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<keyword id="19902194" type="General" weightage="20" keywordseo="Anil-Ambani" source="keywords">Anil Ambani</keyword>'s <keyword id="20479923" type="General" weightage="100" keywordseo="Reliance-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Group" meta.hostid="261" meta.entityid="Reliance Group">Reliance Group</keyword> has launched the <keyword id="24017314" type="General" weightage="20" keywordseo="Reliance-Group-Corporate-Centre" source="keywords">Reliance Group Corporate Centre</keyword> (RGCC) as part of its <keyword id="24017313" type="General" weightage="20" keywordseo="2030-growth-strategy" source="keywords">2030 growth strategy</keyword>. "The RGCC will serve as a strategic hub, providing guidance to the Group's companies as they pursue new opportunities and technological advancements," the firm said in a statement. The core team of RGCC will include experienced leaders of the Group -- Sateesh Seth, Punit Garg, and K Raja Gopal. Garg currently leads as CEO of <keyword id="20144587" type="General" weightage="20" keywordseo="Reliance-Infrastructure" source="keywords">Reliance Infrastructure</keyword>, while K Raja Gopal has been at the helm of Reliance Power for six years. He has over 27 years experience in the power sector. Other leaders from the Group companies will also be invited to the RGCC. "The establishment of RGCC aims to harness the in-house expertise of these seasoned leaders to support the Group's forward-looking growth initiatives and cultivate a new generation of leadership for future project," the statement said. The RGCC will play a pivotal role in mentoring and developing emerging leaders, blending experience with fresh talent to propel the Group towards sustained growth. A Reliance Group spokesperson highlighted, "We are thrilled to introduce RGCC, a team of seasoned professionals with a broad spectrum expertise. This strategic move aims to steer the Group's future growth by tapping into the vast experience of these leaders, will help navigate industry challenges and capitalise on new opportunities, drive innovation, and deliver exceptional value to our customers and stakeholders. We believe RGCC will be instrumental in shaping the next phase of our Group's success." In recent developments, Reliance Infrastructure Ltd and Reliance Power Ltd, key entities under the Reliance Group, have achieved zero bank debt status and outlined plans for expansion into new growth areas. Reliance Power has secured 1,270 MW of renewable power projects in Bhutan, while Reliance Infrastructure, through its subsidiary Reliance Defence Ltd, is setting up a manufacturing facility for small arms, ammunition, and explosives in Ratnagiri, Maharashtra, spanning 1,000 acres. "To support these ambitious expansion plans, the companies have announced a combined fundraising effort of Rs 17,600 crore. This includes Rs 4,500 crore via preferential equity issues, Rs 7,100 crore from Varde Partners through equity-linked long-term FCCBs, and Rs 6,000 crore via Qualified Institutional Placement (QIP), with Reliance Power and Reliance Infrastructure each targeting Rs 3,000 crore," it added.

Anil Ambani's Reliance Group sets up centre to helm 2030 growth strategy

<ul><li><keyword id="19899640" type="General" weightage="100" keywordseo="AI" source="keywords">AI</keyword> will replace 50% of <keyword id="21771459" type="General" weightage="20" keywordseo="middle-management" source="keywords">middle management</keyword> roles in 20% of organisations by 2026.</li><li>By 2029, AI's influence is set to extend into the boardroom, with 10% of global boards predicted to use AI-generated insight.</li><li>This strategy aims to cut labour costs while boosting productivity.</li></ul>As artificial intelligence (AI) continues to evolve alongside human usage, it is reshaping organisational structures, decision-making processes, and even the boundaries of technology's impact on daily life, according to <keyword id="19955158" type="General" weightage="20" keywordseo="Gartner" source="keywords" meta.keywordsubtype="org" meta.entityname="Gartner" meta.hostid="261" meta.entityid="Gartner">Gartner</keyword>. By 2026, 20% of organisations will use AI to reduce more than half of their current middle management roles. "Through 2026, 20% of organisations will use AI to flatten their <keyword id="21339348" type="General" weightage="20" keywordseo="organisational-structure" source="keywords">organisational structure</keyword>, eliminating more than half of current middle management positions," said the report. This strategy aims to cut labor costs while boosting productivity, as AI takes over tasks like scheduling, reporting, and performance monitoring. However, the shift could disrupt traditional mentoring pathways and leave junior employees with fewer development opportunities. Concerns over <keyword id="19999151" type="General" weightage="20" keywordseo="job-security" source="keywords">job security</keyword> and increased management responsibilities for remaining staff may also pose significant challenges. By 2029, AI's influence is set to extend into the boardroom, with 10% of global boards predicted to use AI-generated insights to challenge executive decisions. This development will empower board members to rely on data-driven guidance, thereby reshaping leadership dynamics and reducing the influence of maverick executives. While AI insights may initially seem at odds with the traditional views of board members, their growing effectiveness will likely lead to broader acceptance. By 2028, <keyword id="19896272" type="General" weightage="20" keywordseo="generative-AI" source="keywords">generative AI</keyword> is expected to play a key role in corporate branding, with 30% of S&amp;P companies likely to use AI-specific labels, such as "xxGPT," to distinguish their products and create new revenue streams. As the GenAI landscape becomes more competitive, companies will need to adopt specialized models tailored to their industry to maintain a competitive edge. Security concerns surrounding AI agents will grow in the coming years, with Gartner predicting that 25% of enterprise breaches will be linked to AI agent abuse by 2028. As AI agents expand rapidly into more complex use cases, businesses will need to enhance their security measures to protect against both external threats and malicious internal actions. To address these security challenges, "Guardian Agents" will emerge as a solution. By 2028, 40% of Chief Information Officers (CIOs) are expected to demand autonomous agents that can track and oversee AI activities, ensuring compliance with security, ethics, and data management standards. Finally, the shift to microgrids is set to accelerate, with Fortune 500 companies expected to invest $500 billion by 2027 to mitigate chronic energy risks and support the growing energy demands of AI. Microgrids offer a more sustainable and cost-effective energy solution, enabling companies to reduce their reliance on traditional power grids and better manage day-to-day operations. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/webstories/afcons-infrastructure-ipo-gmp-risk-factors-and-all-you-need-to-know/slidelist/114490954.cms">Afcons Infrastructure IPO – GMP, risk factors and all you need to know</a> <a href="https://www.businessinsider.in/tech/news/upi-refund-scam-to-digital-arrest-scam-here-are-most-common-online-scams-in-india/articleshow/114428011.cms">UPI refund to digital arrest scam, here are some online scams you need to be aware of</a> <a href="https://www.businessinsider.in/stock-market/news/waaree-energies-ipo-allotment-how-to-check-allotment-ipo-gmp-listing-date-and-more/articleshow/114508632.cms">Waaree Energies IPO allotment – How to check allotment, IPO GMP, listing date and more</a>

By 2026, 20% of organisations will use AI to reduce 50% of middle management roles: Gartner

