How much money is required for 30 years retirement?

[HashBrownHarry]

5 hours ago, rumak said:

I have at least as much as I have saved from not throwing my money away  giving it to the insurance mafia.  Not lucky,  just lived within my means.

More than enough to pay for any hospital procedure here in Thailand .

Like BM2......  i get very very affordable service at the hospital i go to.  And nice attitudes as well.

 

2MB will not last you long.

[rumak]

1 hour ago, Surelynot said:

with an income of 100,000 baht per month......we eat in or on the street rather than restaurants

SURELY NOT !       most aptly chosen user name , 2020  winner

[rumak]

6 minutes ago, HashBrownHarry said:

2MB will not last you long.

 And where did you come up with that number ?  Is that supposed to be what you  ASSume is my net worth?   I think you doth eat too many potatoes sir . ( i assume that is all you eat, since you are HashBrown Harry.  Not meat and potatos harry.  or chicken and french fries harry.  Just plain old hashbrownharry.)  

You will not last long only eating hashbrowns sir.   Please diversify .  Add some intelligent comments not based on a need to troll.

 

 

Edited July 23, 2020 by rumak

[khunPer]

On 7/22/2020 at 7:29 AM, villageidiotY2K said:

...I've estimated below,

Age: 55-75, 40,000B per month, 500,000B per year, 10MB for 20 years

Age: 75-85, 30,000B per month, 360,000B per year, 3.6MB for 10 years

30 years total = 13.6MB

 

I dont plan to stay in BKK and most likely move around in the sticks or northern rentals, maybe try neighboring countries.

My current rent is 7500B in 2 story town house, electric bill + water around 1500B.

I dont eat at pricey restaurants often and I guess my expenses are around +-30,000B per month.

I have private health insurance, car insurance.

 

What's your opinion, experiences or advices my friends?

I wouldn't count less for the later years, as health insurance costs will go up – might even be a lot – and some costs might not be covered by insurance, so even you have one, you might need to use more of your budget for health related matters.

 

Furthermore you might need some level of domestic help at a late age. I would budget on the same monthly/annually amount, if me; especially as the earlier budget did not include large sums for extended travelling or other costly experiences.

 

Seems like you count in cash savings and that bank interest will take care of inflation. Bank interest rate could be in the low end, especially if the inflation rate begin to rise. Furthermore your consumption might not strictly follow the consumer price index inflation rate, but merely be dependent of your personal life style, so it could both be a fractions less, or quite a bit higher than the official index. Inflation and interest – or dividend, or other outcome of one's savings, if invested in a more risky area – are always jokers in long term budgets.

 

I would also always also include some level of lump sum on top for unforeseen events.

 

But only you know your life-style and expectations, so your calculation might fit you, and 40,000 baht is indeed possible to live from...????

[checkered flag]

1 hour ago, thaibeachlovers said:

What's with you guys and your 60,000 a month <deleted> claims?

As long as one has the funds for health insurance and to renew the visa extension, one needs no where near that amount.

I stayed in an excellent hotel for 15,000 a month and food was about 5,000. One can live in a less nice place for less of course.

Entertainment is additional of course, but unless wanting rentals every night it doesn't add up to much.

 

To spend that sort of money I'd have been eating at the Dukes and renting every night.

To retire you need 65+K/mo. ( must include rent) if married it's 40+K/mo. according to Thai Immigration. Of  course more is better.

[itsallmine68]

30 years of retirement and your not quite 50 yet. By then you should have a loved one on your arm. So, its simple Zero Baht  You can live easily 25 years on LOVE. 

[jaygino]

Lets assume you need 50,000 per month to live the lifestyle you want to live in Thailand

 

Lets also assume a High Income fund will deliver a return of ca. 5% annually (I would personally manage my own investments as I am reasonably certain I could achieve an average annual return far in excess of  5%, but if you dont need the hassle or are an inexperienced investor it may be safer and easier investing in a managed fund)

 

I will also build in a guard against an average inflation rate of 2% p.a over the coming years.

