Is anybody even looking at cost of living and inflation ? A small rain and the cost of vegetables doubles. How is the aam admi managing ? Not everybody is in IT. Even folks in IT are getting only 3% raises at best and the incoming new hires havent got a hike in 2 years. The "offshore" salaries cannot keep increasing ( big companies already charge more than 30$/hour ). Or am I getting all this wrong ? One thing I hear from friends is the high income salaries ( above 25 lakhs ) dont exist anymore except for the top 5 MNCs. Past 2 years, petrol is up atleast 30% ( 45 to 60 Rs ).
How does the average family ( single income IT guy making 25k-30k with a family ). And then how do the remaining do it ? I assume the prev gen have houses paid off - that helps.
Am I the only one who thinks - the system has to break down somewhere ?
Cost of living: solutions...
Cost of living: solutions...
If you are R2Iing and if your income post R2I is around 25lakhs or below. In my opinion we are better off not R2Iing. If you want to go back to live with your parents or if you have any other reason that you have to return, than it is a different scinario but if your plans are to live in comfort with the kind of income you are expecting which is around or less than 25lakhs, than it is not worth it. It is my way of seeing things and it could differ from person to person. Once you R2I you should be suffitient enough not to worry about inflation, rising costs of petrol and vegetables and all that.
Cost of living: solutions...
OP - I appreciate your concern towards common man - but tell me who cares about common man? They have been suffering hell from all the booms as everything including apartments, land, food, essential items, petrol et al has gone up and up several times except their incomes which is not keeping up with the pace of inflation growth. I will blame IT profession, ITES BPO's and NRI's to a large extent as these folks salary are 5 to 10 times more than an average common man salary and they have lot of spendable income where they don't care about spending at any cost. A few people with tons of money keep on spending and this increases the cost especially in metro/urban areas where 90% of them suffer. Just ask common man like day-wage labors, private company low/middle-level workers, teachers, postman, honest govt. servants and you will know the reality that they are silent sufferers and adjust their lifestyles with no vegetable curry, no dal and eat only low-choice food like rice/gravel.
I wish if I am born in next life, India is rich enough just like any developed country where each and every Indian could able to afford the basic services in life and enjoy themselves!!
I wish if I am born in next life, India is rich enough just like any developed country where each and every Indian could able to afford the basic services in life and enjoy themselves!!
Cost of living: solutions...
cmk786;356687If you are R2Iing and if your income post R2I is around 25lakhs or below. In my opinion we are better off not R2Iing. If you want to go back to live with your parents or if you have any other reason that you have to return, than it is a different scinario but if your plans are to live in comfort with the kind of income you are expecting which is around or less than 25lakhs, than it is not worth it. It is my way of seeing things and it could differ from person to person. Once you R2I you should be suffitient enough not to worry about inflation, rising costs of petrol and vegetables and all that.
Has anyone though about not R2Ing but stay here until retirement ?.
Does anyone think they can survive here without working post retirement ?. Anyway retiremnet age is what 67 .
What would be your SSN ?. Annual statment pretty much states that.
IS there anyone here who gets double digit and higher annual pay rise in US ?.
How is growing health care cost in US ?.
Cost of living: solutions...
May be very few has thought and very few has done R2Iing after retirement. But not necessarily at the age of 67. If they feel they have earned enough to live rest of their life happily than they can retire earlier than 67. Once they achive this than their SS payments will be if not more will be on par with an IT professionals average salary in India. On top of it they also have 401k or pension they would get after retirement. Plus obviously for working in US for this long they will also have some kind of savings. If we add up all this than one should have substantial post retirement income to live very happy for the rest of their life. Than if they can spend their post retirement life in India. Than it will be iceing on the cake. Even otherwise if they want to retire at age of 65. Than they also get medicare and medicade in US. Which does help some extent to growing health care cost. Plus most of the big corporates + public sectors provide pension + health care in US after one retires. Therefore if one have lead a successful and prosperous life in US than they should not have any problem retiring happily either in US or India.
Cost of living: solutions...
