20 year saving for retirement.

[NoshowJones]

3 hours ago, emptypockets said:

If the OP is 40 and is living in  Thailand and not working isn't he effectively retired already? 

I'm presuming he is married on an extension is stay based on marriage.

Why does he need to save for retirement? Retirement usually mean stopping work, which he says he isn't doing now. 

He could of course be FIFO. 

A touch confusing. 

 

FIFO?? this is a forum, why are you texting?

[khunPer]

23 hours ago, JeffersLos said:

What are my options?

You actually have plenty of options for long term savings, but still accessable in case of emergency situations, depending of your mood of risk.

 

Fixed long-term bank accounts will normally give you instant access to your savings with loss of interest for the ongoing interest period; i.e. for a 12-month fixed account you loose the interest earned, but not paid, for the withdrawn amount within the present 12-month period.

 

Fixed long term accounts are safe – there is a guarantee, which in a few years will be lowered to 1 million baht (per bank) – but the interest is limited, for example 1.5% p.a. that Bangkok Bank pt. offers, which after withholding tax pays 1.275%, or just about the Thai consumer price index inflation. That have however for the past years been little lower than the best 12-month interest. Savings following the consumer price index relatively keeps their value, whilst just gaining a bit over, in theory increase the value of the savings.

 

Mutual funds might be a better option, and various banks offers that. I'm using, and familiar with, Bangkok Bank, K-bank (Kasikorn), and SCB, but there are several others. There is a wide variety available from quite safe money funds, or bonds, or speculation equity within a range of fields. You can choose between dividend paying funds, and accumulating funds (they grow in value only). The mutual funds can be sold at any time at market price, settlement takes from a few bank days, and up to five bank days.

 

Personally I keep away from funds in foreign currency and foreign markets – like foreign bonds, and foreign stocks – to avoid currency exchange rate fluctuations.

 

A special range of Thai mutual funds are called are called LTF – Long Term Fund – which has tax benefits, if kept for seven years or longer. However, you can still sell your LT-funds, but you loose the tax benefits.

 

A third option is to invest directly in selected stocks in SET (Stock Exchange of Thailand). You can easily open an account via some of the banks, and trade yourself with a mouse-click. I use SCB-online that is easy to set-up – just click on "New client" and follow the screen instructions – and easy to trade with. Of course you need to have a savings account is the bank you choose for on-line trading; I only mention SCB because I'm familiar with that bank. Trading fees are cheap, and stock dividends are paid directly into your savings account after 10% withholding tax; you don't need to declare anything, if you are not declaring income tax in Thailand.

 

Normally a trading account would default be set to NVDR (non-voting depository receipt) so foreigners can hold stocks in the company without falling under the 49% limit of foreign ownership. NVDR mean that you have no voting rights, but are still paid full dividends. If you keep to stocks with the NVDR-option its easy, and no other paperwork is needed.

 

Stocks can always be sold with a mouse-click, and the outcome will normally be available in your savings account within five bank days.

 

Like any other stock trading market its a question of selecting the "right" portfolio that fit one's investment risk profile. However, its my experience that the SET stocks live a bit of their own life, and are not following the World market deviations with full effect. Some investors are so-called "day traders", or buy and sell often, personally I'm a long-term investor – which also fit the long-term planning for retirement – looking at some of the same parameters as Warren Buffet suggests, i.e. P/E and P/BV, and mainly investing in dividend paying stocks, and keeping the number of stocks in the portfolio low; Buffet says not more than 10. However, others might have other preferences, and we might all be almost equal successful, or the opposite, i.e. same-same but different...????

 

A mix of of options might be a good choice, so one is not too exposed into a single field – however, the higher risk one dare to take, the higher is the "lottery chance" for gaining a big price, for example all the money in the stock that increase 10-fold within a few years; we always see that in the utterly bright light of hindsight, but a few times one might manage to hit one...????, and say why didn't I place all my funds funds in that stock...???? – its up to our individual "investment profile"...????

[wgdanson]

11 minutes ago, possum1931 said:

FIFO?? this is a forum, why are you texting?

It's called an Acronym Possum. You know like NASA, the RAC and HMP (prisons).

[Oxx]

3 minutes ago, wgdanson said:

It's called an Acronym Possum. You know like NASA, the RAC and HMP (prisons).

 

Had to look it up.  Still not sure whether it means "<deleted> Idiot From Ohio" or "Fit In or <deleted> Off" .  (Thank you Urban Dictionary.)

[Lacessit]

18 hours ago, BritManToo said:

Probably as good as Thailand.

I'm trying to think which is drier, your response or the Sahara.

[BritManToo]

4 minutes ago, Lacessit said:

I'm trying to think which is drier, your response or the Sahara.

More seriously,

I would be more worried about being barred from entering the country, than the bank failing.

Lots of people banned from entering Thailand for what appears to me to be trivial offences.

Not heard of anyone being barred from entering Cambodia.

And the Thai police do like to seize foreigner bank accounts on the flimsiest excuse. 

 

I'd want my money in a place where I could be sure to reclaim it.

Edited May 21, 2019 by BritManToo

[Lacessit]

Just now, BritManToo said:

More seriously,

I would be more worried about being barred from entering the country, than the bank failing.

Lots of people banned from entering Thailand for what appears to me to be trivial offences.

Not heard of anyone being barred from entering Cambodia.

 

I'd want my money in a place where I could be sure to reclaim it.

Point taken. I guess as fine upstanding citizens of our home countries, that shouldn't apply to us. Although as they say, this is Thailand.