FOR NON RESIDENT INDIANS (NRIs)
I trust young NRIs to make a very positive contribution in my mission and contribute to the cause and hence this effort to include them and their needs. NRIs , with their educational qualifications, better jobs and incomes and good saving habits , desire to see India developed and the world a better place to live in. Many of them will like the concept of Financial Freedom Community and will help the community grow and prosper.
Basic concept of Financial Freedom and the process of Financial Planning are independent of your nationality. You have certain advantages and disadvantages due to your migration and need to take these into consideration while planning your life and Financial Freedom.
Advantages
1. Higher saving potential.
2. Better quality of life and education.
3. Lower interest rates for loans with longer duration like mortgages.
4. Flexibility to save in India or/and abroad.
5. Flexibility in acquiring assets both in India and abroad.
Disadvantages
1. Uncertainty about the future due to marriage, work permits, visa and
citizenship related issues.
2. More time required for taking decision on the future preference for staying in
India or abroad.
3. Concern for children’s future if they have a different citizenship by birth.
4. Foreign currency fluctuations and uncertainty about the future
5. Lower interest rates on savings
6. Unfamiliar with investments, difficulties in deciding about investing in India or
abroad or both.
Recommendations
1. First alone and later with your spouse discuss the purpose and vision of your
life.
2. Buy a house as early as possible if your stay abroad is likely to be more than
three years in one place
3. Buy a house in India where your family can look after it and manage it if not
living in it. Rent can repay loan and build an asset for you and give you an
option to stay there if you choose to return to India.
4. Open PPF accounts for all family members and save as much as possible up
to the limit of Rs. 70000/- per year.( See Provident Funds section on the site).
5. Save and build an emergency fund which is adequate to cater for four months
of your normal monthly expenditure and one return trip to India in case of any
emergency.
6. Contribute enough to get maximum benefits like employer’s contribution etc
and save taxes. Do not withdraw from these funds but invest them wisely and
monitor for long term benefits.
7. Invest in equity in India as there is no long term capital gains tax is India and
Depository Receipts of selected Indian Companies is a good option.
8. Avoid credit card debts or drawing cash on credit cards.