<ul class="summary-list"><li>After years of struggles, chip giant Intel is in the midst of mass <a target="_blank" class="" href="https://www.businessinsider.com/intel-qualcomm-takeover-bid-layoffs-foundry-spin-off-2024-9">layoffs and buyouts</a>.</li><li>Some longtime Intel employees are eligible for up to 19 months of severance.</li></ul>When searching for a wedding planner, most couples don't check for a doctorate. But the brides of greater Portland are about to have that option.Shi Choong got her Ph.D. in Analytical Chemistry in 2018, and for the last six and a half years she's worked at Intel improving processes and training for the company's Oregon fab — a factory where Intel's chips are produced. She's one of the thousands of Intel employees who recently took the voluntary severance packages the company made available ahead of a long-forecasted round of <a target="_blank" class="" href="https://www.businessinsider.com/intel-qualcomm-takeover-bid-layoffs-foundry-spin-off-2024-9">15,000 layoffs and buyouts</a>, which began this month.After years of <a target="_blank" class="" href="https://www.businessinsider.com/intel-ceo-pat-gelsinger-turnaround-plan-aws-2024-9#:~:text=Revenue%20last%20quarter%20was%20down,shares%20falling%20by%20over%2025%25.">layoffs, buyouts</a>, and even <a target="_blank" class="" href="https://www.businessinsider.com/intel-ceo-takes-pay-cut-reduce-costs-prevent-layoffs-2023-2#:~:text=Intel's%20CEO%20and%20members%20of,Intel%20said%20in%20a%20statement.">one temporary pay cut</a>, many employees have thought about what they might do after Intel. Its severance package, which reportedly offers five weeks of pay for every year of service up to 19 months total, pushed some to jump.Though plenty of Intel alums are expressing trepidation about an <a target="_blank" href="https://www.businessinsider.com/millennial-cant-find-job-tech-blames-racial-discrimination-ai-2024-9">uncertain job market</a>, some departing Intel insiders are fashioning entirely new lives for themselves — 180 degrees from corporate life.Choong has been coordinating weddings and modeling outside of her Intel work hours for the last three years. She specializes in nontraditional, heavily themed weddings. This <a target="_blank" href="https://www.businessinsider.com/furry-fandom-big-tech-software-developers-2022-3">kind of nerdery</a> often goes hand in hand with the concentrated tech talent in places like the San Francisco Bay area or Portland. She saw the buyout opportunity and the severance that came with it, as a sign to take her side hustle full-time."To me, it's Christmas come early. It's a wish come true," Choong told Business Insider.BI spoke to three former Intel employees who are using the company's hard times as an opportunity to upend their lives.<h2 id="bc1c7975-8847-4cfc-b408-e6b24752f181">Intel lifers head out on their own</h2>"I'm feeling awesome," Javier Apostol told BI from the balcony of a beachside resort in Puerto Vallarta, Mexico, two weeks after his last day as a software applications engineering manager at Intel.He joined Intel in Arizona right after finishing his undergraduate degree and stayed for nearly 29 years. Intel was the only company he ever worked for as an adult.Apostol's first job was picking fruit in the fields of Yuma County, California, alongside his parents. Eventually, his dad started doing workforce development for migrants and then tax preparation for Spanish-speaking workers and agricultural contractors.When one of his dad's clients was audited, Apostol, who had started to learn how to program computers, turned handwritten mileage records into a neat chart. The IRS agents told him it was the best they'd ever seen, and Apostol got hooked on computers.Apostol joined Intel in 1996. From inside Intel, he's seen every phase of the internet since nearly the beginning. He said a longer lens gives him perspective.<a target="_blank" class="" href="https://www.businessinsider.com/intel-struggles-qualcomm-deal-chip-industry-turmoil-2024-9">Intel's situation</a> is no great tragedy, according to Apostol."The world is just changing and that is good. Intel will ultimately find its place where it needs to be," he said. After a vacation, Apostol is sticking with semiconductors, but he and some colleagues are headed in a more entrepreneurial direction.Though Intel has struggled to maintain its once leading-edge status, Apostol said there is a <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-ai-chip-semiconductors-tsmc-intel-jobs-arizona-2024-2">window of creativity</a> in the semiconductor space that he hasn't seen in a long time as investors and consumers alike become aware of the vital role of chips in their everyday lives."<a target="_blank" class="" href="https://www.businessinsider.com/nvidia-competition-sambanova-groq-cerebras-show-faster-inference-speed-2024-9">Chip design</a> is going to explode," Apostol said. He and five colleagues who also took the buyouts want to apply their expertise in chip-making consulting for businesses and even <a target="_blank" class="" href="https://www.businessinsider.com/sovereign-clouds-explained-data-center-ai-national-security-vultr-2024-10">countries</a> looking to enter the industry.At 54 years old, and with both of his kids in college and away from home, he has the time and the energy to take the leap, he said. He hopes Intel finds its way to similar boldness again."If I worry about anything it's Intel becoming complacent and deciding to think small — to stop looking for the next great thing," Apostol said.<h2 id="22be38cf-517d-4e34-a89c-5f46756eb17e">Turning a good living into a good retirement</h2>Sumit Guha, a former transfer technology manager at Intel, is founding a new venture too, but with more altruistic aims.Over his 24 years at Intel, Guha used his spare time to develop a wealth management strategy based on the philosophies of <a target="_blank" class="" href="https://www.businessinsider.com/how-warren-buffe">Warren Buffet</a>.He's shared his strategy with friends and colleagues over the years, but it wasn't until his 86-year-old mother was sold a fraudulent insurance policy that he considered scaling his efforts up. He fought for two years to get her money back, and that wasn't the first time his parents had been the victims of dubious financial providers."My goal is to teach seniors how to detect financial fraud. I have witnessed this myself. Old people are targets," Guha said. He plans to start studying to become a Certified Financial Planner soon, with the aim of providing free tax services to older adults and eventually starting a nonprofit organization that helps them manage and grow their finances.As Guha, 60, approaches retirement age, he's become increasingly worried about the state of his peers' <a target="_blank" class="" href="https://www.businessinsider.com/gen-x-baby-boomers-savings-cant-afford-retirement-2024-4">retirement accounts</a>. AARP estimates that 20% of Americans over the age of 50 have no retirement savings at all.Intel still offers some of the benefits much of the tech world has long eschewed. For example, spreading out the timeline for paid sabbaticals has been one of the perks downgraded in the current era of cutbacks. But for Guha, some of his longevity benefits with Intel have kicked in recently, and the company accelerated stock grants set to be issued in December as a 'thank you' for enduring <a target="_blank" class="" href="https://www.businessinsider.com/intel-ceo-takes-pay-cut-reduce-costs-prevent-layoffs-2023-2#:~:text=Intel's%20CEO%20and%20members%20of,Intel%20said%20in%20a%20statement.">2023's pay cuts</a> for those who took the buyout option."It's a gift for me to pull the trigger now," Guha said. He plans to offer tax services, financial fraud awareness, and investment advice with the aim of helping Americans achieve a safe and comfortable retirement, even if they started saving late in the game.<h2 id="7bec7e59-5a0c-4aa0-bd49-7e9d5e9b7d2f">Lessons learned at Intel</h2>Though several departing Intel employees expressed some frustration with the current state of the company, they still believe it can be successful. And they're taking some of the values and skills they picked up there with them. The company always valued continuous training, said Apostol.Choong said many of the skills she learned at Intel will transfer to her new life. Engineers are organized and good at dealing with complexity — the kind that comes with a wedding that starts in formalwear and ends with the entire party wearing animal onesies, for example.Choong also learned how to speak up for herself at Intel, especially when training in the fabs. This comes in handy when dealing with sketchy wedding vendors, she said."I have grown tremendously. I used to cry in my office because someone spoke loudly at me. I'm fearless now," Choong said.Are you leaving Intel too? Or sticking around? Got a tip or an insight to share? Contact BI's senior reporter Emma Cosgrove at <a target="_blank" href="mailto:ecosgrove@businessinsider.com">ecosgrove@businessinsider.com</a> or use the secure messaging app Signal: 443-333-9088.

