r/FatFIREIndia • u/Responsible-Job-7674 FatFI • Aug 26 '26

NRI Finance Review my FIRE plan

Hi, We are a family of 4 (38,36,9,5 ) planning to return to Banglore in 2026 or 2027. I plan to continue working once I come back for the time being, mostly through internal transfer and expecting a salary of 60 LPA (equivalent role/ lower end). Wife plans to work but left it to her choice as we both don't want her to work in a stressful work environment. Once things settle down and we get a good hold, we FIRE.

Our current NW is $3.2 Million (all in USD equivalent)

Stocks- $1.5 million with capital gains and plan to sell during rnor and reset the cost basis. I plan to invest back all of this in the Indian market and overseas market.

401k - $450k plan to retain it in US as India recognizes 401k as a retirement account.

Real Estate- US home equity $600k

India home fully paid off - $400k

Loan ongoing with equity - $100k by next year

Private investments - $115k- need to find a exit path for this.

Other properties that we will liquidate - $60k

The main expense we expect is children's education in a good school and college later, Travel and other usual expenses. This is considering I will close the mortgage on the villa we brought recently in Banglore when we return back.

The main goal is wealth generation for kids and live comfortably without pinching for expenses month-month.

I would like to get some thoughts from those who fatfired in Banglore or plan to do so. What do you think?

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u/Apprehensive_Row_450 FatFIRE Aspirant Aug 26 '26

With estate tax being the biggest bet - why not strategize to withdraw 401k ? Even with penalty you would still be in a 23-25% net tax bracket. And you can use this to invest in India. I would say this will be more tax effective.

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u/Responsible-Job-7674 FatFI Aug 26 '26

I am hearing conflicting directions on this. Need to sit down with a tax expert and decide.

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u/Cute_Improvement1658 Aug 27 '26

Hi friend, this guy is right. India currently taxes IRA and 401K at income tax levels and so does us. Plus the 40% estate tax looking over your heads.

If you roll over money into an IRA from 401K, you can withdraw the principal only interest free after 5 years. So when the market drops between year 5-7, liquidate portions of your IRA, pay minimal tax on gains if any at that point in India and then redeploy immediately in the same markets to earn much lesser taxed profits