Showing posts with label Return to India (R2I). Show all posts
Showing posts with label Return to India (R2I). Show all posts

Tuesday, March 2, 2010

R2I school admissions - FAQ

This blog post captures the most commonly asked questions regarding school admissions. The answers are based on my own personal experiences in finding a KG admission for my kid and based on the information that I gathered from friends/colleagues.  

Also read:  

Questions asked during KG interview in Schools
List of CBSE schools in Chennai
  • When do school admissions typically start?
School admissions typically start in the month of Oct for the next academic year. For example, if you want to put your kid(s) in school for the year 2011, you should start looking for admissions in Oct, 2010.
  • What is the ideal time of the year to R2I, to take care of kid's school admissions?
Schools begin their admissions at least 6 months before the academic year starts. So, you should plan your R2I accordingly.   (Also read: R2I checklist - 25 things to do)
  • Do I have to stand in a long queue for admissions?
No (most of the times). Schools do issue lots of application forms. In fact, the admission forms are distributed for 2 or 3 days in a row. Schools make good money out of application forms and so they don't hesitate to issue application forms to everyone.

However, there is a general perception that schools only shortlist people for interviews on a first come, first served basis. I was the applicant #5 for one of the schools in Chennai. However, they haven't called us yet for the interviews.

If you can afford to go early to beat the queue, you are very much encouraged to do so.
  • Can I get a seat for my kid in school, from being in US?
Technically you can book/block a seat for your kid in school, from being in US. You can get admissions easily in schools that are trying to establish.

If you are specifically looking for Tier-I or Tier-II schools (i.e., the most popular ones), the chances of getting a seat from being in US are very slim.
  • Do I need recommendation to get admission into a good school?
Yes. Based on my experience, recommendation from 'influential' people go a long way.

The law of supply & demand comes into play, when it comes to school admissions. If there are too many contenders for a fixed number of school seats, the most influential ones would be given higher preference.
  • Do all schools demand donation?
Yes ... in some form or the other. For example, some schools get the donation in the form of "Admission Fee" or "School Development Fund"
  • Do I have to pay the donation amount in cash or check?
Different schools have different practice. Some expect the donation amount to be paid in cash and others accept a check from you.
  • What are some of the fees charged by schools for admission?
One-Time

Donation or School Development Fund or Admission Fee (non refundable)
Caution or Security Deposit (refundable)

Recurring / Yearly Fee

School Tuition Fee
Cost of Books
Cost of School Uniforms

Optional (only when you use the infrastructure)

Transportation Charges
Boarding charges
Post-school hours day care
Extra-Curricular activities (Swimming, Tennis, Karate, Dance, Scouts etc.,)

Miscellaneous Fee (will go out of your pocket during the course of the academic year)

Picnic / Excursions
Participation in Exhibitions
Participation in Annual Day Celebrations
Inter School Competition Registration
Art Work / Project Work
  • How much does kid's education cost?
The cost of education drastically varies based on the school. It can be anywhere from Rs. 35,0000 per year to Rs.1,00,000 per year (irrespective of the standard/class to which you are admitting your kid). For example, the school in which I got admission for my daughter charges the same fee from Pre-KG to VII std. For classes from VIII - XII, there is an additional Rs.15,000 fee.

This amount does not include the donations. The donations can vary from Rs.25,000 to Rs.1,00,000.

(Note: These are prevailing schooling costs in Chennai as of 2010)

Also read: How much money do you need to R2I?
  • How easy is to get admission in a good school?
It is extremely difficult to get admission in good schools. You need to have recommendations from influential people to get admission in a good school. Money also goes a long way, in some of these schools. Your kid's interview performance alone doesn't decide the seat allotment.

You should be very aggressive to find the right contacts in/outside the school. Continuously ping the school administrators and show your interests. There are instances, where my friends/colleagues have to meet the school principal directly a few times, before getting a seat.
  • Who are some people that can provide recommendation for school admissions?
Teachers/Staff working in the same school
Parents of students who are studying in the same school for a long time
School's board members / trustees
Key politicians
Key educational board officials
Government officials higher-up in the rank

Note:
- There may be multiple people approaching the school with recommendations from the above set of people. Who influences the most will get a seat. For example, we got a recommendation letter from the P.A of Chief Minister with his own government stamp on it. The school authorities simply said that they have multiple recommendations from CM's P.As and they may not be able to honor them. Of course, we tried this after the admission results were published. If we had gotten a recommendation before the admission results were announced, we could've gotten a seat in the school

- If you are getting a recommendation letter from an XYZ IAS officer, and another  person is getting a recommendation from the IAS officer who approves educational grants, the latter would have more influence on the admission process
  • What is the recommended mode of communication with school authorities?
It is recommended to do in-person visits, if it is possible. The next mode of contact should be over the phone. Don't expect any cordial responses over the phone. The person who is attending the phone call would be very eager to disconnect (He/She may receive 10s/100s of such calls during the admission season. So, they may not be excited about patiently responding back to your queries)

Don't try to send emails to the email address given in the school's website. So, far I haven't received any responses to the emails sent to school's email address (even from popular schools such as Padma Seshadri Bala Bhavan (aka PSBB), and Chinmaya Vidyalaya)

  • Does the child's citizenship make any difference in the fee ? 
 No. The child's citizenship doesn't make any difference in the fee (at least, the schools that I talked to, didn't have any difference in fee for US citizens)

However, I would recommend you to check with the school administration - just in case, the school had a special fee structure for foreign students.

Also read:

Getting a KG admission in school - the math behind it
Questions asked during KG interview in Schools

Thursday, February 25, 2010

Getting KG admission for a kid in school - the math behind it

Getting admission for a kid in a good school in India, is very difficult. I underestimated the efforts involved to get an admission for kid in school.

Standing in long queues to get application form, filling application form religiously, submitting application on-time, preparing the kid rigorously for interactive sessions, and doing in-person interviews well - isn't just enough for getting admission into a good school, in India. I learned this lesson very late and my next few posts are going to be on this topic. Hopefully, others who Return to India (R2I) can learn from my mistakes.

Also Read:

Questions asked during KG interview in Schools
R2I school admissions - FAQ
List of CBSE schools in Chennai

Every school taught me something new. At the end, I think I figured out the math behind the KG admission process (or at least, I'm pretty close to the actual). Here is the approximate split-up of seat allotments to kids during KG admissions (PreKG or LKG, depending upon the entry level in that school)
  • Kids who have an elder sibling already studying in that school (50% of the seats, given)
In a school that has upto 12th grade, almost 50% of the PreKG (or LKG) seats get filled with the sibling of the children who already study there.

Let us take for example a school that has PreKG - 12th grade & one class/section per grade. The school would have 15 classes/sections in total (PreKG, LKG, UKG, and 1st - 12th grade). Let us assume that there are 50 kids studying in each class. So, in total ~750 kids would study in that school (15 grades * 50 kids per class). When the admissions start for Pre-KG, they would have ~50 open/available seats.

Let us assume that 1/5th of the school children have a younger sibling of 2.5 - 3 years age (i.e., ~150 students would have a younger sibling of 2.5 - 3 years age). To me, this is a very conservative assumption. If 1/3rd of them want to admit their younger sibling in the same school ~50 would look for a PreKG seat (i.e., 150 * 1/3) . 


