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Hello fishes, I have offers from two different companies and both are offering same amount of CTC - 18LPA (YOE: 3.2) . Company names are Pristyn Care and Xiaomi technology india pvt. ltd .
Now for Pristyn Care I won't have to move out of Gurgaon (I'm from north India). Xiaomi is calling me to Bangalore. Rest all the benefits seem similar.
In terms of learning and job security and all the aspects considered, which company should I join?
Please help me decide. Thank you!
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What’s interviewing been like for you all lately?
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The one other thing that hasn’t been mentioned that I would keep in mind is the fact that you are putting the lump sum in the market all at the same time. I know kids are young and you have time for it to grow, and you should time the market, but I personally believe that the market is overvalued now and would throw in the amount DCA over the next 12 month or so just in case.
Enthusiast
I think your all set tbh, the 12 months of emergency savings a great cushion in case you need liquidity and you can turn towards the brokerage as another fail safe
Bowl Leader
Potential downsides - 529 plans come with a few additional restrictions, limited investment options, and often slightly higher fees. For example I believe you can only change the investments up to twice a year. None of the downsides are deal breakers assuming you are already taking care of yourself and your families potential needs over the next decade first (retirement savings and solid emergency fund), which I'm sure you are.
If your state offers a deduction/credit for annual contributions you might be missing out on those by doing it in a lump sum but the incentives are generally small and you might be phased out anyway.
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You have to use it for education. What if the kids get full ride scholarship?
Yes! It’s pretty great. And some states even allow 529 (or similar programs) for private k-12. 529s may not be right for everyone but they’re great vehicles for most people saving for college.
Pro
Agree with above that usage is restricted, but no problems with planning ahead. Hardest part is having the cash without it already being earmarked.
I’ve never done it in case the kids want to go to school abroad (St. andrew’s or something).
Yes- you’re right, there are 100+ schools eligible. Better hope your kid wants to go to college though... seems super risky even if you WANT them to go.
Bowl Leader
If you haven't already considered make sure you are within the lanes to avoid potential gift tax return filing requirements. There is a rule that lets you split a large lump sum 529 contribution over 5 years which would allow you and your spouse to each give up to $75k to each child assuming no additional gifting to them over the five year period.
Bowl Leader
True, although the limits are likely to be significantly reduced when TCJA expires or possibly even earlier depending on how the 2020 elections go. Cleaner to not use any of the lifetime exemption if possible and relatively easy to do.
Do you think 529 savings may impact the financial aid down the road? Meaning if schools see that your kids are already covered, they will provide less grants? I also know some schools (e.g., UIUC - Illinois) started talking about tuition-free colleges.
First you need to decide if you want to save for Child’s education or not. If yes, then 529 plans are one of the many options, of course with various pros and cons. Now, if you decide you do not want to save for child’s education (or future) with the hope that the college tuition will be free by the time your child grows up, or the child will get lot of scholarships, that’s is a very big risk you are taking and potentially exposing your child to very high amount of student loans is future. As with any type of savings (retirement or child future), you always have the choice of instant gratification now and paying a heavy penalty later. If you are willing to take that option, just do with full knowledge of the same! It’s always good to have a proper balance of future savings and current consumption, where ‘proper’ is the key word and varies from people to people😊
My parents saved money for my education in their retirement funds since the money can be withdrawn without penalty for education, but can also be used for things other than education if needed
There’s not really an income limit for Roth IRA
Once you surpass the income limit, the backdoor Roth method takes a whole 5 minutes and is IRS approved
Over-saving and having to pay the withdrawal penalty fee will negative all the benefits and then some (for that portion).
Generally it’s a great idea, just don’t over contribute too much