Jumber

If you live in a developing country with politically and economically stable environment and large GDP growth rates, then it does not make sense to invest in pension scheme that seems to me quite risky and can not provide you with appropriate return. Some solve this problem by investing in offshore banking centers that provide pension financing. If I am not mistaken Bahamas provide quite flexible pension scheme, but the problem is the same as in onshore pension schemes: your return on investment is not appropriate. In both cases you keep funds so that they earn you negative economic profit meaning that you can find better places to invest elsewhere.

Obviously you have a question: ok, I believe you, but where is a better place to invest. I would answer you to invest in real estate. First of all price of real estate increases with GDP and second you can rent out real estate and earn income on that.

Now you may have another question: but I was planning to put away tiny amounts every month and I can not afford buying land or a building. The answer is mortgage: get a mortgage and you can even cover month repayments by the rent.

Nothing in life is 100% safe, even life itself. The airplane you fly in with may crash too. It does happen.

Can not agree more. You knew from the beginning what risks you faced.

When It Comes to Cash, A Thai Village Says, 'Baht, Humbug!'

Interesting )

Anyone else think that the Thai economy is about to crash and burn? No exports, hardly any tourists, an over-valued currency!!! Everything that has made Thailand what it is today has come from foreign money, take that away and what are you left with!!!

Do you have fixed exchange rate in Thailand?

Large part of the crisis comes from human side. Big role is played by expectations. People expect that situation will be worse, because they hear it everyday in TV, read that in newspapers, hear it from friends and colleagues. After that it is not strange that people become stressed and crisis strengthens.

The right approach to the crisis is sitting back in the chair and doing NOTHING. If a bank is insolvent it should go bankrupt, if a guy can not pay back the mortgage he/she should lose the house and etc. If government starts giving out the cash to everybody as US and EU does it will bring new crisis, because economic agents become indifferent to the crisis, since they know that they will be bailed out. This will lead to stupid decisions and new, more severe crisis.