Hello All I want to hear from all of you what are best investment plans, saving tips, tax saving advices for indians like us who don't have plans to go back to India in near future. Please pour your advices .
Just I am giving my opinion.In HDFC and ICICI NRI Fixed Deposits giving good returns.9.25%intrest rate.
Thanks SriVen. If we want to make fixed deposit in Indian banks we have to convert our saving of NRI/NRO a/c into Rupees. Just in case if we want to invest in real estate in America we cannot convert rupees into dollar again right? Please advise. Thanks
IMO, Invest max allowed in 401k esp, if company matching is very good, tax benefit is huge. Your investment grows tax-free. IRA-traditional is next- investment grows tax-free. Then IRA-roth, this is after tax saving, but the growth can be taken out tax-free after 5yrs wait. IRA accounts can be managed by you, so that is good-no fund-fee, etc. also when you change job, transfer 401k to IRA-rollover, so that you can manage your money. then 529 plans. but 529 plans reduce the amount the child can get in financial aid. Buy a house as early as you can. It has good tax benefits too. when buying investment property, make LLC and claim expenses. Even if trading a lot of money from brokerage account outside retirement plans, do it in a LLC name than individual account.
Thanks Sriven. Is there any charge to convert from rupees to dollars? Can we get current market rate always? I never did so far thats why I am asking.
Hi Though banks in India like HDFC Bank might offer around 9.25% interest for 1 year deposit, you would be subjected to normal tax rate of 30.9%, thereby offering the net post-tax return of 6.39 percent p.a. On the other hand, if you invest in Debt Mutual Funds or Fixed Maturity Plans, you would be subjected to only 13.519% tax. Hence even if Debt Mutual Funds provide average 9.45% return, your post-tax return would be 8.17% p.a. Thus if you invest Rs 10 lacs in Bank FDs, you would effectively get Rs 63,917, while debt mutual funds would provide Rs 81,724 generating Rs 17,807 extra return. Further if you hold in debt mutual fund or in Fixed Maturity Plan for over 12 months spread across 2 financial years, you can also obtain double-indexation benefits that would make your post-tax return still more attractive. I would be happy to provide any further clarification as needed Thanks... Parameswari
