Retire in India and live off interest payments?

cyberbaba · Jan 27th, 2006, 11:12

how much would YOU need to be comfortable? why?

i'm trying to figure this game out and it seems there are a few variables.

anyone out there doing it?
planning on doing it?
please share

i just got back to the west and am about to put my head down and stack the cash up.

lotus blossom · Jan 27th, 2006, 11:33

it's my plan, soon to be in action. well, sort of my plan. i don't intend to live in india, but travel in india as well as other third world countries. i figure i can do it comfortably for about ten bucks a day, so will need approx. $300 a month, when i'm not paying for transportation, that is. i'm figuring i can get by on about 5 thousand a year. of course, if i take in more traveling from one country to another in any given year, it will be a bit more than that, but my goal is to stay within that 5k range.

i'm curious, what are the variables that you are working on?

cyberbaba · Jan 27th, 2006, 11:43

well how-a-bout that!

$300 is what i live on as well. but i'm wondering how to take inflation into account. seems to me that it's currently something like 8% in india? so how to factor that into the equation? math was never my stong point but it seems to me that 100k @ 8% should give $666/ month. which would leave a small amount to leftover for a quick flight out.

but then (people say) there is health care to think about when one gets older.

any thoughts?

lotus blossom · Jan 27th, 2006, 11:58

i have a hard time wrapping my brain around numbers, so am not sure how you've come up with your figures.

my health care will be figuring in pancha karma treatment yearly, when in india. seasonal cleansing and rejuvenation is the best health insurance.

Anders · Jan 27th, 2006, 15:09

In addition to inflation you have to think about taxes. If you with "live of interest payments" mean living off interest from bank account or bonds, after inflation and taxes I expect that you will be happy to break even and that is before you taken anything out to actually live on. Your idea is very much possible but google a bit on "early retirement" before telling your boss where he can put the job

TimMakins · Jan 27th, 2006, 16:23

'Break Even' ??? The single person's tax allowance in England is £4895 per year, or about 168USD per week. Unless I am mistaken, this means that you could earn that much from the interest on the sale of a property without paying taxes, and then use that money to fund your living expenses abroad.

Is this not correct ?

Tim in Ireland

Anders · Jan 27th, 2006, 17:29

A very nice tax allowance, I will keep that in mind if I need a "residence" when I'm actually on the road

But the OP here mentioned retiring in India. I would assume that means that he would be taxed in India on investment income and not in Canada if he follows the rules. There is of course the possibility to not follow the rules and hope that they never find out. Income from real estate could possibly be taxed in the country where it is actually located.
Notice the words "assume", "possibly" etc. The only real way to know where something should be taxed is to read the double taxation agreement between the countries.
I also have no idea what the tax rates are in India on investments.

john.sw · Jan 27th, 2006, 19:24

I have a foreigners' bank account into which I can pay foreign currency only.

I do not pay any tax on the interest unless I take the money outside India.

I also have a residents' bank account. I can pay rupees only into this account and I am taxed on the interest at the standard rate.

__________________

I could live well off Rs. 1 Lakh a month in India.

In the UK that doesn't even pay my taxes.

Sama · Jan 30th, 2006, 12:38

In the US we have what's called "Social Security" when one retires. A "pension", so to speak, provided by the government. Different amounts for everyone depending on how much you earned during your working life, how long you worked, etc.

I'm not old enough to retire but if I was I could collect about $800/month. This is not counting investments I have.

Hmmm....retire in India.....doable?

Nick-H · Jan 30th, 2006, 13:13

Yes, Yogagal, perfectly doable. In the same ball park as my finances.

Don't expect that you will get luxury lifestyle on that but you'd live well enough.

Nick-H · Jan 30th, 2006, 13:15

Quote:

Originally Posted by john.sw

I could live well off Rs. 1 Lakh a month in India.

That is three or four times my budgeted income!