Life after Intel: After rounds of layoffs and buyouts, some Intel insiders are abandoning the corporate grind altogether

<ul class="summary-list"><li>More executives are seeking protection, a private security firm chief told The Financial Times.</li><li>It comes as companies and CEOs are targeted by political activists.</li></ul>An increasing number of companies appear to be spending big money on trying to keep their executives safe by hiring bodyguards.Steve Jones, the chief executive of security company Allied Universal, told <a target="_blank" class="" href="https://www.ft.com/content/a65d8aa1-673e-4620-920c-ec6ac79a303a?accessToken=zwAGJie6Mt7gkdOmXYqhZz5GINOSDOxqx5owOg.MEQCIFxG6p3_3JZEkIK5308UilsiYLPn5KB6jHRgvCT46TWdAiBsUI83XeA3QZKWt8vwHDTuuncjhZPUUiMp568P7c_W8g&amp;sharetype=gift&amp;token=5d647de2-ea1b-4ae3-8d8e-50e552279923">The Financial Times </a>that global political instability had created increased demand for security services.His assessment seems in line with market trends. According to an October report by <a target="_blank" href="https://www.fortunebusinessinsights.com/private-security-market-108283">Fortune Business Insights</a>, the global private security market is expected to grow from $247.75 billion in 2024 to $385.32 billion by 2032.Its largest and fastest-growing segment is "manned security," the broad category that includes executive protection.Jones told the FT that businesses linked to Israel and the defense and energy industries were most likely to hire extra security for their staff."We've got wars going on in certain parts of the world, we have elections, we have protests, we have social challenges, we have immigration challenges that face different countries around the world. It all creates a need for additional security," he said.In recent months, activists have targeted a number of high-profile companies and corporate events.In October, several Allianz Insurance buildings in the UK were <a target="_blank" class="" href="https://www.bbc.com/news/articles/c74871k7k73o">sprayed with red paint as part of a national protest by pro-Palestine activists. </a>The Palestine Action Group said it carried out the attacks to protest against Allianz's alleged links to an Israeli defense firm.In June, activists disrupted the Amazon Web Services Summit in Washington, DC, to protest about a cloud services deal between Israel's government, Google, Project Nimbus, and Amazon.Meanwhile, climate protesters in Germany in August disrupted European flights after accessing air traffic control centers.Jones told the FT his company employs around 17,000 people, including former police and military personnel, to protect executives and their families. Allied Universal did not immediately respond to a request for comment by Business Insider.Companies can spend millions to protect their CEOs. Meta, for instance, spent $23.4 million on Mark Zuckerberg's personal security in 2023, according to <a target="_blank" class="" href="https://archive.is/Y3kdg#selection-1001.136-1001.422">Fortune.</a> Last year, Alphabet paid $6.8 million for Sundar Pichai's personal security.Last year, Alex Bomberg, chief executive of Intelligent Protection International, told <a target="_blank" class="" href="https://www.fnlondon.com/articles/climate-activism-in-the-city-prompts-rise-in-bodyguard-demand-20230619">Financial News </a>that demand for executive security had doubled in 12 months."The role of a bodyguard is not just for security," he said. "You have someone who is highly trained in first aid, experienced in making dynamic risk decisions. It's not just some bloke in a suit."People don't realize how things can play out in the street," he added. "A CEO might go for an interview, and when they arrive, they get something thrown over them. It's not so much about them being robbed, although that's always a concern, but being doorstepped at home by protesters."According to Allied's <a target="_blank" class="" href="https://www.worldsecurityreport.com/">World Security Report, </a>in 2022, companies lost more than $1 trillion in revenue due to physical security incidents.One in four publicly listed companies reported a drop in their value after a physical security incident over the last year, the report said.

CEOs are clamoring for bodyguards as the world feels more dangerous, a top security boss says

<ul class="summary-list"><li>Spy mania in Russia has created an environment that's stifling innovation, sources told BI.</li><li>Arrests for treason in Russia have soared, human rights experts said.</li></ul>Ivan Pavlov, a Russian-born lawyer who now lives in Europe, was 51 was he was forced to leave his home country. After years of representing Russians who had been accused of treason, he was put on the nation's wanted list and labeled as a "foreign agent" in 2021 — a term that, in Russia, is equated with spy, according to the <a target="_blank" href="https://www.hrw.org/news/2022/12/01/russia-new-restrictions-foreign-agents">Human Rights Watch</a>.Eventually, he knew he had to flee, he told Business Insider in an interview."All my professional life was in Russia," he said. "My family was inside Russia and it was a huge [suffering]."The arrest of accused "spies" has risen dramatically since Moscow began its invasion of Ukraine, Pavlov and other human rights experts told BI.That could end up having a big knock-on effect on Russia's already-weakened economy. Possible impacts include decreased investment, decreased consumption, and slower growth as Russia shifts away from a capitalistic society, Richard Portes, an economist from the London Business School, says."You do have an inhibition on risk-taking, innovation," Portes told BI on the intensifying pursuit of foreign agents in Russia. "For those who remain, you're not going to get any dynamic economic activity. Aside from the <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-outlook-ukraine-war-worker-shortage-population-brain-drain-2024-8">brain drain</a>, aside from the drain of young people, you're not going to get any innovation. And I think that's the medium-term consequence of all this: disastrous."Sergei Guriev, another economist who was deemed a "foreign agent" by the Russian government, agrees the crackdown on perceived security threats could hurt the country economically.He used the example of Russia recently <a target="_blank" class="" href="https://www.businessinsider.com/russia-arrests-3-hypersonic-missile-scientists-for-treason-2023-5">arresting some of its missile scientists</a>, which has made others in the scientific community fearful of publishing new research, he said."We can expect that it should impact economic growth," he added, though he noted the effect may not be immediately felt.Russia's economy is showing some signs that the kind of risk-taking associated with innovation and entrepreneurship is on the decline. Innovation in Russia has fallen behind the nation's level of development, according to a <a target="_blank" href="https://www.wipo.int/web-publications/global-innovation-index-2024/assets/67729/2000%20Global%20Innovation%20Index%202024_WEB2.pdf">2024 ranking</a> from the World Intellectual Property Organization. Patent filings fell 13% in Russia in 2022, while patent filings from foreign applicants dropped 30%, according to data from the <a target="_blank" href="https://rospatent.gov.ru/content/uploadfiles/otchet-2023.pdf">Russian Patent Office</a>.Russia minted just 240,458 new LLCs in 2022, about half of the number of new companies that registered in 2015, according to the <a target="_blank" href="https://www.worldbank.org/en/programs/entrepreneurship">World Bank entrepreneurship</a> database.Private investment in Russia is also down. Private equity and venture capital-backed M&amp;A deals and funding rounds in Russia dropped around 39% from 2022 to 2023, with the nation seeing just <a target="_blank" href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/2-years-on-private-capital-flees-russia-builds-slowly-in-ukraine-80421379">$1.4 billion</a> of those types deals last year, according to S&amp;P Global data. Merger and acquisition deal value as a whole also dropped 71% to $6.41 billion, down from $22.48 billion the prior year.<a target="_blank" href="https://rosstat.gov.ru/storage/mediabank/132_28-08-2024.html">Corporate profits</a> in Russia also dropped around 6% in the first half of the year in 2024. Meanwhile, profits from Russia's professional, scientific, and technical activities dropped around 19% over the first half of this year compared to the same period a year ago, Rosstat data shows.These outcomes are partly influenced by a more restrictive environment in Russia, Portes said, in addition to some of Moscow's other challenges, like <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-outlook-stagflation-recession-inflation-gdp-growth-ukraine-war-2024-9">high inflation</a> and the <a target="_blank" class="" href="https://www.businessinsider.com/russian-economy-brain-drain-labor-shortage-workforce-exodus-capital-flight-2023-9">flight of some of its most educated</a> workers."The longer-term consequences, the medium-term consequences, are hollowing out [the economy]," he said. "It's very sad, but that's what it is."<h3 id="c673f304-1ae4-43f5-81a2-d4145eb78dc1">Moscow's spy mania</h3>The number of Russians being accused of treason has skyrocketed in recent years, Guriev says. He estimates that over 100 people each year are now being arrested for treason. That's likely because Russia's government is focused on creating an "atmosphere of fear," and "paralyzing resistance" amid the war in Ukraine, Pavlov said.Constant fear of persecution doesn't mix with a capitalistic society, Portes says."The thing about capitalism — capitalism has its defects for sure — but it works because it gives incentives to people to take risks," he said. "The circumstances of a country that's like what Russia is right now, the incentive to take risks, there is a strong disincentive".Other experts have noted that Russia looks to be <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/russia-economy-ukraine-war-tech-reverse-industrialization-central-bank-finland-2023-3">drifting away</a> from a capitalist structure, particularly as it boosts public spending to fund its war efforts in Ukraine.Previously, Portes predicted that Russia was on its way to being reduced to a "<a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-outlook-ukraine-war-worker-shortage-population-brain-drain-2024-8">natural resource economy</a>." That could lead to a lower quality of life for Russians, he predicted, hitting the nation with sluggish economic growth and a decline in everything from education to medical care.Moscow's economy isn't necessarily at risk of collapse, thanks to <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-ukraine-war-moscow-military-spending-inflation-worker-shortage-2024-2">hefty government spending on the war</a>, Portes says, though he still sees a dark economic future ahead of the nation."It's a disaster. We have plenty of examples in history where a war economy can keep on going, even though everything is crumbling around it. And I think that's what you have now," he added.

