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What Is Best To Do For Parents Retirement

Discussion in 'Parents & Siblings' started by Mylifeatusa, Oct 23, 2018.

  1. Amulet

    Amulet IL Hall of Fame

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    FBAR (foreign bank account reporting) is a simple thing to do for people who need to file US tax returns. Not a serious concern so long as the foreign account is in cash, or shares and not "passive investments", such as mutual funds.

    Avoid foreign MUTUAL FUNDS. The US tax reporting for such things is quite hairy scary. Google search the phrase "PFIC reporting", and you'd be suitably warned to keep off such things. PFIC stands for passive foreign investment company. When investing in Indian Mutual Funds, make sure that it is not in the name of the US-tax filer.
    Passive foreign investment company - Wikipedia
    Good luck, and good saving.
     
    shravs3 likes this.
  2. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

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    That’s what I used to think but there are Indian MFs not called MFs that don’t fall into the pfic category. It should be in that massive amount of data available in the forums I shared. I won’t delve into details as I don’t think I’m qualified enough to advice on the subject.
    There are a lot of US/India fund advisors in India and US making money out of people like me who can’t do this ourselves. That’s a good idea if in the future the India assets gain in value.
     
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  3. Amulet

    Amulet IL Hall of Fame

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    Yes that is true. US Tax reporting is the responsibility of the US tax filer, or her agent. The investment advisors in India do not step into that and sell that service. In any case, there are very few simple primers on the matter, including how a MF is not a MF.
    Here is one that makes a slanting attempt to explain: PFIC Excess Distribution Calculation Example and IRS Form 8621
     
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  4. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

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    Business opportunity no? People who lived in the US for ages and moved to india for filter kaapi and retirement should think about this avenue of business.

    Thanks, no it isn't getting into the grey matter. I'm always confused and am still there in the twilight zone.
     
  5. Amulet

    Amulet IL Hall of Fame

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    Hahaha.... that filter-kaapi, dosa, and music-season would be the equivalent to be used in a phrase like... "not for all the Tea in China", especially for a person retired on a whopping big US pension/investment income, and struggling to spend down.

    NOOOO.... I didn't mean that you should inflict that on yourself right away.
     
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  6. Benadryl

    Benadryl Silver IL'ite

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    I would have thought, one plans for retirement much earlier than hitting 50s.

    If diabetes is controlled, there is nothing stopping him from farming until he wants to. Diabetes doesn't mean end of physical labour.

    Also, aren't farmers getting all their loans waived off all the time ? I am not having a dig at you, but I used to work with a guy whose father was a farmer and every year he used to buy a new car - reason - take loan in the pretext of farming and enjoy life. Next gov is going to wave off loans anyway.

    Couldn't this be used to increase savings for retirement ?
     

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