So, theoretically speaking, majority of the Pre-KG seats would be alloted to younger sibling of children who are already studying in that school. I'm sure each school would have a quota of seats alloted to sibling of children who are already studying in that school. Even if the quota is 50%, 25 out of 50 seats would be allotted to the sibling of children who are already studying in that school.
  • Kids of teachers/staff working in the school (5% of the seats, given)

  • Kids who go with recommendations from teachers/staff working in that school  (10% of the seats, given)

  • Kids who go with recommendations from the school's board members/trustee (10% of the seats, given)

  • Kids who go with recommendations from key politicians / education & government officials (10% of the seats, given)

  • Kids whose parents are ready to offer a lot of donation to get a seat in the school (5% of the seats, given)

  • Kids who perform extremely well in the interviews / interactive sessions (10% of the seats, given)
** The distribution of the % of seats may vary across each of these categories, depending upon the school in which you are seeking admission. The above numbers are based on my hunch. So, it may not be an accurate representation.

Typically, these schools issue 1000s of application forms for ~Rs.200 each. At a minimum they'll earn Rs. 2 Lakhs by just issuing application forms. So, they don't hesitate to issue application forms. They'll even call everyone for interviews. They'll spend a few minutes with you and your kid. Finally, they would tell you "We'll call you and inform" or they'll publish the results and your kid's name wouldn't be there in the list. If you are really honest and trying to get admission without any influence - most likely you wouldn't get a seat for your kid.

Also read:

R2I Planning Guide - one stop shop
R2I school admissions - FAQ
List of CBSE schools in Chennai 

Sunday, February 14, 2010

R2I Planning Guide

This post consolidates rich information on various R2I topics such as R2I checklist, R2I reasons, 401K, Social Security, R2I Jobs/salaries, R2I schools and settling costs in India.

The objective of this post is to make it easier for you to find specific information on different R2I topics. Eventually, this post will evolve to become an "All you have to know about R2I" guide.

R2I checklist

R2I - 25 things to do / checklist
R2I Address Change - Checklist

401K

Should I participate in 401k? The answer is YES !
R2I - 401(k) closure FAQs
R2I - What to do with the 401(k) account?

Social Security

R2I - How can I get my Social Security benefits/money
How to apply for credit freeze during R2I?

R2I Reasons

100 reasons to Return to India (R2I)
10 reasons to return back to India

R2I Jobs

R2I Job Search - FAQ

How to search for R2I jobs?
Work environment in India - Then & Now
R2I - List of MNCs in Chennai

R2I Schools


R2I school admissions - FAQ
List of CBSE schools in Chennai 
Getting KG admission for a kid in school - the math behind it 
Questions asked during KG interview in Schools

R2I Salaries
 
10 tips for R2I salary negotiation
Cost to Company (CTC) - Peeling the Onion

R2I Legal Stuff

Green Card vs US Citizenship


R2I Essentials (including cost of living, things to buy, etc.,)

10 things to know if you are thinking of Returning
How much money do you need to R2I?
US to India Money Transfer Strategies

R2I - List of things to pack/bring from US

IP Phone - Magic Jack vs Vonage vs Skype
Goods in US market - lots of options & cheaper prices
Nilkamal's @home - Not designed for me

Post R2I

Things to take care of, after your R2I
Extending stay of PIO card holder

Monday, February 8, 2010

R2I Job Search - FAQ

One of the big-ticket items in R2I checklist is finding a job in India. Getting a job before your R2I is extremely important, especially when you don't have the luxury to take a short break or if you are the bread winner of the family.

This blog post is aimed at addressing the questions that you may have in finding your R2I job. I've developed it in FAQ format for easier reading (& for easier writing too ;-))

Is it really possible for me to find a job in India, when staying in US?

Yes

How many days before the R2I, should I look for a job in India?

You should start the R2I job search process at least 3 months before your R2I. A rough timeline is given below:

    - Preparing/polishing resume (1 week)
    - Shortlisting the companies and identifying the right contacts to circulate the resume (1 week)
    - Circulating the resume & the resume reaching hiring managers (1 or 2 weeks)
    - Scheduling/Conducting job interviews (2 - 3 weeks)
    - Announcing results and salary negotiation (1 week)

How do I start to look for a job in India, from US?

Read  How to search for R2I jobs?

Should I have to go to India for the interviews?

Most likely, NO (especially, if you are going through known contacts). 

However, if you happen to be in India (on a business/personal trip), a few months before your planned R2I - see if you can attend some interviews. It will make the whole process simpler and easier.

If the company you are interviewing for has a US division (or if it is headquartered in US), you'll be asked to fly/meet the people in US. Indian service companies do have lots of onsite co-ordinators in US. You can meet them, if you happen to be interviewing at Indian service companies. (Note: These things will happen in addition to the phone interviews you may have with folks in India)

Will people recruit me just by doing phone interviews?

Yes (especially, if you are going through known contacts). People give some credibility to your US work experience. For example, if you are with Cisco Systems for 4 years or so, people understand that Cisco might have done the due deligence before selecting you for the job. If the Indian firm is hiring for the same/similar work, they'll trust your skillls. Also, the person who referred you to the company/job (i.e., your reference) will have some weightage. 

What are some tips for resume preparation for R2I jobs?

When writing a resume, you need to take several things into consideration including whether you are sending your resume to the folks in US or to the folks in India. The type/format of the resume greatly varies based on your seniority, work experience, and the job/position to which you are applying for. You may even end-up having resumes in 2 or 3 different formats, for the different roles that you are applying for. In India, your technical knowledge/exposure goes a very long way. Most of the folks in India who are above 4 or 5 years of experience, jump into management roles. Hence, it is very hard to find technology experts. Having been in US for quite sometime, you'll definitely have a lead over such folks. Your resume should highlight your technology exposure AND leadership skills (even though you are looking for just managerial jobs in India).

How do I find the right contact/reference for R2I jobs?

LinkedIn will help you to find the right contact in companies for which you want to apply. You may not be directly connected to someone within the company. Get your direct contact to refer you to your higher level contacts until you reach the person who works for "that" company. (Also read: How to search for R2I jobs)

(I'll continue to update this list - as and when I get new questions)

Also read:

R2I - List of MNCs in Chennai
Work environment in India - Then & Now 
10 tips for R2I salary negotiation
Chennai Freshers Jobs

Sunday, February 7, 2010

How to search and find R2I jobs?


Are you planning to R2I and looking for a job in India? Have you tried posting your resume to all the job boards and haven't gotten a response, yet? Are you worried that you may have to return to India without a job?

R2I job searches typically take a longer time and hence it is recommended to start your job search at least 3 months before your R2I.
Here are some tips for you to do your R2I job hunt.

(Also read: R2I Job Search - FAQ)
  • If your employer has an offshore division, check with your employer if they can do an internal transfer. Internal transfers typically get you an attractive pay package.
  • Post your resume in Job boards such as Monsters/Hotjobs/Dice. Normally, R2I jobs are not 'advertised'. So, if you are looking for R2I jobs in job boards, you wouldn't be finding them. But, it is highly recommended to post your resume in all the job boards - just in case, if someone is looking for an R2I person in the job boards.
  • Talk to your friends whose employer has an 'offshore' division. Several IT companies such as Cisco, Juniper, Microsoft, eBay and Alcatel have offshore divisions. Your friends may be able to help you identify units in India that are aggressively hiring. If somebody is trying to 'aggressively' fill positions in India, they'll definitely be willing to hire you from US. (Also read: R2I - List of MNCs in Chennai)
  • Talk to your friends who work for Indian firms (such as HCL, Wipro, and Infosys). There are some Indian firms that look for 'technology experts' with good US experience - mostly when they are trying to form/build a new team for a US client. Such companies will be more willing to hire a person from US, directly.
  • Look for startups in US that have an Indian arm. Start-ups typically go out of the way to hire/retain talent. So, if there is a relevance/match of your skills with what they expect, you'll be hired. 
  • Circulate your resume to all your friends & acquaintances (i.e., alumni and buddy mailing lists).
  • Drop a note in R2IClubForums and find out if any company has open R2I jobs.
  • Make use of the social network. Update your Facebook/LinkedIn/Orkut/Twitter/Skype status and let your contacts know that you are planning to R2I and you are looking for a job. Someone may pop-up and say, "Hey! We are looking for an R2I person. Will you be interested?".
    At the end, do not leave any door unopened. Remember, "If you don't ask, the answer is always NO".