I don't think you have to worry about how common man is living while thinking of r2i. :)
Cost of goods and services is not uniform everywhere. Just comparing two places I am familiar with - Tier1 Bangalore to Tier2 Kochi, the difference in cost of living is huge. In Kochi you can rent a SFH for 5 - 25 K, similar neighbourhood would go for 40 - 1.5 L in Blr. School fees is also similarly low in Kochi. I don't think your common man is sending kids to international schools or living in gated communities. Likewise common man get the govt subsidised ration which wouldn't blow a hole in his pocket. I know several single income IT families who are living comfortably. I don't think Indians are great spenders, people know how much they can afford and live within their means. Unlike US where not having credit card debt is newsworthy.
Cost of goods and services is not uniform everywhere. Just comparing two places I am familiar with - Tier1 Bangalore to Tier2 Kochi, the difference in cost of living is huge. In Kochi you can rent a SFH for 5 - 25 K, similar neighbourhood would go for 40 - 1.5 L in Blr. School fees is also similarly low in Kochi. I don't think your common man is sending kids to international schools or living in gated communities. Likewise common man get the govt subsidised ration which wouldn't blow a hole in his pocket. I know several single income IT families who are living comfortably. I don't think Indians are great spenders, people know how much they can afford and live within their means. Unlike US where not having credit card debt is newsworthy.
Cost of living: solutions...
cmk786;356715May be very few has thought and very few has done R2Iing after retirement. But not necessarily at the age of 67. If they feel they have earned enough to live rest of their life happily than they can retire earlier than 67. Once they achive this than their SS payments will be if not more will be on par with an IT professionals average salary in India. On top of it they also have 401k or pension they would get after retirement. Plus obviously for working in US for this long they will also have some kind of savings. If we add up all this than one should have substantial post retirement income to live very happy for the rest of their life. Than if they can spend their post retirement life in India. Than it will be iceing on the cake. Even otherwise if they want to retire at age of 65. Than they also get medicare and medicade in US. Which does help some extent to growing health care cost. Plus most of the big corporates + public sectors provide pension + health care in US after one retires. Therefore if one have lead a successful and prosperous life in US than they should not have any problem retiring happily either in US or India.
I would be surprsied if someone would think of retiring in US with 401k and good saving. What rate of return is expected.
Pension - who gets that now ?. Even if you are getting that you making ave or below ave salary now so whats your savinngs ?. Corp house who is paying pension anymore ?. Gov pay pension but salary is below average.
I would be amazed if someone making that high income level that they can survive on saving and 401k and.
If anyone is in that group making 250K plus year i dont think they will be part of this forum and writing posts here.
Look into SSA site and find out what % of ppl can live on savings + 401K.
I am refrring to anyone retirning reaching age of 55 plus in next 20 years and beyond.
2009 when the big auto guys in Detroit were laying of people one guy indian having done his MS several years back having worked in Chrysler for more than 40 years took golden handshake ( had to ) was Head of dept. He must have been 62 and up.
I saw that guy working in a grocery store stacking supplies and heard from another friend he also worked as security officer in a hospital monitoring surveilance camera.
Detroit is a reasobaly ave city in terms of living cost.
Just me view no dabating anyones view.
Cost of living: solutions...
It is very hard to see the future 20 years from now. If they can see the future 20 years from now I am amazed. Than they do not have to worry for anything at all because they can start planning for it accordingly. You must be kidding when you talked about 20 years from now. Anyway I think you did not read my previous post carefully. I said 401k or pension + savings + SS. And I am only referring to people on this forum and not for all Americans. Because we Indians - Who came to US they did not come here to work on minimum wages. Most of us came to US with good backgrounds from India and were/are capable of making a good living. We do not have to make $250k + a year to have a comfortable post retirement life in US. More over this forum is for the people who came to foreign countries and planning to R2I and not staying and living here for rest of our lives. Therefore you are comparing here apples and oranges. I also said big corporations and public sectors - gets pension after retirement. I work for public sector(US county govt) and I get pension. For me with my pension + SS + my savings - I can live happily for the rest of my life weather in India or US does not matter. If I retire in India than I can retire in luxury with no problems whats so ever. Like wise there are so many people here on this forum who are in the same boat like me. But I never made $250k per year in my life time for that matter. Remember - You are under the thread Life in India.
I know if you work for US govt salaries will be less. But if both husband and wife is working you can have very comfortable life in US + you can also save some money every month. Based on this assumption lets calculate by taking a example. Lets assume a person is making $65k per year and his wife is making around $40k a year. Lets assume this family is saving around $800.00 a month. Lets assume this person works for 20 years before retirement.
