will become super expensive. A smart parents will encourage their not-so-intelligent kids to find alternate professions...such as real estate sales agent.

Most of the illnesses can be treated if you have 80 lakhs cash and decent medical insurance. And thats the risk one has to take in life.

I agree with Punedude 80 lakhs in liquid assets (stocks, FD, NSCs, bonds, MFs, ULIPs) is a lot of money.

vnksuresh, In another thread you have been asking advise about some unnamed builder who takes 2 crore rupees and 'guarantees' medical seats for two of your kids, 2 flats and medical facility and a maid! You have not told us the builder name yet.
My advise is that: Stay away from that builder and his crazy agents. The agents are useless as they are spending energies trying to catch foolish moneyed people. The builder probably has no clue what he is talking about as it is impossible to create a binding contract that will stand in a court of law and protect consumers. Either that, or he is lying and trying to cheat you.

If you decide to take up that builders offer, I would advise you to hire a lawyer to review the contract. Ensure that lawyer has no history of heart diseases as laughing too hard may cause cardiac arrests.

[oasis138]

I second you. Education is not a commodity - everyone wants the best that money can buy ,causing its demand to be quite inelastic. Check any of the American Schools in Delhi or Mumbai which cost $10,000+ p.a. even at the earliest grades. Money is clearly not a deterrent because classes are 5-10X oversubscribed every single year resulting in multiple wait-lists.

The average cost of attending a good state school runs $25K pa including living expenses. Hence if you are planning to send your kid for UG education in the US you should commit $25K X 4 = $100K per child before you R2I and index it with at the rate that tuition is growing (its growing more than inflation). More if you want to pay for their Post Graduate studies or private college (4years at Harvard costs $250K today). Also remember that competition for college slots are intense and US schools stress a lot more that 1600 SATs and 4.0 GPAs. Therefore you maximize your chances of your kid getting into a good school (both public and private) if you send your kid to a school in India that offers good opportunities for sports/extra-curriculars etc. This costs money - a lot of it.

Quite frankly the India many of us left 10years ago has long ceased to exist. Networths are easily in crores now. In another 10 years they will be in 10s of crores. kalyanram, Pune_dude and R2I-2019 have hit the nail on the head. R2I is an expensive proposition. Yes, expensive to the tune of 10s of crores if you want a lifestyle that is somewhat comparable to the US and if you want your kids to grow up an all-rounded individual instead of the lakhs of nerdy geeks with a single-track mind that the indian education system defecates every year.

Never ceases to amaze me how people who should show "some gratitude" towards the 10+ years of education they received in India (which basically built the foundation on which everything today rests......go ahead deny it) dont think twice before damming it (read above - "instead of the lakhs of nerdy geeks with a single-track mind that the indian education system defecates every year"). Of course such people would claim that their talent allowed them crawl through the Indian system and then magically get transported into a top Univ in US based on merit.....when i reality all most people (exceptions being those that really come for something specialized ) need to get into the US system is a small bank loan (2-3 semester fees since most end up with free tuition after that)....half a decent score on GRE/GMAT....and a one way flight ticket...and ofcourse prayers at the VISA god temple near HYD.

[oasis138]

I would add few point here. People talk lot about American Life style- 1+ cores house, AC school etc, but one thing we should remember that we are talking about India. Sudden spike in your life style + your NRI status can put you in radar of goons and thugs.

You don’t know but your every move will be watched by someone in India. Like your maid, driver, Laundryman, telephone repair guy even some jealous relative. That can put you in big trouble like kidnapping and what not. I was amazed last time when I visited my empty house in newly constructed society almost all neighbors knew that owner is in America!

So in my view it would be foolish idea to copy American life style in India. You have to live the way the people of India live. Remember one section of society is extremely dissatisfied of his/her living condition and you are potential target for them. If you are not born rich and coming from service class you will have to learn how to digest this sudden inflow of US$. Any superior life style with “US Return” tag can put you in trouble. Always keep low profile.

Just my 2 cents.

You location mentions that you are based in Kabul (I hope not but lets assume you are)...so i think it makes sense that you should be the one on this thread to throw in the dimension of "kidnapping" (can we also add bomb blasts) to r2i decision... Funny!

[r2ibuzz]

well said..

[r2ibuzz]

How much you have at this moment? And what's your current age and future earning potential? Few $Billion is not enough for ambani, but $thousand is enough for RRK. Similarly 20-30 Lakhs INR is enough for a bachelor of 25 yrs with excellent future earning pontential but few Crores is not enough for middle age R2Iers with two grown-up kids.

well said..