    Also read:


    Work environment in India - Then & Now 
    10 tips for R2I salary negotiation 

    Advertisement: Visit www.jobsinchennai.co to find jobs in chennai

    Thursday, February 4, 2010

    Cost to Company (CTC) - Peeling the Onion



    If you are planning your R2I and looking for a job in India, you need to have a good understanding of Cost-to-Company (CTC). CTC is the total money that company gives you - in some form or the other. If you expect your monthly salary to be (CTC/12 - appropriate tax deductions) you are going to be wrong ! The reality is - your monthly pay check will be way less than that.

    Now, what is included in CTC? How do you calculate CTC? Is CTC formula common across all the organizations? You'll find answers to these questions and many more in this blog post.


    The following are some of the things that are typically included in your CTC.
    •     Basic Pay
    •     House Rent Allowance (HRA)
    •     Dearness Allowance (DA)
    •     Conveyance allowance
    •     Medical allowance
    •     Leave Travel Allowance or Concession (LTA / LTC)
    •     Telephone / Mobile Phone Allowance
    •     Incentives or bonuses
    •     Special Allowance
    •     Company’s contribution to Provident Fund (PF)
    •     Reimbursements (Medical Bills, Phone bills, magazine subscriptions)
    •     Life Insurance
    •     Health insurance
    There are various tax exemptions that the government provides for many of these items. For example, you are eligible for tax exemptions for the HRA (if you are renting a home or if you have got a home loan to pay off.  All you need to do is just produce bills/proof.

    The concept of CTC is very prevalent in India. However, the components of CTC vary from one company to the other. There is no common formula to calculate CTC. It is typically the SUM of all the promises that your company makes to you in-terms of payments/benefits.

    It is perfectly fine to ask the HR person "How much would be my monthly take home salary". The HR person may give you a honest/straight-forward answer or a wishy-washy response. If he/she gives you a 'wishy-washy response', you can probe further to understand your REAL monthly take home salary.

    Whenever your employer says that your CTC is "so much" - ask for a split-up. The split-up should give you an idea of how much you would get in your monthly pay check. Don't feel shy to peel the onion. When it comes to understanding your CTC, you'll cry if you don't peel the onion at the right time.

    Also read:

    10 tips for R2I salary negotiation
    How much money is needed to R2I

    Tuesday, February 2, 2010

    100 reasons to Return to India (R2I)

    Are you thinking of Returning to India (R2I)? You are finding it difficult to make an R2I decision? Your logical mind couldn't come up with enough reasons to R2I? You are not sure about how much India has changed since you left to US? Thoughts about your kids' future & the quality of life in India is stopping you from making an R2I decision? Don't worry ! I bet, you'll find answers to most of your questions/concerns in this blog post.

    The objective of this blog post is not to motivate/force you to return back to India. But, if you have been contemplating about R2I for a while & couldn't make up your mind because of the lack of enough data points/reasons - this blog post is exactly for YOU. If you want to know the reasons for returning to India (R2I) - you can find them here. If you are wondering whether you should stay in US or move to India, this is the post for YOU.

    Also read:
    Returning back to India - 25 things to do
    R2I - List of things to pack/bring from US 
    10 things to consider before you decide to R2I

    Quality of Life

    1) There are lots of good options for entertainment - theme parks, movie theatres, shopping complexes & multiplexes. The multiplexes have options for movies, entertainment, shopping, dining, etc., You can kill the whole day in some of these multiplexes.

    2) There is a REAL social life. Life is not very mechanical here. You get to meet friends/relatives quite often in weddings, engagements or other parties.

    3) You don't have to 'plan your visit' to your friend's or relative's place. You can just show up without fixing appointments.

    4) Your favorite Volkswagen, BMW, Mercedes, Honda/Toyota, & Ford are now available in India and they're very common. If you drive a  Ford Icon or a Honda City, people don't stare at you anymore.

    5) Even groceries/vegetables are delivered at your home for no extra cost. Almost everything is sold or delivered to you at your door steps. You can call the nearby grocery shop and ask them to bring stuff to your home.

    6) You can book train/flight or bus tickets over the web (http://www.irctc.co.in, http://www.redbus.co.in/). You don't have to call your travel agent, anymore. You can even look for real estate, rental properties online !

    7) Many mundane tasks such as paying bills, government transactions etc., are available online. (I love IRCTC.CO.IN)

    8) Though the price of goods/commodities in India are highly inflated, things are still very affordable in India when compared to US.

    9) India has a very good public transport system. Man, I love it. Yes, the buses and trains are crowded. But, if you have to go somewhere they're AVAILABLE for you. There are lots of options including trains, buses, cabs, autos, & (my favorite) share autos.

    10) Auto rickshaws are available throughout the city. The auto owners/cab owners have become high tech. They all own a mobile phone. You can just give them a call and they'll be at your door in a few minutes.

    11) There are number of public parks that are maintained well. All such parks have play structures for kids. Of course, you cannot compare with what you can get in US. At the same time, you are not settling for less in India. (Also read: Mahabalipuram, Muttukadu & Crocodile Park visit)

    12) All "hi-tech" gadgets such as iPods, iPhones, Wii, laptops/netbooks etc., are available in India.

    13) You can do financial transactions such as banking/stock-trading/fund-transfers etc., online. You don't have to call your broker or visit a bank to do 'common' transactions.

    14) There are ATMs available everywhere. There is no charge involved for using other bank's ATMs (You can do up to 5 transactions per month in other bank's ATMs).

    15) People don't care about what you wear, anymore. Girls wearing skirts, T-shirts, sleeveless or tight dresses is so common, now a days.

    16) You don't have to look for down towns to buy things for your family. There is all kinds of stores/shops available close to the community where you live.

    17) You don't have to worry about paying huge costs for medical services. Medical insurance is getting popular in India. Most of the employers take care of your medical bills through medical insurance.

    18) There are toastmasters clubs available in different parts of India. If you have been part of them in US, you can continue your membership in India.

    19) Mobile phones are available everywhere. People in India are highly accessible at all the times. You can walk into a roadside shop to buy a pre-paid card and you have to just pay for what you USE. Signal coverage is awesome & cost of a call is very cheap.

    20) There are fitness centers (gyms) in all the residential communities. Also, there are fitness centers/tennis courts/swimming pools, that are open for memberships, in almost every area. Builders today are focusing more on the extra amenities available in the residential communities.

    21) You don't have to call/disturb your friend during the middle of his/her work to drop or pick you up from some place (especially, when you are giving your vehicle for service). You can use the inexpensive public transportation options.

    22) It would be hard to lead a 'luxurious' life in US. However, if you earn sufficient money in US, you can definitely lead a  'luxurious' life in India. The cost of living has definitely gone up. But, you'll feel the benefit of 1 USD = INR 45. (Also read: How much money do you need to R2I?)