Savings 800*12*20 = $192000.00. I am not including any interest on it. But I am going to take out 10% on taxes. Since I am not good in calculations I am going to take out roughly $20k on the whole amount. Therefore his savings is $172k at the time of retirement. To calculate the pension there is a formula : Years of service / 55 * final 3 years of average salary.
Based on this - 20/55 * 65k = 23636 / 12 = $ 1969.00 per month. Take out 10% taxes = $1772.00 per month net.
Social security he would get around $1350.00 per month.
Again 10% of taxes on it will get a net $1215.00 per month.
If you invest your $172k and assume you are getting 5% return. $8600/annum = $716 per month. After 10% tax = $644.00 per month net.
Therefore 1772 + 1215 + 644 = $ 3631.00 per month net.
Obiously we being Indians famous for less spending more savings will have paid up home. Than you and your wife can have very comfortable living in US let alone retiring in India. But since this forum is for R2I. Lets assume dollar rate is Rs35 per 1 $. Than 3631* 35 = Rs 127085 per month. Now you tell me weather one can live comfortably or not even in spite of working to US govt. On controry if you work for a big corporations than your equivalant salary will be around $97k to $110k per year.
2009 when the big auto guys in Detroit were laying of people one guy indian having done his MS several years back having worked in Chrysler for more than 40 years took golden handshake ( had to ) was Head of dept. He must have been 62 and up.
I saw that guy working in a grocery store stacking supplies.
Chrysler has pension program. The guy who has worked for 40 years should have vested in pension system. He must get pension no matter he took golden handshake. There is no need for any one to work in grocery store to meet his both ends that too when he was head of dept and worked for 40 years. The surveillance package they get when they are laid off which would be susbstantial for a person who has worked for 40 years + who was also head of dept.
For instance my brother worked for Pfizers before he was laid off. But he had worked for that company (Aquisition = Warner Lambert - Johnson & Jhonson - Pfizer)for more than 28 years. With the surveillance package he got he bought 2 town houses in Florida as investment property + He gets the hadsome pension + SS + he has almost $1mil in 401k + the house he is living is worth $800k which is paid off 100%. Therefore no way the person you are referring is working in a grocery store to meet his expenses. And most of the people already know me through my other posts that I will not just BS like some people and I always back up with live examples and facts to prove it. My dear freind bottom line is if you survive in US for 40 years in one job and that too as a head of dept, than you will retire millionaire and not a pauper that he has to work in a grocery store to meet his ends. You are sitting in Chennai and looking at US and assuming grapes are sour because you can not taste them but it is America my freind and it has given us a lot and no other country would have ever given us this much. We are extremely thankful for this country and we do love this country as much as we love India if not more.
I know if you work for US govt salaries will be less. But if both husband and wife is working you can have very comfortable life in US + you can also save some money every month. Based on this assumption lets calculate by taking a example. Lets assume a person is making $65k per year and his wife is making around $40k a year. Lets assume this family is saving around $800.00 a month. Lets assume this person works for 20 years before retirement.
Savings 800*12*20 = $192000.00. I am not including any interest on it. But I am going to take out 10% on taxes. Since I am not good in calculations I am going to take out roughly $20k on the whole amount. Therefore his savings is $172k at the time of retirement. To calculate the pension there is a formula : Years of service / 55 * final 3 years of average salary.
Based on this - 20/55 * 65k = 23636 / 12 = $ 1969.00 per month. Take out 10% taxes = $1772.00 per month net.
Social security he would get around $1350.00 per month.
Again 10% of taxes on it will get a net $1215.00 per month.
If you invest your $172k and assume you are getting 5% return. $8600/annum = $716 per month. After 10% tax = $644.00 per month net.
Therefore 1772 + 1215 + 644 = $ 3631.00 per month net.
Obiously we being Indians famous for less spending more savings will have paid up home. Than you and your wife can have very comfortable living in US let alone retiring in India. But since this forum is for R2I. Lets assume dollar rate is Rs35 per 1 $. Than 3631* 35 = Rs 127085 per month. Now you tell me weather one can live comfortably or not even in spite of working to US govt. On controry if you work for a big corporations than your equivalant salary will be around $97k to $110k per year.
2009 when the big auto guys in Detroit were laying of people one guy indian having done his MS several years back having worked in Chrysler for more than 40 years took golden handshake ( had to ) was Head of dept. He must have been 62 and up.
I saw that guy working in a grocery store stacking supplies.
