Retire in India - $200,000 + own residence is all what you need !!!

[relaxedfire]

Recently caught the FI bug and to be honest, the light I see at the end of the tunnel is coming from the halogen lamp of the street light outside my family home in India. That is where I grew up, and that is the place I want to be after hitting financial independence. I think retiring in India makes sense based on 3 critical Qs-

1. Do you have family/friends that you actually WANT to be around in India?
2. Has the last 3 years before you retired included 1 full year of living in India?
3. Are you drawing a monthly income of $2000 USD per month in your retirement?

If the answer to all 3 above Qs is yes, I think there is no better option than India to live out the rest of your life.

Here is my specific situation, feel free to judge :)

- Moved to USA when I was 15 years old
- Currently 30 years old, will probably be married (to another Indian) in the next year or so
- US citizen by naturalization, Indian citizen by OCI [Overseas Citizen of India]
- Currently making over $100,000 a year (surprise surprise, I am NOT a software engineer!)
- Current net worth of over $125,000
- Would like to retire by 50 (but if my spouse shares similar interests and a high-paying career, maybe 40)

Does India have problems? Of course it does! I complain about the banks, the traffic, the pollution, the inflation etc. to no end every time I visit! But....it also has amazing food, cheap domestic help, actively growing progressive mindset, actively growing automation and...like the OP said...the ability to live like a king! Why would I NOT want to live a life where I don't have to do my laundry, iron my own clothes, cook my own food, drive my own car and instead channel all of the time and energy saved into attempting to make a difference in the world? Not to mention living around the people I love and having enough money to live a perfectly comfortable life?

I completely agree that someone who has lived their entire life in the US is probably not going to retire to India because of the culture shock but I don't think that was the intended audience anyway- this is for the people of Indian origin that search for the life that they left behind all the time, only because living in a country like the USA is the "right thing to do".

This post resonated with me quite a bit, so I'd love to hear from anyone that actually followed through with it or has a similar goal?

[Hula Hoop]

relaxed - in your case, I think retiring to India makes perfect sense.  Especially if you end up marrying another Indian.  I'd do the same in your shoes.  However, as someone with absolutely no ties to India - no way I'd do something like that.  Would be insane.

[ixtap]

The big flaw in OPs plan was counting on fixed deposit rates while not accounting for inflation. As long as you do your research, it makes excellent sense for someone to be around the people they love. On the other hand, over another 20 years, much could change. If you had children in college here, the people you love most might not be in India...

[relaxedfire]

On the other hand, over another 20 years, much could change. If you had children in college here, the people you love most might not be in India...

That's a fair point- I definitely could be in a different mindset even 10 years down the road but the beauty of holding an OCI along with US citizenship is that it allows you to travel back and forth between the two countries without ever requiring a visa or fulfilling any residency requirements! So, maybe the ideal situation would be to spend the winter months in India [Nov-Mar] and spend the summers in the US [Apr-Sept], with October being the 'travel around the world' month. Of course, the months spent in the US would be taking up a larger chunk out of the retirement bucket, but hopefully I will have enough funds to account for that.

[Metalcat]

I'll be spending a month in India next year, mostly in Kerala but the trip will span from North to South, and I'll definitely be scouting it out as a retirement location or a CoastFI location.

Several family friends live in India, including friends who run multiple orphanages, schools, and women's shelters. I've planned on volunteering with them since I was a teenager. India has *always* been part of my life plan.

Ive been fixated on India for years and can't wait to finally go there. I've read countless books, spent hours talking to people who live there, and cannot wait to explore for myself.

This trip is a dream 20 years in the making, and I'm so excited to be going with a local. He's a world renowned chef who takes a small group annually to his favourite places in the country. He's from Kerala, so that's why the trip is focused there. 

I feel like my trip will be transformative.
I am loving this thread, and I hope all of the people who have first hand knowledge keep posting because it has me very excited.

Oh, and no rose coloured glasses here, I've read extensively on life in India and have no illusions about it being some paradise. I have a similar love of Mexico, and no illusions about it either. I traveled there last year with family who live there and absolutely adored it and am seriously considering living there as well.

Life is a series of trade offs, and everywhere has upsides and downsides. The more flexible you are in terms of your expectations, the more doors open for you.

Everywhere I travel I think to myself: "would I live here?"
I literally *just* got back from a road trip through the US and came back thinking of a few places "what a beautiful town, but I would never live there".

We all have different needs and different priorities.