    23) Home-makers/House wife will not be "bored" at home, in India. They can soon find friends in the neighborhood/communities. Women in India have greater flexibility these days to go out and be on their own. Women also enjoy a lot more freedom and they are treated on-par with men. 

    Kids

    24) Kids don't have to be in day care. They can spend time with their grand parents, at home.

    25) Education in India is affordable (compare it to the $1000+ you pay in US every month for schools).

    26) There are lots of good schools (including international schools) in India providing high quality education.

    27) Schools in India are not just focusing only on 'academics' these days. For example, my daughter attending pre-KG in a local nursery school, gets to do lots of coloring, art work, physical exercises, and they're teaching stuff like Sanskrit verses/GK etc., Imagine what would a 5th grade or 10th grade student would get to do.

    28) It is very easy for kids to get spoiled in U.S, when they reach their adult hood. They get involved in dangerous habits such as smoking, drugs, early sex etc.,

    29) Indian environment is highly competitive and that can bring the best out of your kid. The whole world acknowledges the fact that Indian kids are 'smart'. The credit goes to our culture, value system, education, competitive society etc.,

    30) In India, kids get to learn more about religious values (by visiting temples often, participating in festivals/functions, hearing about ancient 'good over evil' stories & moral stories from schools/elders, etc.,). This definitely helps in shaping up their character.

    31) There are stores that sell items for new born & toys for kids. Almost all the toys that you buy in US for kids are available in India.

    32) Kids will develop a high immunity system, if brought-up in India.

    33) Kids brought up in India will know the importance of 'taking care of parents, when the parents get old'. You don't have to spend your "last few years" alone or in senior citizens care center (i.e., old age homes).
    When you show utmost importance/care to your parents, you'll kids will learn from your gesture.

    34) When your kids grow in US, they'll will pick up American accent. The grand parents/relatives in India may not be able to understand them. Also, the kids may not like to talk to grand parents.

    35) In US, kids get addicted to all the electronic gadgets & gizmos. This is not good for your kid's health/mind.

    36) If you return back to India during your kid's early childhood days (preferably, before he/she goes to school), it is easy for him/her to get accustomed to the things in India, . If your kids are very young, it makes more sense for you to return back now.

    37) You don't want your kid to get married to a non-Indian (say, Chinese or American), when they grow up.

    Personal Reasons

    38) Your parents in India are already very old.

    39) Your parent(s) in India, are sick and need your assistance. (Also read: Chikungunya - Deadly !)

    40) You have a single parent and you need to take care of him/her

    41) Your parents have been pestering you to come back to India for a while now.

    42) Your spouse has a good education/degree, but cannot work in US because he/she doesn't have an IT background. Your spouse continues to be a home maker and is always bored at home. Your spouse wants to come back to India and settle down.

    43) It is tough to find a bride from India, if you are a bachelor working in US. The craze about 'US based bridegrooms' is gone.

    Convenience / Good Support System

    44) You can hire someone to do your household work at a reasonable price.

    45) You don't have to drive your car. You can employ someone as driver. It is not even imaginable in US.

    46) Elders (Grand parents) are there to take care of the kids (giving them bath, dressing them up, feeding them, telling them interesting stories, putting them to sleep etc.,)

    47) Gone are those days, where you have to go to banks to open an account or apply for a credit/debit card. All such services are provided at your door steps. You've to just make a phone call. They'll even fill the forms for you.

    48) Service reps knock your door to sell Telephone/Internet/TV connections. You have a lot of options when it comes to choosing your Telephone/Internet/TV service providers. The prices are very competitive.

    49) Doctors/Hospitals are available at 'walkable' distance from your home. For Rs.100, you get treatment for general illness such as cough, cold, stomach upset etc.,

    50) Plumbers, Electricians, Movers, Construction workers etc., are abundant. You can get any construction/repair work done in no time. (People who own a house in US, can understand the importance of this)

    51) You don't have to take your car for a car wash, every month. You can get people who'll do car wash at your home on a daily/weekly basis.

    52) Every service provider (TV, Internet, Phone, etc.,) has a decent customer support system/infrastructure in place. You can call and talk to a customer service representative 24 x 7. There are also facilities to file complaints & escalate them online, if required.

    53) There are people/services available to take care of all your needs. Have you heard about service/help desks such as Service Square

    Tangibles & some cool benefits

    54) People don't look down on you because you returned back from US. People appreciate the fact that you care for your parents/family/society/country/people.

    55) People come to you for advise on important things (such as which Engineering courses to take, how to prepare for job interviews, how is the present IT climate etc.,). They value your experience.

    56) If you've already got your US Citizenship, it is well & good. This is the right time to return back to India. You don't have to worry about yearly trips to US, to retain your residency.

    57) If you are a visa holder & if your visa is about to expire, this is the excellent time to return back to India. You won't have the option of going back to US (unless you wait for another year and get a new L1/H1B).

    58) If you are a GC holder, I pity you. You'll be caught in a dilemma whether to return back or not. However, think about the reason which prompted you to go to US. Most likely, you would've gone to US to earn money. If you had met that objective, it is time for you to return back. Also, if you return back as a "liaison" for a US company, you will have an option to make frequent trips to US. You can meet the criteria for '6 months stay' in US, every year.

    59) If most of your assets/investments are in India, you should return back to manage/enjoy those assets/investments.

    60) It is easy for you to get caught into the "n+1"th year syndrome. You'll keep postponing your decision for several years until you reach a point where you or your family can't return back to India. So, if you are contemplating about returning back, you should do it NOW.

    61) In India, When you or your spouse/kid is sick, there will be enough people (family members/relatives/neighbors) to take care of/support you. In US, you've to fully rely on your friends for help/support.

    62) If your goal is to earn "unlimited" amount of money, there is no end to the need for more money. Think of your life style a few years ago. With the money that you have today, you can definitely lead a better life in India. Many of us go to US to earn money. So, if you have made good sum of money, it is a good time to return back. (Also read: How much money do you need to R2I?)


    63) There are lots of festivals/functions throughout the year.  Pongal/Sankaranthi, Diwali, Ramzan, Christmas etc., are celebrated in a special way. You get the joy of a real celebration of festivals only in India.

    64) You would've visited a number of places in US. But, you might not have seen all the different tourist places in India. Moving to India would give you enough time to visit different places in India. You can get to learn more about India's rich culture & heritage, by traveling across different states.

    65) In India, you can extend the life of several items that you use on a day to day basis. For example, you don't have to throw away shoes/clothes, because the stitches have come-off. People at road side shops will do the repair for you. There are shops that will do repair of electronic/electrical items at a very reasonable price.

    66) Yes, Indian roads are congested. But, if you are used to long commutes in US, it wouldn't be a big issue. In US, you've to really start from home at 7 (or before) if you want to beat the traffic. In India, you can start by 8 to beat the traffic. Hey! you get an hour of extra sleep. In the worst case, you can even go to work by 10.30 or 11.00 am. People don't expect you to be at work, so early.

    67) In India, you don't have to carry a lip guard with you all the time. You don't have to wear shoes all the time (Wearing slippers are so common). You don't have to wear thick dresses, all the times. It is always "summer" in India.

    68) You don't need maps or GPS when you are traveling on the Indian roads. You can pull over your car to a petrol bunk or a road-side shop to get driving directions.

