Return to India - FIRE
I am thinking of returning to India and FIRE. My goal is to live off my interest on savings but not touch the capital at all in the bank. I want to practice my hobbies, write books, spend time with kids and parents, travel within India, and do some social work. I don't want to work for anyone anymore. We are a family of four. While my wife is happy to continue to work but for the sake of this calculation I am assuming she will not work either. We are in our late 30s and our kids are starting kindergarten now. We don't want a lavish lifestyle but should be able to handle all necessities and some luxuries (like eating out, vacations, and sending our kids to an international school etc.). Assuming the banks pay 6.5% annual interest rate, how much savings do I need before I can FIRE/retire in India (eastern part)? Is 2.5 lacs per month in hand income enough? We don't need to pay rent as we own multiple houses there. #personalfinance
Do you have a house there? If you have a house, you'll need Rs 1.5L/mo in any city that is not Mumbai. If you don't have a house, make that 1.5L + rent/mortgage
1.5L per month with house and that too outside mumbai!!! That’s too much exaggeration
OP has 2 kids. School, tuition, activities add up very quickly.
So little less than a million in the bank? I don’t think that would be enough based on some of my recent visits to india. Assuming you won’t have a mortgage, atleast 75k-100k per year will be needed for a family of 4 I think.
No way.... 100k is 80 lac dude.... I don't think they would require more than 20 lac per year for a family of 4.
Need 100K USD per year, in India? Come on now.
Bank accounts pay less than inflation, that would mean inflation will slowly eat into your principal. You should diversify and invest in equities too.
That's the plan to do with my monthly income from the interest if possible.
10 crores
100
What banks pay 6.5% interest?
2.5 lacs are more than enough in india in 2023, especially since you have your own house. The one thing I would ask you to do is not do the calculations at 6.5%. As the Indian economy grows over the next 20-30 years, interest rates will come down there. So use a more conservative 4-5% interest rate in your calculations. Also, add an average of 4-5% inflation in expenses over the years in your calculations.
Why? The quality of life is a huge downgrade.
Depends on what matters to you. For me, having someone else cook, clean, drive and do all the household chores is a huge upgrade in QOL.
The lack of clean air, properly paved roads, lack of clean food, dust everywhere, monsoons, humid and hot everywhere, and a 12+ hours plane ride back to US is a downgrade.
I think 2lacs a month is more than enough in any tier 2 city. Remember, luxuries have no limits, but if you live a typical upper middle class life, you would be fine. Important things like healthcare and kids education are way cheaper in India. Rest are optional things that are nice to have but lack of it won’t impact you much.
Are you thinking 2.5 lacks per month or per annum.
Per month, also we don't need to pay rent.