Retired 76 year old - Seeking investment advice .

[AlienBoy]

 

I originally posted a topic called , Spending Money - Should I follow my Friends Advice ? , in the General Topics section.

 

https://aseannow.com/topic/1309737-spending-money-should-i-follow-my-friends-advice/

 

Part of my out line in that topic said …….

 

Financially I have approximately 3 Million Baht in a Thai savings bank account .
I receive a State pension of around 35,000 Baht a month .
My monthly expenditure is around 25,000 Baht a month. - including my Private health Insurance 
My wife does not work .
My state pension will be terminated on my death
I have no personal life insurance .

In my mind I have always thought that after I have died the money in my Thai savings bank account would be there for my wife and daughter.

 

After receiving many great suggestions and recommendations about my situation , the word '' Investment '' was mentioned , including Gold / Annuity / ETF bonds Etc .

 

 

Currently I have no investments other than 3 Million Baht in a Krungsri bank savings account ( with a variable interest rate ) .

 

I hoping to find an investment option which yields interest better than my current Krungsri bank savings account and without the risk of the capital and will yield a regular lifelong income (not a lump sum ) if possible.

 

So I have my fingers crossed that some one here can offer me advice or recommendation on possible investment options that may meet my needs . 

 

 

Thank You 
 

[In Full Agreement]

 

 

My goal is to insure the GF  has no money worries.

 

[Don Chance]

If you have a enough income now put the 3 million baht into SPX and forget about it.

Ticker VOO pays Yield 1.61% dividend too.

[1FinickyOne]

US Treasury Bonds are currently yielding 5.5% for short terms - - unfortunately no investments can ever guarantee a future... 

 

It is nice that you have concerns for your wife - - I do too and have found that the best thing for her is to put money in her name now. And through the years, she has done great, gradually buying farmland - - and as the land has appreciated tremendously, the family has profited through farming... 

 

The recommendation of VOO etc is also a good one but being older, you might want to consider that you might not have the time for a longer term investment. I will soon be buying into that fund but at a much smaller % of my funds than I did when I was younger. 

 

 

[LogicThai]

My financial advisor just wrote to me ahead of our quarterly conversation next week, and he mentioned the following:

Quote

 

Global GDP is forecasted to grow by 2.9% in 2023, which is slightly down from the 3.3% forecast. This being said the employment data out of the US is robust and at very stable levels. One area that is now in full swing is the monetary policy around the globe, which has seen interest rates increase over the past 6 to 9 months. With this in mind there are certain opportunities to invest into.

We are now in a position to take advantage of the following, which may suit your portfolio:

1.       Money Market funds can now yield around 4.5% - 5% per year, where before they were yielding below 1%
2.       Bond funds are now yielding better returns than in 2022 and should also be considered
3.       For some policies, you may be able to access fixed term deposits above 6%, but this is on a case-by-case basis, depending on the account that you have and the country that you live in

 

I will find out more when I talk to him, but this sounds potentially interesting, at least as another diversification opportunity for my portfolio.

[KhunLA]

Do you really want to put your savings at risk, since asking, assuming little experiences.  Also, age dependent of your wife, how much younger, and your present heath.

 

If you don't have any oops (expensive), then 3 mill will last her anywhere from 15-25 ish years.  Having almost free healthcare, (assuming), and house owned free and clear, she just needs to pay utilities & feed herself, so 10-15k a month would be more than enough.

 

3 mill/15k a month = 200 months/16 yrs.

3 mill/10k a month = 300 months/25 yrs

 

If you pass this week, and income stops. Also in 10-20 years, her house & land will be appreciating, and if necessary, sell and maybe squeeze out another 15-25yrs.  If she doesn't find a toy boy, who will support her ... 😂

[Longwood50]

I am a former executive who ran a division for several major USA banks that served as Trustee for coporate retirement plans. 

1. If your goal is purely current income there are many stocks and even stock funds that are purely dividend driven.  You will get far more return from dividends than you are getting from your bank savings account.  However the principal value of the investment can and will fluctuate.  If you don't care about the fluctuation since you will never cash it in, then that would be the strategy I would employ. 