 

To achieve 50,000 baht pm and guard against inflation you will need to Invest about 16m baht in the High Income Fund which would give you a return of 800,000 THB after the first year.  Transfer 600,000 baht to your Thai bank account to give you 50,000 baht a month spending money for the following year and leave the extra  200,000 in your managed Funds.  This would mean that for the following year you have 16.2m baht invested in the fund, plus any capital increase in the value of the fund, which is a safety net against inflation.

this would also mean that You could also live to the ripe old age of 120 and still not have any financial worries.

 

Therefore the amount required to retire with financial safety in Thailand today with 50,000 thb per month would be:-

 

Invested in High Income Funds        16,000,000

Retirement visa                                 800,000 (leave in a bank account)

Funds to cover first year                    600,000

                                                    ----------

Total funds required                       17,400,000

 

Likewise, if you were fond of the girlies, drink far to much alcohol and eat lots of western food and therefore needed say 100,000 thb pm, then the required amount would be 32,000,000 + 800,000 + 1,200,000 = 34,000,000

 

Your dependents would also be very happy in the knowledge that when you eventually go to that great beer bar in the sky, through overdosing on Viagra, alcohol, covid or even natural causes, they would stand to inherit a considerable amount of your hard-earned invested in the High Income Fund.

 

Of course, having your money invested in a non Thai fund could throw a spanner in the works if the THB appreciated against the currency in which your money is invested, but could could also be advantageous if it depreciated.

 

Note: I'm sure you could retire a lot cheaper than this by gradually eating into your capital and sticking your finger up at dependents that would like to a nice big inheritence - you pays your money and makes your choice

 

Happy retirement everyone

 

 

[checkered flag]

1 hour ago, newnative said:

     I would have to disagree with this.  My yearly take-home income is about $40,000 US dollars and my partner and I live very well on that.  We own a nice oceanview condo in Pattaya in one of the best condo projects and also a Bangkok getaway condo in a nice project there a short walk to the Phetchaburi MRT, so a very good location.  We both have good health insurance, drive a nice CR-V, dress well, and eat quality food--both at restaurants and at home.  Traveled when we wanted to--when we could travel.  The one thing we don't do is spend tons of money at the bars every night--not our thing.  

$40,000 is very low for two people. Frankly speak Thai, like to eat Thai food, I not fussy, but that's way to little to live on. I own a nice home and have a Foretuner that are paid for. 

[scammed]

1 hour ago, newnative said:

  Sorry this was such a challenge for you to convert dollars to baht.  Other than that, my entire post was about LOS.  

the point is, who wants to go to a currency converter site to get the overall message from your post,

chances are none does it and figure it was a post as pointless as if it was written in another language altogether.

for anyone living here or are even remotely interested in the subject the local currency is better,

i rather get the local currency then my home country even, since i count everything in baht,

and the only times i am reminded of my own currency is on those occasions i transfer 

[pineapple01]

Seems to me looking at the Quality of the more recent settlers in our area the last productive position they held was a School Prefect.

[checkered flag]

5 minutes ago, scammed said:

the point is, who wants to go to a currency converter site to get the overall message from your post,

chances are none does it and figure it was a post as pointless as if it was written in another language altogether.

for anyone living here or are even remotely interested in the subject the local currency is better,

i rather get the local currency then my home country even, since i count everything in baht,

and the only times i am reminded of my own currency is on those occasions i transfer 

He's afraid that they'll scam him in the conversion. 

[newnative]

8 minutes ago, checkered flag said:

$40,000 is very low for two people. Frankly speak Thai, like to eat Thai food, I not fussy, but that's way to little to live on. I own a nice home and have a Foretuner that are paid for. 

     $40,000 a year works out to around 103,000 baht a month.  Both condos are paid for, the CR-V is paid for, so we find it very easy to live well on this amount each month, with money left over.  