How national security panics in Russia could stifle innovation and hurt its economy

Over the past few months, there’s been a lot of brouhaha about the lagging pace of bank deposits in India. Simply put, the rate at which Indians are depositing their hard-earned money in banks has been falling constantly, and some blame the increasing financialization of household savings in the country, or the rising preference of Indians towards mutual funds and shares. So, the hypothesis is that people are choosing to invest more in mutual funds and the Indian equity markets through direct investments, IPOs, or NFOs, the money flowing into Indian banks in the form of deposits is slowing down. But is that really the case? <h2>A crisis or a phase?</h2><keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> data suggested that for the quarter ended June 2024, bank deposits grew at 11.7%. On the other hand, credit growth has outpaced this at 15%. This means that the outflow from banks as loans is far greater than the inflow into them in the form of deposits in Q1 of FY 2024-25. The situation largely saw cut-copy-paste in the first week of September as well, with loans registering a 13.3% YoY growth during the period, while deposits rose only 11.1%. This gap has only been widening for the last 3 years. Since deposits are how banks gather assets to further lend and earn interest income as a consequence, even a slight dip could set the alarm bells ringing for banks, and rightfully so. And truth be told, mutual funds are indeed taking on bank deposits in a big way. Per a report by <keyword id="20250971" type="General" weightage="20" keywordseo="franklin-templeton" source="keywords">Franklin Templeton</keyword>, in August 2024, the AUM (assets under management) of Indian mutual funds, or the total funds managed by them, stood at 31.3% of total bank deposits in the country, up from 24.20% during the year-ago period. As of August 2024, the AUM of mutual funds stood at Rs 66.17 lakh crore, an all-time high. But all said and done, is this really the reason why the rate of bank deposits is falling behind? SBI has dismissed this to be a “statistical myth”, and experts point out that since equity and fund houses also keep the cash in their respective bank accounts, there’s no cause for concern. So, is financialization really to be blamed for the trailing tempo of deposits? Or is something else happening behind the scenes? We take a closer look: <h2>First, are <keyword id="4000333" type="General" weightage="100" keywordseo="household-deposits" source="Orion">household deposits</keyword> really slowing down? And is that a cause of concern?</h2>Data from Motilal Oswal suggests the contrary. Deposits grew by around 10.4% between March 2020 and August 2024. Data from RBI also highlights that as of August 9, 2024, bank deposits witnessed a YoY growth of 10.8%. The loan-to-deposit ratio for the retail segment, which indicates what percentage of its total deposits the banks lend out as loans, has stayed at 77.5%, above the 77% mark for the tenth straight month. Also, we can’t forego the fact that the share of Indian <keyword id="20319599" type="General" weightage="20" keywordseo="households" source="keywords">households</keyword> in bank deposits has indeed slowed down. However, data from Axis AMC shows that the dip is marginal—from 63% in 2022 to 62% in 2023 and 61% in 2024. What has slowed down even more considerably is the share of government deposits in the aggregate bank deposits, which has dipped from 14% in 2018 to 9% in 2024. So, it's not just household deposits, you see. Moreover, as of March 2024, the collective CASA ratio (current and savings account deposits) of all commercial banks in India stood at 41.00%, down from 43.1% in March 2023 and 45.2% in March 2022, marking a nearly 5% point decline over the past year, while still staying over the 10-year average of 39.2%. This implies that Indian banks are relying more on higher-cost funds (savings accounts), which can limit their profitability. <h2>What is this financialisation of savings we are talking about?</h2>Then again, there is no doubt about the growing affinity of Indians towards mutual funds and stock markets. Recent data from CBDT (<keyword id="19942037" type="General" weightage="20" keywordseo="central-board-of-direct-taxes" source="keywords">Central Board of Direct Taxes</keyword>) highlights that India’s net direct tax collection surged by around 22%, driven exclusively by the significant uptick in the collection of <keyword id="20930760" type="General" weightage="20" keywordseo="securities-transaction-tax" source="keywords">Securities Transaction Tax</keyword> (STT), which doubled to Rs 26,154 crore, from Rs 13,352 crore in the year-ago period. Why does this matter? STT is levied when you buy or sell equity shares on stock exchanges, sell equity mutual funds, and trade in futures and options in the equity segment. Such taxes, including the multiple other taxes in equity market investments, are considered as leakages as the money moves out of the economy into government coffers. Data from a ValueQuest report explains that over the last 20 years, the markets have handsomely rewarded the investors, generating over $900 billion in incremental value for them. This is the major driver behind the dramatic rise in investment flowing towards the equity markets. There’s further proof of this budding romance, if you check the demat pudding. The number of demat accounts, which are a primary requisite for participating in the stock markets, also burgeoned by 42.3 lakh in August 2024, taking India’s total tally of demat accounts beyond 17 crore. To put this in perspective, this is almost equivalent to the population of just 8 nations in the world, including China, the US, Brazil and more. Vivek Iyer, Partner, Grant Thornton Bharat thinks it's rather important, as well. “Financialisation of household savings in India is an indication of deepening capital markets in the market, especially from a retail investor standpoint. Bank deposits with a modest rate of return are no longer the only option for savings for investors. Investors today have more avenues for wealth creation in the form of public capital markets, which have democratized wealth creation and provided equality of opportunity to retail investors”, he says. Yes, Indians are investing more and more in the markets, and in mutual funds. But is it a sin to look out for inflation-beating returns, which the stock markets offer, and vanilla bank deposits don't? After all, the allure of 12-13% annual returns offered by equities can certainly pale the stability offered by good old deposits, which generally do not go beyond 9% when it comes to annual returns. But all of this is not what is behind the slowdown. India is still a toddler in the school of savings financialization, with less than 10% of the population holding a demat account, and less than 5% of us saving in equities. That's a drop in the ocean of deposits, far inadequate to trigger a tsunami. <h2>Tell me why lagging deposits have nothing to do with Indians investing more in mutual funds!</h2>Says Shweta Rajani, Head - Mutual Funds, Anand Rathi Wealth Limited, “Households' equity holdings composition grew from 11.1% in FY 23 to 14.7% in FY 24. This trend reflects a growing awareness of investment options, empowering individuals to take control of their financial futures. Despite this transition towards equities, banks still hold a significant share of household financial savings—33.5% in FY24 compared to 34.9% in FY23”. Also, household savings and their subsequent financialization do not have much to do with deposit creation, which is entirely made by banks. What actually drives increased deposits is credit growth or increased lending. When interest rates are eased, people tend to borrow more and spend more, which circulates more money in the economy. For the past 4 years, RBI has been tightening the screws on interest rates, which raises the cost of borrowings, and makes it more expensive to take loans, putting a dampener on credit growth, but effectively curbing inflationary pressures. The last time RBI cut the repo rate by 40 basis points was back in May 2020, 4 years ago. The lag in deposit growth we’re witnessing is almost 3 years old. Coincidence much, or just good old economics at work? But with the <keyword id="19900043" type="General" weightage="20" keywordseo="fed" source="keywords">Fed</keyword> recently setting a rate cut precedent by slashing 50 bps off its interest rate, RBI is expected to follow suit in the next <keyword id="19918491" type="General" weightage="20" keywordseo="mpc" source="keywords">MPC</keyword> (Monetary Policy Committee) meeting, scheduled for November 2024. A rate cut would ease the aforementioned high cost of borrowing, and increase loan-taking for corporates and institutional investors, thereby stoking consumption in the economy. And then, deposit creation in banks is likely to return to its former glory. If not, then that would be a curious case to unravel! But that worry is for another day.

