Financial planning for NRIs involves coordinating income, savings, investments, taxes and future family needs across India and the country where you live.
The challenge is that these parts of your finances may operate under different currencies, tax systems and rules.
A plan that works while you are earning abroad may also need to change if you return to India, retire elsewhere or transfer wealth to family.
Our NRI Financial Planning Guide helps you review your cash flow, assets, protection, investments and longer-term family planning in one place.
Email hello@adamfayed.com and WhatsApp +44-7393-450-837 if you have any questions. The information in this article is for general guidance only, does not constitute financial, legal, or tax advice, and may have changed since the time of writing.
Adam is an internationally recognised author on financial matters with over 830 million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
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What should an NRI include in a financial plan?
An NRI financial plan should account for where money is earned, where it is held, what it needs to fund and where it may eventually be spent.
Start by mapping your main financial commitments and assets across countries. This can include:
- Income and regular household spending
- NRE, NRO and other bank accounts
- Cash deposits and emergency reserves
- Investments in India and overseas
- Property and outstanding debt
- Insurance and family protection
- Retirement funding
- Inheritance and succession arrangements
The location of an asset matters together with its value. Holding most savings and investments in Indian rupees, for example, can create a mismatch if future expenses will mainly be in another currency.
How should NRIs balance saving and investing?
NRIs can separate money needed for near-term expenses from capital intended for longer-term growth instead of choosing between saving and investing as a whole.
Cash and deposits can support emergencies, planned payments and short-term goals. Bonds may add income and diversification, while equities and other growth assets can be used for goals with longer time horizons.
The appropriate mix can change as family commitments, residence, income and future plans change. Tax treatment and the ability to access or move money across borders also need to be considered before selecting an account or investment.
Use the NRI Financial Planning guide to check how well your finances are positioned for future spending, investing, retirement and family needs in India and abroad.
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