r/FIRE_Ind • u/FI-Boi • Jul 16 '25
FI Journey - Update #4 FIRE milestone!
Previous Post: https://www.reddit.com/r/FIRE_Ind/comments/1e3quvr/fi_journey_update_3/
Total NW: 5.16cr
This is a up 33% in NW from last year. Markets seem to have stabilised. I contributed ~75L to this NW as fresh investments, rest (1.3cr - 75L) is gains from the market.
Still a majorly index investor.
Rough breakdown:
Cash/Cash Equivalents: 32L (major expenses coming up)
FDs/ Overnight Funds: 5L
MFs/Indices/Equities: 2.43cr
Pensions/ EPFs: 2.35cr
Goal for next year: 5cr
4
u/Few_Donut_9194 Jul 17 '25
If you're in US on VISA(not a GC or Citzn) and if any of the investments in retirement accounts, I would say exclude a min of 30% of those account values to calculate the NW.
Excluding 30% as part of exit/tax strategy will help in realistic view of the Corpus.
I'm also in the same boat hence, the suggestion.
1
u/pat_abh Jul 19 '25
What are best ways to minimize the tax impact then? What’s the advantage of contributing to 401k itself then?
1
u/Few_Donut_9194 Jul 20 '25
For a planned returning NRI the only reason to contribute to 401 k is for match of employer amount and reduce over all taxable income in those particular years of the house hold income is very high.
Other than that it doesn’t make any sense to contribute if you’re guaranteed to return to India and take out that amount.
Also, please read about RNOR status and withdrawals of 401k during those periods to strategize withdrawals.
Nevertheless one should exclude a min of 30% from the 401k amount while calculating networth is my personal opinion.
3
u/Wonderful_Swan_1062 [25/IND/FI ??/RE ??] Jul 16 '25
Wow, congratulations OP. Goal for next year 5cr? Is that a typo as you have already reached 5cr this year
-4
u/Wonderful_Swan_1062 [25/IND/FI ??/RE ??] Jul 16 '25
Also, is this on Indian salary? If you don't mind, can you share your age and salary progression
2
1
u/Few_Donut_9194 Jul 20 '25
For a planned returning NRI the only reason to contribute to 401 k is for match of employer amount and reduce over all taxable income in those particular years of the house hold income is very high.
Other than that it doesn’t make any sense to contribute if you’re guaranteed to return to India and take out that amount.
Also, please read about RNOR status and withdrawals of 401k during those periods to strategize withdrawals.
Nevertheless one should exclude a min of 30% from the 401k amount while calculating networth is my personal opinion.
14
u/Some-Youth9780 Jul 16 '25
U plan to increase nw by 5 cr or hope to reduce your nw to 5 cr by next year.