[AlfHuy]

19 minutes ago, jaygino said:

Lets assume you need 50,000 per month to live the lifestyle you want to live in Thailand

 

Lets also assume a High Income fund will deliver a return of ca. 5% annually (I would personally manage my own investments as I am reasonably certain I could achieve an average annual return far in excess of  5%, but if you dont need the hassle or are an inexperienced investor it may be safer and easier investing in a managed fund)

 

I will also build in a guard against an average inflation rate of 2% p.a over the coming years.

 

To achieve 50,000 baht pm and guard against inflation you will need to Invest about 16m baht in the High Income Fund which would give you a return of 800,000 THB after the first year.  Transfer 600,000 baht to your Thai bank account to give you 50,000 baht a month spending money for the following year and leave the extra  200,000 in your managed Funds.  This would mean that for the following year you have 16.2m baht invested in the fund, plus any capital increase in the value of the fund, which is a safety net against inflation.

this would also mean that You could also live to the ripe old age of 120 and still not have any financial worries.

 

Therefore the amount required to retire with financial safety in Thailand today with 50,000 thb per month would be:-

 

Invested in High Income Funds        16,000,000

Retirement visa                                 800,000 (leave in a bank account)

Funds to cover first year                    600,000

                                                    ----------

Total funds required                       17,400,000

 

Likewise, if you were fond of the girlies, drink far to much alcohol and eat lots of western food and therefore needed say 100,000 thb pm, then the required amount would be 32,000,000 + 800,000 + 1,200,000 = 34,000,000

 

Your dependents would also be very happy in the knowledge that when you eventually go to that great beer bar in the sky, through overdosing on Viagra, alcohol, covid or even natural causes, they would stand to inherit a considerable amount of your hard-earned invested in the High Income Fund.

 

Of course, having your money invested in a non Thai fund could throw a spanner in the works if the THB appreciated against the currency in which your money is invested, but could could also be advantageous if it depreciated.

 

Note: I'm sure you could retire a lot cheaper than this by gradually eating into your capital and sticking your finger up at dependents that would like to a nice big inheritence - you pays your money and makes your choice

 

Happy retirement everyone

 

 

Compounding your investment.

Because of Covid, many companies completely cancelled dividend payments or massively reduced and share prices also got a massive hit. Good, if there is another income source.

[spidermike007]

At 40,000 a month, you are going to be counting baht, 24/7 for the rest of your life. Not much fun in that.

 

And you also need to take into account inflation. Though the official numbers here are low, we all see prices going up constantly. 

[Kadilo]

9 minutes ago, pineapple01 said:

Seems to me looking at the Quality of the more recent settlers in our area the last productive position they held was a School Prefect.

“Looking at the Quality”

 

I assume you mean how they dress? What car they drive? 
 

Or how else do you define someone’s quality by looking?

[newnative]

8 minutes ago, scammed said:

the point is, who wants to go to a currency converter site to get the overall message from your post,

chances are none does it and figure it was a post as pointless as if it was written in another language altogether.

for anyone living here or are even remotely interested in the subject the local currency is better,

i rather get the local currency then my home country even, since i count everything in baht,

and the only times i am reminded of my own currency is on those occasions i transfer 

     Ok. Once more unto the breach.  The post I responded to said that you would need $80,000 a year income to live reasonably well in Thailand.  Since the poster used US dollars in his example, I did as well.  It made more sense to say I can live nicely on $40,000--you have the comparison of $40,000 vs $80,000.  It would have been a bit awkward to write something like 'You say you need $80,000 but I can live nicely on 1,240,000 baht.'  The 'overall message' from my post--I can live nicely for half-- should have been easily clear with using the same currency--even without bothering to convert to baht.  . 