Ravibagal · Jan 30th, 2006, 13:24

Unless you have loads saved up you can forget about it. India will become more and more expensive for backpackers over the next 10 years so it is not possible to make long term plans. Also foreigners are a bit of a novelty here still but the WOW factor from the 80's is gone. You never can know how welcome you will be 5 years from now.

cyberbaba · Jan 30th, 2006, 14:14

"Unless you have loads saved up you can forget about it."

loads? you mean like millions and millions? beg to differ.

"India will become more and more expensive for backpackers over the next 10 years so it is not possible to make long term plans."

backpackers? who said anything about backpackers?
let's see an nice interest generated income with inflation factored in... perfectly possible.

"Also foreigners are a bit of a novelty here still but the WOW factor from the 80's is gone. You never can know how welcome you will be 5 years from now."

wow factor? sir... are you running a fever? hard cash still speaks volumes, even in the "new india." as far as being well received, nothing like a c-note to put a smile on someones face

jai hind!

GoanCanuck · Jan 30th, 2006, 14:57

You will have to factor in fluctuations/changes in the Dollar---> Rupee conversion rate in addition to the interest available on your principal. You will also have to decide whether you want to keep the entire amount in Canada and make regular withdrawals or maybe keep a part of it in India.

Anders · Jan 30th, 2006, 15:32

That surprised me so much that I had to go and look for it,
Canada - India tax treaty

Jan 27th, 2006, 11:12	#1
cyberbaba All India Permit Join Date: Jan 2006 Location: Canada/ Mumbai Posts: 227	Retire in India and live off interest payments? how much would YOU need to be comfortable? why? i'm trying to figure this game out and it seems there are a few variables. anyone out there doing it? planning on doing it? please share i just got back to the west and am about to put my head down and stack the cash up.

Jan 27th, 2006, 11:33	#2
lotus blossom re-member Join Date: Oct 2004 Location: revolving around the sun standing still Posts: 1,924	it's my plan, soon to be in action. well, sort of my plan. i don't intend to live in india, but travel in india as well as other third world countries. i figure i can do it comfortably for about ten bucks a day, so will need approx. $300 a month, when i'm not paying for transportation, that is. i'm figuring i can get by on about 5 thousand a year. of course, if i take in more traveling from one country to another in any given year, it will be a bit more than that, but my goal is to stay within that 5k range. i'm curious, what are the variables that you are working on? __________________ Not all who wander are lost

Jan 27th, 2006, 16:23	#6
TimMakins Surprised and Delighted by Life Join Date: Feb 2005 Location: On the road... Posts: 1,010	'Break Even' ??? The single person's tax allowance in England is £4895 per year, or about 168USD per week. Unless I am mistaken, this means that you could earn that much from the interest on the sale of a property without paying taxes, and then use that money to fund your living expenses abroad. Is this not correct ? Tim in Ireland __________________ Travelling Tim - http://www.mapability.com/blogs/ My images at Lonely Planet - http://tinyurl.com/yk43ams "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." Mark Twain

Jan 27th, 2006, 19:24	#8
john.sw Up in the hills with my head in the clouds... Join Date: Mar 2005 Location: India/UK Posts: 1,021	I have a foreigners' bank account into which I can pay foreign currency only. I do not pay any tax on the interest unless I take the money outside India. I also have a residents' bank account. I can pay rupees only into this account and I am taxed on the interest at the standard rate. __________________ I could live well off Rs. 1 Lakh a month in India. In the UK that doesn't even pay my taxes. __________________ www.nilgiris.asia your guide to the Nilgiris, Ooty, Coonoor, Kotagiri and Gudalur

Jan 30th, 2006, 12:38	#9
Sama a pain in the asana Join Date: Mar 2005 Location: the India inside my heart Posts: 6,425	In the US we have what's called "Social Security" when one retires. A "pension", so to speak, provided by the government. Different amounts for everyone depending on how much you earned during your working life, how long you worked, etc. I'm not old enough to retire but if I was I could collect about $800/month. This is not counting investments I have. Hmmm....retire in India.....doable? __________________ *MY INDIA, 2005-2008* "Once you have felt the Indian dust, you will never be free of it." (Rumer Godden, 1975)

