Retirement

[Kwasaki]

20 hours ago, YorkshireTyke said:

How is he going to generate any adequate income let alone enough to live off and consolidate/grow his 300k lump sum?

He doesn't have to he can live off less than his 300k minus 800,000 to keep for extension until his pension payments come.

 

[YorkshireTyke]

33 minutes ago, Kwasaki said:

He doesn't have to he can live off less than his 300k minus 800,000 to keep for extension until his pension payments come.

 

You cut off the part of my quote from a poster who stated he can get 5% interest on his savings. I wanted to know how he can achieve that, I wasn't saying he cannot live on his 300k.

[Kwasaki]

6 hours ago, YorkshireTyke said:

You cut off the part of my quote from a poster who stated he can get 5% interest on his savings. I wanted to know how he can achieve that, I wasn't saying he cannot live on his 300k.

Not been at a high St Bank in a good while where I've seen boards showing rates of interest, maybe if you put say 5m baht in for 5 years you may get 5% but you tax and then you gotta try and get tax back. 

The tax I pay on my visa extensions dosh that I leave all the time in bank I don't bother getting the tax back.

[cmarshall]

300k British pounds is not enough to retire at 60.  The OP should continue working in the UK if he can and for as long as he can.  He might last another thirty years or more by which point his 300k will be long gone.  At that point he will be a candidate for the trifecta: old, sick, and poor.  Keep in mind that in Thailand he will be paying for healthcare out of pocket.  

 

He should continue to work and save for as long as he can.  But even if he is able to do that for another ten years his nut won't provide much security.  

 

His only option will be to buy an immediate annuity with most of his savings, which will provide guaranteed payments that he can't outlive.  With that and his NI, he has to find somewhere where that will be enough.  Because of the lack of health care coverage for him here, I wouldn't recommend Thailand.

[tonray]

54 minutes ago, cmarshall said:

300k British pounds is not enough to retire at 60. 

While it may not be enough for you....that's probably twice as much as the typical old codger here has saved up if the fact many use agents because they don't have 800k baht to deposit for extensions is an iny indicator. With pension(s) and portfolio generating dividends...more than enough unless you are spending more than 100K baht monthly. 

 

That is about 400,000 US dollars for reference. Invested conservatively in a portfolio generating 3 % per annum:

 

$12,000 US annually or $1000 per month

After estimated 28% tax rate, that's $720 net per month or 23,000 baht monthly.

Supplementing that with pension and one couold conceivably live comfortably.

How much pension is the question he needs to answer....apologies if stated already but did not go back and read every post.

Edited February 18, 2022 by tonray

[cmarshall]

2 minutes ago, tonray said:

While it may not be enough for you....that's probably twice as much as the typical old codger here has saved up if the fact many use agents because they don't have 800k baht to deposit for extensions. With pension(s) and portfolio generating dividends...more than enough unless you are spending more than 100K baht monthly. 

 

That is about 400,000 US dollars for reference. Invested conservatively in a portfolio generating 3 % per annum:

 

$12,000 US annually or $1000 per month

After estimated 28% tax rate, that's $720 net per month or 23,000 baht monthly.

Supplementing that with pension and one couold conceivably live comfortably.

How much pension is the question he needs to answer....apologies if stated already but did not go back and read every post.

Possibly, but it looks far too risky to me.  What conservative portfolio returns 3% net of inflation?   UK inflation is currently running at 5.5% meaning his putative income would be under water at the moment.  The current level of inflation may well not persist, but for a future of thirty years or more, some periods of relatively high inflation are likely.

 

A comparison to the Brit codgers currently in residence in Thailand is not very reassuring, since things are likely to end badly for them here. 

[tonray]

11 minutes ago, cmarshall said:

Possibly, but it looks far too risky to me.  What conservative portfolio returns 3% net of inflation?   UK inflation is currently running at 5.5% meaning his putative income would be under water at the moment.  The current level of inflation may well not persist, but for a future of thirty years or more, some periods of relatively high inflation are likely.

 

A comparison to the Brit codgers currently in residence in Thailand is not very reassuring, since things are likely to end badly for them here. 

Good points...but as to inflation, the point of being invested in dividend producing stocks is to receive current income and also gain inflation protection as over the long term stocks have produced an average return of somewhere between 5 and 10% depending on portfolio allocation.

[cmarshall]

23 minutes ago, tonray said:

Good points...but as to inflation, the point of being invested in dividend producing stocks is to receive current income and also gain inflation protection as over the long term stocks have produced an average return of somewhere between 5 and 10% depending on portfolio allocation.

I understand the expectation, just as you understand that it doesn't always work out as expected.  An American who retired in 1965 invested in the US stock market, which has the best historical performance, would have had flat nominal returns for that period ending in 1982.  However, adjusted for the high inflation of the 1970's he would have been severely underwater in terms of purchasing power.  

[Kwasaki]

4 hours ago, cmarshall said:

Possibly, but it looks far too risky to me.  What conservative portfolio returns 3% net of inflation?   UK inflation is currently running at 5.5% meaning his putative income would be under water at the moment.  The current level of inflation may well not persist, but for a future of thirty years or more, some periods of relatively high inflation are likely.

 

A comparison to the Brit codgers currently in residence in Thailand is not very reassuring, since things are likely to end badly for them here. 

What Cristal ball have you been looking into. 

There's a thing called lifestyle and circumstances.