R2I Are we on a good footing to take the plunge

[Nishka]

I have been a long time lurker on these forums. I have sat up many nights just reading entire threads on How much is enough. They are so addictive, entertaining, enlightening conversations. Even though they lead nowhere can we please have a fresh thread every year? Thanks to everyone in this wonderful online community who make it all happen.
A bit about us:
Couple who just stepped into middle age (we are 40! time to get serious age. Ya?) 2 kids 4 and 2. Both USC. I am a stay at home mom for the past 5 years and hubby is the sole bread winner.
We came to the USA a long time ago for our post graduate studies. He is into Computers (who isn?t? right!) and had a job waiting right after his MS. I am into pure science and got stuck in a lab for a really long time. We never paid any attention about our Green Card until it was do it now or prepare to leave time. Husband's company thankfully applied in time and we have been in line forever since then to be GREENED. So, we are both INCs with H visas.
We made the decision right after we landed here in the land of milk and honey that R2I was our one and only option and LIA was something we could never consider. The when? - was something we could never decide. The typical N+1 syndrome kicked in and life just went on.
Both of our parents are financially independent, own their own homes, have pensions and are covered for life with medical insurance from their former employers that covers everything including medications for life! In effect they aren?t dependent on us for anything except of course emotionally. But, I have a feeling even that is fast disappearing in the past couple of years after the arrival of grand children!
On a quiet weekend night a few weeks ago we decided to tally up all our finances to see if we could R2I. We have 700K USD after taxes to our name.
We are simple folk. I think we live a pretty frugal life. Since it?s so subjective one can?t be really sure. We live frugally not out of some serious thought. It?s just who we are. We don?t fancy mindless consumption. In fact it?s a running joke among our friends that we never really graduated from broke graduate student lifestyle. To give you an idea of our living expenses; hubby?s work took us to India for 3 months last year. We lived with our in-laws and just to test drive living in India; I tracked our monthly spending and it was on an average 45000 INR. Granted we didn?t pay any rent. It was just food, utilities, transportation etc.
Our plan:
Kids education:
We plan to allocate 100K from our corpus for the kids? college education. Woefully less. I know. But, we both firmly believe that kids need to earn at least a part of their way through college. We both fully supported ourselves through college at least in the USA and immensely benefitted from that experience.
Option 1: Retire to our hometown in the western ghats of Kerala. We have family there and a small piece of farmland and cottage can be had for 100K USD. There is a good CBSE boarding school in the vicinity that takes day scholars from the area for pretty nominal fees. So, kids? education up to 12th isn?t an issue. We will be left with 500K USD as retirement corpus to sustain us for the rest of our lifetime. We aren?t loathe to working. But, employment options will be pretty limited or at least the ones available will not reduce our corpus draw down any significantly. Positive side; it?s so green there that it?s impossible to put it in words.
Option 2: Hubby?s parents gifted him a plot of land in a pretty well developed part of Chennai. We could build a house there for 100K USD and take up some low stress jobs. We both love to be in academia. So, teaching gigs I would hope wouldn?t be too hard to come by. We can probably put off drawing down from our 500K USD corpus for at least a decade. On the negative side; we hate the city life. The pollution, dust etc isn?t exactly anybody?s idea of golden retirement. Is it?
Which one should we pick? What do you folks think? Heart says go with Option 1. Mind says Option 2.
Or, stop whining and resign to LIA?
PS: We are not fully dependent on it. But, secretly hoping that since hubby worked in the USA for 15 years, the SS payout although not very substantial will reduce the corpus draw down a bit after we turn 70?

[maybe]

Thanks for sharing. AFAIK you need to be USC to receive SS in India.

[plansup]

You dont need to be USC to receive SS as per today's law. That may very well change by 2047.

I read the part below in somewhat slo-mo

We-will-be-left-with-500K-USD-as-retirement-corpus-to-sustain-us-for-the-rest-of-our lifetime.

It is that chilling. To put it in perspective, you are talking about 500K lasting till 2060s if not beyond.

I would strongly suggest you to stay put where you are. Your 45k/month frugal lifestyle will start eating into that saving lot faster than you can ever imagine.

[Umang]

Sounds positively heavenly. Go with the Western ghats option and don't work. Stick with INC.

Your husband's plot in Chennai is a decent investment for a rainy day. You can either sell it and live off the interest or keep it and watch it appreciate.

[desi4ever]

Try Option 2 first . Get your feet wet in India and then go for option 1.

"Low stress jobs" in India really depends on how you take stress related office politics, traffic, pollution, cleanliness etc

[rvomyet]

Love the idea of option 1. Could you not teach the local high school kids or figure out a low stress income option. Could you sell the chennai plot and use the proceeds to invest in a larger farm or some other local business. Figuring out a way to delaying dipping into your savings would be key.

Option 2 seems stressful. I would try save up more while LIA and figure out a way to make option 1 work.

All the best

[dbs]

,,,It is that chilling. To put it in perspective, you are talking about 500K lasting till 2060s if not beyond.

I would strongly suggest you to stay put where you are. Your 45k/month frugal lifestyle will start eating into that saving lot faster than you can ever imagine...[/quote]

That is incorrect. 500K should easily generate 10 to 20K (IRS 600k to 1200k) income per year. Wisely invested it could be more beating inflation.

[Umang]

Try Option 2 first . Get your feet wet in India and then go for option 1.

"Low stress jobs" in India really depends on how you take stress related office politics, traffic, pollution, cleanliness etc

The India of Option 2 is not worth dipping one's feet into.

There is no such thing as a "low stress job". Working for somebody or with somebody assumes stress.

Traffic, pollution and lack of cleanliness affect all human beings. One can never get used to them nor should one. One just has to avoid them by living in the Western Ghats. Humans cannot build up resistance to pollution. It kills irrespective of nationality.

OP, stay as far away from the "real" India as you can. Fools rush in where angels fear to tread.

[wd40]

A lot also depends on which currency you keep the $500K. At current exchange rate of 64, INR feels super strong, when everyone had written it off as moving to 75. So if INR does move to 75 and you keep in USD, it makes a huge difference.

So there is a whole lot of risk involved in managing the money.

Sent from my Redmi Note 4 using Tapatalk

[krivan1]

500 K is nearly INR 3.25 Crores today. Even @ 7% interest which most banks are offering, it should fetch around 22 lacs that translates to 1.75 lacs per month. If your expenses were 45K when you lived in India, am sure you would comfortably lead a good life with 1.75 L.

Financially you are OK with Option 1. Although greenary, monthly income and parents closeby are fine, but both should think what you are going to do in the long term. One of you might take care of kids academics and need to find what other would do. If this is sorted out and seems Option 1 is good to go.