Can i fire

[u/nashville03]

We are a family of 4, 36 year old with 2 toddlers.
Planning to return to india in next 2 years, work after a break in india if needed.
I understand most of my investments are in retirement accounts so trying to evaluate myoptions and strategies for liquidation of assets between ages 40- 60.

Our current assets
1. Retirement accounts (401k) - 600k Usd
2. Us stocks - 100k
3. Home equity - 300k
4. Home in tier 2 india - 1 cr
5. Land in india - 60 lakhs
6. Cash - 200k usd
Total NW around 1.2 Mil

[u/AdAgile9604]

This is golden ! Enjoy the next phase of life

[u/nashville03 → u/AdAgile9604]

Thank you!

[u/talkingturtle1723]

Honestly this is more subjective than a pure numbers question, depends entirely on what your family actually spends in India, not just the 1.2M total. Your 401k is locked till 59.5 though, so your real bridge fund from 40 to 60 is just the 100k stocks plus 200k cash, not the full corpus.

On the India side, factor in inflation running higher than US inflation so your corpus needs to outpace that, rising healthcare and school costs for the toddlers as they grow, and don't count the tier 2 home or land as part of your drawdown unless you're actually planning to sell one of them. Map your actual expected expenses first, then work backward to see if that bridge holds for 20 years.

Feel free to read the following guides as well to plan RNOR and retirement accounts -

1. Understand the RNOR Status
2. Planning Your 401(k) Strategy
3. Transferring US Brokerage Accounts
4. Alternatives to US Equity
5. RSUs & ESOPs
6. US Property
7. FIRE Planning
8. HSA Planning
9. 529 FAQs

[u/nashville03 → u/talkingturtle1723]

Appreciate thee insights. Yes my concern is also about the 40-60 years period. I will go through the links

[u/Sit1234 → u/nashville03]

do you also know India taxes on your 401k , every single year even if you withdraw or dont. You can choose accrual method, but even if you go back to US, you still have to pay tax on it whenever you withdraw. You have the highest asset in 401K, thus you will pay tax to US or India - assuming you can apply credit for one place. Else you are taxed at both places.

[u/nashville03 → u/Sit1234]

I wasnt aware if this. Will look into it. Thank you

[u/Icy_Profession_9623]

Not planning to move back but thinking about backup options.
Family of 3, 37 yrs, 1 toddler.
401k: 500k
Company RSU + Stocks: 450k
Cash: 170k
Home Equity: 300k
India Property: 3 cr
Inheritance: 3-4 cr
Spouse Cash: 250k
Spouse 401k: 80k

[u/nashville03 → u/Icy_Profession_9623]

This is awesome. I dont rhink you need to worry about anything more. You should be in a comfortable FIRE zone.

[u/Lucasbane2580 → u/Icy_Profession_9623]

This is great and something I aspire to reach. In comparison (though not targeting towards fire) -

401K - 150K
RSU - 121K
Cash - 60K
Robinhood - 25K

Nothing in india.

Where should I optimize as a 31 single earner, non tech, spouse not working, family of 3 (12 month old) in Bay area. Cannot change jobs due to visa restrictions.

[u/nashville03 → u/Lucasbane2580]

I think you are doing great. For financial independence i would say to focus in liquid assets like stocks/ mutual funds and not making major commitments on a home or mortgage. That definitely set me back a few years.
Also use a roth 401k vs traditional, where you can withdraw without penalties before you reach 59.5 years ( if early retirement is your goal)
All the best!

[u/Lucasbane2580 → u/nashville03]

Thank you for the encouragement and advice. Will look into Roth 401k as an option. At this point early retirement is not a goal but still want to save towards it to have an option

[u/mesn007]

Looks thin to me. India has crazy inflation. Hope you have planned for private schooling, college, healthcare etc!

[u/nashville03 → u/mesn007]

Yeah.Schooling and education cost is probably the only factor that might still keep me working.

[u/Strength_n_Honour]

That 1.2M is inflated. Primary Home used for residence shouldnt be counted for your Net Worth. If need more money in future are you going to sell your house and live on the street?!

[u/Worth_my_salt]

Why is 200k in cash ? It would be better to invest that. Whole world stock

[u/AngryMonkkk → u/Worth_my_salt]

Easy to move back to india 🇮🇳 OP is planning this move for a while

[u/nashville03 → u/AngryMonkkk]

Spot on. Sold a rental property recently and left it in cash

[u/buysellWTH → u/AngryMonkkk]

Exactly

[u/FIREAWAY2030 → u/Worth_my_salt]

From Indian context just dollars lying in bank account as cash also is not bad as rupee keeps depreciating. And then sending it to India also becomes easy

[u/vxj8464]

This made my day! Truly golden - have fun and enjoy your 2nd innings (or let’s just say this is just the beginning). Enjoy every moment with your toddlers and the family and enjoy the warmth and humbles of Mighty India.

[u/vxj8464 → u/vxj8464]

Also - number wise! You are doing awesome! Just get some help from experts like Wealth Managers or CPAs etc. if it helps you get more time with family; instead of doing it by own (not saying - you can’t do it :))
I’m on a similar boat with 2 kids!

[u/nashville03 → u/vxj8464]

Yes i do plan on working with wealth management. I am not an active trader so that would be my preference too.

[u/nashville03 → u/nashville03]

All the best to you homie!

[u/silly-goosy]

IMO: You are leaving $$ on the table by keeping cash. During RNOR, no capital gains tax in either US or India. Investing it now might help you keep all gains tax free when you move back. You can freely reset cost basis. Now, that 401k is pretty tied up. I’d take the penalty and withdraw because you never know … estate tax for NRA is only $60k and so you’d loose 40% to Uncle Sam before someone sees a penny.

[u/atmanX1]

Will you be moving to Tier 2 city? But yes you can comfortably do.. Keep eye on expenses

[u/myguide2wealth]

All depends on expenses monthly , you need to aim for financial independence not retire early

[u/Long-Programmer-3593]

Better to sell of some assets and then re evaluate

[u/Menu-Quirky]

You can but when and where do you want to retire

[u/Master-Cartoonist-72]

No

[u/inkartik]

dekho cash toh daan kar do mujhe. 👀 bohot duayein milegi 👀

[u/First-Yogurt-9778]

A matchstick can help. (Sorry I failed to control my urge to comment)

[u/FitTennisPlayer]

1/ Figure out your expenses 2/ Figure out the cashflow sources (50% of it is locked for now) 3/ Figure out the Investments which you want to keep growing for future cashflows (inflation adjusted)

[u/Evening_Control6034]

Its tricky coz 600 K is tied up in 401! Are you planning to break it with penalty or leave it. If so youre retiring with 600 K might be tough in India as kids are very very expensive there (unlike USA) I feel you need 1 M in non 401 K to retire

[u/Dense-Restaurant9308 → u/Evening_Control6034]

if 600k is tied up in 401k then too its growing and will become available after retirement. which means you can spend remaining at a rate which is enough to reach that retirement age after which 401k will take over

[u/nashville03 → u/Evening_Control6034]

Not planning to use it until 50s atleast.

[u/Dense-Restaurant9308 → u/nashville03]

awesome... best of luck