    Work

    69) There are number of budding start-ups & MNCs in India. You'll have more options now, in addition to the standard service companies (TCS, Infosys & Wipro). (Also read: R2I - List of MNCs in Chennai  Cost to Company (CTC) - Peeling the Onion)

    70) In the past, only maintenance work is done out of India. Today, there is lots of product development activities being offshored to India. If you are passionate about hard core product development, you can now do it from India.

    71) The pay in India is really good. Of course, the pay scale cannot match what you can earn in US. However, it is more than enough to lead a luxurious life in India. (Also read: 10 Tips for Return to India (R2I) Salary Negotiation)

    72) In US, you cannot lead a comfortable family life with a single pay check, after some point. Both the husband & wife have to work to run the family. Otherwise, you won't be able to save much.

    73) Indian work environment is getting more westernized. Though there are some managers who still breath down your neck, it is NOT so common, these days. (Even in US, if you are reporting to Asian managers, they micro manage you. Most of the managers in US are Asians, anyway. So, why care about micro management when you are in India!?)

    74) If you are returning from US to India, you can really get a very good designation.

    75) You don't get the feeling of 'loneliness' at work. Shared cubicles make it very easy to interact with other folks.

    76) You don't have to walk to the cafeteria to get a drink/coffee/snack. In many offices, it is served at your cubicle.

    77) You can easily impress everyone at work by your ability to communicate well (Thanks to the exposure that US gave you).

    78) Having been in US for sometime, you'll have the "full product development" exposure. This will significantly increase your value & dependency at the work place.

    79) You can easily take a break in India and kick-start your own venture. You'll have an opportunity to test your entrepreneurial skills (Note: Leading a life in US, without monthly pay checks is tough. If you have earned decent money in US, you can easily lead a life without pay checks, in India). If you want to take an early retirement to do the things that you are passionate about, you should consider R2I.

    80) You can freely switch jobs from one company to the other. You don't have to be worried about your legal status or visa transfers.

    81) The concept of 'being a consultant' to an IT company is getting popular these days. If you like, some companies offer short-term work opportunities too. There are a few companies that allow you to work just for 4 hours per day.

    82) Many companies have infrastructure to let employees work from home (which was unimaginable, a decade ago)

    83) If you are on a work permit visa & you lost your job & you couldn't find one for a long time now & your family is dependent on your pay check - You cannot legally stay in US & you should return back to India.

    (Also read: Work environment in India - Then & Now)

    Finance

    84) India is growing at a tremendous pace. You can get high returns from both stock market & real estate, for your investments. Long term capital gains from stocks aren't taxed in India. If you keep your stocks for more than a year, you don't have to pay any tax. (Also read, Stock Trading Lessons)

    85) There is lots of options when it comes to medical treatment. Homeopathy/Ayurvedic treatments are quite popular in India. You can get treatment for 'severe/serious issues, at a very affordable cost. In fact, many westerners are coming to India for 'affordable treatment', these days.

    86) Making yearly trips to India from US, becomes unaffordable & not economically feasible, when the family size grows.

    Food

    87) Your favorite KFCs, Subways, & McDonalds restaurants are now available in several places in India. You won't miss them, here.

    88) There are lots of good RESTAURANTS. There is a wide range of dining options - starting from the road side trucks to revolving restaurants. Having been in US for quite sometime, it feels so good to taste authentic Indian food.

    89) You get a wide range of fruits & vegetables in India. Moreover, they're very fresh and tasty. They're not imported & not genetically modified. If you are a vegan, you can even get milk substitutes such as 'calcium enriched Soymilk'. In fact, soymilk in India comes in a variety of flavors.

    90) Non-vegetarians will have lots of choice, too. Sea food is sold very fresh at your door steps. You can get fresh meat/chicken from a nearby shop (You don't have to eat frozen meat, anymore!!). Also, you can get a lot of spices for cooking your non-vegetarian dishes. In US, it is hard to find lots of spices that are commonly available in India.

    91) When you go to a grocery shop, you don't have to know/remember the 'English' name for a Indian grocery item. By the way, all the grocery chains sell unadulterated & neatly packed groceries. You can go around the shop with a cart and pick the items that you want. You'll have the same shopping experience that you had in US. Of course, the stores in India are smaller.

    Reasons close to heart

    92) You get to live with your parents/family. My (& my wife's) parents are very happy that we are back. They feel more confident these days & I could see happiness on their face. They worked very hard & spent years in making our life successful. We can never pay them back in entirety. But, being with them during their old age is a small contribution that we can make. Let me share with you an incident. After my return, I had once visited the parents of my friend (My friend is in US). I could literally see tear on their eyes, when they said "I'm not sure if my son/daughter (masking the gender, intentionally) would return back. The more years pass by, it is getting more uncertain. But, you made a very good decision to return back! I'm happy for you and your parents". I couldn't control my tears as well. I didn't know how to console them. You can understand how much impact the R2I decision creates, on the parents.

    93) Our government/society played a significant role in shaping us & our life. We are what we are because of our society and the contribution of our schools, colleges, teachers, and friends. Isn't it time for us to return that favor back?

    94) We are so lucky to have got the opportunity to travel across borders... to explore the unknowns and earn a lot of wealth/fame. Shouldn't we provide the same opportunity to others also? Shouldn't we train the folks in India to be competent?

    95) You've seen how things are in U.S. You have now got an opportunity to improve things in India.

    96) Go back in time and recollect why you went to U.S, in the first place? Were your goals achieved? If so, you should consider returning back to India. There is never a perfect/ideal time to return back. So, don't procrastinate. Tomorrow never comes.

    97) Constant feeling of getting to the roots in India. Feeling guilty about postponing your R2I decision?

    98) Are you always feeling "alienated", in US? You couldn't completely get accustomed to the culture/people etc., in US? Neither able to lead an 'American' life nor able to lead an 'Indian' life. It is not just you, your kids may also have the same problem when they grow up.

    99) You feel that your life in US has become so "mechanical" or "monotonous". You desperately want a change in your life. You want a break in your career.

    100) India needs educated & smart people like you. We have complained about the infrastructure, people, politics and policies in India for several years. What are we doing to fix those issues? We are the 'cream' of India. Shouldn't we put your competency to best use in India?

    _________________________________________________________________________________________

    This is accurate to the best of my knowledge, at the time of writing. I haven't made any efforts to cross check some of my conclusions/assumptions.

    I'll put my best effort in keeping this uptodate. However, please double check the latest policies/procedures before making your decision to R2I. I'm not legally responsible for your decision to R2I and the outcomes of it.

    If this blog post gave you enough ammunition to your R2I decision, then I've met my objective.

    Wishing you all the best with your R2I !!

    Also read:

    Returning back to India - 25 things to do
    R2I - List of things to pack/bring from US 
    10 things to consider before you decide to R2I

    Sunday, December 27, 2009

    IP Phone - Magic Jack vs Vonage vs Skype

    When I decided to R2I, carrying an IP phone to India was one of the important things that I had in my R2I planning list. I wanted to stay in touch with my friends in US & be contactable from US. I wanted to carry something that is 'Always ON', so that I can make and receive calls anytime. So, I decided to get an IP Phone connection with US number.

    Many of my friends, suggested to buy a Magic Jack, because it was cheap (just $40 for the first year & $20 for subsequent renewals). However, I was not very excited about that option because I've to connect the phone to the computer & the computer has to be kept ON, always. Also, Magic Jack has an upper limit on the total number of hours that you can use in a calendar year (A few of my colleagues used Magic Jack for about 6 months and their services were de-activated due to excess usage - I'm not sure about the 'actual' limit). Also, Magic Jack doesn't provide you an incoming phone number. So, you cannot receive incoming calls. One advantage of using Magic Jack is that you can use your regular phone for making calls using the 'Magic Jack'. You don't have to buy a new phone.

