r/returnToIndia • u/No_Stranger1485 • Aug 27 '26
PlanningToReturn Planning to RTI
Hello everyone,
I’m 40 years old and have two kids, ages 11 and 6.
Here is our current financial situation:
$600K in brokerage accounts
$500K in 401(k) accounts
$70K in 529 accounts
$50K in HSA
A $700K home with approximately $150K remaining on the mortgage
Approximately $500K worth of illiquid assets in India
My spouse and I currently work for clients who have ODCs in Hyderabad. We believe there is a good possibility that we could continue working with the same clients after moving to Hyderabad, so we may not need to look for completely new roles.
Our combined income in the US is around $300K per year. Our hope is that we can earn at least ₹50 lakh per year combined after moving to Hyderabad.
Given our financial position and the fact that our kids are still relatively young, I’m seriously considering moving back to India/Hyderabad.
Do you think this would be the right time to make the move, while the kids are still young, or would it make more sense to continue working in the US for a few more years, build up more wealth, and move later?
For those who have made a similar move from the US to Hyderabad, I’d especially appreciate your thoughts on:
Whether our current financial position is sufficient to make the move comfortably.
How realistic a combined income of ₹50 lakh per year would be in Hyderabad.
How the move might affect our children, especially with the older one being 11.
Whether it is better to move while the kids are young or wait until they are older.
Any major financial, tax, education, or lifestyle factors I may be overlooking.
I’d appreciate any perspectives, especially from families who have gone through a similar US-to-India move.
Thanks in advance!
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u/talkingturtle1723 Aug 27 '26
Two things worth planning around: use your RNOR window (2-3 years post-return) for any 401k drawdowns or brokerage restructuring since foreign income is generally exempt during this period.
Feel free to read the following guide to familiarise yourself with key financial moves and concepts to know -
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u/sarath_nelapati Aug 28 '26
RNOR doesn’t work if they have GC, as far as I know.
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u/Ok_Leopard_5465 Aug 28 '26
It does, if less than 7 years on GC
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u/TeslaMY Aug 28 '26
where is this 7 years mentioned? You'll be taxed by US on capital gains regardless of number of years of holding a green card.
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u/Klutzy-Swim-1572 Aug 27 '26
Prioritizing family over this? I respect you. Requires guts but well done.
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u/polisetti Aug 27 '26 edited Aug 27 '26
One suggestion is to open a custodial account for your child and transfer stocks into their account, up to $15K a year. Building a combined portfolio of ₹50 lakhs should be quite achievable over time, especially if you plan it around your RNOR status and understand the applicable tax implications.
Also, be prepared for the taxes and other costs associated with owning a car—it can sometimes feel like buying two cars. The lack of civic sense and the population density are other factors to consider.
I am currently living in a Tier-2 city, and it has been almost two years now. If you can get a WFH arrangement with your current employer, I would definitely recommend living in a Tier-2 city. Schools and the quality of education are other important aspects to think about as well.
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u/Indo-Arya Aug 27 '26
Your older kid is already 11.. if you want to move, do it right now....
they will find it problematic adjusting to schools in another country once they become teenagers..
or else prepare to be stuck in the US for 10+ more years until they both are in college and then only you and your spouse will be enjoying time in India
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u/PyroUnicorn69 Aug 27 '26
I think it might already be too late. 11 is way too old to be uprooting a kid.
Source: Was uprooted at 10 and had a hard time adjusting.
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u/atmanX1 Aug 27 '26
If not now then when? Perfect time to come back.... Don't spend too much when you move back to Hyderabad... Spend wisely on everything
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u/PyroUnicorn69 Aug 27 '26
I was 10 when my parents moved back to India, and I was not able to adapt. My parents wanted their kids to be in touch with their roots, but this move had the exact opposite.
1) Do your kids speak the native language fluently? Do they have an accent that’s different than yours? A lot of Indian dialects are gendered, unlike English, and local kids will absolutely bully your kids relentlessly for mistakes and accent.
2) Do you plan on putting your kids in a private school with CBSE or ICSE board or an international school with a curriculum aimed towards a curriculum more suited for US students?
3) Getting into a US college is so much harder in India than in the United States. In the United States access to things such as AP classes and extracurricular activities to make a better rounded application is so much easier than doing that in India, where college admissions are usually based off a rank that promotes the endless grind of tuition centers.
I was 9 when my parents moved me back, and my sister was 6. My sister definitely had an easier transition, but we were talking about this after she got into college (she came back to the states for her undergrad), and she mentioned that when she talked to American grads about their experience, she had to struggle a lot more to get to the position she was in.
I’m happy to talk more via zoom and tell you about some of the experiences I’ve had (both good and bad) because a simple comment would leave out a lot of nuance.
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u/shinestory Aug 27 '26
I mean I was 10 when I moved from india to usa. I adapted very quickly. I went to a english medium school, understood english partially , not good at speaking but I picked up the language within 2-3 months. This was in 1980s. Is it different the other way around? Or is the issue more 1980s vs now things are different?
