6 month emergency fund

[treetops]

6 hours ago, murraynz said:

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

It pretty much is for anyone joining the game now.  For those already in it, there will be some lucky ones but many more whose money would be better invested elsewhere.

[Leaver]

As others have said, your OP mentions nothing about insurance. 

 

Perhaps what you are saving each month towards your 500k baht goal, may be better purposed towards a decent insurance policy. 

[BOOKEMDANO]

8 hours ago, Leaver said:

As others have said, your OP mentions nothing about insurance.

 

I did state 'twice' that I already have a 'decent' health insurance plan here in Thailand. In addition, I contribute to regular UK payments, so for anything serious, I hope to be covered there, too. 

 

Lots of good information here from many of you. I will certainly be checking that "fund book" as a way to park part of my 500,000 emergency cash fund. 

 

Thanks again...

 

[Leaver]

On 6/27/2020 at 11:40 PM, BOOKEMDANO said:

 

I did state 'twice' that I already have a 'decent' health insurance plan here in Thailand. In addition, I contribute to regular UK payments, so for anything serious, I hope to be covered there, too. 

 

Lots of good information here from many of you. I will certainly be checking that "fund book" as a way to park part of my 500,000 emergency cash fund. 

 

Thanks again...

 

Medical insurance is only one policy in a suite of policies you should have. 

 

Do you have any trauma or disability insurance? 

[scubascuba3]

2 hours ago, Leaver said:

Medical insurance is only one policy in a suite of policies you should have. 

 

Do you have any trauma or disability insurance? 

Most people don't get that in the west but it doesn't stop insurance companies trying to sell it. Guys who fall for it and buy all the various types of insurance probably don't manage to save money

[rickudon]

AS for keeping cash in ordinary savings accounts at less than 1% interest that is not useful. My  immigration extension funds in Thailand are in a fixed deposit which pays 1.8% (less when it comes up for renewal).

 

Cash in the UK is either in high interest Current accounts (paying 1% plus) or in monthly savers paying 2%. It takes a bit of time juggling the money but average about 1.5% currently, and can hold between 7,000-12,000 GBP depending on time of year. That is my UK emergency cash - any surplus will be invested in dividend paying funds - value may vary but in the long term will almost certainly outperform a savings account. Banks paying a laughable 0.1% (or less!) on many savings accounts are doing very well, thank you.

[Leaver]

On 6/29/2020 at 4:54 PM, scubascuba3 said:

Most people don't get that in the west but it doesn't stop insurance companies trying to sell it. Guys who fall for it and buy all the various types of insurance probably don't manage to save money

I really don't care what most people DON'T get in the west.  I am not a sheep.  

 

The gap between being sick (health insurance) and death (life insurance) is very wide.  

 

What about a catastrophic injury, like ending up i a wheel chair?  Health insurance will cover the medical bills, but what then?  Sure, slim chances of something like that happening, but what about a stroke or heart attack, with permanent paralysis?  No more driving a car, riding a motor scooter, or even walking to the shop, for example.  A stroke could happen to anyone, at anytime.  A high percentage of the expat community are at risk of heart disease, due to their lifestyle choices.  

 

How much "savings" would you have to have for the above scenarios, for the rest of your life, in any country?   

 

Nothing wrong with some insurance that's in between heath insurance, and life insurance.  Such insurance would cover events that have the possibility to financially ruin most people.  

[BOOKEMDANO]

On 6/29/2020 at 10:19 PM, rickudon said:

AS for keeping cash in ordinary savings accounts at less than 1% interest that is not useful. My  immigration extension funds in Thailand are in a fixed deposit which pays 1.8% (less when it comes up for renewal).

 

Cash in the UK is either in high interest Current accounts (paying 1% plus) or in monthly savers paying 2%. It takes a bit of time juggling the money but average about 1.5% currently, and can hold between 7,000-12,000 GBP depending on time of year. That is my UK emergency cash - any surplus will be invested in dividend paying funds - value may vary but in the long term will almost certainly outperform a savings account. Banks paying a laughable 0.1% (or less!) on many savings accounts are doing very well, thank you.

Stocks and Shares ISA isn't such a terrible idea either. 

Usually able to withdraw within 10 days without a massive penalty. 

[rickudon]

4 hours ago, BOOKEMDANO said:

Stocks and Shares ISA isn't such a terrible idea either. 

Usually able to withdraw within 10 days without a massive penalty. 

Which are where my funds are ....... In fact, still showing a 4% gain in the last year, even with Covid-19.

