how much is enough dilemma

[rvenkatesalu]

Been reading a lot of r2i discussions and how much is enough discussions for retiring back in india.

most of my savings I have invested in real estate in India with long term plan of returning to india.

here is my dilemma. ( family of 4 with kids age 5 and 8).

1. if I have an own house ( worth 1cr ) plus car to move back

2. two additional rental properties that fetch close to 50k in monthly rent worth 1.5cr ( no loans)

3. nominal liquid cash ($20 lakhs)

4. SSN should kick in at retirement ($2k +month )

would that be sufficient to retire ( age 45)? my life style is simple and should be sufficient to live comfortably with 50k for monthly expenses.

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[FB2020]

Been reading a lot of r2i discussions and how much is enough discussions for retiring back in india.

most of my savings I have invested in real estate in India with long term plan of returning to india.

here is my dilemma. ( family of 4 with kids age 5 and 8).

1. if I have an own house ( worth 1cr ) plus car to move back

2. two additional rental properties that fetch close to 50k in monthly rent worth 1.5cr ( no loans)

3. nominal liquid cash ($20 lakhs)

4. SSN should kick in at retirement ($2k +month )

would that be sufficient to retire ( age 45)? my life style is simple and should be sufficient to live comfortably with 50k for monthly expenses.

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Nominal liquid cash is $20 lakhs ?? Or you probably mean Rs. 20 lakhs..

Your 50K monthly expenses are being met by the rent already, and 20L maybe generate some more interest income. So you have fair amount to meet expenses. But think about one-time expenses that pop up time to time. You would need to plan for those as well.

Social security - that still a long time away, and given the current situation, you should not depend on that. Have a plan without the SS, and let the SS be bonus if comes.

[dbs]

Been reading a lot of r2i discussions and how much is enough discussions for retiring back in india.

most of my savings I have invested in real estate in India with long term plan of returning to india.

here is my dilemma. ( family of 4 with kids age 5 and 8).

1. if I have an own house ( worth 1cr ) plus car to move back

2. two additional rental properties that fetch close to 50k in monthly rent worth 1.5cr ( no loans)

3. nominal liquid cash ($20 lakhs)

4. SSN should kick in at retirement ($2k +month )

would that be sufficient to retire ( age 45)? my life style is simple and should be sufficient to live comfortably with 50k for monthly expenses.

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You have got it made.

You may have to pay some tax on 50K rental but the slack should be easy to take up with your cash, $ or Rs, irrespectively. Rent should generally keep pace with inflation. At the same time, it would not hurt to invest the cash to prevent erosion of capital through inflation.
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We should be ready for any unforeseen event that may or may not occur

[techynt]

how can you be sure about SS being $2k/month, since you are still around 22 years away from receiving payments.

Also, you may not have paid into SS for 30 years, I am guessing based on your age.

Personally I would not include SS payments in my calculation. Who know what kind of rules changes may happen to exclude non-residents.


I agree that rs.50k rent should appreciate in tune with inflation so you can surely count on it after tax.

Been reading a lot of r2i discussions and how much is enough discussions for retiring back in india.

most of my savings I have invested in real estate in India with long term plan of returning to india.

here is my dilemma. ( family of 4 with kids age 5 and 8).

1. if I have an own house ( worth 1cr ) plus car to move back

2. two additional rental properties that fetch close to 50k in monthly rent worth 1.5cr ( no loans)

3. nominal liquid cash ($20 lakhs)

4. SSN should kick in at retirement ($2k +month )

would that be sufficient to retire ( age 45)? my life style is simple and should be sufficient to live comfortably with 50k for monthly expenses.

Sent from my SM-G955U using Tapatalk

[rvenkatesalu]

how can you be sure about SS being $2k/month, since you are still around 22 years away from receiving payments.

Also, you may not have paid into SS for 30 years, I am guessing based on your age.

Personally I would not include SS payments in my calculation. Who know what kind of rules changes may happen to exclude non-residents.


I agree that rs.50k rent should appreciate in tune with inflation so you can surely count on it after tax.

yes I was just stating that with enough credits accumulated so far that's what I see on SS web site. I agree lot could change in the next 22 yrs. if nothing changes that's the projections.

thanks for others for their comments. what I was specifically trying to get from others was is there a risk in all my sources being real estate rental income based instead of a diverse source from retirement planing.

And if there is a need to find a job to further solidify retirement corpus or can I retire now ( meaning not work to earn but work to do what I may be interested to do).

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[srir2i]

Been reading a lot of r2i discussions and how much is enough discussions for retiring back in india.

most of my savings I have invested in real estate in India with long term plan of returning to india.

here is my dilemma. ( family of 4 with kids age 5 and 8).

1. if I have an own house ( worth 1cr ) plus car to move back

2. two additional rental properties that fetch close to 50k in monthly rent worth 1.5cr ( no loans)

3. nominal liquid cash ($20 lakhs)

4. SSN should kick in at retirement ($2k +month )

would that be sufficient to retire ( age 45)? my life style is simple and should be sufficient to live comfortably with 50k for monthly expenses.

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Let me play the devil's advocate.

1. House to live in ok; car needs to be replaced, say every 10 years or so and there is maintenance of home and car.

2. What about months when the property is empty and there is no income? Property maintenance? Additional/increased taxes?

3. This would serve as emergency money; but how about education and marriage for kids? Travel, Medical, Other expenses? Unless you really meant $20 lakhs and not rupees.

4. SSN: enough discussions on the web, will leave this alone.

Though a comfortable position, seems very risky to consider retirement. Financially independent, probably but retirement, no, in my opinion.

[wd40]

I would say, in addition to what you have it would be better to have another 100k in a global equities ETF, kept offshore. This would diversify your sources of income and incase India becomes a basket case banana republic or something you have something offshore to fall back on.

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[FB2020]

I would say, in addition to what you have it would be better to have another 100k in a global equities ETF, kept offshore. This would diversify your sources of income and incase India becomes a basket case banana republic or something you have something offshore to fall back on.

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Offshore? You mean maintained in US?

[rvenkatesalu]

Offshore? You mean maintained in US?

curious why in US instead of india? did you mean $100k ( 65 lakhs)?

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[wd40]

Offshore? You mean maintained in US?

US or anywhere else in a safe jurisdiction. For example, my plan is to keep my Interactive Brokers account funded with 100k USD and invested in global ETFs listed on London Stock exchange. Reason for LSE is because the dividend withholding tax for US securities is 15% for UK because of the tax treaty Vs 30% for normal US stocks listed on US exchange.

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