    Vonage service is good - the only drawback is that you've to be on a hefty monthly plan, irrespective of whether you use the service or not (approx. $20 every month, which is $240 for the whole year).

    I decided to go for the Skype phone service. I bought a Skype Belkin Phone ($80) & signed up for SkypeIn Service (this provides a US phone number for $30) & SkypeOut Calling Plan ($3 every month). They provide 10,000 minutes of talk time, every month (which is more than enough for me). Every year, I had to pay approx $66 for Skype. Also, the voice quality is excellent. So far, I don't have any issues with the Skype Phone Service.

    Note:

    The Internet connection in India is at times, very unreliable (unlike US). Hence, any IP based phone connection cannot be guaranteed to work 100% of the times.

    Also read:
    R2I - 25 things to do / checklist
    R2I - List of things to pack/bring from US

    Friday, November 27, 2009

    R2I - List of MNCs in Chennai

    Are you planning to R2I and looking for a job in Chennai?  Wondering what are some MNCs/Product companies in Chennai? I've made an attempt to compile the list of MNCs/Product companies in Chennai (includes hardware as well as software companies). Hopefully this will help folks who are planning their R2I to Chennai and looking for a job.

    Also read: 10 tips for R2I salary negotiation 
    1. Alcatel (AlcaLu)
    2. Amazon
    3. Adobe (formerly Efficient Frontier - careers section will list Chennai Jobs)
    4. Aruba (now, acquired by HP) 
    5. Ballys Technologies 
    6. Bank of America / BA Continuum (Ascendas Tech Park, Taramani)
    7. Cisco/Scientific Atlanta 
    8. Cavium Networks 
    9. eBay/PayPal (No 334 Futura IT Park Block A, Old Mahabalipuram Road, Sholinganallur, Chennai - 600119) +(91)-(44)-66348001 begin_of_the_skype_highlighting              +(91)-(44)-66348001      end_of_the_skype_highlighting, 66348000)
    10. Force10 Networks  (now Dell)
    11. GigaMon
    12. Ericsson
    13. Extreme Networks
    14. IBM  
    15. KLA Tencor
    16. Oracle
    17. Qualcomm (formerly Atheros)
    18. The Fabric Startups (for ex., Velocloud & Pensa Networks)
    19. Solar Winds 
    20. Symantec 
    21. Verizon (Olympia Tech Park, Citius, Block B, 3rd Floor, 1, Sidco Industrial Estate Guindy, Chennai, Ph: 044 43945142) - doing OSS/BSS work
    22. ZOHO (formerly AdventNet)
    The following are some MNCs in the Engineering / Construction domain:
    1. Caterpillar
    2. DOW Chemicals
    3. Petrofac
    4. Foster Wheeler (acquired by AMEC)
    5. Saipem
    Naukri maintains a list of 150 software/IT companies in Chennai. However, most of them are Mom 'n Pop type companies.

    (Note: This list is not complete. If you happen to know about other product companies/MNCs, please drop me a note)

    Related Posts:

    Sunday, November 1, 2009

    Should I participate in 401k? The answer is YES !

    Should I participate in 401k? This is the BIG question that lingered in my mind for several years, before I decided to contribute towards 401k. For many years, I was thinking that 401k is for people who wants to 'settle down' in US. Also, I thought only Green Card holders or US citizens can participate in the 401k program. I didn't realize that even folks working in H1B visa can participate in 401k. Later, I repented that I should've participated in 401k, much earlier. If you are incognizant to the benefits of participating in 401k program, this blog post is for YOU.

    I went from India to work for a start up company in US. They didn't have any 401k plan at all. After a few years, they introduced 401k plan - however, there was no employer contribution. So, I didn't pay much attention to 401k, when it was introduced in my startup. It was during my 5th year, I realized that 401k is WEALTH, irrespective of whether you're carrying that to your retirement or have to close in-between, due to your Return to India (R2I). The company that I joined during my 5th year had an 'employer match' for the 401k contributions. So, it was highly irresistable and I started making contributions.

    The contributions that you make to 401k are tax exempted. If your employer matches your 401k contributions, you should definitely consider participating in the plan. Even if you have to close your 401k account in between due to your R2I, you'll still have made decent money/profit.

    For example, let us assume that you are contributing $100 to 401k, every month. If your employer matches your 401k contributions, then the deposit to your 401k account every month would be $200 ($100 from you + $100 from the employer). In 2 years, you would've got at least $4800 (24 * $200). 401k contributions are typically re-invested in stocks, mutual funds, bonds etc., So, the performance of the stock/bond market will have an influence on your account balance.

    When you decide to R2I, you have the option of keeping your 401k account active (without any contributions to it) till your retirement age. However, if you decide to close your 401k during your R2I, there will be a 10% penalty + XX % tax (based on your tax bracket). Let us make two assumptions - (1) Your investment's value hasn't increased or decreased due to fluctuations in stock market (2) You fall into the 33% tax bracket. So, your account balance will be $4800. The NET amount you've to lose due to 33% tax + 10% penalty would be $2064 (i.e., $4800 * (33 + 10)/100). You would get $2736 in hand during your R2I, if you had participated in 401k.

    Let us assume that you haven't contributed to the 401k, at all. Your $100 (that you might have potentially contributed to 401k), will be tax deducted and deposited into your bank account as part of your salary every month. Assuming that you fall in 33% tax bracket, every month, you'll get an additional deposit of $67 (i.e., $100 * (100 - 33)/100). At the end of two years, you would've got only $1608 (i.e., 24 * $67), if you are not participating in 401k.

    Do you know how much additional money you could've got by participating in 401k? $1128 !!! (i.e., $2736 - $1608). Also, there is a high potential for you to earn additional money through the appreciation of stocks, mutual funds, bonds, etc., Imagine how much additional wealth you can accumulate by participating in 401k plan. I personally felt that my short 401k participation was very handy when I decided to R2I. It took care of all the initial settling costs.

    Should you participate in 401k? The answer is YES! YES! YES!

    Also read:

    Saturday, October 10, 2009

    R2I - How can I get my Social Security benefits/money?

    Are you planning to Return to India (R2I)? Are you wondering whether you'll be eligible for the Social Security Benefits when you retire? This blog post is aimed at answering some of your concerns/questions regarding Social Security benefits/account. I've compiled it like a FAQ for easy reading.
    • Can I get my Social Security contributions when I return back to India?
              No
    • Will I be eligible for Social Security benefits when I reach the retirement age?
              It depends. You should've got atleast 40 credits for you to be eligible for Social Security benefits.
    • How do I earn a Social Security Credit?
              According to SSA website "When you work and pay Social Security taxes, you earn up to a maximum of four credits for each year" For more details look at Social Security website.
    • How long would it take for me to earn 40 credits?
              It would approximately take 10 years for you to earn 40 credits.

              "The amount of earnings it takes to earn a credit changes each year. In the year 2009, you must earn $1,090 in covered earnings to get one Social Security or Medicare work credit and $4,360 to get the maximum four credits for the year". Refer to Social Security website for up to date information.
    • How do I notify Social Security Administration (SSA) about my change in address?
              SSA doesn't maintain your address records if you are not getting benefits currently (i.e., until you reach your retirement age). SSA gets the information from IRS (Internal Revenue Service). So, keep the IRS informed about your change of address. You can notify IRS regarding the address change by using Form 8822.
    • Will I get my SSA benefits when I reach the retirement age?
              Yes, according to the SSA website - if you have earned 40 credits.
    • Will I get my SSA benefits even if I'm not in US during my retirement?
              Yes (You can read the "Your Payments while you are outside US" question in SSA website)
    • Will I get my SSA benefits, even if I am NOT a US Citizen? (added later based on readers' feedback)
              Yes. You'll get your SSA benefits, even if you are NOT a US citizen, during your retirement.

