Retire To IndiaRetire To IndiaAn immigrant's thoughts on money, retirement and achieving financial independence. Articles
Early 401(k) withdrawals for non-citizens
2007-05-21 04:53:00 JLP over at AllFinancialMatters has a post where he addresses a question about early withdrawals from a 401(k) plan. The person who asked the question is planning to return to India in a few years, and wonders whether it is worth contributing to his 401(k) plan at work. He stands to gain from the tax-deduction, tax-deferred growth and employer match, but may be subject to taxes and a 10% penalty for early withdrawal.Concerns of this sort prevent many expatriates and immigrants from taking advantage of the best avenues available for investing for their future. Consider the complexities involved in this situation:If the person is a permanent resident (green card holder) when he leaves America, it is easy to address the question of Federal taxes. One can use a phased withdrawal approach to minimize taxes. The idea is to withdraw only enough money each year to reduce the impact of taxes upon withdrawal. It is also possible to reduce the 10% penalty for early withdrawal by rolling over t... More About: Taxes , Early , Draw , Withdrawal , Earl
Early 401(k) withdrawals for non-citizens
2007-05-21 04:53:00 JLP over at AllFinancialMatters has a post where he addresses a question about early withdrawals from a 401(k) plan. The person who asked the question is planning to return to India in a few years, and wonders whether it is worth contributing to his 401(k) plan at work. He stands to gain from the tax-deduction, tax-deferred growth and employer match, but may be subject to taxes and a 10% penalty for early withdrawal.Concerns of this sort prevent many expatriates and immigrants from taking advantage of the best avenues available for investing for their future. Consider the complexities involved in this situation:If the person is a permanent resident (green card holder) when he leaves America, it is easy to address the question of Federal taxes. One can use a phased withdrawal approach to minimize taxes. The idea is to withdraw only enough money each year to reduce the impact of taxes upon withdrawal. It is also possible to reduce the 10% penalty for early withdrawal by rolling over t... More About: Taxes , Early , Draw , Withdrawal , Earl
Social security for Overseas retirees
2007-05-17 06:43:00 American citizens who retire abroad are eligible for social security benefits just as if they had stayed in the US. I found this FAQ from AARP that explains the details very well.Of course, everything about social security is subject to change in the coming years. But it is good to know that overseas retirees are not shortchanged on this (as is the case for Medicare, which is worth a separate post).Related posts:Social security retirement benefits More About: Security , Social Security , Verse , Retire
Social security for Overseas retirees
2007-05-17 06:43:00 American citizens who retire abroad are eligible for social security benefits just as if they had stayed in the US. I found this FAQ from AARP that explains the details very well.Of course, everything about social security is subject to change in the coming years. But it is good to know that overseas retirees are not shortchanged on this (as is the case for Medicare, which is worth a separate post).Related posts:Social security retirement benefitsOriginally posted at Retire To India. More About: Security , Social Security , Seas , Overseas
Social security for Overseas retirees
2007-05-17 06:43:00 American citizens who retire abroad are eligible for social security benefits just as if they had stayed in the US. I found this FAQ from AARP that explains the details very well.Of course, everything about social security is subject to change in the coming years. But it is good to know that overseas retirees are not shortchanged on this (as is the case for Medicare, which is worth a separate post).Related posts:Social security retirement benefits More About: Security , Social Security , Verse , Retire
My favorite books on Personal finance
2007-05-16 04:46:00 Everyone who is interested in personal finance has a set of favorite books. Here is my obligatory list. I will list them in the order that I originally read them.I believe that books are the best source for information about personal finance, because authors in general have no conflict of interest; their only interest is to sell books. Of course, this excludes people like Robert Kiyosaki who are trying to get you to buy their other products. Most other sources of information, such as planners, websites and magazines, usually have a conflict of interest; they have to please their corporate owners, advertisers or sponsors, so their advice may not be in your best interest.With that out of the way, here is my list:I read Person al Finance For Dummiesby Eric Tyson when I was in my early thirties, and remember immediately regretting not having read it in my twenties. It truly is the best and most readable introduction to personal finance ever, and covers a whole range of topics.I next read... More About: Books , Personal Finance
