Return to India (R2I) or Live In America (LIA): Because of special circumstances with kids and their education here in the US as well as aged Parents in India, I will be spending not more than 180 days in any given year in India and an equal part here in the US. Let us say Jan ? March in India, April-June in US, July-Sept in India, Oct-Dec in US
2. Your current age: 42
3. Marital Status: Married
4. Number of dependents and ages: Spouse (40) Son(8) Daughter(2) in US
5.
(a) Current citizenship and/or Immigration status: US Citizen
(b) If not a USC currently, do you have the option to take up US citizenship prior to R2I? NA
(c) If you have the option to take USC, do you intend to do so prior to R2I? NA
6.
(a) If you intend to R2I, when do you intend to R2I? 2008
(b) Immediately upon R2I, do you plan to retire (cease gainful employment), semi-retire, or continue to work for some time?
We can assume that I retire. Although, being an entrepreneur I know I will get busy with some project.
(c) When do you plan to cease gainful employment (Intended Retirement Age)? 43
(d) If you plan to work after R2I, what do you estimate your annual after-tax savings to be? NA
(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?NA
7. Is spouse also working? No
8. RNOR eligibility of you and your spouse (use the calculator in doc section) or how long you have been out of India ? 17 yrs
9.
(a) Current annual after-tax savings 30K
(b) Current annual savings into tax deferred accounts i.e. 401(k) and regular IRA: 10K
(c) Current annual expenses (excluding tax): 38K
(d) What is your current marginal (not average) federal tax rate, based on your filing status? 30%
(e) What is your current marginal (not average) state tax rate, based on your filing status? NA
10. House owner? Yes
11. What percentage of your total portfolio loss in a year will make you lose sleep? 10%? 20%? 30%? Or 40%? 20%
12. Do you have any loans? CC? Car loans? House loans? What is the current interest rate? No ? everything is paid for.
13. 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? Yes, 10K as indicated in 9b above.
14.
(a) What are your short term(1 year) financial goals?
1. Generate about Rs. 40,000/month for expenses in India. Housing in India is already taken care of .
(c) What are your long term (>5 years) financial goals?
Sustain earning Rs. 40,000/month in todays Rupees.
15. Need to save money for your kids future education? If so, please answer the following questions:No; We have about $130K for our son and $100k for our daughter invested in 529's respectively.
(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.
Good education from a decent US/UK university
16. 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?
$3200/month for US and Rs. 40,000/month in India
17. If you are R2I, what percentage of your portfolio do you want to leave in US? And where? Stocks? Bonds? Cash? ? All our present US investments will remain here except for $150K that we have earmarked for India specifically to be able to travel, monthly expenses in India, and take care of parents.
18. Do you have any insurance? Life, disability, long-term care? Total value of your policy?
Life, disability ? $800K
19. Do you have an emergency fund? How it is invested?
None
Current US Assets* (Please provide a separate breakup of tax deferred and after-tax accounts):
1. Stocks: $100K in individual stocks and $100k in Vanguard S&P 500 index. Not sure if you wanted me to include the $100K in my 401(K), here as well.
2.About 30 apartments in which we have an equity, conservatively, of $400K. These generate a comfortable cash flow every month.
2. Cash $100K earmarked for India
3.Cash $140K earmarked for Kids pre-university education.
Current India Assets:
1. Cash - INR 12 lacs in NRO
2. Cash - INR 8 lacs in post office in parent?s name
3. Real estate plot - 15 lacs
4.Parents house in a very prime location in a tier 1 city. We intend to rent this commercially