Considering R2I to BLR in 2012, 56 yrs old

ssman · Post by **ssman** » Tue Sep 13, 2011 9:14 pm

[LIST=1]

Will have $700K cash, $700K in 401K

Own furnished 2000 sq ft flat in BLR, maintained by family in common plot

In 2017, will have access to soc security, about $2K/mo (not incl cost of living increases), wife will have $1.2K/mo in 2019

One son, graduating BS CS 2012, job lined up or MS/PhD...
[/LIST]
Intuitively, I know that my wife & I can get by without working, but will probably look for consulting work (telecom, wireless, hi tech), or look for sweat equity in start ups.

Anybody with a similar situation?

kkassociate · Post by **kkassociate** » Wed Sep 14, 2011 5:57 pm

Hi SSman,

All the best with your R2I plans. We provide tax planning and tax returns filing services for both US and India and having been serving clients similar to you. You can visit us at www.kkassociate.com

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KKA
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okonomi · Post by **okonomi** » Wed Sep 14, 2011 6:16 pm

ssman;409751
Anybody with a similar situation?

Most people end up having a house to unload in this tough market .... your situation seems better.
[QUOTE]Will have $700K cash, $700K in 401K will have ? also in 2017 ? what are the assumptions ?

gulfIndian · Post by **gulfIndian** » Thu Sep 15, 2011 12:46 am

SSMan,
I am in a similar situation. Will R2I in 2012 probably to BLR or to Chennai. House and RE in Chennai. Daughter will be finishing Engineering and son will enter University, probably in BLR. Having worked in the IT field for nearly 30 years and with over 20 years in the Gulf, have plenty of contacts in the industry. Plan to take up some assignment to leverage those connections and also looking out for sweat equity in a start up.

gopinathpc · Post by **gopinathpc** » Thu Sep 15, 2011 2:10 am

ssman;409751[LIST=1]
Will have $700K cash, $700K in 401K
Own furnished 2000 sq ft flat in BLR, maintained by family in common plot
In 2017, will have access to soc security, about $2K/mo (not incl cost of living increases), wife will have $1.2K/mo in 2019
One son, graduating BS CS 2012, job lined up or MS/PhD...
[/LIST]
Intuitively, I know that my wife & I can get by without working, but will probably look for consulting work (telecom, wireless, hi tech), or look for sweat equity in start ups.

Anybody with a similar situation?

Congrats, you are in a very good position to spend your golden years!
I am also in a similar situation, though I haven't made any plans to R2I. Probably I will move when
I am 55 years to take advantage of the penalty free withdrawal of 401K.
If you plan well, you can have an extremely peaceful retirement in Bangalore.

Also you can't assume social security is a given (going by the current state SS is in).
However with your 401K, you can withdraw about $70K/year without incurring much taxes
in the U.S (assuming you don't have any other income). $70K per year is plenty for a couple - even
for your kids if they want to move with you!

All the best!

cmk786 · Post by **cmk786** » Thu Sep 15, 2011 2:51 am

I am also planning to retire in 2014. I will get around $1.5k pension and around $1.5k Social security once I retire. Do not have any hard cash because I already used it to buy couple of propertice in Mysore which has 5 houses and I have rented them out. Also the house I am presently living in US is all paid up which I bought it for $240k 8.5 years ago. Now I am trying to sell it for $180k and have no mortgage on it. My wife also qualify to get SS in 2018 and will get I think around $750.00 per month.

okonomi · Post by **okonomi** » Thu Sep 15, 2011 3:10 am

gopinathpc;410110....
... I will move when I am 55 years to take advantage of the penalty free withdrawal of 401K.
If you plan well, you can have an extremely peaceful retirement in Bangalore.

Also you can't assume social security is a given (going by the current state SS is in).
However with your 401K, you can withdraw about $70K/year without incurring much taxes
in the U.S (assuming you don't have any other income). $70K per year is plenty for a couple -

59½ used to be the age for penalty free withdrawls from such retirement accounts ... anything changed ?

gopinathpc · Post by **gopinathpc** » Thu Sep 15, 2011 3:13 am

For 401(K) its 55 yrs. For IRA its 591/2

srir2i · Post by **srir2i** » Thu Sep 15, 2011 12:53 pm

To withdraw regular amounts earlier than the withdrawal age from IRA, review the 72t regular distribution.

arnold · Post by **arnold** » Thu Sep 15, 2011 6:25 pm

ssman;409751[LIST=1]
Will have $700K cash, $700K in 401K
Own furnished 2000 sq ft flat in BLR, maintained by family in common plot
In 2017, will have access to soc security, about $2K/mo (not incl cost of living increases), wife will have $1.2K/mo in 2019
One son, graduating BS CS 2012, job lined up or MS/PhD...
[/LIST]
Intuitively, I know that my wife & I can get by without working, but will probably look for consulting work (telecom, wireless, hi tech), or look for sweat equity in start ups.

Anybody with a similar situation?

why are you planning on R2I? don't you want to live in a place where the kids live?