AAP Request
1. Return to India (R2I) or Live In America (LIA): R2I in 2011
2. Your current age:39
3. Marital Status:M
4. Number of dependents and ages:spouse, kids /36,12, 8
5.
(a) Current citizenship and/or Immigration status: USC
(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?
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? Employed / Business venture
(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? 0
(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? 0
7. Is spouse also working? Yes
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 14 years
9.
(a) Current annual after-tax savings including Roth IRA (excluding 401(k) and regular IRA contributions): 12K $
(b) Current annual savings into tax deferred accounts i.e. 401(k) and regular IRA $32 K (Employee contribution)
(c) Current annual expenses (excluding tax):$45K
(d) What is your current marginal (not average) federal tax rate, based on your filing status? 25%
(e) What is your current marginal (not average) state tax rate, based on your filing status? 7%
10. What is the ratio of your income to spouse's income? 1/1
11. House owner? NO
12. If planning to purchase a house to live in, in India, estimate the price you expect to pay if the purchase were to be made today. 125L
13. What percentage of your total portfolio loss in a year will make you lose sleep? 10%? 20%? 30%? Or 40%? 30%
14. Do you have any loans? CC? Car loans? House loans? What is the current interest rate? NO
15. Do you or your spouse?s participate in retirement plans: 401K, IRA, Roth-IRA? If so, how much do you and your employers contribute every year to these accounts? 16k
16.
(a) What are your short term(1 year) financial goals? Settling down in India (Buy house, car, kids school and setup expenditures)
(b) What are your medium term (2-5 years) financial goals? Buy a house in India and pay 70% off the loan
(c) What are your long term (>5 years) financial goals? Investments that support us during retirement
17. Need to save money for your kids future education? If so, please answer the following questions:
(a) Do you have a 529 plan? YES
(b) Do you want to fund your kids' Indian or US education or both? If so, please provide a detailed description of the kind of education that you want to fund. YES
18. After you retire (cease gainful employment), what do you estimate your annual living expense figure to be (in current dollars or rupees, based on the life style you want)? Does this figure include housing cost? 2000$ - Not including housing cost
19. If you are R2I, what percentage of your portfolio do you want to leave in US? And where? Stocks? Bonds? Cash? 60% or so
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. Term insurance-500K for me only/
21.Do you have an emergency fund? How it is invested? Include employer provided life insurance information also. Emergency funds Is 35K
Current US Assets* (Please provide a separate breakup of tax deferred and after-tax accounts):
1. Stocks: $400K (as part of 401K)
2. Bonds : $12K (as part of 401K)
3. Cash $60K
4. Real estate : 267K (180K Loan outstanding)
5. Other: 4K (Automobile)
Current India Assets:
1. Stocks:$8K
2. Bonds0
3. Cash: $5K
4. Real estate: $60K
5. Other
Total Equities
Total Bonds
Total Cash
Total Tax deferred: $412K
Total taxable accounts: $60K
Total equities in tax deferred: $400K (as part of 401K, Pensions, ESOP)
Total equities in taxable: $15K
Total Bonds in tax deferred: $12K (as part of 401K)
Total Bonds in taxable
Total cash in tax deferred
Total cash in taxable $60K
Net equity in real estate in USA (net of real estate commisions) $90K
Net Equity in real estate in India $60K
Total Assets in India: $73K
Total Assets in USA : $470K
Questions
1) Sudden R2I plan due to personal emergencies and so haven?t had time to reallocate or plan for this transition gradually. Need to re-adjust my investments/portfolios to reflect reality now, as I am heavy on US equity for now.
2) Plan for kids education and marriage funds, given that as an USC what are the best available options in India or even USA for that matter.
AAP Request
AAP Request
Would certainly appreciate if some one can give me a guidance on my AAP.
Thanks for your time..
Thanks for your time..
AAP Request
This is what I would do If I were you.
(1) Current stock market rally may continue for a while. But leading thinkers like Robert Shiller & Jeremy Grantham believe markets are overvalued. So my allocation will be 20% US equities, 10% Developed markets, 20% emerging equities and 50% short term bonds/cash. This is based upon the assumption you can't move money from your 401(k) money to India in near future.
(2) There are several ULIPs and Mutual funds for child education and marriage funds. see http://bullshouse.com/blog/?p=949 , http://bullshouse.com/blog/?p=868 for some guidance. As a disclosure I am one of the co-founders of this web site.
(1) Current stock market rally may continue for a while. But leading thinkers like Robert Shiller & Jeremy Grantham believe markets are overvalued. So my allocation will be 20% US equities, 10% Developed markets, 20% emerging equities and 50% short term bonds/cash. This is based upon the assumption you can't move money from your 401(k) money to India in near future.
(2) There are several ULIPs and Mutual funds for child education and marriage funds. see http://bullshouse.com/blog/?p=949 , http://bullshouse.com/blog/?p=868 for some guidance. As a disclosure I am one of the co-founders of this web site.