My favorite books on Personal finance
2007-05-16 04:46:00 Everyone who is interested in personal finance has a set of favorite books. Here is my obligatory list. I will list them in the order that I originally read them.I believe that books are the best source for information about personal finance, because authors in general have no conflict of interest; their only interest is to sell books. Of course, this excludes people like Robert Kiyosaki who are trying to get you to buy their other products. Most other sources of information, such as planners, websites and magazines, usually have a conflict of interest; they have to please their corporate owners, advertisers or sponsors, so their advice may not be in your best interest.With that out of the way, here is my list:I read Personal Finance For Dummiesby Eric Tyson when I was in my early thirties, and remember immediately regretting not having read it in my twenties. It truly is the best and most readable introduction to personal finance ever, and covers a whole range of topics.I next read... More About: Books , Personal Finance , Favorite
My favorite books on Personal finance
2007-05-16 04:46:00 Everyone who is interested in personal finance has a set of favorite books. Here is my obligatory list. I will list them in the order that I originally read them.I believe that books are the best source for information about personal finance, because authors in general have no conflict of interest; their only interest is to sell books. Of course, this excludes people like Robert Kiyosaki who are trying to get you to buy their other products. Most other sources of information, such as planners, websites and magazines, usually have a conflict of interest; they have to please their corporate owners, advertisers or sponsors, so their advice may not be in your best interest.With that out of the way, here is my list:I read Person al Finance For Dummiesby Eric Tyson when I was in my early thirties, and remember immediately regretting not having read it in my twenties. It truly is the best and most readable introduction to personal finance ever, and covers a whole range of topics.I next read... More About: Books , Personal Finance
Net Worth update: March 2007
2007-05-15 03:58:00 This is our balance sheet as of the end of last quarter. A note on the credit card debt: most of this is due to a 0% balance transfer offer I have taken advantage of. This will be paid off in full within a few months.As you can see, most of our holdings are in tax-deferred retirement accounts. This is intentional, since I want to "front-load" our tax-deferred accounts, so as to make the most of the tax benefits.It was only a few years ago that we got serious about saving and investing. I will post updates for every quarter from now so that I can track our progress towards accomplishing our goals. More About: Update , Net worth , Worth , March , Marc
Net Worth update: March 2007
2007-05-15 03:58:00 This is our balance sheet as of the end of last quarter. Our Net Wort h increased by $40,636 (or 7.7%) in this quarter. Of this, $20,216 is new contributions we made to our accounts (including employer match in 401k accounts), $2,495 is from increase in home equity due to mortgage payments we made, and the rest ($17,925) is due to investment income and unrealized gains in our accounts.A note on the credit card debt: most of this is due to a 0% balance transfer offer I have taken advantage of. This will be paid off in full within a few months.As you can see, most of our holdings are in tax-deferred retirement accounts. This is intentional, since I want to "front-load" our tax-deferred accounts, so as to make the most of the tax benefits.It was only a few years ago that we got serious about saving and investing. I will post updates for every quarter from now so that I can track our progress towards accomplishing our goals.Related links:Our Net Worth over the yearsOriginally posted at ... More About: Update , Net worth , March
Net Worth update: March 2007
2007-05-15 03:58:00 This is our balance sheet as of the end of last quarter. A note on the credit card debt: most of this is due to a 0% balance transfer offer I have taken advantage of. This will be paid off in full within a few months.As you can see, most of our holdings are in tax-deferred retirement accounts. This is intentional, since I want to "front-load" our tax-deferred accounts, so as to make the most of the tax benefits.It was only a few years ago that we got serious about saving and investing. I will post updates for every quarter from now so that I can track our progress towards accomplishing our goals. More About: Update , Net worth , Worth , March , Marc
Dual citizenship?
