Thanks for the really detailed breakdown of your expenses. It is really encouraging for people who want to R2I and lead a simple life in India.old-spice2 wrote: ↑Mon Apr 14, 2025 10:22 pmAfter 3 months of living here are my observations, from the perspective of a retired ex-NRI with $ savings. May not be applicable for RI who never left India or were not lucky enough to make it big in corp world. I have couple of friends here who made it big at work and their networth is considerable including multile RE holdings and IPO/stock options money. Plus few of them inherited properties, so their outflow for buying home was zero.post_r2i06 wrote: ↑Sun Apr 13, 2025 9:21 pm
Yes, following are my concerns
1. Runaway Inflation
2. Medical Expenses(inspite of having Insurance). In India, now a days - a small OT procedure can cost lakhs.
3. Stock market(or real estate) crash and stagnate for years.
- inflation. Once you own a paid off home and a car, inflation does not make any difference. Remember there is no schooling cost for me and also as a senior my interest in eating out is declining (lack of appetite). Most of the time vegetable/dal prices shoot up due to adverse weather condition but within 1 month it comes back to normal, thanks due to Modi govt intervention. Like the govt banned export of rice two years back and they curb onion/dal exports when there is a crisis. If you have maid then cooking at home becomes a breeze and it cost lot less compared to eating out, not to mention about variety and hygiene.
For RI, if the household is a dual income then may be they should have invested in Indian MF 10-20 years back. They will be sitting on 12-15% gain/yr which is more than sufficient to beat inflation which averages at 7%. LTCG is only 12.5%.
What I noticed in recent time for RI, once you hit 40-45, you reach senior level and salary is around 75L and up. Many companies get rid of such people and replace them with less expensive staff. This is common in IT service industry. At that age the family has school/college going kids, if it is a joint family may have old sick parents and EMI. It is difficult to get another position at that salary level unless you have some special skills. I don't know how they manage their affairs. Very scary situation to be in.
- medical expenses. For retired persons there are many private insurance available that gives coverage of 10L for 25K/yr. That comes to Rs 2K/month which is affordable for me. I am still learning the intricacies of med insurance in the country. The terms they use like booster, super top-up, fast forward are difficult to understand. I need to hang on till 70 and after that Modi's Ayushman Bharat will take care up to 5L.
Yes medical costs have gone up for surgeries and 5L bill is common for such activities. Usually employer insurance covers such bills and they cover even for parents. Again if you get laid off in your 40s you are hosed.
- stock market - in the last 30 years it has given a return of 15%, if you had followed a disciplined approach of RCA and not panic during downturn. The challenge is to have enough spare cash to invest.
With all the turmoil created by Trump and his tariff, India is the best place for a people like me. Tariff is going to add another 20% to prices of essentials in US. In India it will not matter as it is a self sufficient economy except for oil. India is pretty good in rice/wheat, vegetables, healthcare, pharmacy and other essentials. For retired person inflation is not a worry but Wall St gyrations are a concern. It will be better after 4 years.
I am also amazed how well versed you are with things on the ground, especially around the medical side of things.
When I return back to India next month, I need to research about Health Insurance. I did some basic research and I understand some people have had issues with their claims, especially Star Health and people are recommending ICICI elevate, HDFC Ergo or Niva Bupa. Then there is the base plan and the super top up, room type cap etc. Lots to unpack in this.
