6 month emergency fund

[stouricks]

20 hours ago, BOOKEMDANO said:

I have a decent medical plan (I think) with Pacific Cross. Haven’t (luckily) had to use it for an emergency yet. 

How would you know that it is 'decent' plan until you do have to use it, and see if they pay out with no hassles.

[pineapple01]

My Chum spent big money on insurance for his Wife and Self over the last 20 years. Now hes skint and its all in BUPAs Bank. Up to You.

[khunPer]

20 hours ago, Ventenio said:

forget 6-months.....worry about RETIREMENT:

 

Retire at 50...live to be 90.

 

40 x 12 x 40,000 is 19,200,000 baht.  Is it enough?  maybe, maybe not.  

 

or, if possible, keep your main house paid off, rent, then sell it when needed.  

Retirement planning is a total different subject than emergency funds; however retirement planning is extremely wise to consider.

 

Most Westerners have some level on ongoing – often life-long – governmental retirement pension, or social security pension, to count as a base. It might be relative small in the home-country, but compared to your 40,000 baht a month budget, relative high when converted to Thai baht; even 20,000 to 25,000 baht a month is half of your calculated budget.

 

Furthermore a number of Westerners have additional private retirement savings, which could be life-long; or payouts for a limited period; or a lump sum – these arrangement together with additional savings makes uf the long term budget. Savings might pay an interest; or dividend if stocks; or rental income if property.

 

It's not a question a just putting the money in the bank, and you furthermore need to include a factor for inflation – at least 1 percent would be fair, 2 percent is the financial expert's target – 40,000 baht a month at age of 50-years might have a different buying power compared to 40,000 baht a month 40-years later at age of 90...

 

However, you can look at it as cash divided with years and month, for that part of the retirement pension, which is not an ongoing life-long indexed payout – and count on ongoing interest rates or capital gain equals the consumer index average inflation rate – i.e. your total extra savings divided with estimated remaining years divided with 12 should be the sum needed from ongoing payout up to your total monthly budget sum.

 

To compare with you calculation it could be 40 x 12 x 15,000 baht – if there is an ongoing life-long monthly payout of 25,000 baht – i.e. 180,000 baht a year times 40 giving an amount that shall equal around 7 million baht at any present exchange rate, if not in a Thai-baht deposit.

 

Furthermore you might need to consider health costs, even with a health insurance that will have a higher price per year at age 90, than at age 50, or how much you expect to be able to cut in daily needs to pay for the higher insurance fee. That's were a "rainy day" emergency account (also) makes sense; especially if you never stop saving up and adding little extra into the account every month, or every year...????

[khunPer]

23 minutes ago, garygooner said:

I have absolutely no wish to live to be 90!

And I fear that I might live to pass 100 – scary thoughts...???? – so I try not to spend too much now, just in case I need it later...????

[BOOKEMDANO]

32 minutes ago, khunPer said:

For deposit I have the funds split into three accounts. Some money in a normal savings account with ATM card for instant access. Some money in a 12-month fixed deposit account for better interest, but the money can be withdrawn at any bank-day with loss of interest from the ongoing last period. And some funds placed in a low-risk so-called "Fund Book" for best interest; funds can be sold on bank-days and will be available in the ATM-account within one to three bank-days.

Excellent advice here. Thank you. 
 

May I ask the name of this “fund book”? 

[BOOKEMDANO]

27 minutes ago, stouricks said:

How would you know that it is 'decent' plan until you do have to use it, and see if they pay out with no hassles.

I don’t. That’s why I said “I think”. 
 

On paper it looks fine, however. I would consider it above average though as I am covered under its premium to grace the doors of Bumrungrad and BNH, and the like. Many standard plans exclude such establishments. 
 

Besides, this is why having a 6 month cash reserve comes in handy for those “oh sh*#” moments in life. 

 

[khunPer]

4 minutes ago, BOOKEMDANO said:

Excellent advice here. Thank you. 
 

May I ask the name of this “fund book”? 

I use SCBFP for my shared funds (Siam Commercial Bank), and I also use a Bualuang Thanatavee Fixed Income Fund for personal savings (Bangkok Bank); the latter a very safe mutual fund that I have had for more than 10 years.

 

It's not a recommendation for future fund performance, and there might other mutual funds worth checking.

[BOOKEMDANO]

16 minutes ago, khunPer said:

It's not a question a just putting the money in the bank, and you furthermore need to include a factor for inflation – at least 1 percent would be fair, 2 percent is the financial expert's target – 40,000 baht a month at age of 50-years might have a different buying power compared to 40,000 baht a month 40-years later at age of 

 

A very salient point. 

[BOOKEMDANO]

4 minutes ago, khunPer said:

I use SCBFP for my shared funds (Siam Commercial Bank), and I also use a Bualuang Thanatavee Fixed Income Fund for personal savings (Bangkok Bank); the latter a very safe mutual fund that I have had for more than 10 years.

 

It's not a recommendation for future fund performance, and there might other mutual funds worth checking.

Thank you kindly 

[murraynz]

1 hour ago, RichardColeman said:

You will need to set up and emergency fund for your emergency fund I think - plan on 25-30% of your property not getting rent on it at any one time , being empty or rent just not being paid by the tenant ! And for repairs for the damage you will undoubtedly get.