Chrysler has pension program. The guy who has worked for 40 years should have vested in pension system. He must get pension no matter he took golden handshake. There is no need for any one to work in grocery store to meet his both ends that too when he was head of dept and worked for 40 years. The surveillance package they get when they are laid off which would be susbstantial for a person who has worked for 40 years + who was also head of dept.
For instance my brother worked for Pfizers before he was laid off. But he had worked for that company (Aquisition = Warner Lambert - Johnson & Jhonson - Pfizer)for more than 28 years. With the surveillance package he got he bought 2 town houses in Florida as investment property + He gets the hadsome pension + SS + he has almost $1mil in 401k + the house he is living is worth $800k which is paid off 100%. Therefore no way the person you are referring is working in a grocery store to meet his expenses. And most of the people already know me through my other posts that I will not just BS like some people and I always back up with live examples and facts to prove it. My dear freind bottom line is if you survive in US for 40 years in one job and that too as a head of dept, than you will retire millionaire and not a pauper that he has to work in a grocery store to meet his ends. You are sitting in Chennai and looking at US and assuming grapes are sour because you can not taste them but it is America my freind and it has given us a lot and no other country would have ever given us this much. We are extremely thankful for this country and we do love this country as much as we love India if not more.
Cost of living: solutions...
CMK786 - I am not getting into discussion here.
Reg the chrysler guy i never knew what his finances were but I saw him stacking in a grocry store .
This forums I use just for information/networking with people. End of day its for individual ppl to make thjeir own decisions.
But curious to know who in US gives 5% return.
There is also a cap amount covered by FDIC . Last few years was a classic example not to put your money in US banks(bankrupt).
401K - what happened last few years , people lost significant value I know many of my friend lost 50% and up.
Reg both husband and wofe working I seen many couples family and friends eat all frozen food for several years.
1) Wife goes early to work , husband goes late and drops kids in day care on the way to work. Wife comes early to pick up the kid so that they pay minimum to day care.
2) Option 2 bring either parents to US for six montsh each to show USA(parenst feeel they are brought to do baby sitting/cook) . Couple here see the cost benefit of paying airfare VS day care. As bonus they get parents/in laws as cooks. I am not making this story its the real view of people/parents.
I dont consider that LIFE.
There was a time few years back i had see the fact and and decide on R2I in next years.
Reg the chrysler guy i never knew what his finances were but I saw him stacking in a grocry store .
This forums I use just for information/networking with people. End of day its for individual ppl to make thjeir own decisions.
But curious to know who in US gives 5% return.
There is also a cap amount covered by FDIC . Last few years was a classic example not to put your money in US banks(bankrupt).
401K - what happened last few years , people lost significant value I know many of my friend lost 50% and up.
Reg both husband and wofe working I seen many couples family and friends eat all frozen food for several years.
1) Wife goes early to work , husband goes late and drops kids in day care on the way to work. Wife comes early to pick up the kid so that they pay minimum to day care.
2) Option 2 bring either parents to US for six montsh each to show USA(parenst feeel they are brought to do baby sitting/cook) . Couple here see the cost benefit of paying airfare VS day care. As bonus they get parents/in laws as cooks. I am not making this story its the real view of people/parents.
I dont consider that LIFE.
There was a time few years back i had see the fact and and decide on R2I in next years.
Cost of living: solutions...
Reg the chrysler guy i never knew what his finances were but I saw him stacking in a grocry store .
The guy who you do not even know him. Saw him stacking in grocery store.But you know so much about him that you know he worked for Chrysler for 40 years and as a head of dept and so much in detail. How on earth you came to know so much about his past life just by seeing him.
This forums I use just for information/networking with people. End of day its for individual ppl to make thjeir own decisions.
I appreciate you try to help people on this forum by providing them info/networking with people. But please do not try to give cock and bull stories of your own. There are lots of smart people in this forum and they all figgure out what crap your stories are.
But curious to know who in US gives 5% return.
Untill before last year for 5 years I had invested $200k in ING annuity at 7% and I was getting regular monthly payments of $1100.00 after taxes. My brother whom I have referred above once recently said that he consulted his financial advisor and he had told him that he can get guaranteed return of at least 5% in investing his money but he did not go in to that.
401K - what happened last few years , people lost significant value I know many of my friend lost 50% and up.