A Deposit Dilemma — What's the fuss about a crisis in Indian bank deposits? Are mutual fund investments to blame?

<ul class="summary-list"><li>After graduating from college, Dalia Goldberg found a job working in marketing.</li><li>Curious about what else was out there, she decided to look into moving abroad.</li></ul>I remember one freezing cold morning in 2015 when I was working at a marketing agency in <a target="_blank" href="https://www.businessinsider.com/college-overseas-abroad-canada-mcgill-university-no-debt-2024-7">Canada</a>. That day, I had been tasked with editing a travel article about Málaga, Spain.I had never even heard of <a target="_blank" class="" href="https://www.businessinsider.com/five-countries-everyone-should-visit-from-frequent-international-traveler-2024-10">Málaga</a> before, but it sounded lovely. A freelancer had written the article using the knowledge they'd gained from living in Spain and running a travel blog. While I worked with freelance writers every day as part of my job, I had no idea what it was like to actually be one.I couldn't have imagined that nine years later, I would be living just a few hours' drive from Málaga and working as a freelance writer. But the path to getting here was far from easy and straightforward. There were many challenges to overcome along the way, from <a target="_blank" class="" href="https://www.businessinsider.com/wealthy-americans-foreign-residence-citizenship-investment-migration-henley-partners-2024-3">immigration </a>bureaucracy to financial struggles and personal hurdles.In 2016, at 24, I quit my job and started a new adventure. I wanted to travel and <a target="_blank" class="" href="https://www.businessinsider.com/left-big-tech-job-uber-entrepreneur-2024-10">be my own boss</a>, like the freelancers I'd worked with.Here are five lessons I've learned during my years abroad. <h2 id="52a1dec2-f044-458b-9af2-31a0514116fc">1. Plan ahead and expect the unexpected</h2>At first, I wasn't sure where I wanted to go. After researching immigration and practicalities, I <a target="_blank" class="" href="https://www.businessinsider.com/german-vs-american-parenting-relocation-berlin-kids-independent-helicopter-parenting-2024-10">decided on Berlin</a>. I was used to living in a big city and wanted to be in a similar environment, and assumed <a target="_blank" class="" href="https://www.businessinsider.com/berlin-travel-guide-germany-trip">Berlin</a> would be an easy place to get residency and find a job.Before <a target="_blank" class="" href="https://www.businessinsider.com/surprising-things-moving-to-germany-from-us-2024-9">heading to Germany</a>, I scoured the internet for information on how to apply for visas. It all seemed simple and straightforward, and with my immigration experience from leaving the US for Canada, I thought I was all set.But when I arrived, I realized things would be much harder than I thought. While in Canada I'd been able to apply for visas by mail, in Germany I had to visit the overcrowded immigration office — waiting hours in the early morning to try to get a walk-in slot, or weeks to secure an appointment online. The system was filled with Catch-22s: you needed a <a target="_blank" class="" href="https://www.businessinsider.com/work-visa-moved-usa-canada-immigrants-2024-7">job to get a visa</a>, a visa to get a job, and a job and a visa to secure any type of permanent housing.I learned that it's important to be well-prepared and do your research before moving abroad. There will always be things that research won't prepare you for, so I've learned to expect the unexpected. Looking back, I would have told myself to save up as much money as possible, as it takes time to get settled when arriving in a new place.<h2 id="258d8f26-ee72-48d6-a042-117f4d0d1d83">2. Don't be afraid to leave your comfort zone</h2>Eventually, I got tired of struggling with bureaucracy and decided to leave Berlin. At this point, I'd begun working remotely, so I opted to <a target="_blank" class="" href="https://www.businessinsider.com/best-places-to-go-in-europe-travel-planner-favorite-destinations-2024-10">travel around Europe</a> for a while. I visited dozens of countries over the course of about a year and a half.While this period was fun and rewarding, transitioning to a <a target="_blank" class="" href="https://www.businessinsider.com/spending-2023-digital-nomad-lonely-daunting-what-really-matters-2024-1">nomadic lifestyle was a challenge</a>. I had to sell everything, proceeding to live out of a backpack with just a laptop and a few essentials. Before the COVID-19 pandemic, remote work and the "digital nomad" movement weren't very well-known — so explaining the decision to confused, worried friends and family wasn't easy. Looking back, I'm happy that I got to see so many new places.It can be hard to stand by your decisions, especially when others don't seem to understand. But sometimes, life's unexpected twists and turns can lead you in exciting directions. During this trip, I learned that travel can be more than just fun: it can broaden your horizons and change the way you view the world.<h2 id="6a5e4e5c-c66f-4c7a-9ba0-128efcbe8105">3. Try to see the positives in everything you do</h2>As I <a target="_blank" class="" href="https://www.businessinsider.com/visited-went-to-every-country-in-the-world-favorites-2023-11">traveled through multiple countries</a>, I was exposed to different cultures. This taught me there are dozens of ways to complete the same task.Need a bus ticket in Greece? Obviously, you should visit a newsstand to buy one. Want to ride the subway? Well, it works differently in Istanbul, Budapest, and Bucharest. Every place I went, I needed to learn a new set of rules for daily life. While locals went about their day effortlessly, I often struggled with basic tasks.Every country I visited offered its own set of beautiful discoveries and painful headaches. Eventually, I realized that no place was perfect — they were all just different.You can adapt to a new country, learn the language, and discover the culture — but you can't expect everything to run smoothly all the time. A <a target="_blank" class="" href="https://www.businessinsider.com/solo-travel-tips-how-to-stay-positive-feel-less-lonely-2023-9">positive attitude is the key</a> to having a good experience.<h2 id="8a79fa62-a9ea-4792-8c81-047a39f90bfe">4. Find a community</h2>In late 2018, I stopped traveling and <a target="_blank" class="" href="https://www.businessinsider.com/surprising-things-about-moving-to-europe-from-us-barcelona-spain">moved to Spain</a> permanently. I found a <a target="_blank" class="" href="https://www.businessinsider.com/american-millennial-living-abroad-spain-overcome-loneliness-friends-improv-comedy-2024-10">fun new way to make friends</a> — performing in an improv comedy group.Finding a community of people I really connected with was game-changing for me. After all, integrating into a new country isn't just about filling out forms and learning a language. It's also about making friends, putting yourself out there, and finding your place in a new society.Putting yourself out there is especially important for freelancers who <a target="_blank" class="" href="https://www.businessinsider.com/millennial-working-from-home-office-misses-friends-loneliness-remote-2024-6">work remotely</a>. Even if you're not an extrovert, it can get boring being at home every day. Finding a good café or coworking space can make all the difference.<h2 id="30d1fb02-9084-4643-80b6-8ef25ff19277">5. Keep going, even when things feel impossible</h2>The most important lesson I learned? Stick it out.There were definitely many times when I considered going home. Being a freelancer has also been challenging at times. Although it's been nice to have the freedom to <a target="_blank" class="" href="https://www.businessinsider.com/working-2-full-time-remote-jobs-overemployed-millennial-started-business-2024-7">work remotely on my own schedule</a>, this has also meant I've had to figure out immigration, taxes, and other logistics without help from an employer.Ultimately, though, I'm happy to have persevered. The experience helped me become more resilient and empathetic to the challenges of many other people who have more difficult circumstances than me.If you're <a target="_blank" class="" href="https://www.businessinsider.com/americans-moving-abroad-cost-of-living-too-expensive-debt-retirement-2024-4">planning a move abroad</a> or a big life change, there are going to be moments when you want to quit. But by fighting through the difficulties and appreciating the good moments, you'll definitely get a lot out of the experience.Got a personal essay about moving abroad that you want to share? Get in touch with the editor: <a target="_blank" href="mailto:akarplus@businessinsider.com">akarplus@businessinsider.com</a>.