 

As for the market dropping , I seriously think that is not happening in any way that is going to give you a huge portfolio at a discount price

 

 

 

Surely that makes renting houses in thr uk,a pointless exercise..

[cerox]

21 hours ago, Ventenio said:

forget 6-months.....worry about RETIREMENT:

 

Retire at 50...live to be 90.

 

40 x 12 x 40,000 is 19,200,000 baht.  Is it enough?  maybe, maybe not.  

 

or, if possible, keep your main house paid off, rent, then sell it when needed.  

 

 

You could make it cheaper by living in CNX 555

[stouricks]

7 minutes ago, khunPer said:

I use SCBFP for my shared funds (Siam Commercial Bank), and I also use a Bualuang Thanatavee Fixed Income Fund for personal savings (Bangkok Bank); the latter a very safe mutual fund that I have had for more than 10 years.

 

It's not a recommendation for future fund performance, and there might other mutual funds worth checking.

Can something like this Fixed Income Fund be used to put your/my 800k for Immigration purposes, please.

[Matzzon]

@BOOKEMDANO I would say that you could easily keep an emergency fund of as little as 500 000 baht in Thailand. We are not talking big money here. However, if you do move between UK and Thailand like living 6 month in each place, then it might be okay to split it 50/50.

[Lacessit]

2 hours ago, Krataiboy said:

I could do you a favour. Still got a bit of room left under my mattress.

It's nice to know there are good-hearted souls on TV.

[BritManToo]

1 hour ago, garygooner said:

I have absolutely no wish to live to be 90!

None of my family made 70 ........ and I'm 64.

4 x 12 x 40k = 2,000,000 .......... yeah, I can cover that.

[Lacessit]

3 minutes ago, BritManToo said:

None of my family made 70 ........ and I'm 64.

4 x 12 x 40k = 2,000,000 .......... yeah, I can cover that.

Perhaps you will break the mould. Thailand may be increasing your life expectancy.

[BritManToo]

1 minute ago, Lacessit said:

Perhaps you will break the mould. Thailand may be increasing your life expectancy.

Doubt I'll last to 66, I've already outlasted my parents.

Can't see why everyone else wants to live forever ...... being in my 60s ain't that great.

Edited June 27, 2020 by BritManToo

[Lacessit]

4 minutes ago, BritManToo said:

Doubt I'll last to 66, I've already outlasted my parents.

Can't see why everyone else wants to live forever ...... being in my 60s ain't that great.

I don't want to live forever. I want to go when I no longer have quality of life.

[PGSan]

1 hour ago, garygooner said:

I have absolutely no wish to live to be 90!

Maybe not your choice!  These things creep up on you.  There are a lot of productive and happy 90-year olds amongst us now and it will be the norm in 50 year# time.

 

Tough on you, I guess.

[BOOKEMDANO]

1 hour ago, khunPer said:

Therefore I decided to place the majority of my emergency funds shared with my trusted girlfriend, so she always can get some fairly instant cash on my behalf, and even her mother has an ATM to one account, in case something happens to both of us – we have a child together – but a solution like that is of course a question of trust, or calculated risk.

Very sensible...

 

 

[khunPer]

1 hour ago, stouricks said:

Can something like this Fixed Income Fund be used to put your/my 800k for Immigration purposes, please.

The kind lady that opened accounts for me in a local Bangkok Branch advised me to use Fund Book for the 800k baht deposit, which I did and got accepted by the local immigration office, but after a few years the immigration office changed their mind and said it was investment, and therefore not accepted it anymore, so I had to switch my 800k deposit to a fixed bank account.

 

Today it's clearly stated that the 800k deposit has to be deposited in a bank in Thailand, but you can ask your local immigration office, they seem to locally interprets some of the rules little different.

[Adelphi]

2 hours ago, garygooner said:

I have absolutely no wish to live to be 90!

I wonder if you would make the same post when you are 89.

[BritManToo]

1 hour ago, PGSan said:

There are a lot of productive and happy 90-year olds amongst us now

I've never met one.

[scubascuba3]

2 minutes ago, Adelphi said:

I wonder if you would make the same post when you are 89.

I'd like them to do polls of old peoples homes and see how many would rather be dead

[khunPer]

1 hour ago, BritManToo said:

Doubt I'll last to 66, I've already outlasted my parents.

Can't see why everyone else wants to live forever ...... being in my 60s ain't that great.

Sad to hear that, hope you'll find some happiness worth longevity.

 

Turning 70 is not that bad – I talk from recent experience – always look at the bright side of life, and enjoy whatever you have...

Quote

It's my life
It's now or never
I ain't gonna live forever
I just want to live while I'm alive...

 

[Lacessit]

1 hour ago, scubascuba3 said:

I'd like them to do polls of old peoples homes and see how many would rather be dead

IMO that's a no-brainer. How many people do you think would volunteer to go into an old people's home?

[pineapple01]

Florida ones are superb. All you need is Big Money.

[scubascuba3]

19 minutes ago, Lacessit said:

IMO that's a no-brainer. How many people do you think would volunteer to go into an old people's home?

Exactly, that's why the future is choosing an exit date rather than having a miserable death

[Trillian]

6 hours ago, garygooner said:

I have absolutely no wish to live to be 90!

When you get to 89 you will feel differently!

[Lacessit]

23 minutes ago, Trillian said:

When you get to 89 you will feel differently!

Doesn't that depend on whether you are hale and hearty, or in constant pain?