[Cassie]

2 of my kids have been there and enjoyed it. But after hearing about it I don’t want to visit. If you are from there it probably makes all the difference.

[Metalcat]

2 of my kids have been there and enjoyed it. But after hearing about it I don’t want to visit. If you are from there it probably makes all the difference.

I don't think you have to be from somewhere in order to be able to tolerate living there. I think you need to be exquisitely aware of how the place differs from what you are used to and okay with that differences.

[thesis]

In some countries, labor is so inexpensive that it not only makes financial sense, it's also considered an obligation for people who can afford to employ domestic labor, to provide employment.

Agreed. I had a friend whose family lived in semi-remote Southeast Asia for awhile. It was widely known that people respected you more if you hired  help for household chores. Those who didn't were often stolen from. People in that location assumed that if you were from the US, you were wealthy, and not hiring someone from the community was seen as stingy. In a sense, hiring someone is cheap insurance. And, quite honestly, if you are living off your investments and no longer have to work, you can probably easily spend a little bit of money helping someone out who lives in the LCOL country you are geo-arbitraging. Just sayin'.

That's not the case in every country, or every part of every country, but it is something to consider.

[Shane]

In some countries, labor is so inexpensive that it not only makes financial sense, it's also considered an obligation for people who can afford to employ domestic labor, to provide employment.

Agreed. I had a friend whose family lived in semi-remote Southeast Asia for awhile. It was widely known that people respected you more if you hired  help for household chores. Those who didn't were often stolen from. People in that location assumed that if you were from the US, you were wealthy, and not hiring someone from the community was seen as stingy. In a sense, hiring someone is cheap insurance. And, quite honestly, if you are living off your investments and no longer have to work, you can probably easily spend a little bit of money helping someone out who lives in the LCOL country you are geo-arbitraging. Just sayin'.

That's not the case in every country, or every part of every country, but it is something to consider.

Not sure how true it is, but an acquaintance who retired to the Philippines says, "when expats' houses get broken into, it's almost always by a boyfriend of the maid." :)

[ysette9]

The pollution comment several posts up caught my eye. I have spent three weeks in China over two business trips this year and by far the most striking characteristic for me about the places I went is the pollution. I was surprised at how bad it was, how unfazed the locals seemed to be, and how depressing I found it. I found it hard to appreciate the good things there becAuse i felt a bit like I was under house arrest.

I bring this up merely to support comments that others have said; it is important to go spend some real time in a place you are thinking of retiring to. It is possible that something that doesn’t seem that big of a deal ends up really mattering to you in unexpected ways.

[Cassie]

My son is in Vietnam working and wants us to come visit.  I have asthma and looked up the air quality and can’t go to that part of the world. He understands.

[singh02]

Well this thread refuses to die.  It also has an interesting amount people not interested in the topic and yet interested in sharing their opinions about India.   Threads on Mexico and other developing countries don't share this polarization.  I wonder why.  Maybe its a culture shock, but hopefully this will get people to respect even more the culture shock of immigrants that have traveled to the US and have been able to adapt. 

For those complaining about pollution (and it is a big problem), look up the environmental kuznets curve.  In short, as a country undergoes environmental development/progress, the environment degrades until a certain threshold is reached.  After that it improves.  China is likely close to reaching that threshold.  India hopefully can too in a generation.

Being born in Delhi (moving to the states at 4), with roots in Punjab, I would like to spend more time in India. Ive visited Chandigarh a few times and has a nice modern mix to it.   I hope to abe able to spend a month there every year once I FI.  The summer would be the easiest (but also most unbearable from the heat).  Maybe a prolonged winter break. 

[FenderBender]

Great idea.  I'd save more, say 400k, then make the move. 

Escaping American culture, for example, arguing over saving the life of a baby that survived an attempted abortion is super great reason to escape to a place where compassion for all humans exists. 

My wife is from the Philippines and we are in the get there ASAP mode right now.  We are going with 7 figures so we can live like celebrities.  It is the same as India basically.  A lot of people speak English and labor is very cheap.  We won't have a maid, but we'll have a maintenance/gardener/driver as someone to work along side us.  Infrastructure isn't good, sort of like Detroit and Baltimore, but even these travesties have niche areas that house rich politicians and elites from the universities that always separate themselves from people they claim to love and care about so much.

Comments on here about living in low cost area within US on the cheap still means watching every penny spent until you fucking die - no thank you.  We'll live in low cost area abroad and travel in luxury without watching over every penny.

