pfin_focus
Confused about dryer sheets
- Joined
- May 20, 2017
- Messages
- 1
I am 39 Years Old and DW is 35. We have two kids age 11 and 4. I would like to review our existing financial situation and get advice on our future strategy
Our current NW is approx 1.58M. Around 55% of that(880K) is invested in our home country India and 45%(700K) is in US. During the early years of our life we were planning to go back to india so did most of the investment there. Later we decided to stay in US long term for our kids education. We may work here until retirement but has absolutely no plans to retire in US.
Both DH and DW aare planning to work for another 19 years when DH reaches 58 and younger kid has completely graduated out of college. 6 Months of our retirement will be india and remaining 6 months we wish to travel around Europe every year. We have our own houses in india. We expect around $20K for living expenses in India and $40K for 5-6 Month of travel (will plan to stay in a country/place fore couple of months) and expect total yearly expenses to be around $60K at retirement inlcuding medical insurance (which will be taken from India as that will be our resident country). following is our strategy
1. We expect the Indian assets (invested in safe CDs and Real Estate) to grow at a rate of 6% after adjusting for inflation and expect to be ~$2.5M by the time we retire. We are not expecting to add any more contributions to this. At that time we expect this to generate ~$150K a year inflation adjusted. We are expecting to completely live off , of the income from indian assets. We both expect to draw SS at age of 62. DH will have approx 24K yearly 4 years after retirement, and DW will have approx 18K 8 years after retirement.
2. Based on what we have saved so far and future yearly savings, i have run an analysis on personal capital and it shows we will have approx 4.3M in us assets based on an "average" market returns. Note that we are 100% invested in equities at this point including Taxable and Non taxable accounts. We are not planning to touch this ever and planning to leave as legacy for kids.
Is this plan workable? Any advice or feedback on this strategy? Are these numbers/expectations/assumptions reasonable
Our current NW is approx 1.58M. Around 55% of that(880K) is invested in our home country India and 45%(700K) is in US. During the early years of our life we were planning to go back to india so did most of the investment there. Later we decided to stay in US long term for our kids education. We may work here until retirement but has absolutely no plans to retire in US.
Both DH and DW aare planning to work for another 19 years when DH reaches 58 and younger kid has completely graduated out of college. 6 Months of our retirement will be india and remaining 6 months we wish to travel around Europe every year. We have our own houses in india. We expect around $20K for living expenses in India and $40K for 5-6 Month of travel (will plan to stay in a country/place fore couple of months) and expect total yearly expenses to be around $60K at retirement inlcuding medical insurance (which will be taken from India as that will be our resident country). following is our strategy
1. We expect the Indian assets (invested in safe CDs and Real Estate) to grow at a rate of 6% after adjusting for inflation and expect to be ~$2.5M by the time we retire. We are not expecting to add any more contributions to this. At that time we expect this to generate ~$150K a year inflation adjusted. We are expecting to completely live off , of the income from indian assets. We both expect to draw SS at age of 62. DH will have approx 24K yearly 4 years after retirement, and DW will have approx 18K 8 years after retirement.
2. Based on what we have saved so far and future yearly savings, i have run an analysis on personal capital and it shows we will have approx 4.3M in us assets based on an "average" market returns. Note that we are 100% invested in equities at this point including Taxable and Non taxable accounts. We are not planning to touch this ever and planning to leave as legacy for kids.
Is this plan workable? Any advice or feedback on this strategy? Are these numbers/expectations/assumptions reasonable