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I joined Tiger Analytics with CTC of 9lpa. When I check in greythr IT statement, it shows 7.14lpa.
In the CTC payslip, it shows 75k per month as my salary. But this month I got 61k.
I understand they deduct tax, but I feel it is too much. IDK where I'm losing the money. Can someone tell if this is normal. I'm a fresher so, IDK much about it.
Also, what can I do to pay less taxes? Any help on that?
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A little more for my background: 28 yr old second year associate in city that is higher cost of living than Miami/Atlanta but lower than NY or SF. Live near parents. Have a brother but he’s on a teachers salary. No kids or spouse yet but intend to start a family in the next 10 years. I’m frugal and save around ~50% of my biglaw income (while student loans, which I have $100k of, are still frozen).
I’m 28 as well and trying to help my parents save for retirement. Good to know there are others that prioritize parents. Keep it up
I don't think you necessarily have to stay in big law. Many people have a similar situation with their parents. How much are your parents anticipating receiving in Social Security? Could they work part-time in retirement? For example, maybe baby sitting or retail (Wal-Mart greeter). That could help significantly in retirement.
My grandparents were in the same situation. My mother set aside $800 a month to pay for someone to help take care of them. The lady would come to their house to clean, cook, and make sure they took their medications. But, Social Security was enough to cover most of their basic expenses. They owned their house outright by the time they became elderly.
Similarly for you, I would recommend budgeting out how much you would need to contribute to serve as a buffer for their Social Security. Also, your brother who is a teacher should contribute something. It doesn't have to be as much as you. But, even if you determine you need to give them $2,000 a month, your brother could do $200. They are his parents too. Make it proportional.
I think this is good advice. Also, I would start talking with your parents about what their "retirement" will look like. Are they retiring just because they are retirement age? Or are there physical limitations on their ability to work? I know it may feel intrusive to ask your parents about their current spending habits, but you need to have a complete picture of where they are financially if you are going to be financially supporting them throughout retirement.
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The main expenses long term will be medical related and anything that comes with that.
This is a risky thing to do. Maybe see if you can find a financial planner who knows more about this. If you start supporting your parents, you could end up on the hook if they need serious medical care. My grandma became paralyzed completly unexpectedly and her care shot up to $10,000 per month. And this was in a rural very low cost of living area. Full time care is insanely expensive but ends being necessary for a lot of older people when they get sick. You should find out if there is anything you need to do to protect yourself in case of serious medical expenses.
Question: aren’t medical costs going to be covered by Medicare/Medicaid?
Except you need benefits to kick in before you die, and some don't kick in until you've exhausted all of your assets. Sell the house, cash in your 401(k), confirm you have no family members that can pay, then benefits kick in. There is rarely anything left by the time people die anymore because care costs are so high. That's the allegedly greatest healthcare system for you! Make sure you plan for the possibility of your parents needing long term care.
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I pay for a lot of bills for my mom. She owns her home but doesn't have savings or much income. She's in great health, so her Medicare premiums are the only real medical expense and she pays them out of social security. I'd say (in a LCOL area) paying for most stuff besides house and car costs $1200-$2000 a month. Totally depends on geography, their lifestyle, their health.