Jan 27th, 2006, 11:43	#3
cyberbaba All India Permit Join Date: Jan 2006 Location: Canada/ Mumbai Posts: 227	well how-a-bout that! $300 is what i live on as well. but i'm wondering how to take inflation into account. seems to me that it's currently something like 8% in india? so how to factor that into the equation? math was never my stong point but it seems to me that 100k @ 8% should give $666/ month. which would leave a small amount to leftover for a quick flight out. but then (people say) there is health care to think about when one gets older. any thoughts?

Jan 27th, 2006, 11:58	#4
lotus blossom re-member Join Date: Oct 2004 Location: revolving around the sun standing still Posts: 1,924	i have a hard time wrapping my brain around numbers, so am not sure how you've come up with your figures. my health care will be figuring in pancha karma treatment yearly, when in india. seasonal cleansing and rejuvenation is the best health insurance.

Jan 27th, 2006, 15:09	#5
Anders Maha Guru Member Join Date: Jun 2003 Location: England Posts: 630	In addition to inflation you have to think about taxes. If you with "live of interest payments" mean living off interest from bank account or bonds, after inflation and taxes I expect that you will be happy to break even and that is before you taken anything out to actually live on. Your idea is very much possible but google a bit on "early retirement" before telling your boss where he can put the job

Jan 27th, 2006, 17:29	#7
Anders Maha Guru Member Join Date: Jun 2003 Location: England Posts: 630	A very nice tax allowance, I will keep that in mind if I need a "residence" when I'm actually on the road But the OP here mentioned retiring in India. I would assume that means that he would be taxed in India on investment income and not in Canada if he follows the rules. There is of course the possibility to not follow the rules and hope that they never find out. Income from real estate could possibly be taxed in the country where it is actually located. Notice the words "assume", "possibly" etc. The only real way to know where something should be taxed is to read the double taxation agreement between the countries. I also have no idea what the tax rates are in India on investments.

Jan 30th, 2006, 13:13	#10
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,197	Yes, Yogagal, perfectly doable. In the same ball park as my finances. Don't expect that you will get luxury lifestyle on that but you'd live well enough.

Jan 30th, 2006, 13:24	#12
Ravibagal Member Join Date: Jul 2005 Location: India Posts: 83	Unless you have loads saved up you can forget about it. India will become more and more expensive for backpackers over the next 10 years so it is not possible to make long term plans. Also foreigners are a bit of a novelty here still but the WOW factor from the 80's is gone. You never can know how welcome you will be 5 years from now.

Jan 30th, 2006, 14:14	#13
cyberbaba All India Permit Join Date: Jan 2006 Location: Canada/ Mumbai Posts: 227	"Unless you have loads saved up you can forget about it." loads? you mean like millions and millions? beg to differ. "India will become more and more expensive for backpackers over the next 10 years so it is not possible to make long term plans." backpackers? who said anything about backpackers? let's see an nice interest generated income with inflation factored in... perfectly possible. "Also foreigners are a bit of a novelty here still but the WOW factor from the 80's is gone. You never can know how welcome you will be 5 years from now." wow factor? sir... are you running a fever? hard cash still speaks volumes, even in the "new india." as far as being well received, nothing like a c-note to put a smile on someones face jai hind!

Jan 30th, 2006, 14:57	#14
GoanCanuck Maha Guru Member Join Date: Oct 2004 Location: Vancouver Posts: 3,398	You will have to factor in fluctuations/changes in the Dollar---> Rupee conversion rate in addition to the interest available on your principal. You will also have to decide whether you want to keep the entire amount in Canada and make regular withdrawals or maybe keep a part of it in India.

Jan 30th, 2006, 15:32	#15
Anders Maha Guru Member Join Date: Jun 2003 Location: England Posts: 630	That surprised me so much that I had to go and look for it, Canada - India tax treaty

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