How much is enough for R2I ? A New thread for 2012

manjiraa · Post by **manjiraa** » Mon Jul 09, 2012 9:01 pm

My retire NRi uncle pays.....in 2012 small city Surat or Indore NOT like Bombay...
pays 3000 to 5000 Rs/Mo for 5 days cooking lady visit 1/day,cooks 2 meals and leave in 45 minutes.

Each work process like washing dishes or clothes or clean house wetMop 1000 Rs to 1500Rs each= 4000 to 5000 Rs/mo for 2 peoples.
No cooking No food provided to them.

Full time live in help for parent's
elder-care atleast
10000+ Rs/Mo + food for 1 person care.

No car,own your home all extra food,materials,Utilities,Taxes,condo dues etc all extra in India.
Labor is cheaper but all quality Materials cost More.
Own 3 BdRm us style apt/cond Rs 75lakhs to 1Crode Rs.
visiting Driver 6000 to 10000 Rs/Mo/ 8 to 10 hrs/day but in small city like Jodhpur not in Banglore.
plus 100rs meal allowance.

If U ever need medical care like Bypass surgery
10 to 15Rs lakhs Cash upfront min for surgery alone.
Plus daily hospital charges all extra.
For NRi with $ ... No limit No Upper Cap.
They will drain U dry .
Unless U have immediate wel known Dr as relative or friend...who will monitor & hold your family hand thru out...
can be good care with relatively lower cost...unknown !

Otherwise Saala Terito baraabaar Waaat Lag Jaayegi.....No ethics what so ever. It's all business No shame.
Go see Satyamev Jayete episode...Painting real true picture......

So dream on....as NRi
Min $1500 to $2000 /Mo for NRi style decent living. which usually goes up every yr !

But For Ghonchus style Indian chepos living :
Cut it down to Bare bone Min to suit any way U want.....
BTW .....That's what we all Indians Do anyway ...anywhere.

Just My Opinion.....Your mileage or opinion...May Vary !

rogerpatel · Post by **rogerpatel** » Mon Jul 16, 2012 3:06 pm

very well said...similar findings was also found on letsmoveback dot com hope the Ghonchu (I like that word) does not block me again
Radkhika

Imissindia · Post by **Imissindia** » Mon Jul 16, 2012 8:09 pm

manjiraa;464219

But For Ghonchus style Indian chepos living :
Cut it down to Bare bone Min to suit any way U want.....
BTW .....That's what we all Indians Do anyway ...anywhere.

This portion shows your bias and your lack of respect for common people in India.

Desi2return · Post by **Desi2return** » Mon Jul 16, 2012 11:13 pm

manjiraa;464219

So dream on....as NRi
Min $1500 to $2000 /Mo for NRi style decent living. which usually goes up every yr !

So what is the comparison against? How much does it break down to if you have to live a similar life in US? My guesstimate is ~$6000 - 7000, which by the way does go up every year. So you are better off by $4K.

rdecartus · Post by **rdecartus** » Tue Jul 17, 2012 5:47 am

Here are my rough calculations assuming I will retire and won't get regular paycheck after I go back -

- Need 1.5L monthly income to live comfortably. That means i need a cash principal of 2cr. to generate 2L at 10% interest and 1.5L after taxes.
- 1 cr per child for education, marriage and future career needs.
- 1 cr reserve for medical / sudden unforeseen circumstances.

So for a family of 4 (husband, wife, 2 kids), total cash needed is 5cr. The big assumption is that major expenses are paid off (house, car etc.).

Dicky_Bird · Post by **Dicky_Bird** » Tue Jul 17, 2012 5:59 am

this calculation holds good for LIA TOO..with equivalent of 5 CRORES IN USD and house,car paid off

rdecartus;465745Here are my rough calculations assuming I will retire and won't get regular paycheck after I go back -- Need 1.5L monthly income to live comfortably. That means i need a cash principal of 2cr. to generate 2L at 10% interest and 1.5L after taxes.- 1 cr per child for education, marriage and future career needs.- 1 cr reserve for medical / sudden unforeseen circumstances.So for a family of 4 (husband, wife, 2 kids), total cash needed is 5cr. The big assumption is that major expenses are paid off (house, car etc.).

drV · Post by **drV** » Tue Jul 17, 2012 6:55 am

Post-retirement, for many years, you will use after-tax proceeds from 4% of the entire 5 Cr for living expense.
Remaining investment/interest return will have to be reinvested to adjust for future-inflation.
That's where picture gets a bit muddy.
For purpose of preserving and augmenting capital ( and future spending power ), most retirement planners advise using after-tax proceeds of no more than 3 % ( of the entire corpus ) per year.