2007-05-13 15:00:00 For those considering retirement to another country, the best immigration option is dual citizenship. The catch, of course, is that not many countries allow this.Countries that allow dual citizenship, such as Australia and the US, allow their citizens to become citizens of other nations. For example, an Australian citizen can become a citizen of the US, while still keeping his or her Australian citizenship. A common misconception among those who read news in the India n media is that India now allows dual citizenship. Unfortunately, this is not true. What India does allow (only for people who are Indian by descent or marriage) is a status called Overseas Citizen of India (OCI). Note that the word "dual" is missing. India does not allow dual citizenship, and there doesn't seem to be any plan to allow this in the future either. If you hold an Indian passport and become the citizen of any other country, your Indian passport immediately becomes invalid. Yes, you can then apply for OCI s... More About: Ship , Dual
Dual citizenship?
2007-05-13 15:00:00 For those considering retirement to another country, the best immigration option is dual citizenship. The catch, of course, is that not many countries allow this.Countries that allow dual citizenship, such as Australia and the US, allow their citizens to become citizens of other nations. For example, an Australian citizen can become a citizen of the US, while still keeping his or her Australian citizenship. A common misconception among those who read news in the India n media is that India now allows dual citizenship. Unfortunately, this is not true. What India does allow (only for people who are Indian by descent or marriage) is a status called Overseas Citizen of India (OCI). Note that the word "dual" is missing. India does not allow dual citizenship, and there doesn't seem to be any plan to allow this in the future either. If you hold an Indian passport and become the citizen of any other country, your Indian passport immediately becomes invalid. Yes, you can then apply for OCI s... More About: Dual
Dual citizenship?
2007-05-13 15:00:00 For those considering retirement to another country, the best immigration option is dual citizenship. The catch, of course, is that not many countries allow this.Countries that allow dual citizenship, such as Australia and the US, allow their citizens to become citizens of other nations. For example, an Australian citizen can become a citizen of the US, while still keeping his or her Australian citizenship. A common misconception among those who read news in the India n media is that India now allows dual citizenship. Unfortunately, this is not true. What India does allow (only for people who are Indian by descent or marriage) is a status called Overseas Citizen of India (OCI). Note that the word "dual" is missing. India does not allow dual citizenship, and there doesn't seem to be any plan to allow this in the future either. If you hold an Indian passport and become the citizen of any other country, your Indian passport immediately becomes invalid. Yes, you can then apply for OCI s... More About: Ship , Dual
Another reason to retire to India (NOT)
2007-05-12 16:30:00 Maxim magazine is not the first place I would look to for retirement planning, but this article titled How to Quit Your Job and Live Like a King lists Manali, India as one of 4 places to "escape the rat race". Located at the north end of India's famed Kullu valley, the area around Manali features Hindu temples, incredible hiking, and absolutely insane views of the adjoining Himalayan peaks. According to the article, less than $4K gets you a bed at a local hostel and four meals a day for a whole year. But what made me chuckle was the following: Don't bother asking any local expats what brought them to Manali. It's the weed. Not exactly what I had in mind when I started this blog, but fun to know nevertheless. More About: Reason , Retire , Tire
Another reason to retire to India (NOT)
2007-05-12 16:30:00 Maxim magazine is not the first place I would look to for retirement planning, but this article titled How to Quit Your Job and Live Like a King lists Manali, India as one of 4 places to "escape the rat race". Located at the north end of India's famed Kullu valley, the area around Manali features Hindu temples, incredible hiking, and absolutely insane views of the adjoining Himalayan peaks. According to the article, less than $4K gets you a bed at a local hostel and four meals a day for a whole year. But what made me chuckle was the following: Don't bother asking any local expats what brought them to Manali. It's the weed. Not exactly what I had in mind when I started this blog, but fun to know nevertheless. More About: Reason , Retire , Tire
Financially smart: The Aroras
2007-05-12 00:50:00 Nice profile of an immigrant Indian couple in this Money magazine story. They appear to have their priorities straight, know where they want to go, and have a plan to get there. I wish I had their insights when I was in my twenties. More About: Smart , Finan , The A , Fina , Ally
Financially smart: The Aroras