              Assuming that you are going to Return to India (with or without US Citizenship, doesn't matter), you  *ARE* eligible for SSA benefits if you have 40 credits. You can find more details here at SSA website

              India is one of the countries listed under "You are a citizen of one of the countries listed below, and the worker on whose record your benefits are based lived in the United States for at least 10 years or earned at least 40 credits under the U.S. Social Security system. If you are receiving benefits as a dependent or survivor ..."

    • Will I have to lose my Social Security savings, if I don't live in US for 10 years?
              Unfortunately, yes! You have to lose your SS savings, if you don't live in US for 10 years. India is still working with the US government for Indian citizens to 'transfer' the credit to Indian pension plan. But, this is definitely going to take a lot of time.
    • How do I apply for SSA benefits when I reach my retirement age?
              Contact your nearest US embassy/consulate. They'll assist you with the process.
    • How can I lock my SSN?
              Read the blog post How to apply for Credit Freeze during R2I?
    • Where can I find more information regarding Social Security Questions?
              http://www.ssa.gov/

    Note: The information included in this blog post is subject to change. Please read the FAQs in SSA website to get the up-to-date information

    Related Posts:


    R2I Checklist - 25 things to do
    How to apply for Credit Freeze during R2I?

    Sunday, October 4, 2009

    How much money do you need to Return to India (R2I)?

    Many of us decide to go to US to earn money. However, after being in US for a few years, we find it difficult to decide "How much money is enough to settle in India?". Yes! the cost of living in India has gone up significantly in the last decade.  So, you may be wondering "How much money should I have to Return to India (R2I)?" The right answer is "It depends".

    I've made an attempt to capture the cost of living in Chennai (as of 2009). The expenses have of course, sky rocketed. Given below are the approximate expenses for a 5 members family (Husband, wife, kid, grand parents), leading a comfortable (but, not luxurious) life.

    Settling costs (Rs. 60 Lakhs - Rs. 1.15 Crore)

    Own House         - Rs. 50 lakhs - 1 crore 
                        (depending upon the location. These days, you can find great deals on real estates and rental properties in online websites such as Magic Bricks & MyDeals India)
    Car               - Rs. 7 - 13 lakhs
    Furnishing        - Rs. 3 lakh 

                        (bed, TV, refrigerator, A/C etc.,)

    Monthly Expenses (~ Rs.27K per month)

    Groceries                - Rs.8K
    Vegetables/Fruits        - Rs.3K
    Electricity              - Rs.1K
    Gas Cylinders            - Rs.1K
    Petrol/Diesel            - Rs.2K
    Doctor Visits/Medicine   - Rs.1K
    TV/Phone/Mobile/Internet - Rs.3K
    Dining out               - Rs.3K
    Recreation/Entertainment - Rs.3K
     
    Wedding/Other Gifts/Toys - Rs.2K
           
    Yearly Expenses (~ Rs. 80K per year)

    Dresses for the family   - Rs.20K
    Travel/Sightseeing       - Rs.25K
    School expenses          - Rs.35K - 50K, per kid
                              


    Note

    - The above expenses do not include insurance payments, service/maintenance of items (car, A/C, refrigerator, washer etc.,). I'll update them when I get more details.
    - In case you've decided to rent a house - renting a 3BHK house costs anywhere from 15K - 25K depending on the locality/facilities etc.,
    - Some schools charge up to Rs.1 Lakh donation during the initial admission (Also read: Getting KG admission for a kid in school - the math behind it)

    The money that you may need to settle in India is very subjective. It depends on your family size, life style, spending pattern, city in which you want to live etc., If you have spent 6 - 10 years in US and invested your savings wisely, you should be able to settle in India, very comfortably. At the end of the day, there is no end to the need for more money.

    Related posts:


    R2I Checklist
    R2I - List of things to pack/bring from US
    US to India Money Transfer Strategies
    Cost to Company (CTC) - Peeling the Onion

    R2I - List of things to pack/bring from US

    Most of us would've landed in US with just 2 suitcases and a hand luggage. But, over a period of time, we would've accumulated a number of things. It is absolutely not possible to bring ALL the items back to India. So, you have to now make the hard decision of choosing the items that you want to bring back from US. For the folks with kids, the problem increases in magnitude. Are you confused about what to bring & what not to bring? This blog post is aimed at helping you to decide the items that you may want to bring back from US. Hopefully, you should be able to prepare a list of things/items to be shipped to India, after reading this post.

    • Kids' stuff - Your kid's favorite toys, books, artwork, dresses etc., It is going to be very tough for the kids to cope up with this HUGE change (of moving to India). So, you should make sure that you bring all their 'favorite' items. For example, we brought all of my daughter's favorite toys. However, she still longs for some of the other toys that she played with, during her days in US. She recollects them, especially when we see some of our old pictures/videos.
    • Mementos - Things such as souvenirs, gifts, prizes, greeting cards, photos etc., These are some of the things that you cannot 'purchase' after coming back to India. So, I would highly recommend you to bring them back.
    • Electrical/Electronic Items - Almost all the electronic items are available in India, these days - including flat panel TVs, dish washer, microwave ovens etc., The price of electrical/electronic goods are higher when compared to their prices in US. There is atleast 10 - 20% difference in the price. So, use your discretion when deciding to bring electrical/electronic items from US. You can definitely bring back small items such as MP3 players, laptops, cameras, camcorders, DVD players, external HDD and music systems. You don't have to bring items such as TV, refrigerators, washing machines, vacuum cleaners, fans etc.,  (Also read: Goods in US market - lots of options & cheaper price)
      • Kitchen items - All types of utensils are available in India (in fact, most of the utensils that we used in US are the ones that we bought from India). High quality Teflon coated frying pans/utensils are still pricey in India. You may bring some of them if you like. However, if you are going to permanently settle in India, you have to buy them locally anyways after sometime. So, I would highly recommend to buy kitchen items locally & get used to them :)
      • Furniture - Wooden furniture are very cheap in India, when compared to their price in US. Moreover, you get wonderfully (& custom) designed furniture in India. You don't have to bring your beds/mattresses, as you can buy them locally here. If you are going to live with your parents, then most of the household items may already be there in your parents' place.  You may have to consult them before deciding what to bring and what not to bring. (Also read: Nilkamal's @home - Not designed for me)
      • Dresses - Bring back all of your high quality dress items from US. Though most of the dresses that we buy in US are 'Made in India', there is definitely a difference in the quality between "what we get in India" vs. "what is shipped to US".
      • Documents - Bring all of your educational/work/tax/stocks/bank/property/401k/legal documents back from US. Don't miss items such as your kid's birth certificate, medical documents, PIO card, school certificates etc., I would highly recommend you to convert most of the documents to digitized format (i.e., scan them and burn it in a DVD). That way, you can reduce some weight. Do carry a list of your friend's contact numbers & other important contact numbers in hard copy.
      • IP Phone - Get a subscription to an IP based phone service (such as Vonage, Skype, Magic Jack etc.,). I have personally found that Skype works well - it is cheap and the call quality is also great. You can use it like your regular phone - if you have bought a Skype compatible IP phone. (Also read: IP Phone - Magic Jack vs Vonage vs Skype)
      • Car - Most of the folks sell their Car/Vans before leaving US. The cars that we use in US may not be suited for Indian roads & traffic. I learned that the cars with Left Hand Side driver seat are banned in India. (Note: There is a huge difference in the price of cars in US & India. If you are buying an imported car, the price is way too high. For example, the cost of a Honda Civic in India is about Rs. 13 Lakhs (~$26K))
      You may have to clean-up and sell/donate a lot of items, during this process. You can use craigslist for selling your items to local people - so that, people will come to your home to pickup items & you don't have to ship them. You can donate your unwanted items that are in good condition, to Goodwill. You get tax exemption for the amount that you donated, if you get a receipt from the Goodwill store.

