AAP for CHI2MAA
Posted: Fri Jan 25, 2008 2:25 am
Gurus,
I would like to first commend all of you for serving as a guidelight for new members here. This forum has been a goldmine of information and has helped me immensely in firming up my plans to R2I in JULY/AUG 2008.
I am listing my AAP for your expert review. I would deeply appreciate your ideas on how to rebalance my AAP and to acheive my objectives.
1.Return to India (R2I) or Live In America (LIA): - R2I
2.Your current age: - 41
3.Marital Status: - Married
4.Number of dependents and ages: Wife(36), Kids(11 & 7)
5.
(a) Current citizenship and/or Immigration status: GC
(b) If not a USC currently, do you have the option to take up US citizenship prior to R2I? Yes, Will be filing shortly
(c) If you have the option to take USC, do you intend to do so prior to R2I? Yes
6.
(a) If you intend to R2I, when do you intend to R2I? ? July/AUG 2008 . Self may work in USA for few more months.
(b) Immediately upon R2I, do you plan to retire (cease gainful employment), semi-retire, or continue to work for some time? ? Continue to WORK or Business.
(c) When do you plan to cease gainful employment (Intended Retirement Age)? - 55 or 50 if eachieved the goals.
(d) If you plan to work after R2I, what do you estimate your annual after-tax savings to be? ? Rs 6 Lakhs .
(e) If you plan to semi-retire after R2I, will your annual earnings from employment take care of your annual expenses during semi-retirement? If not, what do you expect the deficit to be per year? ? N/A
7.Is spouse also working? - No
8.RNOR eligibility of you and your spouse (use the calculator in doc section) or how long you have been out of India ? ? Out of India for 10 years.
9.
(a) Current annual after-tax savings including Roth IRA (excluding 401(k) and regular IRA contributions): $ 150K
(b) Current annual savings into tax deferred accounts i.e. 401(k) and regular IRA ? $30K(401k ? self), .
(c) Current annual expenses (excluding tax): $40k
(d) What is your current marginal (not average) federal tax rate, based on your filing status? ? 15%
(e) What is your current marginal (not average) state tax rate, based on your filing status?- 3.0%
10.House owner? - Yes
11.What percentage of your total portfolio loss in a year will make you lose sleep? 10%? 20%? 30%? Or 40%? ? 20%
12.Do you have any loans? CC? Car loans? House loans? What is the current interest rate?
Home ? $220K ? 4.75% , Auto ? 10K- 2.9%
13.Do you or your spouse?s participate in retirement plans: 401K, IRA, Roth-IRA? If so, how much do you and your employers contribute every year to these accounts? ? $ 6K+$6K for self only.
14.
(a) What are your short term (1 year) financial goals?
- Balance/Reallocate current assets towards Short / Medium/Long term goals.
(b) What are your medium term (2-5 years) financial goals?
- Need a a strategy to get with savings of Rs 10K/month for charity. Rs 20K for traveling, Rs 20K for wifes business expenses.- So total Rs 50k/month from my assets.
- Need Rs. 10 lacs for cars/motor cycle
-Have a Flat .Planning to reside there.
-Need 5 lacs for settling expenses and furniture
-Need 5 lacs for moving expenses
(c) What are your long term (>5 years) financial goals?
- Kids education and marriage, capital appreciation & retirement.
Kids education - $ 300 K after 10 years ? for 2 kids for 4 years..
Kids marriage / settling ? Rs 20 lakhs -After 15 years
Retirement ? Get Rs 25 k/month for charity + Rs 25K/month for self+spouse. - 10-15 yrs later.
15. Need to save money for your kids future education? If so, please answer the following questions:
(a) Do you have a 529 plan? - No
(b) Do you want to fund your kids? Indian or US education or both? If so, please provide a detailed description of the kind of education that you want to fund. (All expenses in today?s Rs/$)
- Primary/High School in India @ 1 Lakh/year/child
- Undergraduate education (a). India @ 3Lakh/year/child or (b). US @$25k/yr/child
- PG education in USA @ $25K/year/child
16. After you retire (cease gainful employment), what do you estimate your annual living expense figure to be (in current dollars or rupees, based on the life style you want)? Does this figure include housing cost? ? Rs. 6 Lacs
17. If you are R2I, what percentage of your portfolio do you want to leave in US? And where? Stocks? Bonds? Cash?
Leave all the 401K funds here. .- $ 30 K
18. Do you have any insurance? Life, disability, long-term care? Total value of your policy?
? Life ? 300K ( another 19 years), 200 K( life term) for self and 300K( another 25 years) for spouse .
19. Do you have an emergency fund? How it is invested? ? $ 130 K ? Savings account @ 5% return.
Current US Assets* (Please provide a separate breakup of tax deferred and after-tax accounts):
(after tax ? $ 265K)
1. Stocks (0)
2. Bonds: None
3. Cash (130 K ) : Savings account ? countrywide & citi.
4. Real estate (100k): Hope will get this equity after selling.
5. Jewellery: 10K
6. Cars: 25K
RETIREMENT(before tax ? $ 30K)
1. My 401 K - (Total 30K):
- 7 K in vanguard- multiple funds ( av return 15%)
- 23 K in fidelity ? multiple funds- ( av return 5 % )
2. Spouse 401K ? (0):
-
3. Cash : None
4. Real estate: None
Current India Assets(Rs. 75 lakhs):
(in Rs @ curren mkt value)
1. Stocks : None
2. Bonds : None
3. Cash : RS 5 lakhs
4. Real estate :
- Home 1 (60L) : Will stay there.
