Retire in India and live off interest payments?

cyberbaba

daw1205,

i always find it interesting to hear the old indian folks say things like "when a rupee was still worth a rupee."

a small glass bottle of coke these days will run you about 15 rupees. maybe when you were there it would cost 10 paisa?

before the 1991 currency revaluation. it's all relative. no?

crvlvr

it all the depends on the safety of the investment and the inflation of that country. These days, its more like 5-6% in India and 3-4% in the US.

sockeyeron

What an interesting thread!
I am going to India in March for six weeks and coincidently, I start drawing my Pension while there. Its reduced because I am taking it five years early but it would still cover the costs if I took over Nick's payments.

We are seriously considering selling our house in Vancouver before the 2010 Olympics here and with our pensions and equity from the house we could live quite comfortably in India or another south east Asian country for six months of the year.
I wish I hadn't seen this thread now.

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GoanCanuck

Very true. Higher rates of interest are available only if one is prepared to accept greater risk. Mutual funds give more than 10% returns but they can very easily give you -10% as well.
Playing the stock market of course is very risky although the rewards can be great.
You can get 9% guaranteed interest through the post office and certain banks in India but you have to be,
1) resident in India
2) over 60 years old

GoanCanuck

If your house is anywhere west of Main street in Vancouver, you should be able to get $700,000+ very easily. A guy who works with me sold his 3 bedroom condo for $700,000. He had purchased it for $380,000 just 5 years ago.

cyberbaba

"You can get 9% guaranteed interest through the post office and certain banks in India but you have to be,
1) resident in India
2) over 60 years old"

man... there has be a good deal happening around these parts. ie. canada.

come on folks lets hear them

GoanCanuck

Actually the price of coke/pepsi has not gone up that much in the last 25 years. I remember Coke(ThumsUp) was Rs 2 in 1981.

GoanCanuck

Here you go 4.65% is the highest available in Canada right now http://www.moneysense.ca/rates/gic_l...able/index.jsp

cyberbaba

"Here you go 4.65% is the highest available in Canada right now http://www.moneysense.ca/rates/gic_l...able/index.jsp"

right on. is there nothing else? bonds maybe?

India Edge

So, assuming one can manage it financially, what about visa requirements - does India permit indefinite or long term or permanent residency for non Indians?

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cyberbaba

"So, assuming one can manage it financially, what about visa requirements - does India permit indefinite or long term or permanent residency for non Indians?"

that can be found right here:

Buying Property/ X Visa

edwardseco

Keep in mind that foreign income comes in at a fairly high tax bracket. I got to watch someone suffer this while I was making a visit to the IT office in Pune..

GoanCanuck

You won't get 8% interest with bonds. You can try investing in a mortgage which theoretically can give you 9%-12% but this investment is risky.
You can lose your entire investment.
http://www.carevest.com/mic.htm

Nick-H

Those of us who have retired on a modest fixed capital sum need to have safety and security rather than high returns.

My question, which my numeracy doesn't even begin to know how to answer is....

Which is likely to be better: money in Rupees, with higher interest but higher inflation; or money in GB Pounds, with lower interest but lower inflation ??? Then there's the exchange rate ....My Brain Hurts!

I'd love to have an Excel spreadsheet to do comparisions (hint hint --- but my birthday is not until July).

Is there a web source of current Indian inflation rates?

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cyberbaba

"Which is likely to be better: money in Rupees, with higher interest but higher inflation; or money in GB Pounds, with lower interest but lower inflation ???"

now we are getting somewhere nick-h!

nice work on the links goancanuck!

i once heard about a government program/ plan where if you owned a home (paid for) and you were of a certain age you could start to draw money off of it, to do what you wanted with, until you died. then the govenment takes the house. anyone heard of this one?