US Interest return alternatives

[BonguBooshanam]

2 minutes ago, papampasivadu said:

That's true..kattali..India lo bank manager tried to convince me last time that 1.5l kanna takkuva aythe avsaram ledhu amma and all...

But US rule aythe any amount will be added to your annual income here and tax bracket will be fixed accordingly. Already ikkada 6 figure salary aythe tax vaachipoddhi.

Yeah correct india lo there is some limit where you don't need to pay tax till that limit like 1 l or 1.5 lac. One more thing India Savings account ki interest baagane vasthundhi but difficult to get the money back to US which is why I am looking for NRE account deposits or investing here.

[BonguBooshanam]

4 minutes ago, papampasivadu said:

Bro..I'd rather suggest investing into your 401k accounts.

401k employer sponsor cheyyatledhu plus money bayataki thiyyalem kadha till retirement like if I want to down pay the amount if I buy a house in future.

[BonguBooshanam]

5 minutes ago, Manmada9 said:

Interest kadu babu tax

karma kali ni tax bracket increase ayithe a interest valana niku inka disco start

I agree kani max vachina oka 3-4K ki tax bracket change avthadhantava 

[Manmada9]

7 minutes ago, papampasivadu said:

Bro..I'd rather suggest investing into your 401k accounts.

+1

[Manmada9]

Just now, BonguBooshanam said:

I agree kani max vachina oka 3-4K ki tax bracket change avthadhantava 

tax bracket margin lo unte yes it will change

if you are ft just invest in 401k

u can take loan on your 401k if u r a first home buyer without apr

[BonguBooshanam]

2 minutes ago, papampasivadu said:

NRE accounts fixed deposits ki US lo icche interest rate ee isthadu bro...Best thing is to invest in your retirement account (401k and IRA).

Bane vundhi bro SBI lo 6.75% if you deposit for 1 year.

 

RATES OF INTEREST ON NON RESIDENT EXTERNAL ACCOUNT DEPOSITS W.E.F 01.07.2017*

NRE TERM DEPOSITS With effect from 1st July, 2017
Tenors	Below Rs.1 Crore	Rs.1 Crore & Above
1 year	6.75%	4.25%
Above 1 year to 455 days	6.50%	4.25%
456 days to less than 2 years	6.50%	4.25%
2 years to less than 3 years	6.25%	4.25%
3 years to less than 5 years	6.25%	4.25%
5 years and upto 10 years	6.25%	4.25%
Premature withdrawal	No interest is payable if the deposit is withdrawn before one year.	No interest is payable if the deposit is withdrawn before one year.
	Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits upto Rs.5.00 lacs will be 0.50% (all tenors).

[BonguBooshanam]

Just now, Manmada9 said:

tax bracket margin lo unte yes it will change

if you are ft just invest in 401k

u can take loan on your 401k if u r a first home buyer without apr

Fte kadhu mestri. Is it that's sounds like a good option if we can take loan without apr from 401k. Is it same with IRA?

[BonguBooshanam]

5 minutes ago, papampasivadu said:

Okay..open a regular brokerage account with Vanguard and invest in their s&p500 funds

 

Risk vuntadha bro returns reasonable vuntaya

[BonguBooshanam]

5 minutes ago, papampasivadu said:

Yes Bro,

Check out the federal tax brackets. For example, if you are single and earning below 91,150 something nee fed tax 25% paduddhi...let's say ee India FD valla nee income danikanna okka dollar ekkuva ayna nee bracket 28% aypoddhi..

Which means, FD interest meedhane kadhu nee 91k salary meedha kuda extra 3% tax penchukuntunnav...

However, nee salary 95k ayyi oka 4k teesi 401k lo kani traditional IRA lo kani (please note, not roth IRA) pettukunte nee tax rate ni 3% tagginchukuntav and also your investments grow tax free...

So check your tax brackets according to your maritial status and plan accordingly.

Nice bro. IRA e company better bro employer do not have 401k option. IRA I think only can contribute 5k per person in the family anukunta

[nildesparandom]

5 minutes ago, BonguBooshanam said:

Nice bro. IRA e company better bro employer do not have 401k option. IRA I think only can contribute 5k per person in the family anukunta

401k is undisputed king in savings.

If you don’t work for an employer that offers a 401(k) plan, your retirement options are limited. The IRA is going to be your best friend, as long as you don’t earn more than IRA income caps.

[Manmada9]

11 minutes ago, nildesparandom said:

401k is undisputed king in savings.

If you don’t work for an employer that offers a 401(k) plan, your retirement options are limited. The IRA is going to be your best friend, as long as you don’t earn more than IRA income caps.

+1

[BonguBooshanam]

18 minutes ago, papampasivadu said:

IRA occhesi max 5.5k per annum bro...

I'd suggest Vanguard...but depends on what you finally decide to invest on...ask around and get some more opinions...

Talking about stocks and options is the best way to make friendship with senior desi uncles at work...vallani suggestion adagi chudu valla mohaalu veligipothay pride toh 

Recent ga oka thellodu tho edho topic lo antunnadu na dheggara half million 401 k lo vunnayi ani nenu thella moham vesi chusa😊

[BonguBooshanam]

12 minutes ago, papampasivadu said:

Good point bro..I believe the cap for single people is 117k?? 

ante mana income 117k kanna ekkuva aythe IRA ki not eligible...

employer ni 401k pettinchamani adagadam lo tappu ledhu, it wont cost him much if he's not contributing...

One year 117 k cross ayithey that year not eligible aa or else every year not eligible aa

 

Employer adigi they vadu edho chala maintenance work vuntadhi plus minimum intha mandhi employees enroll avvali plan lo lekapothey plan work out avvadhu etc etc tolded nenu shut up ayyanu 

[Manmada9]

7 minutes ago, BonguBooshanam said:

Recent ga oka thellodu tho edho topic lo antunnadu na dheggara half million 401 k lo vunnayi ani nenu thella moham vesi chusa😊

half a million aa vadu evado racha gadu ayi untadu

em cheskuntadu antha money

[nildesparandom]

4 minutes ago, BonguBooshanam said:

One year 117 k cross ayithey that year not eligible aa or else every year not eligible aa

 

Employer adigi they vadu edho chala maintenance work vuntadhi plus minimum intha mandhi employees enroll avvali plan lo lekapothey plan work out avvadhu etc etc tolded nenu shut up ayyanu 

if you are single, your income (AGI) should be less than 118k$ for 2017 to qualify for IRA.