AAP for rvsatya

rvsatya · Post by **rvsatya** » Fri Feb 29, 2008 1:46 am

Hi,

I need help on investment and plan after I r2i next year.

Thanks

MrLong · Post by **MrLong** » Fri Feb 29, 2008 1:53 am

What kind of help? You will need to post details before members of this forum pitch in. Pls search for AAP and read others AAP, that will give you an idea of investment etc.

rvsatya · Post by **rvsatya** » Fri Feb 29, 2008 2:10 am

MrLong;85013What kind of help? You will need to post details before members of this forum pitch in. Pls search for AAP and read others AAP, that will give you an idea of investment etc.[/quote]

Here is what I have now.

Return to India (R2I) or Live In America (LIA): R2I
2. Your current age: 39
3. Marital Status: Married
4. Number of dependents and ages: 9
5. Citizenship and/or Immigration status: EAD
6. Retirement Age: 45
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? 8 years
9. If you are a R2I, going to still work or semi-retire or retire? Semi Retire
10. When are you R2I? 2009
11. Annual savings: 6K (Taxable a/c)
12. Annual expenses (excluding tax): 60K
13. House owner? Yes
14. What percentage of your total portfolio loss in a year makes you loose sleep? 30%
15. What are your short term(1 year) medium term (2-5 years) and long term (>5 years) financial goals?
Short-term goal: Nil
Medium-term goal: R2I setup (apartment purchase and infrastructure for R2I) at least 50 Lakh.
Long-term goal: I would love to retire if assets can generate 80K INR @month forever
16. Do you have any loans? CC? Car loans? House loans? What is the current interest rate? 333,000 House Laon
17. You and your spouse?s participation in US retirement plans: No
18. Need to save money for your kids future US education? Do you have 529 plans? No.
19. If you are R2I, what percentage of your portfolio you want to leave in US? and where? Stocks? Bonds? Cash? 0/100 (US/India), 25/25/35/15 (Real Estate/Stock/Bond/Cash).
20. If you are LIA, do you have any insurance? Life, disability, long-term care? Total value of your policy? 15 Lakh
21. Do you have an emergency fund? How it is invested? No
Current US Assets: ($24K)
House planning to sell in the next 4 months and expected to get $10K
Car $12K
Savings Cash 2K

Current India Assets: (Rs.152 Lakh)
House 1 Rs.25 Lakh
House 2 Rs.20 Lakh
Real Estate land worth Rs.1 Crore
Stock SBI Rs.2 Lakh
Gold Rs.2 Lakh
Cash Rs.3 Lakh

nand · Post by **nand** » Fri Feb 29, 2008 10:15 am

regardless of what your AAP is, your dream of retirement in 6 yrs is not very realistic. Is 152 lac of house completely paid for?

submarine66 · Post by **submarine66** » Fri Feb 29, 2008 1:50 pm

Your desire is to semi-retire. You state that you need 60K per month post-tax in today's rupees.

In general you can assume that a 3% withdrawal rate from your assets. Search this forum for withdrawal rates and you will find interesting posts.

Let me take an example: If one choses to reside in India and needs 60K per month post-tax. Simplistically assuming a 33.33% tax rate, he needs 90K per month pre-tax. A current asset base of Rs. 3.6 Crores will be needed to generate that. Such a person can retire in India potentially, provided he is invested wisely and manages his AAP well.

Take another example: An individual has a 2.4Cr asset base and chooses to withdraw 3% and pays tax at 33.33%, he or she will have on hand Rs 40K after taxes in today's rupees. If he leads a lifestyle which needs more than 40K per month, he needs to earn the difference.

Added on Edit:
Another tid-bit: You can use the Retirement Calculator available on this forum to determine the asset base needed for you to retire.

rvsatya · Post by **rvsatya** » Sat Mar 01, 2008 12:07 am

submarine66;85118Your desire is to semi-retire. You state that you need 60K per month post-tax in today's rupees.

In general you can assume that a 3% withdrawal rate from your assets. Search this forum for withdrawal rates and you will find interesting posts.

Let me take an example: If one choses to reside in India and needs 60K per month post-tax. Simplistically assuming a 33.33% tax rate, he needs 90K per month pre-tax. A current asset base of Rs. 3.6 Crores will be needed to generate that. Such a person can retire in India potentially, provided he is invested wisely and manages his AAP well.

Take another example: An individual has a 2.4Cr asset base and chooses to withdraw 3% and pays tax at 33.33%, he or she will have on hand Rs 40K after taxes in today's rupees. If he leads a lifestyle which needs more than 40K per month, he needs to earn the difference.

Added on Edit:
Another tid-bit: You can use the Retirement Calculator available on this forum to determine the asset base needed for you to retire.[/quote]

Thanks for the tip. Let me explore the calculator.

rvsatya · Post by **rvsatya** » Sat Mar 01, 2008 12:08 am

nand;85101regardless of what your AAP is, your dream of retirement in 6 yrs is not very realistic. Is 152 lac of house completely paid for?[/quote]

152 lac is asset not a loan. Except for a house loan in US, I do not have any other loan.

RSquare · Post by **RSquare** » Sun Mar 02, 2008 9:56 pm

Can someone point me to the retirement calculator ?

- kcube

submarine66;85118Your desire is to semi-retire. You state that you need 60K per month post-tax in today's rupees.

In general you can assume that a 3% withdrawal rate from your assets. Search this forum for withdrawal rates and you will find interesting posts.

Let me take an example: If one choses to reside in India and needs 60K per month post-tax. Simplistically assuming a 33.33% tax rate, he needs 90K per month pre-tax. A current asset base of Rs. 3.6 Crores will be needed to generate that. Such a person can retire in India potentially, provided he is invested wisely and manages his AAP well.

Take another example: An individual has a 2.4Cr asset base and chooses to withdraw 3% and pays tax at 33.33%, he or she will have on hand Rs 40K after taxes in today's rupees. If he leads a lifestyle which needs more than 40K per month, he needs to earn the difference.

Added on Edit:
Another tid-bit: You can use the Retirement Calculator available on this forum to determine the asset base needed for you to retire.[/quote]

submarine66 · Post by **submarine66** » Mon Mar 03, 2008 8:49 am

kcube06;85768Can someone point me to the retirement calculator ?

- kcube

Check in Documents, subfolder: Finance & Investment Documents; post by RRK with the calculator in it.

regards

Desi · Post by **Desi** » Mon Mar 03, 2008 11:16 am

Here are the documents - these are links from FVT in finance general

Documents and Related threads:
Power of Attorney, Format, procedures, etc (see post 46 and 47)
Asset Allocation Plan AAP Questionairre
Financial Planning for R2I by Vinod.
Retirement Master by Desi
Income Expense Spreadsheet by Desi
RNOR Calculator - Find your RNOR status