r2i forum

1. Return to India (R2I) or Live In America (LIA): R2I

2. Your current age: 33

3. Marital Status: Married

4. Number of dependents and ages: Spouse (30) Daughter(2)

5.

(a) Current citizenship and/or Immigration status:

(b) If not a USC currently, do you have the option to take up US citizenship prior to R2I?

(c) If you have the option to take USC, do you intend to do so prior to R2I? NO

6.

(a) If you intend to R2I, when do you intend to R2I? 2012

(b) Immediately upon R2I, do you plan to retire (cease gainful employment), semi-retire, or continue to work for some time?
continue to work

(c) When do you plan to cease gainful employment (Intended Retirement Age)? 50

(d) If you plan to work after R2I, what do you estimate your annual after-tax savings to be? 6 lacs

(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?

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 ? 2 yrs

9.

(a) Current annual after-tax savings including Roth IRA (excluding 401(k) and regular IRA contributions): 30K

(b) Current annual savings into tax deferred accounts i.e. 401(k) and regular IRA: 15K

(c) Current annual expenses (excluding tax): 40K

(d) What is your current marginal (not average) federal tax rate, based on your filing status? 25%

(e) What is your current marginal (not average) state tax rate, based on your filing status? 0%

10. House owner? No

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? No

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? 15K

14.

(a) What are your short term(1 year) financial goals?
1. Buy a house (need $60 K as down payment)
2. Buy second Car (auto loan)
3. Need to fund plot purchase in India ($45k)

(c) What are your long term (>5 years) financial goals?
Primary Home (60 lacs)
R2I Settling expenses (5 lacs)
Car in India (7 lacs)
Daughter's education & marriage expenses ($40K + $20K)
Second kid's education & marriage (if we plan) ($40K + $20k)


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.
Bachelors in India($10K), Masters in USA (partially $30K in today's money)
total : $80K ($40k each)

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 5 lacs (~$12k), No


17. If you are R2I, what percentage of your portfolio do you want to leave in US? And where? Stocks? Bonds? Cash?
Undecided

18. Do you have any insurance? Life, disability, long-term care? Total value of your policy?
$100K + 8 lacs

19. Do you have an emergency fund? How it is invested?
$15K in short term CDs

Current US Assets* (Please provide a separate breakup of tax deferred and after-tax accounts):

1. Stocks:
401k: (total 87K)
SPTN toal market Index : 26K
Low PR Stock : 22K
Value : 13K
Divers Inter : 26K

ESOP: The company is planning to go public next year. We can ignore it for the time being.

2. Cash (77K)
60 K in CDs
7 K in money market
10 K in checking



Current India Assets:

1. Cash
5 lacs

2. Real estate
30 lacs (can be used to pay for primary home)
50 lacs (pending: have to pay 22 lacs more): I would like to keep this property as target for retirement home.

Wish2r2i,

Your AAP is not forgotten. It is in queue. Hope to start tackling it by Friday or Saturday.

Thanks Desi.

Three months back I came back from India after spending 1.5 years there on temporary assignment. I intended to increase my life insurance after coming back as my employer provides only $100k. I had a couple of seizures in last two months and I am unsure about life insurance quotes (though I need it more than anything). I am still seeing specialists to complete the diagnosis as all my tests (EEG, CT Scan, MRI etc.) are normal. I might prepone R2I if it gets any worse. For the time being we have decided to stay put.

Stock Investments

Large Cap
FID BLUE CHIP GROWTH
FID CONTRAFUND
FID DIVIDEND GROWTH
FID EQUITY INCOME II
FID EQUITY INCOME
FID EXP & MULTINATL
FID FIDELITY
FID FIFTY
FID GROWTH COMPANY
FID LARGE CAP STOCK
FID OTC PORTFOLIO
SPTN TOTAL MKT INDEX

Mid-Cap
FID MID CAP STOCK
FID VALUE
FIDELITY AGGR GROWTH
FIDELITY LOW PR STK
SPTN EXTND MKT INDEX

Small Cap
FID SM CAP RTMT
FID SMALL CAP VALUE
FID VALUE STRATEGIES

International
FID DIVERSIFIED INTL
FID OVERSEAS

Specialty
FID REAL ESTATE INVS

Blended Fund Investments
FID FREEDOM 2000
FID FREEDOM 2005
FID FREEDOM 2010
FID FREEDOM 2015
FID FREEDOM 2020
FID FREEDOM 2025
FID FREEDOM 2030
FID FREEDOM 2035
FID FREEDOM 2040
FID FREEDOM INCOME
FID PURITAN

Bond Investments
Income
FID INTERMED BOND
FID SHORT TERM BOND
FIDELITY INVST GR BD
FIDELITY RETIRE MMKT

You say you have been out of India for two years.

Both your spouse and you have been out of India for only 2 years? Please clarify.

Will you qualify for full RNOR by the time you R2I?

What is your current immigration status?
What is immigration status of your spouse and child?


You mention the following, re Indian real estate:

[QUOTE]
Need to fund plot purchase in India ($45k)
Primary Home (60 lacs)
30 lacs (can be used to pay for primary home)
50 lacs (pending: have to pay 22 lacs more): I would like to keep this property as target for retirement home.


I am a little confused. What exactly do you own and what are your plans?
You have to be specific. You cannot say - "can be used for primary home ". I cannot make that decision. You have to decide, if your intention is that that will be your primary home or your intention is to sell it and when. If it is going to be your primary home, then how does this mesh with the 60 lacs figure.

Please be more specific and clear about Indian real estate goals. Seems that you have included some investment property in there too.

Lastly, when do you intend to purchase the home in USA which you specified?

I have may have more questions.

I am sorry to give misleading information. Let me try to clarify things.

RNOR and immigration: I meant to say that we might get 2 years as RNOR in India.
In USA: 4/1998 to 7/2005.
In India: 7/2005 to 10/2006
Back in US: 10/2006 to till date

Status: Self:H1B, Wife:H4, GC is pending.
Daughter: US Citizen

We intend to live here for few years if everything goes well. SO, normal R2I year should be 2012/2013. Lets assume that I will get only 1 year as RNOR.

RE in India:
1. 20 lacs worth home in a tier 2 city (rent of Rs 5k goes to parens)
2. 10 lacs worth plot in a tier 3 city.
3. In process of acquiring a plot in my home city (tier 3). The deal was finalized two years back but the builder is still dealing with some legal issues. The value at the time of the booking was 28 lacs (6 lacs paid: 22 lacs ($45k) remaining to be paid). It has appreciated to 50 lacs now.

The first two properties are purely for investment and can be used when needed. We have some emotional attachment with our home city and would like to retire there. But I can use it if it does not make sense.

We would like to buy primary home after R2I as we are not sure about our R2I city yet (Most probably Pune).

Home in USA:
We intend to buy a home in USA in next 6-9 months if the health related issues turn out to be of short term. Otherwise, we will continue to rent for another 1-1.5 year and R2I.

Thanks.

Bobus and other Gurus, please provide your opinion.

A lot has changed in last few months so I want to delete this AAP request and repost a new one with current information next month.