I quit my corporate job and moved to Europe to become a freelance copywriter. It's been challenging, but I'm glad I stuck it out.

<ul class="summary-list"><li>88 current and former executives from the business and tech worlds signed a letter endorsing Harris.</li><li>Signatories span industries and political engagement, from veteran Harris allies to new supporters.</li></ul>Dozens of prominent <a target="_blank" href="https://www.businessinsider.com/category/wall-street">Wall Street</a> and <a target="_blank" href="https://www.businessinsider.com/category/silicon-valley">tech executives</a> combined forces on Friday morning to support <keyword id="20307089" type="General" weightage="100" keywordseo="Kamala-Harris" source="keywords">Kamala Harris</keyword>' bid for the White House. Eighty-eight top executives signed a joint letter endorsing the vice president, <a target="_blank" href="https://www.cnbc.com/2024/09/06/harris-endorsed-trump-murdoch-yelp-snap-ripple.html">CNBC reported</a>. The signatories span a <a target="_blank" href="https://www.businessinsider.com/silicon-valley-political-divide-twitter-elon-musk-kamala-harris-2024-8">wide range of political engagement</a>, from longtime Democratic donors to those issuing their first public <keyword id="20142451" type="General" weightage="20" keywordseo="endorsement" source="keywords">endorsement</keyword> of Harris. <keyword id="20396501" type="General" weightage="20" keywordseo="James-Murdoch" source="keywords">James Murdoch</keyword>, the former CEO of 21st Century Fox, <a target="_blank" class="" href="https://www.businessinsider.com/murdoch-moguls-media-tech-dual-class-stock-control-how-2024-7">broke even further away from his father</a> and added his name to the list. Though the list of signatories is lengthy, the letter itself is a mere five sentences. Electing Harris is, the executives write, "the best way to support the continued strength, security, and reliability of our democracy and economy." They celebrate her<a target="_blank" href="https://www.businessinsider.com/kamala-harris-small-businesses-tax-breaks-cut-red-tape-2024-9"> record supporting small businesses</a> and assert that she would "continue to advance fair and predictable policies that support the rule of law, stability, and a sound business environment." Current executives include Aaron Levie of Box and Jeremy Stoppelman of Yelp, as well as big names in the sports world. NBA Hall-of-Famer and billionaire Magic Johnson signed on, as well as Ted Leonsis, who owns the NBA's Washington Wizards and WNBA's Mystics. Some signatories, like Murdoch and Ripple co-founder Chris Larsen, are declaring their support for Harris for the first time. "Proud to support the Harris campaign — she's the right leader for our fast-changing world. And I'm confident that she will reset the misguided Biden policies that were too anti-business and anti-innovation," Larsen told Business Insider in a statement. "At the same time, I'm confident she will maintain Biden's strong leadership on our energy transition." Larsen also said that he recently made a $1 million donation in crypto to Future Forward, a PAC supporting Harris. Other signatories have long rallied behind the vice president. Many know her from her <a target="_blank" href="https://www.businessinsider.com/harris-july-fundraising-california-tech-silicon-valley-2024-8">days in California politics</a>, reflecting the ways in which Harris is relying on her home state for support, financial and otherwise. The veteran Harris supporters include philanthropist Laurene Powell Jobs and Facebook co-founder Dustin Moskovitz. Both coasts are well represented, with <a target="_blank" href="https://www.businessinsider.com/silicon-valley-billionaires-investors-kamala-harris-mark-cuban-reid-hoffman-2024-8">executives from Silicon Valley</a> and Wall Street alike joining the effort. Angel investor Ron Conway,<a target="_blank" href="https://www.businessinsider.com/mark-cuban-kamala-harris-sec-capital-gains-business-2024-9"> entrepreneur Mark Cuban</a>, and LinkedIn co-founder Reid Hoffman are among the biggest West Coast names, while former Blackstone President and CEO Tony James and former Goldman Sachs executive Bruce Heyman hail from the world of New York finance. Former executives at various prominent companies — including PepsiCo, Paramount, Lyft, and Starbucks — also signed on to endorse Harris. The support from the business community comes at a crucial time, as both Harris and Trump are <a target="_blank" href="https://www.businessinsider.com/harris-lina-khan-balance-billionaires-silicon-valley-hoffman-progressives-ftc-2024-8">laying out their economic agendas</a> ahead of Tuesday's debate. Each candidate is presenting themselves as the pro-business option while attempting to <a target="_blank" href="https://www.businessinsider.com/trump-adopts-elon-musk-plan-cut-government-spending-efficiency-reform-2024-9">woo the financial and tech sectors</a>. Correction: September 6, 2024 — An earlier version of this story misdescribed Harris. She is the current US vice president, not a former vice president.