[mstevens]

On 6/26/2020 at 10:35 PM, bkk6060 said:

Your example is ridiculous but probably a reason many do not have enough money.

Your total leaves approx. $600,000 US dollars to last 40 years?

Ever hear of inflation?

It truly needs to be invested properly and buying property here I do not believe will provide enough appreciation or income to live a comfortable/quality life.  It certainly would not for me.

And, that 40,000 a month not invested at all will have a value of about 5,000 in 40 years.

Not ridiculous at all because the expectation is always that over time you will get a greater return on your money invested, even conservatively, than the rate of inflation.

[Leaver]

On 7/7/2020 at 4:32 AM, mstevens said:

Not ridiculous at all because the expectation is always that over time you will get a greater return on your money invested, even conservatively, than the rate of inflation.

The normal rate of inflation is not applicable for foreigners living in Thailand.   

[Leaver]

On 7/6/2020 at 8:16 PM, rickudon said:

Which are where my funds are ....... In fact, still showing a 4% gain in the last year, even with Covid-19.

My portfolio is still earning more than the rent I pay on the same condo if I was to buy it, so why buy?  

[scubascuba3]

5 minutes ago, Leaver said:

My portfolio is still earning more than the rent I pay on the same condo if I was to buy it, so why buy?  

I bought recently, certainly feels better than renting, buying new furniture, getting the condo exactly how you like it, I'm not too worried about the return I'm potentially missing on the stock market, it can go down as well as up. I remember when i paid off my mortgage 20+ years ago, felt good, glad i did it, same argument about the stock market

[Leaver]

28 minutes ago, scubascuba3 said:

I bought recently, certainly feels better than renting, buying new furniture, getting the condo exactly how you like it, I'm not too worried about the return I'm potentially missing on the stock market, it can go down as well as up. I remember when i paid off my mortgage 20+ years ago, felt good, glad i did it, same argument about the stock market

A home is a home, so not that it matters too much, but hypothetically, when would do you think, on paper, there would be a capital gain on your property?  I can't see one for years, possibly never.  They keep building and building here, which messes with market forces.  

[scubascuba3]

2 minutes ago, Leaver said:

A home is a home, so not that it matters too much, but hypothetically, when would do you think, on paper, there would be a capital gain on your property?  I can't see one for years, possibly never.  They keep building and building here, which messes with market forces.  

I'm not bothered if it makes a gain or not, it means I don't pay rent. Remember we are talking peanuts compared to farangland

[Leaver]

3 minutes ago, scubascuba3 said:

I'm not bothered if it makes a gain or not, it means I don't pay rent. Remember we are talking peanuts compared to farangland

Sure, but that wasn't my question, was it?

[scubascuba3]

16 minutes ago, Leaver said:

Sure, but that wasn't my question, was it?

you seem to be overly worried about the return, but to many it isn't that important. Most people who have made returns have mainly done it based on the change in exchange rate

[Leaver]

18 minutes ago, scubascuba3 said:

you seem to be overly worried about the return, but to many it isn't that important. Most people who have made returns have mainly done it based on the change in exchange rate

I am not overly worried about anything. 

 

At some stage, either yourself, your someone connected to you, will attempt to sell the property. 

 

I am asking you what are their prospects of a sale, and do you think it will be sold for more than you bought it for.

 

Queue the "I'm dead so I don't care" posts, but the question is still valid, especially for the "When I die the missus gets the property" brigade.  

 

Edited August 7, 2020 by Leaver

[scubascuba3]

7 hours ago, Leaver said:

I am not overly worried about anything. 

 

At some stage, either yourself, your someone connected to you, will attempt to sell the property. 

 

I am asking you what are their prospects of a sale, and do you think it will be sold for more than you bought it for.

 

 

You seem fanatical about things going downhill. I've just bought it so yes I'll be able to sell it and for more, but who cares, no plans to sell it for 20+ years. A good time to buy if you can find a good deal

[Leaver]

11 hours ago, scubascuba3 said:

You seem fanatical about things going downhill.

Not fanatical about anything.  In your opinion, is the Pattaya property market going downhill, or not?

 

11 hours ago, scubascuba3 said:

I've just bought it so yes I'll be able to sell it and for more,

How do you figure that?

 

11 hours ago, scubascuba3 said:

no plans to sell it for 20+ years.

No one knows what Pattaya will look like 3 to 5 to 10 years from now.  It may not be a desirable place to live.

 

11 hours ago, scubascuba3 said:

A good time to buy if you can find a good deal

I'm not in the market, but for sure there will be many distressed sellers in the next 12 months.  We are no where near the bottom of the market yet.