2. If your goal is some investment growth versus current income the prior post saying to invest in in SPX which is the S&P 500 index is an outstanding piece of advise.  Over time it is virtually impossible for actively managed funds to beat the index.  You will however be getting about 1.6% dividend yield versus lets say 3.28% for Exxon, 9.18% for Phillip Morris, 

3. A third alternative is a mixture of the two.  It is investing in the Dividend Aristocrats.  They are a collection of companies that A dividend aristocrat is an S&P 500 stock that has increased its dividend every year for at least 25 years.  So you get the advantage of a diversified portfolio but one focused on current income from companies with a proven track record of ever increasing dividends to keep up with inflation. 

If you are in Thailand you will have to open a brokerage account.  If you are USA you will be able to open one and invest in either the SPX or the dividend aristocrat funds like NOBL.  

If I was going to do an SPX I would do it with Vanguard.  Lowest Cost.  If I was going to do the dividend aristocrat fund I would go with Schwab or Interactive Brokers.  

With the amount of money you have, I really don't think you have enough to diversity into individual stocks.  

Oh and if any insurance company tried to talk to you about any form of an annuity, grab your wallet and run to the quickest exit. 

 

Edited October 22, 2023 by Longwood50

[oxo1947]

What is your age ?

do you own your house/Condo ?

Your Pension income 420,000 PA basically just covers your Visa (if it is a married one) and that could change.

Or are you using a Agent,? if so then put the 800,000+ in a separate account & save on that fee.

When people talk about getting 5% from USA based funds--then you never know if you are going to lose on the future exchange rate.

I dont know what your situation is re transport is --do you have a car---will need a car.

 

For me AlienBoy---I would leave it just where it is, its not a lot of money---and there are bound to be bumps in life's road.

Unless your really fortunate.

I wouldn't take it out to chase the 2-3 % extra on that amount. Especially in a foreign currency.

[Somjot]

I never trusted (or always was too stupid) to put my money in the stock market or funds or even fixed deposit accounts as there are always fees to open the account or to close the account or whatever, which nobody tells you about in advance.

 

My very basic (or dumb) philosophy was: “invest in yourself, invest in things you have control of and invest in education.”

 

In your special situation and without knowing the background of your wife and the age of your daughter I would suggest:

 

1. Invest in your daughter’s education or as my dad used to say: “what do you have in your pockets, can be taken from you. What you have in your brain, can't.”

 

2. If, like in most cases in Pattaya, your wife has a farmer background, buy some good farmland. It`s price will never go down and it can always be used to get food on the table. One way or the other.

 

3. Make sure that in case of your passing, your family has access to your money. I know cases where the wife was struggling, sometimes for years, sometimes in vain, to get the money, which her by then dead husband intended to be hers.

[xtrnuno41]

Put it on Wise, GBP account, 4.69% interest, there is a fee of 0.47%.

If I calculated right with 3000000 baht then you have every month 10541 baht.

But only when inflation is still high. If inflation goes down then also interest goes down, even so far, you have to pay instead of receiving. Keep that in mind.

How long? No one knows. Some depending on Russia war and new world situations to develop.

Maybe some investing with Blackrock? That is a giant in investments, however lost last year 1.7 trillion$ in 6 months time. Blackrock is also in a deal with Wise, together with some big banks, as JP Morgan and Barclays.

 

And no one knows what is going to happen, now Israel wants to fight in Gaza and USA dont want Israel  to go to war. Middle east, oil, moslim organisations (Hamas, Isis, Hezbollah, Iran, Iraq, Egypt).

USA wants to stop, by military force, Israel? Then we have a war USA- Israel? However read USA is giving support, ok.

USA was always an ally of Israel, so amazing. Or not, as there is oil in the game.

Already a question if you should invest, as this situation will be very effecting in all markets.

 

 

 

 

Edited October 22, 2023 by xtrnuno41
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[gearbox]

40 minutes ago, oxo1947 said:

What is your age ?

do you own your house/Condo ?

Your Pension income 420,000 PA basically just covers your Visa (if it is a married one) and that could change.

Or are you using a Agent,? if so then put the 800,000+ in a separate account & save on that fee.

When people talk about getting 5% from USA based funds--then you never know if you are going to lose on the future exchange rate.

I dont know what your situation is re transport is --do you have a car---will need a car.

