Planning R2I - should I 'burn the bridges'?

This is one of the common question/debate that most of the R2I prospects have - should I close-off everything before I move to India?

As my heading suggests, that will be 'burning the bridges', which as the common knowledge says is not a very good idea :-)





Several factors to consider here:

• You never know where the kids are going to be - they may come back to US (or other country) for further studies and having some funds in US can really be of help.
• Change in government policies: You might have heard that recently Indian government reduced the limit of outflow of Indian funds from $200,000 to $75,000 or so. That is not a good sign. Governments can be fickle and if you transfer entire funds from US(or other country) to India, you might have problem when you need those funds back in the foreign country.
• You might have to move back for job purpose. Having some funds there will make it easier for you to setup.
• After all, you or family may not like to stay in India after trying for few years. Going thru' the currency conversion, you will loose some funds in conversion.

List can go on and I know, it is easier said than done - real estate in India is a major cost factor and you need sufficient funds to have something of your own. Hence, it is a delicate balance and only you can make the call about how much you need in India to have a comfortable living. 

In summary, don't burn the bridges - don't rush and move all of your assets to India and close all your links in foreign country. Instead, do that in stages after getting a taste of R2I. For ex, keep a bank account, some funds invested, transfer only needed funds and do further transfers as needed, if you are closer to getting a US citizenship, complete that process before you move etc...