My friend I know people lost significant in the market. But it was only a paper loss. They only lose it if they sold it. Again I am not talking about buying stocks alone. If you buy stock with your retirement funds than you are stupid. You must invest in mutual funds, fixed income and diversyfy your funds. Than you will not lose your investments. You must not take the aggresive investment option with your 401k. This is a whole different ball game and lets not discuss in this thread and I am not the person to discuss this either. Any way my brother regained pretty much all his loses because now the market is going upward trend.
Reg both husband and wofe working I seen many couples family and friends eat all frozen food for several years.
Me and my wife were working untill last 2 years. Now my wife retired 2 years ago. But I never ate any frozen food in my life. I always eat Indian food. Yes we keep in the frieg the left overs and eat it later but not frozen food. We do freeze rawa meet and chicken. I have one son who is graduated more than 2 years ago. You are correct in one instance - yes my mom was baby sitting him but she never cooked food for our family. Even in India lately and especially in Tier 1 cities both husband and wife are working and their parents or some one else is taking care of the kids. So whats wrong in that.
There was a time few years back i had see the fact and and decide on R2I in next years.
Good for you. How happy are you now in India. By the way how long did you stay in US. If you do not feel I am getting very personnel let me know what were you doing in US and what are you doing in India now. How many kids you have and if your wife is working. Before that let me introduce you. I am working as health inspector to US county govt in NJ for past 81/2 years. Before that I have worked in IT in SAP as sr. programmer to a very large Chemical Company for 51/2 years and earlier to BASF I have worked for more than 8 years in IT for other companies in microfocus cobol, RM cobol and Wang Cobol. And I have lead so far reasonably a good life in US and planning on retiring in October 2014. Than live most part of my life in India and to some extent in US aswell because my only son will be living in US.
The guy who you do not even know him. Saw him stacking in grocery store.But you know so much about him that you know he worked for Chrysler for 40 years and as a head of dept and so much in detail. How on earth you came to know so much about his past life just by seeing him.
This forums I use just for information/networking with people. End of day its for individual ppl to make thjeir own decisions.
I appreciate you try to help people on this forum by providing them info/networking with people. But please do not try to give cock and bull stories of your own. There are lots of smart people in this forum and they all figgure out what crap your stories are.
But curious to know who in US gives 5% return.
Untill before last year for 5 years I had invested $200k in ING annuity at 7% and I was getting regular monthly payments of $1100.00 after taxes. My brother whom I have referred above once recently said that he consulted his financial advisor and he had told him that he can get guaranteed return of at least 5% in investing his money but he did not go in to that.
401K - what happened last few years , people lost significant value I know many of my friend lost 50% and up.
My friend I know people lost significant in the market. But it was only a paper loss. They only lose it if they sold it. Again I am not talking about buying stocks alone. If you buy stock with your retirement funds than you are stupid. You must invest in mutual funds, fixed income and diversyfy your funds. Than you will not lose your investments. You must not take the aggresive investment option with your 401k. This is a whole different ball game and lets not discuss in this thread and I am not the person to discuss this either. Any way my brother regained pretty much all his loses because now the market is going upward trend.
Reg both husband and wofe working I seen many couples family and friends eat all frozen food for several years.
Me and my wife were working untill last 2 years. Now my wife retired 2 years ago. But I never ate any frozen food in my life. I always eat Indian food. Yes we keep in the frieg the left overs and eat it later but not frozen food. We do freeze rawa meet and chicken. I have one son who is graduated more than 2 years ago. You are correct in one instance - yes my mom was baby sitting him but she never cooked food for our family. Even in India lately and especially in Tier 1 cities both husband and wife are working and their parents or some one else is taking care of the kids. So whats wrong in that.
There was a time few years back i had see the fact and and decide on R2I in next years.
Good for you. How happy are you now in India. By the way how long did you stay in US. If you do not feel I am getting very personnel let me know what were you doing in US and what are you doing in India now. How many kids you have and if your wife is working. Before that let me introduce you. I am working as health inspector to US county govt in NJ for past 81/2 years. Before that I have worked in IT in SAP as sr. programmer to a very large Chemical Company for 51/2 years and earlier to BASF I have worked for more than 8 years in IT for other companies in microfocus cobol, RM cobol and Wang Cobol. And I have lead so far reasonably a good life in US and planning on retiring in October 2014. Than live most part of my life in India and to some extent in US aswell because my only son will be living in US.