 

For me AlienBoy---I would leave it just where it is, its not a lot of money---and there are bound to be bumps in life's road.

Unless your really fortunate.

I wouldn't take it out to chase the 2-3 % extra on that amount. Especially in a foreign currency.

From the other post OP stated he is 76 and in receipt of "state pension",  term usually used by Brits.

 

May he live until 106, but at his age investing for long run is probably not feasible. The world and markets seem much less predictable these days, nobody has predicted the Hamas move.

 

The key is to diversify, but with only 3 mil, with 820k of them locked for visa renewal that seems difficult.

 

If the money are already in Thailand and denominated in THB probably the easiest is to invest half in cash deposit, and the other half in SET companies which are paying good dividends, maybe an index fund made with these. SET companies don't incur capital gains when traded, and the dividends are taxed 10%.

 

At the age of 76 it is difficult being novice investor 😀

 

Also needs to take into account the tax residency and threshold of his home country, some countries tax on worldwide income.

[JordyTwilightZZ]

Open a position on Alibaba.

You thank me later.

Cheers !

[gearbox]

17 minutes ago, JordyTwilightZZ said:

Open a position on Alibaba.

You thank me later.

Cheers !

Interesting...what is your prediction on BABA? They don't seem to be paying any dividends.

[JordyTwilightZZ]

2 minutes ago, gearbox said:

Interesting...what is your prediction on BABA? They don't seem to be paying any dividends.

No predictions. Everything is pretty clear regarding the future of the company. They are essentially pivoting from being mainly a conglomerate to being more of a holding. A lot of cash is gonna flow in - mainly throughout 2024 - as they move ahead with the IPOs of their different branches.

[Ben Zioner]

1 hour ago, KhunLA said:

3 mill will last her anywhere from 15-25 ish years.

You gotta be joking. Even a  Thai lady wants to have a life.

Edited October 22, 2023 by Ben Zioner

[KhunLA]

6 minutes ago, Ben Zioner said:

You gotta be joking. Even a  Thai lady wants to have a life.

Reading comprehension ... OP, budget now about 25k, with the OP+his health ins premium, which probably isn't inexpensive.  Most Thais don't make 15k a month, and have more bills.

[Moonlover]

From what I recall from your earlier post @AlienBoy you've already made the best 2 investments you could possibly endower your wife with. Her daughter's education and your house.

 

Thai families look after their own, no matter what. My wife's 'investment' was paying the entrance fee (that's a euphemism of course) so that her son could join the army as a professional soldier. She recognized that as a good investment and even sold her house to raise the capital. (we since bought it back)

 

With her daughter in a good position, (accounting office was it?) a house and 3 million in the bank, I really don't think you need worry about her at all . Thais are more canny than people think and they know how to survive.

 

Some folks have suggested that the money won't last long once it's in her name. Well I take the pragmatic Thai view on that. It's up to her isn't it. All you can do is to push the boat out and leave her to do the paddling.

 

I'll tell you what I think your biggest problem is @AlienBoy. You do too much worrying!

 

Edited October 22, 2023 by Moonlover

[noobexpat]

Fancy suggesting someone with zero investment experience goes into the markets at age 76? Forum idiots or what.

 

Stick to bank interest, you don't have the investment horizon or appropriate level of funds for the risk/reward.

[noobexpat]

5 hours ago, xtrnuno41 said:

Put it on Wise, GBP account, 4.69% interest, there is a fee of 0.47%.

Interest?? its not a deposit account.

Its a unit linked fixed interest investment. Thats why it has an AMC.

A mix of gilts and corp bonds ...via blackrock i think, can't remember.

[EdrigoSalvadore]

As much bitcoins as you can. Line goes up.

[Celsius]

Wrong idea to ask this here.

 

I see that you already got a reply from rockstar fund managers (who amazingly live in Thailand), crypto gurus and stock market experts.

 

Maybe in the past year or so you heard of a phrase "not your keys, not your coins". Don't forget that as a foreigner in Thailand your choice may be to put your money into some really scummy exchanges that are seemingly backed up some big names. At 76 this is not a good idea at all.

 

As someone else suggested, if you can open an account back in your country do it as guaranteed investments currently pay well over 5% annually. 