- Home 2 - None
- Plot1 (10 L) : Investment
Awaiting feedback.....CHI2MAA
I would like to first commend all of you for serving as a guidelight for new members here. This forum has been a goldmine of information and has helped me immensely in firming up my plans to R2I in JULY/AUG 2008.
I am listing my AAP for your expert review. I would deeply appreciate your ideas on how to rebalance my AAP and to acheive my objectives.
1.Return to India (R2I) or Live In America (LIA): - R2I
2.Your current age: - 41
3.Marital Status: - Married
4.Number of dependents and ages: Wife(36), Kids(11 & 7)
5.
(a) Current citizenship and/or Immigration status: GC
(b) If not a USC currently, do you have the option to take up US citizenship prior to R2I? Yes, Will be filing shortly
(c) If you have the option to take USC, do you intend to do so prior to R2I? Yes
6.
(a) If you intend to R2I, when do you intend to R2I? ? July/AUG 2008 . Self may work in USA for few more months.
(b) Immediately upon R2I, do you plan to retire (cease gainful employment), semi-retire, or continue to work for some time? ? Continue to WORK or Business.
(c) When do you plan to cease gainful employment (Intended Retirement Age)? - 55 or 50 if eachieved the goals.
(d) If you plan to work after R2I, what do you estimate your annual after-tax savings to be? ? Rs 6 Lakhs .
(e) If you plan to semi-retire after R2I, will your annual earnings from employment take care of your annual expenses during semi-retirement? If not, what do you expect the deficit to be per year? ? N/A
7.Is spouse also working? - No
8.RNOR eligibility of you and your spouse (use the calculator in doc section) or how long you have been out of India ? ? Out of India for 10 years.
9.
(a) Current annual after-tax savings including Roth IRA (excluding 401(k) and regular IRA contributions): $ 150K
(b) Current annual savings into tax deferred accounts i.e. 401(k) and regular IRA ? $30K(401k ? self), .
(c) Current annual expenses (excluding tax): $40k
(d) What is your current marginal (not average) federal tax rate, based on your filing status? ? 15%
(e) What is your current marginal (not average) state tax rate, based on your filing status?- 3.0%
10.House owner? - Yes
11.What percentage of your total portfolio loss in a year will make you lose sleep? 10%? 20%? 30%? Or 40%? ? 20%
12.Do you have any loans? CC? Car loans? House loans? What is the current interest rate?
Home ? $220K ? 4.75% , Auto ? 10K- 2.9%
13.Do you or your spouse?s participate in retirement plans: 401K, IRA, Roth-IRA? If so, how much do you and your employers contribute every year to these accounts? ? $ 6K+$6K for self only.
14.
(a) What are your short term (1 year) financial goals?
- Balance/Reallocate current assets towards Short / Medium/Long term goals.
(b) What are your medium term (2-5 years) financial goals?
- Need a a strategy to get with savings of Rs 10K/month for charity. Rs 20K for traveling, Rs 20K for wifes business expenses.- So total Rs 50k/month from my assets.
- Need Rs. 10 lacs for cars/motor cycle
-Have a Flat .Planning to reside there.
-Need 5 lacs for settling expenses and furniture
-Need 5 lacs for moving expenses
(c) What are your long term (>5 years) financial goals?
- Kids education and marriage, capital appreciation & retirement.
Kids education - $ 300 K after 10 years ? for 2 kids for 4 years..
Kids marriage / settling ? Rs 20 lakhs -After 15 years
Retirement ? Get Rs 25 k/month for charity + Rs 25K/month for self+spouse. - 10-15 yrs later.
15. Need to save money for your kids future education? If so, please answer the following questions:
(a) Do you have a 529 plan? - No
(b) Do you want to fund your kids? Indian or US education or both? If so, please provide a detailed description of the kind of education that you want to fund. (All expenses in today?s Rs/$)
- Primary/High School in India @ 1 Lakh/year/child
- Undergraduate education (a). India @ 3Lakh/year/child or (b). US @$25k/yr/child
- PG education in USA @ $25K/year/child
16. After you retire (cease gainful employment), what do you estimate your annual living expense figure to be (in current dollars or rupees, based on the life style you want)? Does this figure include housing cost? ? Rs. 6 Lacs
17. If you are R2I, what percentage of your portfolio do you want to leave in US? And where? Stocks? Bonds? Cash?
Leave all the 401K funds here. .- $ 30 K
18. Do you have any insurance? Life, disability, long-term care? Total value of your policy?
? Life ? 300K ( another 19 years), 200 K( life term) for self and 300K( another 25 years) for spouse .
19. Do you have an emergency fund? How it is invested? ? $ 130 K ? Savings account @ 5% return.
Current US Assets* (Please provide a separate breakup of tax deferred and after-tax accounts):
(after tax ? $ 265K)
1. Stocks (0)
2. Bonds: None
3. Cash (130 K ) : Savings account ? countrywide & citi.
4. Real estate (100k): Hope will get this equity after selling.
5. Jewellery: 10K
6. Cars: 25K
RETIREMENT(before tax ? $ 30K)
1. My 401 K - (Total 30K):
- 7 K in vanguard- multiple funds ( av return 15%)
- 23 K in fidelity ? multiple funds- ( av return 5 % )
2. Spouse 401K ? (0):
-
3. Cash : None
4. Real estate: None
Current India Assets(Rs. 75 lakhs):
(in Rs @ curren mkt value)
1. Stocks : None
2. Bonds : None
3. Cash : RS 5 lakhs
4. Real estate :
- Home 1 (60L) : Will stay there.
- Home 2 - None
- Plot1 (10 L) : Investment
Awaiting feedback.....CHI2MAA