2007-05-12 00:50:00 Nice profile of an immigrant Indian couple in this Money magazine story. They appear to have their priorities straight, know where they want to go, and have a plan to get there. I wish I had their insights when I was in my twenties. More About: Smart , Finan , The A , Fina , Ally
Financial goals for retirement
2007-05-11 05:25:00 My financial goals for our early retirement are as follows: By 2018Taxable accounts: $300KRetire ment accounts: $1MHouse paid off College savings: $60K Holdings in India: $100K How did I arrive at these figures?The taxable account target of $300K is based on a 4% yearly withdrawal resulting in $1000/month during the first year of our early retirement, with inflation-adjusted increases in subsequent years.The retirement nest egg of $1M is not intended to be used for early retirement. This should allow it to grow tax-deferred for about 15 years before we start withdrawals. Clearly, we have to pay off the house before we can even consider leaving our jobs.The college savings figure of $60K is based on approximate current expenses for a 4-year college degree at a public university.The holdings in India are intended to hedge the risk of inflation and currency exchange rates. This will probably be in real estate, but I am open to other investments as well.All figures are in current (2007) ... More About: Financial , Goals , Finan
Financial goals for retirement
2007-05-11 05:25:00 My financial goals for our early retirement are as follows: By 2018Taxable accounts: $300KRetire ment accounts: $1MHouse paid off College savings: $60K Holdings in India: $100K How did I arrive at these figures?The taxable account target of $300K is based on a 4% yearly withdrawal resulting in $1000/month during the first year of our early retirement, with inflation-adjusted increases in subsequent years.The retirement nest egg of $1M is not intended to be used for early retirement. This should allow it to grow tax-deferred for about 15 years before we start withdrawals. Clearly, we have to pay off the house before we can even consider leaving our jobs.The college savings figure of $60K is based on approximate current expenses for a 4-year college degree at a public university.The holdings in India are intended to hedge the risk of inflation and currency exchange rates. This will probably be in real estate, but I am open to other investments as well.All figures are in current (2007) ... More About: Financial , Goals , Finan
Retire-To-India plan
2007-05-10 04:52:00 My plan is to consider retirement in two phases.In our early fifties, we hope to have enough savings/investments to allow us to retire to India . For this early retirement phase, we intend to live off our taxable savings, without tapping into our retirement accounts, at a fraction of the cost of a normal retirement in the US.For the regular retirement phase, in our mid-sixties, we will start tapping into our tax-deferred accounts. We should also qualify for Social security and Medicare at this age, assuming current rules. We should then really have the option of continuing to live in India, or returning to the US. Under current conditions, it seems reasonable for us to expect to live on about $1000/month in India during the early retirement phase, not including initial moving and setup expenses. This would require about $300K in taxable accounts (assuming a withdrawal rate of 4%). All figures are in current (2007) dollars. Besides the usual uncertainties of inflation and cost-of-livi... More About: Goals , Plan , Retire , Tire
Retire-To-India plan
2007-05-10 04:52:00 My plan is to consider retirement in two phases.In our early fifties, we hope to have enough savings/investments to allow us to retire to India . For this early retirement phase, we intend to live off our taxable savings, without tapping into our retirement accounts, at a fraction of the cost of a normal retirement in the US.For the regular retirement phase, in our mid-sixties, we will start tapping into our tax-deferred accounts. We should also qualify for Social security and Medicare at this age, assuming current rules. We should then really have the option of continuing to live in India, or returning to the US. Under current conditions, it seems reasonable for us to expect to live on about $1000/month in India during the early retirement phase, not including initial moving and setup expenses. This would require about $300K in taxable accounts (assuming a withdrawal rate of 4%). All figures are in current (2007) dollars. Besides the usual uncertainties of inflation and cost-of-livi... More About: Goals , Plan , Retire , Tire
Immigrants and Personal finance
2007-05-09 04:49:00 Most of the current discussion about immigrants in America focuses on illegal immigration. Not much attention is paid to the large number of legal, professional immigrants in a variety of fields. These "first-generation" immigrants come to America looking for better opportunities. They fall into many categories:Many of them enter the country as students and then join the workforce after graduating.Some come here to work on "temporary" visas, but then manage to extend their stay legally.Some have special skills, or are in high-demand fields (like nursing) that allow them to find work even before they arrive in the country.A few are sponsored by siblings and in-laws who are already here, and come over to join the family business, or to find new careers for themselves.Many of these first-generation immigrants are successful professionals like me, but there are a number of reasons we are at a disadvantage when it comes to planning our financial future. Unlike many native-born (who ty... More About: Personal , Personal Finance , Finance , Ants , Person