[scammed]

3 minutes ago, newnative said:

     Ok. Once more unto the breach.  The post I responded to said that you would need $80,000 a year income to live reasonably well in Thailand.  Since the poster used US dollars in his example, I did as well.  It made more sense to say I can live nicely on $40,000--you have the comparison of $40,000 vs $80,000.  It would have been a bit awkward to write something like 'You say you need $80,000 but I can live nicely on 1,240,000 baht.'  The 'overall message' from my post--I can live nicely for half-- should have been easily clear with using the same currency--even without bothering to convert to baht.  . 

yeah, agree in that context your post was using the correct currency

for an apples to apples comparison, i didnt read the post you were responding to,

probably because i could see it had no relevant info for someone not using USD

on a regular basis

Edited July 23, 2020 by scammed

[Kwasaki]

17 hours ago, Susco said:

So you guys haven't seen local produce increase by at least 100% in the shops and restaurants, the last 10 years?

 

I suggest you visit some specsavers in your neck of woods

 

I agree, in some cases it is not so obvious, because they simply decrease the size/portion before they have to increase the price or offer an empty packing.

Where is this 100% we do see it it in our area you area you must live in an expensive area of Thailand and I do know they exist that's why I will not fly there.

Sorry must go the helicopter is ready to pick up after a service. 

[pineapple01]

44 minutes ago, Kadilo said:

“Looking at the Quality”

 

I assume you mean how they dress? What car they drive? 
 

Or how else do you define someone’s quality by looking?

One doesn't need a PHD to spot a Rag Bag on a Plateles Moped and warring a Chang Vest outside 7/11 But if the Cap Fits..........

[mokwit]

4 minutes ago, Kwasaki said:

Where is this 100% we do see it it in our area you area you must live in an expensive area of Thailand and I do know they exist that's why I will not fly there.

Sorry must go the helicopter is ready to pick up after a service. 

Fruit on the street has doubled from Bt 10 to Bt 20 in the time I have been here, coconuts went from Bt 10 to Bt 40 etc. HTH

Edited July 23, 2020 by mokwit

[Kwasaki]

2 minutes ago, mokwit said:

Fruit on the street has doubled from Bt 10 to Bt 20 in the time I have been here, coconuts went from Bt 10 to Bt 40 etc. HTH

Wrong depends when you buy them and the time of the season when you buy. 

[Susco]

8 minutes ago, mokwit said:

Fruit on the street has doubled from Bt 10 to Bt 20 in the time I have been here, coconuts went from Bt 10 to Bt 40 etc. HTH

10 years ago a bag of steamed rice was 5 Baht at the supermarket, now it's 12 Baht for a spoonful.

 

A large Chang or whatever other Thai beer has not only increased by about 70%, at the same time the alcohol content and the bottle size has been lowered to disguise a price increase.

 

A fried rice chicken was 20 Baht at a roadside restaurant, now you will be lucky to get it for 40 Baht, and even then it may contain less chicken.

 

But of course that hasn't happened where some blind members live

Edited July 23, 2020 by Susco

[JackThompson]

3 hours ago, thaibeachlovers said:

Seriously? You say that as if it were easy to do, which it's not. It's damn hard to do so actually. i couldn't even teach because I didn't have a degree. Never mind it could have been a degree in basket weaving.

You are of course aware there is a list of jobs out of bounds for farangs.

The "out of bounds" jobs for foreigners are things like "taxi / tuk-tuk driver" and "tour guide" - not really what most farangs are looking to do.

 

Yes, you need a degree to teach English here - and any 4-year degree will get you a temporary permit to do so (English degree for permanent).  Cambodia has done very well providing young people there with English skills, by NOT making it as difficult to teach there as it is in Thailand.  I think gap-year students could do a great job teaching young children basic English.  It is unfortunate those making the call are too stubborn / closed-minded to see the opportunity - so Thai English skills remain generally poor, as compared to other ASEAN nations.

 

I have tech-skills (and degrees), so had no problem at all getting a job here, as there are few Thais with both tech-skills and functional English literacy, which is needed to work with foreign bosses/management.  My employer tried very hard to hire a Thai, and could not find one.  If you tell us your skill-set, maybe others can suggest possible employment-options.  Not all jobs require a degree.

Edited July 23, 2020 by JackThompson

[luckyluke]

2 hours ago, thaibeachlovers said:

don't know why anyone would even want to live in a dirty stinking polluted hole like Bkk

There are stinking polluted aereas in every city. 

