AAP for Bhavishya

Bhavishya · Post by **Bhavishya** » Mon Jan 24, 2011 10:25 pm

1. Return to India (R2I) or Live In America (LIA): R2I
2. Your current age:29 and DH is 34
3. Marital Status:Married
4. Number of dependents and ages:One child - 5 years

5.
(a) Current citizenship and/or Immigration status:H1B - Both
(b) If not a USC currently, do you have the option to take up US citizenship prior to R2I? NA
(c) If you have the option to take USC, do you intend to do so prior to R2I? NA

6.
(a) If you intend to R2I, when do you intend to R2I? 2011
(b) Immediately upon R2I, do you plan to retire (cease gainful employment), semi-retire, or continue to work for some time? Both plan to work full time
(c) When do you plan to cease gainful employment (Intended Retirement Age)? Me - 45 DH - 55
(d) If you plan to work after R2I, what do you estimate your annual after-tax savings to be? don't know
(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? NA

7. Is spouse also working? YES since past 5 years
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 6 years

9.
(a) Current annual after-tax savings including Roth IRA (excluding 401(k) and regular IRA contributions): 90K excluding expenses
(b) Current annual savings into tax deferred accounts i.e. 401(k) and regular IRA 15K
(c) Current annual expenses (excluding tax):50K
(d) What is your current marginal (not average) federal tax rate, based on your filing status? 28%
(e) What is your current marginal (not average) state tax rate, based on your filing status?5.3%

10. What is the ratio of your income to spouse's income?1.1/1.0(DH)
11. House owner?No
12. If planning to purchase a house to live in, in India, estimate the price you expect to pay if the purchase were to be made today. 1 Cr.

13. What percentage of your total portfolio loss in a year will make you lose sleep? 10%? 20%? 30%? Or 40%? 20%

14. Do you have any loans? CC? Car loans? House loans? What is the current interest rate? No
15. 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? 401K. 15K(DH) and 2K by employer

16.
(a) What are your short term(1 year) financial goals? Moving to India
(b) What are your medium term (2-5 years) financial goals?Buying home in India
(c) What are your long term (>5 years) financial goals? Yet to figure that out

17. 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. Indian

18. 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? 50K Rupees not including housing

19. If you are R2I, what percentage of your portfolio do you want to leave in US? And where? Stocks? Bonds? Cash? Just leaving the 401k Here or maybe take some money out after R2I

20. Do you have any insurance? Life, disability, long-term care? Total value of your policy? Provide information on any life insurance on spouse also. Provided by employment right now
21. Do you have an emergency fund? How it is invested? Include employer provided life insurance information also. Cash

Current US Assets* (Please provide a separate breakup of tax deferred and after-tax accounts):
1. Stocks: 20K
2. Bonds
3. Cash 80K
4. Real estate
5. Other IRA - 4K

Current India Assets:
1. Stocks 20 K
2. Bonds
3. Cash 335K fetching anywhere from 4 to 10% in different accounts.
4. Real estate 145 K
5. Other

Now my questions,
As you can see,obviously we have been sitting on lot of cash.All currency mentioned is in $
Immediate goal to buy a place in India around 1cr after r2ing. I want to make an informed decision here so will take some time.

How should we diversify based on our current situation ?

Thanks for your time!!

Bhavishya · Post by **Bhavishya** » Wed Jan 26, 2011 2:35 am

umm ...okay 1 day and 181 views after, no response :)
Did I miss something ? I am new to the AAP section, (oh yeah you can see that from my AAP:)), so any inputs appreciated.
Thanks all!

PeterGriffin · Post by **PeterGriffin** » Wed Jan 26, 2011 2:43 am

Bhavishya;363892umm ...okay 1 day and 181 views after, no response :)
Did I miss something ?
[/quote]
180 members wanted to know how rich you are! Some of them wanted to mentally compare their savings with yours.

Bhavishya;363892
Thanks all!

No, thank you!

Bhavishya · Post by **Bhavishya** » Wed Jan 26, 2011 2:52 am

PeterGriffin;363897180 members wanted to know how rich you are! Some of them wanted to mentally compare their savings with yours.

Oh come on PG , Not fair :))
I better delete the original post then....

Lakshya · Post by **Lakshya** » Wed Jan 26, 2011 3:13 am

[QUOTE]
3. Cash 335K fetching anywhere from 4 to 10% in different accounts.
4. Real estate 145 K

I assume this is already converted in Rs correct?

What is 145K RE? Land or Apartment in India?

Bhavishya · Post by **Bhavishya** » Wed Jan 26, 2011 3:16 am

Lakshya;363905

I assume this is already converted in Rs correct?

What is 145K RE? Land or Apartment in India?

No it is $ 335K and $ 145K
145K in a mixed bag of land and apartment

Lakshya · Post by **Lakshya** » Wed Jan 26, 2011 3:19 am

Bhavishya;363906No it is $ 335K and $ 145K
145K in a mixed bag of land and apartment

Where is this $335K in US or in India?

Lakshya · Post by **Lakshya** » Wed Jan 26, 2011 3:53 am

I am not expert, but I play my own games. With your assets size strongly suggest that you take professional advice from member here.

So lets say you have around 600k in total which include 145k your hard assets.

I would think in this direction.

Why are we sitting with so much cash, of curse we don’t know where to invest. Its all about your personal interest towards investing/finance etc. If you can do it by yourself great but if not outsource it.

I would not put all money around $225k to buy Apt. You may want to do 60:40 or 40:60 Loan/Down payment. Or you may want to translate your gain by selling some part of your land/apt. ( I think you can avoid tax if from gain you buy other property in India) I don’t know much about Indian tax but, interest exp shd give you some break also. You have to figure out how much money you need for like buying car-furniture-shipping etc. Then rest of the amount can be invested via SIP between MF (stock)-Bond-FD. For that you will need some expert help.

You don’t have 401k from your work? Or not contributing. I some how feel that you have transferred higher amount of $ into the country where inflation will eat your money. I would be more comfortable keep my savings in $.

This is my worthless 2 cents..

prasads · Post by **prasads** » Wed Jan 26, 2011 4:01 am

Lakshya;363914You don’t have 401k from your work? Or not contributing. I some how feel that you have transferred higher amount of $ into the country where inflation will eat your money. I would be more comfortable keep my savings in $.

OP might have missed posting 401(k) related account info here..It seems there is a contribution of 17k per year into 401(k)

Lakshya · Post by **Lakshya** » Wed Jan 26, 2011 4:06 am

prasads;363915OP might have missed posting 401(k) related account info here..It seems there is a contribution of 17k per year into 401(k)

OP is saying DH is putting 15k per year, but i don’t see total amt of 401k anywhere. Also OP is not saying about his/her IRA-401k contribution.