Immigrants and Personal finance
2007-05-09 04:49:00 Most of the current discussion about immigrants in America focuses on illegal immigration. Not much attention is paid to the large number of legal, professional immigrants in a variety of fields. These "first-generation" immigrants come to America looking for better opportunities. They fall into many categories:Many of them enter the country as students and then join the workforce after graduating.Some come here to work on "temporary" visas, but then manage to extend their stay legally.Some have special skills, or are in high-demand fields (like nursing) that allow them to find work even before they arrive in the country.A few are sponsored by siblings and in-laws who are already here, and come over to join the family business, or to find new careers for themselves.Many of these first-generation immigrants are successful professionals like me, but there are a number of reasons we are at a disadvantage when it comes to planning our financial future. Unlike many native-born (who ty... More About: Personal , Personal Finance , Finance , Person , Grant
Why retire in India?
2007-05-08 03:33:00 Why do I want to retire in India ?There are two parts to my answer. The first is that I want to retire early. More precisely, I want to be financially independent, and free to do what I want to do, without being tied down to my corporate job.The second part is driven by the fact that traditional estimates for the amount of money needed to retire early in the US tell me that I have a very slim chance of achieving this in my early fifties. My best bet is to consider moving, at least temporarily, in my retirement to a low-cost country where my savings will take me farther.The obvious choice for me is India, since it is the country of my birth, and the country I know best after the US. This may seem somewhat ironic, because I emigrated from India in my early twenties to the US looking for better opportunities. I indeed found them in the US, and I am very happy to be living in America. But somehow, spending some or all of my retirement years in India seems like the right thing to do.Why? ... More About: Retire , Tire
Why retire in India?
2007-05-08 03:33:00 Why do I want to retire in India ?There are two parts to my answer. The first is that I want to retire early. More precisely, I want to be financially independent, and free to do what I want to do, without being tied down to my corporate job.The second part is driven by the fact that traditional estimates for the amount of money needed to retire early in the US tell me that I have a very slim chance of achieving this in my early fifties. My best bet is to consider moving, at least temporarily, in my retirement to a low-cost country where my savings will take me farther.The obvious choice for me is India, since it is the country of my birth, and the country I know best after the US. This may seem somewhat ironic, because I emigrated from India in my early twenties to the US looking for better opportunities. I indeed found them in the US, and I am very happy to be living in America. But somehow, spending some or all of my retirement years in India seems like the right thing to do.Why? ... More About: Retire , Tire
Welcome
2007-05-06 20:45:00 I started this blog to organize information related to planning for my retirement. At this point, I am not sure about what our eventual retirement plans would be. My initial estimates of the amount needed for retiring in the US, coupled with my desire for early retirement, lead me to believe that "Retiring to India" may be my best option.This is going to be a collection of posts about the numerous topics relevant to retirement planning, especially for someone thinking of retiring overseas. I hope to keep the posts up-to-date as I learn more about each topic.I hope that this will be useful to anyone considering spending all or part of their retirement abroad.Comments? Thoughts? Please write me using the link on the main page.
Welcome
More articles from this author:2007-05-06 20:45:00 I started this blog to organize information related to planning for my retirement. At this point, I am not sure about what our eventual retirement plans would be. My initial estimates of the amount needed for retiring in the US, coupled with my desire for early retirement, lead me to believe that "Retiring to India" may be my best option.This is going to be a collection of posts about the numerous topics relevant to retirement planning, especially for someone thinking of retiring overseas. I hope to keep the posts up-to-date as I learn more about each topic.I hope that this will be useful to anyone considering spending all or part of their retirement abroad.Comments? Thoughts? Please write me using the link on the main page. 1, 2, 3 |
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