For those who came recently..

[AFC]

4 hours ago, Undilaemanchikalam said:

Just posting my thoughts.. since most of the folks coming from India are from middle class:

1. Please buy term life (35 years) it costs very less when you are below 25.

2. First thing you do after getting a job is take a loan and buy a house for parents. Believe me it gets very difficult later on after marriage.

Important: start putting money in your savings account for 6 months of emergency. Increase the amount as you see expenses grow:

3. Start putting money in 401 during your first job itself, even though you don’t plan to stay for long. 
4. before marriage buy a commercial property that gets decent rent, and it should take care of your parents for rest of their life. 
Important: remember this, the item that depreciates quicker, and faster is your car. Car should serve your purpose but not show who you are to the society. 

5. Buy a decent house here in US (don’t go beyond 2400 sq ft) and make sure to pay 20% down: 

6. Contribute to IRA and when you can, later it would be difficult. 

7. Invest in S&P index funds (5% of your salary). Never do individual stocks with out knowledge and experience.

8. Don’t force or influence your wife to work in the same industry or technology, you will regret later. Give her at least 2 years to explore. 
9. Plan for kids early, remember once women cross 30 it gets too complicated.

10. Buy a rental property and make sure there is a positive cash flow. 
11. Invest on kids education, basics are very important, make sure you send them to good day care or preschool at least for 2-3 years before kindergarten. 
12. buy an IUL (kids less than 10 years) or invest in 529 (kids greater than 10 years)

Important: plan a mini vacation with kids and family at least once in a year when younger kid turns 4. India trip every other year. 

13. Plan for place of retirement, if it is US and if retiring at <65 make sure to contribute to HSA. If India you don’t need too. 
14. Retire when your younger kid starts earning. This should be 58-60 (marry at 28-29, first kid at 30-32, second kid 34-35).

15. Withdraw no penalty money from 401 and Roth at 59.5. Spend good time with your wife in traveling and helping/supporting your kids to build their family. The maximum age an IT individual can survive is 75, which is 15 years post retirement, with house paid off, money from 401, Roth and SSN benefits it would be more than sufficient.

 

Sharing some friendly advice for those starting their careers, especially if you're from a middle-class background:
1. Consider getting a term life insurance (35 years) early; it's more affordable below age 25.
2. Invest in a home for your parents soon after landing a job; it becomes trickier after marriage.
3. Start an emergency fund in your savings account; adjust the amount as expenses increase.
4. Begin contributing to a 401(k) from your first job, even if you plan to move on later.
5. Prior to marriage, invest in a rental property providing stable income for your parents.
6. Be mindful of car expenses; it depreciates quickly, and its purpose is practical, not societal status.
7. Purchase a reasonable-sized house in the US (not exceeding 2400 sq ft) with a 20% down payment.
8. Contribute to an IRA early on, as it might become challenging later.
9. Allocate 5% of your salary to S&P index funds; avoid individual stocks without knowledge.
10. Allow your spouse to explore different industries; don't force her into your field.
11. Plan for children early, considering complexities increase after 30.
12. Invest in rental properties with positive cash flow and prioritize kids' education.
13. Plan mini-vacations and regular trips to India for family bonding.
14. Strategize retirement plans based on location, contributing to an HSA if retiring in the US before 65.
15. Retire when your youngest child starts earning, typically around 58-60, ensuring financial stability.

[Konebhar6]

5 hours ago, Undilaemanchikalam said:

Just posting my thoughts.. since most of the folks coming from India are from middle class:

1. Please buy term life (35 years) it costs very less when you are below 25.

2. First thing you do after getting a job is take a loan and buy a house for parents. Believe me it gets very difficult later on after marriage.

Important: start putting money in your savings account for 6 months of emergency. Increase the amount as you see expenses grow:

3. Start putting money in 401 during your first job itself, even though you don’t plan to stay for long. 
4. before marriage buy a commercial property that gets decent rent, and it should take care of your parents for rest of their life. 
Important: remember this, the item that depreciates quicker, and faster is your car. Car should serve your purpose but not show who you are to the society. 

5. Buy a decent house here in US (don’t go beyond 2400 sq ft) and make sure to pay 20% down: 

6. Contribute to IRA and when you can, later it would be difficult. 

7. Invest in S&P index funds (5% of your salary). Never do individual stocks with out knowledge and experience.

8. Don’t force or influence your wife to work in the same industry or technology, you will regret later. Give her at least 2 years to explore. 
9. Plan for kids early, remember once women cross 30 it gets too complicated.

10. Buy a rental property and make sure there is a positive cash flow. 
11. Invest on kids education, basics are very important, make sure you send them to good day care or preschool at least for 2-3 years before kindergarten. 
12. buy an IUL (kids less than 10 years) or invest in 529 (kids greater than 10 years)

Important: plan a mini vacation with kids and family at least once in a year when younger kid turns 4. India trip every other year. 

13. Plan for place of retirement, if it is US and if retiring at <65 make sure to contribute to HSA. If India you don’t need too. 
14. Retire when your younger kid starts earning. This should be 58-60 (marry at 28-29, first kid at 30-32, second kid 34-35).

15. Withdraw no penalty money from 401 and Roth at 59.5. Spend good time with your wife in traveling and helping/supporting your kids to build their family. The maximum age an IT individual can survive is 75, which is 15 years post retirement, with house paid off, money from 401, Roth and SSN benefits it would be more than sufficient.

 

Good points overall. Not possible to do all at once but one can do some of these based on their preferences. Very well written post.