Any idea where to Invest $1M dollar after transferring to India?.

[ShrimaanJi]

Hello Friends,

Any idea where to Invest $1M dollar (first tranche) after transferring to India?. I am a USC hence may not be allowed to invest in Indian Mutual Funds unless I am in ROR (My impression. Correct me if I am wrong) status. Hence, I thought, I will transfer to HDFC NRE Account and invest in Fixed Deposits. I hope they will let me invest in FDs. I am will be completing 58 soon and will relocate to India after 3 -4 years.

Any Thoughts,

[old-spice2]

As USC your choices are limited to FD and RE. You can open FD in 2-3 different banks and spread the deposit.

[ballare]

If one is moving to India for trying retirement, maybe best not to transfer any funds. Best would be to sponsor retirement with any income or assets in India. If not, still keep the money invested in US, withdraw amount as needed. Easier with the taxes and no hassles repatriating later. With the current interest rates in US and rupee depreciation, Indian FD doesn't look as appealing as before maybe. Our time horizon for retirement to India if it works out is around the same time, around 58-60.

[SAPPORO]

Op, unless you're renouncing the USC, it's not advisable to move large sums of money to India.
It cannot be undone without incurring heavy losses, losing the exchange rate advantages, nothing like FDIC insurance in India, current higher guaranteed interest rates in the US, Huge tax burdens in India once you lose the NRI status and so on..

[ShrimaanJi]

Thanks for the replies, folks.

[DILIPDE]

[1] Keep in the US for FDIC insurance for $250K for each bank. In India, it is only 5 lacs.
[2] Another person says- exchange rate risk. You can always transfer money online from US to India.

[old-spice2]

Op, unless you're renouncing the USC, it's not advisable to move large sums of money to India.
It cannot be undone without incurring heavy losses, losing the exchange rate advantages, nothing like FDIC insurance in India, current higher guaranteed interest rates in the US, Huge tax burdens in India once you lose the NRI status and so on..

Don't keep repeating high taxes in India. For the past few years have been paying close to 47% in US and some EU countries have 50-60% (Sweden) as taxes. Only Gulf and Singapore have less taxes.

Also high taxes in India is due to lower tax exemption (Rs 2.5L) which is also due to low cost of living. I can live on $1K per month in India (with no home loan) and in BA I would get "ghanta" for $1K. Here it is min around $5K/month if I hire maid/cook. High CoL in developed countries neutralizes or makes more money to go out of your pocket compared to India. I am not even going into medical cost plus retirment home/assisted living expenses which are 20x in Bay Area compared to similar setup in India. Talking from personal experience of paying for someone in a RH in India and enquired similar setup in BA. Now stop giving this excuse!

US-NRIs feel the burn when someone says India is better in xyz thing. Burnol chahiye?

[RBee]

Don't keep repeating high taxes in India. For the past few years have been paying close to 47% in US and some EU countries have 50-60% (Sweden) as taxes. Only Gulf and Singapore have less taxes.

Also high taxes in India is due to lower tax exemption (Rs 2.5L) which is also due to low cost of living. I can live on $1K per month in India (with no home loan) and in BA I would get "ghanta" for $1K. Here it is min around $5K/month if I hire maid/cook. High CoL in developed countries neutralizes or makes more money to go out of your pocket compared to India. I am not even going into medical cost plus retirment home/assisted living expenses which are 20x in Bay Area compared to similar setup in India. Talking from personal experience of paying for someone in a RH in India and enquired similar setup in BA. Now stop giving this excuse!

US-NRIs feel the burn when someone says India is better in xyz thing. Burnol chahiye?

Kya baat hai, OS2 ji, aaj kal jyada gussa ho rahe ho US-NRI pe ?
BTW was curious to know did you denounce your USC after your return to India?
Else you have to pay taxes to uncle Sam as well as to India.

I will turn 48 this year and the thought of permanent return does come to me from time to time too. I am still at age to not worry about medical issues yet but want to live with my beloved mother before it is too late. But double taxation worries me a lot. How do people who have significant net worth(in US$) manage returning to India permanently, so if you can share tips on these, it would help.

[SAPPORO]

Op, unless you're renouncing the USC, it's not advisable to move large sums of money to India.
It cannot be undone without incurring heavy losses, losing the exchange rate advantages, nothing like FDIC insurance in India, current higher guaranteed interest rates in the US, Huge tax burdens in India once you lose the NRI status and so on..

Don't keep repeating high taxes in India. For the past few years have been paying close to 47% in US and some EU countries have 50-60% (Sweden) as taxes. Only Gulf and Singapore have less taxes.

Also high taxes in India is due to lower tax exemption (Rs 2.5L) which is also due to low cost of living. I can live on $1K per month in India (with no home loan) and in BA I would get "ghanta" for $1K. Here it is min around $5K/month if I hire maid/cook. High CoL in developed countries neutralizes or makes more money to go out of your pocket compared to India. I am not even going into medical cost plus retirment home/assisted living expenses which are 20x in Bay Area compared to similar setup in India. Talking from personal experience of paying for someone in a RH in India and enquired similar setup in BA. Now stop giving this excuse!

US-NRIs feel the burn when someone says India is better in xyz thing. Burnol chahiye?

LOL! I am glad I am not your financial advisor.
The question is not which place is better. The question is about financial implications of transferring $1M to India.
You have to consider effective rate and not the marginal tax rate since India has very less exemption, the money will be taxed at a higher in India if one loses the NRI status which is a fact.
Other things you brought out are subjective and irrelevant to the discussion.

[JINSAKAI]

Anyhow I am not liking this new forum, it has become selective group of multimillionaires ( if not millionaires) …



And something dedicated all multimillionaires

https://youtu.be/XO8wew38VM8