James Murdoch and 87 other corporate leaders sign a letter endorsing Kamala Harris

<ul class="summary-list"><li>Geary Bartmess, 75, moved to <keyword id="23243140" type="General" weightage="20" keywordseo="Puerto-Vallarta" source="keywords">Puerto Vallarta</keyword>, Mexico, from Houston and has lived there for 14 years.</li><li>Bartmess retired in Mexico after a 35-year career as a lawyer in Texas.</li></ul>After 35 years as a lawyer, Geary Bartmess III felt exhausted and yearned for a relaxing retirement. For Bartmess, that meant moving to <a target="_blank" class="" href="https://www.businessinsider.com/retired-boomer-moved-abroad-cost-living-mexico-cheaper-than-us-2024-8">Puerto Vallarta</a> from Houston to enjoy life on the Pacific Ocean and spend more time focusing on his creative interests in writing. Bartmess is one of many Americans seeking <a target="_blank" class="" href="https://www.businessinsider.com/boomer-retired-panama-affordable-cost-living-quality-life-pension-benefits-2024-9">retirement abroad</a>, hoping for a <a target="_blank" class="" href="https://www.businessinsider.com/boomer-retirement-affordable-germany-than-us-lives-off-benefits-pensions-2024-8">more affordable</a> and <a target="_blank" class="" href="https://www.businessinsider.com/gen-xer-germany-less-income-but-better-life-than-us-2024-9">simpler lifestyle</a>. According to the latest available <a target="_blank" href="https://www.ssa.gov/policy/docs/statcomps/supplement/2024/5j.html#table5.j3">data</a> from the <keyword id="19966945" type="General" weightage="20" keywordseo="Social-Security" source="keywords">Social Security</keyword> Administration, as of December 2023, 34,000 retired American workers lived in Mexico. Mexico is the <a target="_blank" class="" href="https://www.businessinsider.com/retirees-moving-social-security-cheaper-living-healthcare-canada-japan-mexico-2024-9">third most popular country</a> for retired American workers, following Canada and Japan. Bartmess said he's not rich but not poor and saved for his <keyword id="23243139" type="General" weightage="100" keywordseo="retirement-abroad" source="keywords">retirement abroad</keyword> by contributing to a 401(k), buying stocks, being frugal in his 50s, and putting away a portion of his salary in savings accounts. <h2>Working as a corporate lawyer and saving for early retirement</h2>Bartmess worked for 35 years as a lawyer in the oil and gas industry. He said he did not start saving substantial amounts of money outside his 401(k) until he was 49. As he neared age 50, Bartmess said he began to think more proactively about saving and building his wealth for retirement. At that point, he began storing 20% of his annual salary and bonuses in savings accounts. Bartmess also bought stocks, index funds, and bonds to help diversify his portfolio. He said he lived below his means for the majority of his career, which helped him adjust to saving more. For example, he opted to buy a "nice but small" condominium in downtown Houston instead of a larger home in a suburb of the city, even though he could have afforded it. Bartmess is also child-free, and he said not paying for college expenses helped him save. He said focusing on being frugal in the decade before retirement also helped him feel more able to move outside Texas. When Bartmess was 58, his mother died, and he also inherited wealth from her estate, contributing to his savings. He said his job's demanding schedule took a toll on his physical health, and he aimed to retire as early as possible. "I had developed insomnia, chronic migraine headaches, and the loss of my natural voice, all as the direct result of such high stress for 35 years," Bartmess said. At age 60, he took an early retirement. After retiring, Bartmess lived in Houston for a year but said he wanted to leave the US. After taking two trips to Puerto Vallarta in 2009, Bartmess was convinced it was the perfect place to retire. He moved there in 2010. <h2>Deciding on retirement in Mexico and moving to Puerto Vallarta</h2>Bartmess said affordability was not his driving motivation for moving to Mexico. He said the main factor driving his decision to leave was seeking a more relaxed lifestyle. He said living in Houston did not provide the retirement environment he envisioned for himself. He also said he wanted to engage with and experience Mexican culture. Bartmess first visited Mexico when he was 9 years old and returned many times. His first trip to Puerto Vallarta was in 1976, and he said he had fond memories there. <div type="image" title="Photo shows a beach in Puerto Vallarta, Mexico." height="2250" width="3000" msid="113464348" hostid="261"></div>Bartmess said he pays more for <a target="_blank" class="" href="https://tradingeconomics.com/mexico/gasoline-prices#:~:text=Gasoline%20Prices%20in%20Mexico%20decreased%20to%201.27,page%20provides%20the%20latest%20reported%20value%20for">gas in Mexico</a> than he did <a target="_blank" class="" href="https://tradingeconomics.com/united-states/gasoline-prices">in Texas</a>, but groceries and housing are cheaper. He said a fill-up of his Jeep Wrangler costs about $60 in Puerto Vallarta. Yet, Bartmess said he can have a meal at a nicer restaurant for about $15, and there's good food in regular restaurants for much less. "The street food in Mexico is plentiful, cheap and usually good," he said. Bartmess began collecting Social Security at age 62, the first year he was eligible. He is a permanent resident in Mexico, but retained his US citizenship. He said the biggest consideration for <keyword id="23243143" type="General" weightage="20" keywordseo="American-retirees" source="keywords">American retirees</keyword> who want to move abroad is whether they are healthy enough to maintain the lifestyle. For example, he said his healthcare options in Mexico are not as good as those covered by Medicare in the US, but he is fortunate to be healthy enough not to be too concerned. He said he is also comforted by the fact that he is a roughly two-hour flight away from Houston, where he could return to use his Medicare benefits if necessary. Bartmess said Mexico's proximity to Texas makes it an ideal retirement location for many Americans. <div type="image" title="Photo shows a street in Puerto Vallarta, Mexico." height="2250" width="3000" msid="113464349" hostid="261"></div>"Puerto Vallarta is a very artsy town with many painters, sculptors, musicians, writers, art galleries, and so on," Bartmess said. "There are churches of many denominations with services in English, a vibrant LGBTQ scene, jungle tours, a botanical garden, endless social opportunities, and virtually every type of workshop you can imagine." In retirement, Bartmess has spent more time working on his creative writing, and he takes part in a Puerto Vallarta writers group. But Bartmess said if Americans want to move to Mexico, they should be prepared to learn about the local culture and acclimate respectfully to their neighborhood. He'd recommend taking a trip first to explore the area and better understand whether it would fit their lifestyle. For example, after visiting Puerto Vallarta, Bartmess said he was interested in improving his Spanish, so he settled in a neighborhood with fewer tourists, to better immerse himself in the community. Bartmess said he engages in community service by picking up plastic trash twice a week on Playa Camarones, the beach that is just three blocks away from his condo. Bartmess has lived in Puerto Vallarta for 14 years and said he has no plans to leave. Correction: September 19, 2024 — An earlier version of this story misstated when Geary Bartmess moved to Mexico. He did so in 2010, not 2009. Are you an American who retired abroad? Reach out at <a target="_blank" class="" href="mailto:jtowfighi@businessinsider.com">jtowfighi@businessinsider.com</a>