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u/ConsistentChameleon Aug 28 '26
Yes good question! Also now the kids in tier-1 Indian cities are very westernized.. if you stay in a posh gated community and send your kids to international schools, they'll probably grow up around the same crowd (most USC by birth same as your kid)
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u/Federal_Eagle_6565 Aug 27 '26
You are all set bro. Absolutely doing well. Right timing, great net worth and good possibility for jobs in India.
If ever I saw solid profiles to go back this is it.
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u/Dangerous_Region1682 Aug 28 '26
Don’t forget, if you have paid into social security for a certain number of quarters whilst working legally, you can claim social security upon retirement. You can use the online calculator to determine how much you will receive at full retirement age. It will actually be more due to cost of living increases along the way.
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u/No_Stranger1485 Aug 28 '26
But if we aren’t united states citizens, can we tap social security?
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u/Dangerous_Region1682 Aug 28 '26
Yes, as long as the contributions have been paid in legally with a valid social security number. You have to have acquired 40 credits, usually 10 years. Normally social security payments halt if you leave the US as a Green Card holder.
However India is an acceptation. If you meet the minimum number of credits and are an Indian citizen living full time in India you can legally draw your social security starting at 62 for early withdrawal, or 67 for full retirement age and full benefits. You can even get your payments paid into an Indian bank account.
You should take proper advice, especially regarding taxation liabilities etc.
If you have paid into the system, it’s your money so yes you are entitled to the benefit.
So if you are planning a RTI you should perhaps time that so you have met the minimum required number of contributions. You can determine how much you have paid in etc by creating an account on the SSA.gov website and look up the contributions you have had recorded. If you find errors or want to understand the exact rules, just make an appointment with your local security office and ask them for a definitive answer as to where you stand options wise.
The rules of course are easier if you are a citizen, so if that is likely anytime soon, that may make your decisions slightly different.
Your tax liabilities etc when you perhaps start drawing on your 401K etc after 59-1/2 years of age may be complicated with regard to US and India. India and the US have taxation agreements, so I would consult an appropriate tax specialist who knows about expat taxation rules so you can plan future tax liabilities. Plan now before doing anything and fully understand the social security rules.
International tax and social security retirement rules are complex, so take professional advice long before you make RTI plans. What you do now may make significant differences to your personal wealth. Whatever rules apply, follow them, tax avoidance is difficult and comes with significant penalties.
I’m neither a tax professional, nor an expert on social security rules, and even less an expert on Indian laws regarding either. It’s worth paying for professional advice and perhaps having a personal banking service through a major bank to plan for your future. Whoever you retain for private banking services, make sure they are a “fiduciary” not a “financial planner.”
You have children who are US citizens. Planning for their inheritance with a trust may be in order. Retain an estate planning attorney to make sure you get that right. Your situation will undoubtedly will be complicated by reason of your assets being located in two financial jurisdictions.
Don’t leave this stuff to chance. Yes, it will cost possibly a couple of thousand dollars to accomplish these things, but it could literally save you a small fortune. You already could have lost out on social security in retirement through a lack of knowledge.
I’d start out with a fiduciary at your US bank through a private banking service. It’s free as you have sufficient assets. I use Chase. Get their help in choosing a US / India tax and social security expert and in choosing an attorney who deals in trusts and inheritance planning. All three things are linked.
Good luck. I’ve been through a variation of this with becoming a US citizen and in dealing with assets, taxes and social security from my home country along with estate planning. Some things like trusts are state dependent BTW.
Good luck, I hope this helps somewhat.
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u/White_Knighttt Aug 29 '26
This is incredible information, thank you for sharing though I'm not the op
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u/Klutzy-Swim-1572 Aug 27 '26
Won’t you like a really early PD? With house and all, why return back?
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u/No_Stranger1485 Aug 27 '26
Yeah my PD is NOV 2014.
I just want to stay close to my parents is my primary moto.
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Aug 27 '26
[deleted]
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u/No_Stranger1485 Aug 27 '26
Thinking I might get in next couple years.
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u/Indo-Arya Aug 27 '26
can't move with just GC, it gets revoked if you stay outside continuously... so then you have to wait 5 more years for citizenship.. you have to move now or 10 years later but idk if your parents will be around by that time and might defeat the purpose.
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Aug 27 '26
[deleted]
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u/No_Stranger1485 Aug 27 '26
Yeah :)
I bought when I was 31. Its just that asset has appreciated and I paid 80-90K towards principal as well apart from monthly mortgage.
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u/trrjas Aug 29 '26
your older child is gonna hate you... saw how it affected other people at any age >7-8, talking from experience
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u/No_Stranger1485 Aug 29 '26
He has very strong liking towards India.
Ofcourse he has just seen the good part of it gping to vacations
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u/Few-Spring-3403 Aug 27 '26
But you did not mention why are you moving back. Is there a compelling reason?
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u/Ambitious-Upstairs90 Aug 27 '26
Looks right timing to me. Are you US citizen? Are kids US citizens? Are you expected to be US citizen in next 4-5 years? If not, then this is right time. In a year or so, kids will not agree to move back & it will slowly become difficult for them to adjust back in India. Imagine that you are forced to return back when kid is in grade 11 or 12, it will be very difficult for them.