Long-term safe investment inheritance ???

[moonseeker]

Hi there

 

I hope somebody can get me on the right track here. Never done any banking/funds/shares investments here in TH. 

I am on my way out, seems the C is taking control ????

My TH assets will go to my caring long-term gf. & he kids. She is hardworking and deserves every Baht she gets. In 15 yrs.

never got nothing, but support to run her own show / business, which she does very successfully in long, long hours and still

finds the time to more and more take care of me.

She will end up with a few condos she is renting out and around 8-10 Mio Baht in cash, 2 installments. She does not have any

banking/investing experience, neither do I here in TH.

What can I advise her? Where to invest safely & not greedy, all the money? I know there are some very smart guys on here, who

can answer this with a basic, structured  plan. Any advise - this thing been on my mind for a while - very much appreciated!

Thank you so much. MS>

 

 

 

 

[1FinickyOne]

Hi Moon - sorry for your condition and hope for a happy landing on the other side... nice of you to have concern for your wife and family.

 

My wife is not a sophisticated investor and I have gradually been giving her funds through the years in her own name. I have taught her about interest rates and shopping with the bank for their 5 mo and longer CDs... 

 

However - the best advice after money in the bank, is to buy what you know, which for her and the family is land. We have bought a considerable amount of farm land, which has not only gone up 4x in value in 15 years, but has the added benefit of family using the land to have an occupation. 

 

So, work with her to play into her strengths - - put the money in the bank or buy what you know, even gold if nothing else looks better... don't speculate or trust others with risky investments. 

 

And, best of luck to you all. 

[Ulic]

The advice I give is for her not to tell her family what/how much you will leave her, and not lend them anything, unless she understands it will be a gift as she will never see any of it back.

[rwill]

Most banks do Mutual funds.  She could put some of the money there.  Or some longer term Fixed deposit accounts, but even on those the interest rate isn't that great.

[1FinickyOne]

9 minutes ago, Brickbat said:

fixed income from good solid REITs and Vanguard Index funds

Unless I am mistaken I think you need an address in USA and maybe SS# too to access this type of investment... 

 

Thanks for the confirmation on medical... 

[Brickbat]

4 minutes ago, kenk24 said:

Unless I am mistaken I think you need an address in USA and maybe SS# too to access this type of investment... 

 

Thanks for the confirmation on medical... 

I would look at Thai REITs and an index Fund of Thai stocks. After all, it’s booming here in s e Asia . And she is Thai. Pretty sure global investments for REITs or index funds are accessible through the Thai stock exchange. 

newbies like me worry about bringing in cash to invest as we have all been hit with this strong baht, bar usd and Swiss franc. 

[KittenKong]

1 hour ago, Brickbat said:

I would look at Thai REITs and an index Fund of Thai stocks. After all, it’s booming here in s e Asia . And she is Thai. Pretty sure global investments for REITs or index funds are accessible through the Thai stock exchange. 

For a Thai person I would agree with that also. As the lady already has several condos, perhaps she should concentrate more on general index funds than on REITs, and always check the management costs.

Land is usually a fair bet anywhere, but the current high asking prices in many areas seem a bit silly to me. Also there seem to be many downsides to land in Thailand (obscure title deeds, squatter's rights). Again, her existing exposure to condos might be enough as far as property goes.
Some banks and credit unions also have high deposit rates available for Thais only, but those would need to be looked at on a case-by-case basis before putting any money in.

Above all, dont put all your eggs into one basket. Diversification brings security, and for widows and orphans security is what it's all about.

 

My main worry here would be extended family members and "friends" trying to separate the lady from her money, but maybe she is lucky enough not to have any of those.

[Brickbat]

20 minutes ago, KittenKong said:

For a Thai person I would agree with that also. As the lady already has several condos, perhaps she should concentrate more on general index funds than on REITs, and always check the management costs.

Land is usually a fair bet anywhere, but the current high asking prices in many areas seem a bit silly to me. Also there seem to be many downsides to land in Thailand (obscure title deeds, squatter's rights). Again, her existing exposure to condos might be enough as far as property goes.
Some banks and credit unions also have high deposit rates available for Thais only, but those would need to be looked at on a case-by-case basis before putting any money in.

Above all, dont put all your eggs into one basket. Diversification brings security, and for widows and orphans security is what it's all about.

 

My main worry here would be extended family members and "friends" trying to separate the lady from her money, but maybe she is lucky enough not to have any of those.

The problem with most people is greed and stupidity. Based on envy and vanity. Enough is never enough. As Solomon said, it’s a chasing of the wind. 

[scorecard]

To the OP, please check your private messages. 

[Nanaplaza666]

6 hours ago, kenk24 said:

Hi Moon - sorry for your condition and hope for a happy landing on the other side... nice of you to have concern for your wife and family.