A Texas baby boomer who retired at 60 and moved to Mexico says housing, food, and a good life are cheaper, but gas is more expensive

<ul class="summary-list"><li>Jason Bennett, 46, moved from San Francisco to Medellín, Colombia in 2018.</li><li>Bennett quit his job at Banana Republic to move abroad and launch two startups.</li></ul>Jason Bennett had a successful career in San Francisco but didn't see a future for himself in <a target="_blank" href="https://www.businessinsider.com/quit-job-after-rto-mandate-never-work-office-again-2024-9">the corporate world</a>.Bennett, 46, worked as a senior marketing director for Banana Republic. He earned a good salary and received great bonuses but <a target="_blank" class="" href="https://www.businessinsider.com/american-employees-disengaged-work-meaningless-fake-email-jobs-2024-6">felt unfulfilled</a>."I started to feel a disconnect with both my job and my city," Bennett said. "I started to wonder if I really wanted to spend the rest of my life in an office working for other people."In 2015, Bennett <a target="_blank" class="" href="https://www.businessinsider.com/millenniall-quit-job-start-business-shares-advice-entrepreneurship-networking-mentor-2024-9">quit his job</a> at Banana Republic and founded True Star Consulting, a marketing firm that specializes in strategic planning and creative direction for brands. He said he had saved enough for the future and was ready to start a new adventure at the age of 37.At that time, Bennett moved to Lisbon and began running True Star Consulting as a <a target="_blank" href="https://www.businessinsider.com/millennial-retired-parents-digital-nomad-family-live-abroad-cheaply-2024-8">digital nomad</a>. In 2016, he visited Medellín, <a target="_blank" href="https://www.businessinsider.com/gen-xer-moves-from-california-to-columbia-for-cheaper-retirement-2024-9">Colombia</a>, and said he envisioned it as his future home. He relocated there two years later.While many Americans are <a target="_blank" class="" href="https://www.businessinsider.com/baby-boomer-financial-independence-retired-age-60-puerto-vallarta-mexico-2024-9">moving abroad for retirement</a>, Bennett is among the working professionals <a target="_blank" class="" href="https://www.businessinsider.com/millennial-four-day-workweek-netherlands-chiropractor-high-skilled-visa-2024-9">seeking a career</a> outside the US. According to <a target="_blank" class="" href="https://www.fvap.gov/uploads/FVAP/Reports/2022-OCPA-Report_Combined_Final_20230925.pdf">data</a> from the Federal Voting Assistance Program, which helps overseas citizens vote in US elections, 429,674 US citizens lived in South and Central America and the Caribbean in 2022, up from 374,241 in 2012."It was one of, if not the best, decisions I've ever made," Bennett said. "It always felt like home."<div type="image" title="Photo shows Jason Bennett, 46, looking over Medellín, Colombia, where he moved in 2018" height="853" width="1280" msid="114013025" hostid="261" sizebytes="301036"></div><h2 id="ecf25e36-8f0b-40e5-a4ac-8b941ed2b04d">Building financial independence started at a young age</h2>Bennett was born and raised in San Francisco. He earned his bachelor's degree in business administration from the University of Oregon in 2000.After college, Bennett worked in marketing at the department store Mervyn's before joining Banana Republic in 2004. Over the next decade, Bennett ascended through the corporate ranks, becoming a director of marketing in 2013 and a senior director shortly after.While Bennett enjoyed his job, he said he felt unsatisfied with his day-to-day work. He wanted to take ownership of his schedule and career growth."At the end of the day, I wanted to be my own boss," he said.Bennett said the prospect of quitting his job at Banana Republic seemed reasonable because he had been actively saving and was diligent about his finances."Very early on, my grandparents told me to max out my 401(k) and then go have fun, and that's what I did," Bennett said. "The lesson of compound interest should be topic No. 1 for anyone thinking about one day charting their own path."In 2012, while still living in San Francisco, he bought a one-bedroom, 700-square-foot condo for under $400,000. Bennett said he chose a 15-year mortgage to accelerate his home equity and lock in a lower interest rate.Bennett also grew his wealth through investing in stocks, index funds, and fixed-income securities like certificates of deposit. He's been keeping detailed track of his finances since 1995, when he was 17 years old.Bennett said he felt confident to quit his own job to earn a fraction of the salary at his own company — and he felt confident to move abroad. He declined to share what his company books in revenue."I didn't know I was going to do this when I was 25," Bennett said. "But I did know it was important to save."<h2 id="70ee5480-51eb-4164-ab61-205bbf2d0ddc">Life in Medellín compared to San Francisco</h2>Bennett said life in Medellín is incredible, from the weather to the culture and food.He said his cost of living is much lower than in San Francisco. For example, he said he can have "excellent meals" for less than $10, and a cup of "the world's best coffee" for less than $2. He also said public transportation and Uber are inexpensive<div type="image" title="Photo shows a cup of coffee in a café in Medellín, Colombia." height="1695" width="1440" msid="114013028" hostid="261" sizebytes="189744"></div>Bennett is single and child-free, which also keeps his daily costs down.He feels so passionate about Medellín that he founded a tourist company, The Paisa Plan, to help people plan their visits to Colombia and the city. However, Bennett declined to share what his company books in revenue.He also volunteers his marketing strategy services for the Medellín Philharmonic Orchestra."It reflects my love, respect, and appreciation for my adopted home, and aims to help visitors really discover the magic of Medellín," he said.<div type="image" title="Photo shows Jason Bennett, 46, in Medellín, Colombia, with his mother." height="3024" width="4032" msid="114013030" hostid="261" sizebytes="2150056"></div>He said he is still smart about savings, despite having a lower cost of living.Six years into his life in Medellín, Bennett said he has a better work-life balance than he ever experienced in San Francisco. Additionally, he said the city is full of energy."I also take every opportunity to explore the city and immerse myself in what it has to offer," he said. "There are so many excellent restaurants and cafés. More stunning parks than you can count. And there is always something happening culturally."Are you an American who moved abroad for work? This reporter wants to hear your story. Please reach out at <a target="_blank" class="" href="mailto:jtowfighi@businessinsider.com">jtowfighi@businessinsider.com</a>

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