Edited October 22, 2023 by Celsius

[swissie]

At your age, time is no more on your side. Make sure you have established your wife as beneficiary. Deposit your last will legally in Thailand as well as in your home country. If not, some "home country vultures" will emerge.  
Keep living frugually, as you have no time left to take advantage of "long term market trends".

[In Full Agreement]

18 hours ago, AlienBoy said:

Currently I have no investments other than 3 Million Baht in a Krungsri bank savings account ( with a variable interest rate ) .

 

 

Just to be clear,  no financial person would consider your 3 million Baht an investment.   It's an asset but not an investment.

 

And remember if you have a proper will bequeathing the 3 million Baht to your wife, it can take many months for the banks to probate your will.        I suggest you be sure your wife will be able to withstand this period without the benefit of your  assets.

 

Good luck.

 

[xtrnuno41]

19 hours ago, noobexpat said:

Interest?? its not a deposit account.

Its a unit linked fixed interest investment. Thats why it has an AMC.

A mix of gilts and corp bonds ...via blackrock i think, can't remember.

I have to go on what site is telling. You do get interest, as long as inflation is there.

And there are 2 ways Euro and GBP. The latter has higher interest.

Your money is used in investment, they give warnings, you could loose money. It is not a savings account.

Blackrock is holding, managing, the investments. I red government bonds.

You get interest every month, as long as interest is there and you can use your money with no hold backs or punishments.

Wise has apps, cards you can use.

Up till now, it is what i red and understood. But better to read yourself at Wise website, maybe you have other understandings.

[noobexpat]

18 minutes ago, xtrnuno41 said:

I have to go on what site is telling. You do get interest, as long as inflation is there.

And there are 2 ways Euro and GBP. The latter has higher interest.

Your money is used in investment, they give warnings, you could loose money. It is not a savings account.

Blackrock is holding, managing, the investments. I red government bonds.

You get interest every month, as long as interest is there and you can use your money with no hold backs or punishments.

Wise has apps, cards you can use.

Up till now, it is what i red and understood. But better to read yourself at Wise website, maybe you have other understandings.

 

You can invest in government bonds (gilt) funds on every investment platform on earth. Why use Wise?? There is no need.

 

They call it interest but the real term is called coupon. Its the repayment of the debt until it matures.

 

[Robin]

A Thai Savings account is not the place for your capital.   

You need to find a bank that you can trust and work with, maybe not a Thai bank, and talk to them about Asset management.  maybe a bank in Singapore, away from Srettha's grabbing hands, and with English speaking personnel.. I cannot help you with specifics, but you will have to look at what is available.  You will almost certainly get a better deal than with Thai Savings Account.  if you re mainly concerned at having money to leave to your G/f then you want capital appreciation & lowish risk, not what Thai Savings offer (low interest).

Singapore has no inheritance tax for non-residents, but who knows what Srettha is planning.

or, Depending on what your g/f wants, you might buy Thai land, in her name and that will be hers when you die.

[Will B Good]

At your age you can't afford to invest in anything that might promise a good return....the risks are too high.....at 26 it doesn't matter........ at 76 it can kill you.

 

I use P2P lending and make a 'guaranteed' 2200 baht per month on every £10k invested.......

 

...and don't forget the golden rule......eggs and baskets.

 

Do not spend capital....income is god.

 

 

Edited October 25, 2023 by Will B Good

[noobexpat]

Just now, Will B Good said:

 

 

I use P2P lending and make a 'guaranteed' 2200 baht per month on every £10k invested.......

 

 

Interesting. I'm very familiar with P2P - which provider are you referring to?

[Will B Good]

2 minutes ago, noobexpat said:

 

Interesting. I'm very familiar with P2P - which provider are you referring to?

LendInvest UK

[noobexpat]

19 minutes ago, Will B Good said:

LendInvest UK

 

I'm not thrilled with their offering. No secondary market, very limited diversification. Nobody with only £75k should be anywhere near this.

 

In the past i used, i think 4, P2P providers, non of it commercial property: 1 got sold, the other 3 wound down and stopped taking new money. Had about £300k at one point. I still have tiddly bits in lending works and funding circle that are on natural run off's because cannot sell loans.

 

 

Edited October 25, 2023 by noobexpat
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