      Related posts:

      Return to India - 25 things to do
      Things to take care of, after R2I
      10 things to know if you are Returning to India

      Wednesday, September 23, 2009

      Things to take care of, after your R2I

      Have you made the "hardest" decision in your life? I mean, "Have you decided to Return to India?" Now, the rest of things are going to be easy. Have you already taken care of the things to do before R2I? What are some of the things that you need to take care of after reaching India? I've compiled a list of items to take care of, after your Return to India. This is purely based on my experiences and definitely not exhaustive. Feel free to recommend additional items, if any.

      1) School admissions - This is the most important thing, especially if you have kids of 'school going' age. Some schools distribute application forms in October for the following year. So, you may have to ask your relatives/friends to get the applications well in advance. Some schools also have an admission window during "Vijayadasami". You should be able to put your kid in school during that time also. (Also read: R2I school admissions - FAQ Getting KG admission for a kid in school - the math behind it)


      2) Ration Card - Ration card is treated as an address proof & may be required irrespective of whether you buy things at the Ration shop or not. So, it is recommended to get one.

      3) Driving License - If you don't have an Indian driving license or if your driving license has 'expired', you need to get a new one. AFAIK, you need to go in person for submitting the application & to take the driving test (on a different day) [irrespective of whether you go through a driving school or not] (Also read: Getting a two wheeler driving license)


      4) PAN Card - This is also very important, these days. This is very much equivalent to your Social Security number. You have to quote your PAN number for all financial dealings (Banks, Demat trading account, loan, etc.,). There are so many agents available to get you a PAN card for a nominal fee.
      I went to the nearest UTI TSL office and submitted my PAN application. I got my PAN card within months. (Also read: Getting a PAN card in India - Not easy)

      5) Bank Account - You need to have a Bank Account for keeping your money safe & for ATM access. If you have been having a NRI account, you can convert that into a NRO account and use it. You need to get an ATM debit card. In India, you can withdraw money from any ATM (even though you aren't a member of that bank), without any charge. This is very convenient. There are ATMs everywhere.

      6) GAS connection - Electricity is not very reliable in India. So, you need to buy GAS stove and apply for GAS cylinders.

      7) PIO stay extension/OCI application - Based on your/your family's legal status, you may need to take care of the PIO/OCI formalities. (Related posts: Extending stay of PIO holder, OCI Hooplah)

      8) Credit Card - I would highly recommend you to get a credit card. Using ATM/Debit cards may not be safe in all the locations (Your ATM card provides direct access to your bank account). So, you may have to selectively use Credit Cards in places that are not safe. Also, credit cards give you the flexibility to make payments later.

      9) Buying/Renting a property - You would need a house to stay. Renting can be done pretty quick - though the rents have gone up quite a bit in the last 10 years. I heard that home prices have come down significantly in some areas after the 2008 bubble crash. So, it may be wise to "own" a property instead of "renting" a property. There are some HRA (House Rent Allowance) benefits for the "interest" that you pay on Home loans.

      10) Finding a physician/hospital - This is important especially, if you have kids. It takes a while to 'identify' the 'right' physician. The penetration of "medical insurance", has made the medical services so costly. You need to start looking for a good physician & hospital before you have some "emergency" health issues. Some hospitals are 'money minded' so, you need to be aware of that.

      11) Buying a vehicle - There are ample public transportation options available in India (based on your comfort & price requirements). However, having used to a car in US, you definitely need a vehicle. There are zillion options available. So, this is not going to be a easy exercise. I bought a Honda Aviator scooter, just to get myself acquainted with the Indian roads. I never owned a motor vehicle in India, before. So, it is very exciting to ride a vehicle in India :)  [Also read: Bought a new car - Maruti Swift Dzire]

      Related posts:

      R2I Checklist
      R2I - Salary Negotiation
      10 things to know if you are Returning to India
      R2I - How can I get my Social Security benefits/money?

      Friday, September 11, 2009

      R2I - 401(k) closure FAQs


      Have you thought through all the options regarding "What to do with your 401(k) account" during your return to India? Have you decided to close your 401(k) account? Do you have questions lingering in your mind regarding 401(k) account closure? Hopefully, you'll find an answer to your question here.

      1) When can I close the 401(k) account ?

      You should be out of job to close the 401(k) account. Typically, you'll get the 'participant distribution' application to fill during your last working day. You can fill the application and submit it to your HR or 401(k) Benefits Provider.

      2) What is the process involved to close the 401(k) account?

      You'll receive the 401(k) 'participant distribution' application (from your HR) during your last working day. You need to just fill-it and hand it over to the HR or 401 (k) Benefits provider.

      3) What are the options that I'll have when deciding to close the 401(k) account?

      Read "R2I - What to do with the 401(k) account" post which describes this in detail.

      4) Will my tax be withheld at the source when I close the 401K account?

      A flat 20% Federal tax will be withheld at the source when you close the 401K account. In addition, there is a 10% penalty for early withdrawal.

      5) What would be the with holdings done at source by the 401K Benefit Provider, when I close the account ?

      There will be a flat 20% federal tax withheld when you close your 401k account.

      You can settle the remaining tax when you file your tax returns, next year. (If you fall in a lower tax bracket, you'll get the excess money back from the government. If you fall on a higher tax bracket, you may have to pay the money that you owe to the government).

      6)  When would I have to pay the penalty?


      You'll have to pay a 10% penalty for early withdrawal. The penalty will have to be paid when you pay your taxes.

      7) How long does the 'closure' process take?

      In a couple of days, your 'participant distribution' form will reach the 401(k) Benefits provider. Your 401(k) Benefits Provider will take care of the formalities in a week.
      You may expedite the process by contacting 401(k) Benefits provider upon your last day. Tell them that you'll have to R2I & hence the urgency.

      8) How long does it take to get the 401K money after I close the account?

      The check takes about 15 business days and the wire about a week.

      9) Can I still maintain my 401K account after moving to India?

      Some 401(k) Benefit Provider will let you to manage your account online. Talk to your 401(k) Benefit Provider or transfer your 401(k) account to someone who'll provide you online management.

      10) Do I have to pay additional tax when I file the Income Tax returns, next year?

      It depends. Depending upon your tax bracket, you may have to pay additional taxes. Look at the tax bracket into which you'll fall when you file the tax returns.

      You'll have to pay the 10% penalty for early withdrawal, when you file your tax returns.

      11) Can the 401(k) Benefit Provider 'direct deposit' the proceeds of closure to my bank account?

      Yes. The 401K provider can wire the proceeds of the 401k closure to your bank account. You need to work it out with them when you fill the 'participant distribution' form on your last working day.

      Related posts:

      What to do with the 401(k) account?
      10 things to know if you are thinking of Returning to India
      How can I get my Social Security benefits/money? 

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