 

My wife is not a sophisticated investor and I have gradually been giving her funds through the years in her own name. I have taught her about interest rates and shopping with the bank for their 5 mo and longer CDs... 

 

However - the best advice after money in the bank, is to buy what you know, which for her and the family is land. We have bought a considerable amount of farm land, which has not only gone up 4x in value in 15 years, but has the added benefit of family using the land to have an occupation. 

 

So, work with her to play into her strengths - - put the money in the bank or buy what you know, even gold if nothing else looks better... don't speculate or trust others with risky investments. 

 

And, best of luck to you all. 

I have to say i respect your information very much makes a lot of sence and is in my mind also the best thing to do , just buy some land so the family can work and make money of it so dont need to lent them any money and her money stays where it is and can only rise in valleu . Hundred procent thumbs up for your response . 

[khunPer]

19 hours ago, moonseeker said:

Any advise - this thing been on my mind for a while - very much appreciated!

Thank you so much. MS>

Sorry to hear about your condition, wish I could advice you on that.

 

For a person without any investment experience a mutual fund is often the best solution for the cash part, as some experienced investors takes care of the business – for a relative small fee – and the management of the mutual fund is audited by an external division.

 

Most Thai banks offers mutual funds, so-called "Fund Books". There are a wide selection of funds to choose from, in range fra purely money-market and bonds, to equity, and mix with money marked and equity, and foreign markets with currency exchange rate risk. You can choose between accumulating funds, and dividend paying funds.

 

To stay safe, you can keep the investment in Thai currency funds – avoid currency exchange fluctuation – and with a mix on bonds. A good option might be the so-called LTF (Long Term Fund) that include tax-benefits, if not sold within seven years from deposit.

 

I've used Fund Books myself, for both a bit of my own Thai savings, but also for my girlfriend and our minor daughter, we all have some deposits in LTFs. The benefit, apart from the tax, is that the 7-year kind of binding makes it an investment you would keep. Furthermore, you can find LTFs with a of high percentage of fixed income investments mixed with dividend paying stocks, for example 70/30 or 75/25.

 

I'm using Fund Books from both Bangkok Bank, Kasikorn (K-bank), and SCB (links to English language home-pages in their names). Historically, during the 10+ years we have been using LTFs – and this is without any prediction for future performance – the dividend paying 70/30 LT-funds (like SCB's "SCBLT1") have been giving a average around 3% a year in paid dividends, and furthermore an increase of the initial invested sum that exceeds the Thai consumer price index inflation; i.e. the invested capital is safe.

 

Going into direct investments in equity, like opening an account for SET-trading, require some knowledge and experience, and often care by regular market checks and adjustment of portfolio; that's why I recommend using mutual funds. 8-10 million baht in cash would in average give an annual paid dividend of 240,000 to 300,000 baht; often the dividend percentage of the initial deposit will increase a bit over long term, more or less following the consumer price index.

 

You can find the Thai consumer price index here.

Feel free to ask questions, if you think I can be of further assistance.

????

 

Edit: For my girlfriend and daughter, we also invested in some farmland, which long-term is so far has been (very) good in value increase, and furthermore giving a small cash fee in outcome from rent, like a bank interest. However, problem with land invest is that it might require a long period to sell to someone that can pay the price, and if not high title deeds, it can only be transferred to family and relatives.

Edited June 4, 2019 by khunPer

[1FinickyOne]

6 hours ago, Nanaplaza666 said:

I have to say i respect your information very much makes a lot of sence and is in my mind also the best thing to do , just buy some land so the family can work and make money of it so dont need to lent them any money and her money stays where it is and can only rise in valleu . Hundred procent thumbs up for your response . 

ps - Nana - - just a word of caution... this worked for me probably only because the family is great. Fine country people. And actually, it did lead to loans which I provided willingly.. if you are farming and have lots of land, you need a tractor... $17,000 US...

paid off in full in 2 years... and I never had to ask - when they had it they paid... then came a pick-up truck, also paid of quickly. 

 

And for my part - it was all a gift to my wife and family... I have no interest or need to get it back but have the pleasure of seeing them prosper. I hope yours works out as well... 

[moonseeker]

Thank you all for the positive and helpful info. How refreshing, compared to some posts in General. Very kind and much appreciated. MS>

[Langsuan Man]

I don't know what the OP home country is but a foreigner can open up an investment account with Schwab.  They will accept foreign investors once $10,000 is invested, so if the OP has any current positions they can be transferred to a foreign Schwab account

 

I am facing the same type of concerns as stated by the OP, with the additional hurdle of not being married and having to deal with US Taxpayer Identification numbers.  A process way too complicated for a Thai but fortunately I have plenty of time (I hope) to work the problem

[metisdead]

An off topic post and the replies have been removed.