Enjoy India!  You have the right idea. 
 

[jojoguy]

It is not India we are planning to retire in, but it is in Asia. My wife is from Indonesia, and we go every couple of years. I really enjoy Yogyakarta, Malang, and Bali. Bali is probably where we would live though. It costs more but things are much more accessable. Just like most Asian countries, a house maid is pretty much a requirement. Honestly, I don't mind though. It is common practice there, and it is nice giving somebody a job.

[myobjectivism]

Hi Vivek,

Was searching about cost of living in India and found your post about retiring in India and how much we need to have to have comfortable living.

Went through your post and it looked similar to my life goals.

About me,  I am moving to India from UK in next couple of months leaving corporate world. Will be settling in Hyderabad with my wife and two kids (8 and 5 years old). And I am Financially Independent now so resigned in my office and will be spending my savings for rest of my life.

Like to know how realistic was your calculations back in 2015 about expenses and any changes you noticed so far.

Want to discuss in detail if you dont mind about expenses, way of living etc and how things are going on after retirement. I am 43 now and starting FI journey from next month. So eager to know how things are going on.

[Jack0Life]

I keep seeing this thread get revived.  Why?  Why would anyone want to retire in India?  LOL!

There are better place to retire in SE Asia.

[myobjectivism]

Thanks for your response. Like to share few pointers about why India. Note that these responses are purely personal..

I am back from UK to India cancelling my visa and refusing opportunity to stay longer in UK. Only reason for it is.. I am from India, my parents, cousins and other family members are living in India including my close friends. Want to spend rest of my life being close to them.

If we see comforts point of view like less traffic, no pollution, nice houses etc then definitely other countries may be in the top of the list.

I got used to certain lifestyle of meeting friends, relatives and hanging around with them in streets.

Nothing else.

About education.. I dont mind my kids decide at later stage if they want to come abroad. I am not taking my UK citizenship so I am fine for them to compete and get the college seats abroad (if they want to) and come and study/job outside India.

Food is also another reason :)

[dresden]

It seems like someone relocating to such a different culture runs a high risk of the experiment failing and they end up wanting to move back to the US.  If someone knows India well or lived their previously that might be a different story.

As others said you can live cheaply here in the US.

[Runrooster]

A big drawback to India is that the drinking water is not potable.  You need to get filtered, or boil it for 30 minutes.  The locals have immunity, but I have no idea how many months, years, and illnesses it would take to (re)-develop that immunity.  There is a lot of filtered water around, so that's not too problematic.  The issue is the food.  The lovely street foods and small pubs are verboten for travelers, as is any unpeeled fruits and vegetables.  What happens is that even something as well-boiled as tea is put into utensils that have been rinsed with unfiltered water.  We had extreme difficulty convincing the chai-wala (tea vendor) to use our cups or not wash the (dusty) cups he had.

My parents, like most ex-pats, once planned to retire in their homeland (were 40 years old when they came  here).  When time came, they balked.  It's not as cheap as represented here - esp. when  you have to eat/live in 5 star hotels, or live where the labor is not as cheap as you remember, plus you will be recognized as a non-resident Indian and be expected to pay premium prices.  It's also dirtier, more corrupt, and worse infrastructure (roads, electricity, water) than memory serves.

ETA: No one in my parent's circle of friends and relatives has made the move back.  Most thought they would.

ETA2: For those missing the point of moving to India, there's a lazier, more social atmosphere that is very enticing for retired folks.  It's not just that there are more Indians to socialize with, or that it's a very populous country but that people work less, spend more time visiting and sharing meals.  Fewer women work, and with all the cheap labor it's less burdensome to have people over for dinner.  People are more spread out in the US; you're less likely to know your neighbors (I meet mine on the street but briefly).

[Wrenchturner]

My experience is with Southeastern Asia, namely Thailand, but I suspect moving to India would have similar challenges.  I don't think it's a good idea to pick a solution and work backwards when it comes to a place to live for a long time.  Too many factors that aren't being considered when you do this.

The tropics can be rough; lots of critters, parasites, and the quality of air and water are a concern.  There are also cultural barriers that I've learned about from Thai expats that sometimes never fall away, even if your spouse has the local blood.  Some expats never stop feeling like an outsider.  Western and Eastern culture are fairly different too.

Not to say it can't be done or shouldn't be done.  But maybe a couple trips to the other side of the world would be a better way to start.