Thonglor in Bangkok is not stinking, neither polluted. 

The prices at Foodland Thonglor are the same as Foodland Pattaya. 

I pay 99 ThB for a pint of Asahi in a pub here. 

Cheaper than in a pub in Pattaya. 

Ok my rent, electricity, water, cable TV, Internet costs are together 5000 ThB per month more than I pay in Pattaya. 

But I met different kind of people here, and the area is also totally different. 

For me the difference worth. 

Of course maybe not for others. 

I stay, in total, around 7 months in Pattaya and 5 in Thonglor. 

Which make the average price quite reasonable (for me). 

[rumak]

1 hour ago, Kadilo said:

“Looking at the Quality”

 

I assume you mean how they dress? What car they drive? 
 

Or how else do you define someone’s quality by looking?

I am usually placed fairly low on the "quality scale" ..... well,  the one that is based on what people

think i am worth.  I drive a Vios,  don't have (or want) a 6 million baht plus home, and just look and

act like a "normal guy" .   Clean, but no designer exercise outfits.

Funny, today a waitress I have known for over 10 years heard I was selling my home/ land.

When she found out the asking price she said " Rumak, if I had known long ago that you were rich

I would have flirted with you" .    She was joking of course.  Or was she ???   ????????

[JackThompson]

18 minutes ago, Susco said:

10 years ago a bag of steamed rice was 5 Baht at the supermarket, now it's 12 Baht for a spoonful.

 

A large Chang or whatever other Thai beer has not only increased by about 70%, at the same time the alcohol content and the bottle size has been lowered to disguise a price increase.

 

A fried rice chicken was 20 Baht at a roadside restaurant, now you will be lucky to get it for 40 Baht, and even then it may contain less chicken.

 

But of course that hasn't happened where some blind members live

There have been increases in cities - true.  But...

 

Rice in rural areas is better (new-season) and inexpensive.  In the city, I buy the one of the most expensive brands, but that means a cost for 2 persons of ~120 Baht per-mo more than the cheap stuff.  It still doesn't amount to anything per-mo on a 40K/mo budget - though makes a difference to Thais earning 9K/mo.

 

Fruit/Veggies are likewise VERY inexpensive in rural areas - a huge markup is taken by the middle-men, who shaft the growers horribly.   Support the locals, and everyone wins.

 

Chicken at BigC/Lotus is cheaper than the cost of feeding your own - though locals in the country will pay double/kilo for a tough-meat "gai-baan" (free-range, village chicken).

[JackThompson]

1 hour ago, checkered flag said:

To retire you need 65+K/mo. ( must include rent) if married it's 40+K/mo. according to Thai Immigration. Of  course more is better.

Those rates are set to put a portion of applicants into the "agent-money" application-stack - not because it is really needed. 

 

I found 40K/mo was comfortable for 2 people in Jomtien, living in a 50 Sq-Meter high-floor condo with beautiful ocean view.  I earned more than that, but saved it.   I later lived in a rural area - much cheaper. 

 

If single, can live well on less than 40K - significantly less in the sticks.  The only catch is health-ins - which will go up as you get older.  See my earlier post on this issue.

[Dave0206]

Not sure about anyone else but I’ve got enough money to last me for the rest of my life!

(as long as I die next Thursday)

[Kadilo]

1 hour ago, pineapple01 said:

One doesn't need a PHD to spot a Rag Bag on a Plateles Moped and warring a Chang Vest outside 7/11 But if the Cap Fits..........

As opposed for example the “quality“ posters on forums who spend their days slagging off other people living their lives how they wish and “warring” (555) what they wish.  Yeah they look and sound like real quality ferangs. 

Edited July 23, 2020 by Kadilo

[checkered flag]

5 minutes ago, Dave0206 said:

Not sure about anyone else but I’ve got enough money to last me for the rest of my life!

(as long as I die next Thursday)

What happens if you die Wednesday. Can we use the money for a party  wake. "Dave was a good old guy..."