To top it off, in future years, Kids' education/wedding and family-emergency expenses will put big dents in the corpus....further lowering future inflation-adjusted disposable income.

If planning for a long retirement, this picture would make me somewhat uncomfortable.

rdecartus;465745Here are my rough calculations assuming I will retire and won't get regular paycheck after I go back -

- Need 1.5L monthly income to live comfortably. That means i need a cash principal of 2cr. to generate 2L at 10% interest and 1.5L after taxes.
- 1 cr per child for education, marriage and future career needs.
- 1 cr reserve for medical / sudden unforeseen circumstances.

So for a family of 4 (husband, wife, 2 kids), total cash needed is 5cr. The big assumption is that major expenses are paid off (house, car etc.).

heywhat · Post by **heywhat** » Wed Jul 18, 2012 10:48 am

I am 37 yr old and planning to return back to Indian in 2014 at that time i will have approx. 3CR+ and paid house. I will be returning to Pune. I am returning to india and not retiring to India so planning to work for 3-4 years more before calling it quit. During this 3-4 years i am not planning to withdraw anything from my Saving and also won't be contributing much to it also. We are family of 5 ( Wife + 2 kids and mother) do you think 4 CR saving is going to enough to retire in 2017 (i.e. 35 years more) . We live modest life in US as well as whenever we went for extended vacation in India. I hoping that our monthly expenses in India would be around 60-65 thousand todays' rupees.

Desi,

I am from 2 hrs from Chicago and would like to meet you in person to get some guidance on AAP. Unfortunately I can't PM you so putting this request in open forum. Please PM with your availaibility and time.

Mn_op,

you are from Pune so you know pune's cost of living.. I know in India or any where you can live with few thousands to few million and it's different for different people. After going thru your diary and post, i think my lifestyle would be much similar to you. So any guidance or help would be much appreciated.
Thanks,

roxstar · Post by **roxstar** » Thu Jul 19, 2012 9:46 pm

Are you planning to maintain any assets in the US...also what about your retirement funds (401k etc)?? Are they included in the 3 - 4 crore or is that incremental to it. It seems to me like the average family that lives an upper middle class lifestyle spends about 1 lac per month to live. 3 - 4 crore could throw about 30 lacs in annual interest or 3 - 4 lacs a month in interest income, that in my mind should be sufficient assuming a 1 lac per month expense to live. If you work for the first few years, you would only be accumalting the interest and expanding your principle.

All that said, there are two "X" factors. The first is health emergencies....not much you can do about it besides buy robust coverage, so the dent to savings is not that bad. The second is the failure rate in R2I. From what I see an average of 50 - 60% of the folks who R2I return back in 2 - 3 years. The reasons are several. In that case, the dilemma becomes how much of your total asset base do you want to move to India and how much do you want to keep in America. Plus once you move to India, how much of your savings do you want to preserve in USD versus how much in INR.

heywhat;466076I am 37 yr old and planning to return back to Indian in 2014 at that time i will have approx. 3CR+ and paid house. I will be returning to Pune. I am returning to india and not retiring to India so planning to work for 3-4 years more before calling it quit. During this 3-4 years i am not planning to withdraw anything from my Saving and also won't be contributing much to it also. We are family of 5 ( Wife + 2 kids and mother) do you think 4 CR saving is going to enough to retire in 2017 (i.e. 35 years more) . We live modest life in US as well as whenever we went for extended vacation in India. I hoping that our monthly expenses in India would be around 60-65 thousand todays' rupees.

Desi,

I am from 2 hrs from Chicago and would like to meet you in person to get some guidance on AAP. Unfortunately I can't PM you so putting this request in open forum. Please PM with your availaibility and time.

Mn_op,

you are from Pune so you know pune's cost of living.. I know in India or any where you can live with few thousands to few million and it's different for different people. After going thru your diary and post, i think my lifestyle would be much similar to you. So any guidance or help would be much appreciated.
Thanks,

RBee · Post by **RBee** » Thu Jul 19, 2012 9:50 pm

roxstar;466406The second is the failure rate in R2I. From what I see an average of 50 - 60% of the folks who R2I return back in 2 - 3 years. The reasons are several.

Hee Hee, 70-80% within a year has come down to 50-60% in 2-3 years in 3-4 weeks :)
Improvement my friend, improvement :) !!! Don't take such pull-the-leg comments seriously BTW...

Your advice on financial planning is very good as well !!