Americans Retired In Thailand

[Jingthing]

So if the dollar continues to fall, and it gets to pre-Asian crisis levels, 25 to the the dollar, what will you do?

In my case, I would wait it out and see if I could still be happy with a definitely reduced standard of living. So, I am a not sure. How about you?

To those of you who say, no problem, just get out of dollars, not usually possible completely for Americans. Social security pays in dollars, and not even strong Canadian ones.

Edited November 4, 2007 by Jingthing

[Naam]

So if the dollar continues to fall, and it gets to pre-Asian crisis levels, 25 to the the dollar, what will you do?

In my case, I would wait it out and see if I could still be happy with a definitely reduced standard of living. So, I am a not sure. How about you?

it does not concern me personally but those affected by a further depreciation of the USD have no real alternative as the currencies of other "third world" countries would appreciate too.

[Pundi64]

Yep I would just tighten up the belt a little, it would be ridiculous to think of retiring in S. Ca. would have to work till I dropped dead.

[Jingthing]

If the baht goes to 25 to the $, would you leave Thailand? no real alternative as the currencies of other "third world" countries would appreciate too.

For the most part, but there may be a few exceptions:

Mexico (joined with US at the hip, so to speak)

Argentina (which I think will strengthen though with their new Madame President Kirchner)

Ecuador (they are dollarized, so no currency risk)

Spanish lessons anyone?

Edited November 4, 2007 by Jingthing

[TonyLeung]

I think there is a decent chance of the dollar hitting 25 to the baht (which would only be a 25% loss from here). Most people have a limited understanding of economics and think "its going to go up because it went down" or "currency fluctuates in cycles". There aren't too many circumstances I can see in the current market which would appreciate the dollar, except perhaps China's market somehow collapsing and money being pulled out of emerging markets (unlikely) or maybe they will discover a trillion new barrels of oil somewhere (unlikely). US interest rates are definitely not going to be raised anytime soon, but there is a decent chance they will be lowered. Smart people have diversified their currency holdings, others will continue to chase their losses. If you live overseas I cant think of a single reason not to diversify.

[Jingthing]

So it has gone over time from 45 or so and then maybe to 25. More than 25 percent I think. People with income streams in dollars have no choice but to live (or die) on dollars. Yankee go home?

[TonyLeung]

If you have any savings you can put them in commodities, foreign stocks and foreign currencies.

34 to 25 is about a 25% decrease. The dollars future will be determined by fundamentals in the current market. the fact that it used to be 45baht/dollar doesn't mean anything.

[Naam]

If you have any savings you can put them in commodities, foreign stocks and foreign currencies.

34 to 25 is about a 25% decrease. The dollars future will be determined by fundamentals in the current market. the fact that it used to be 45baht/dollar doesn't mean anything.

and neither does it mean anything that one dollar bought 55 Baht in january 1998 or 20 Baht end of the 70s.

[Naam]

So it has gone over time from 45 or so and then maybe to 25. More than 25 percent I think. People with income streams in dollars have no choice but to live (or die) on dollars. Yankee go home?

think hard for whom you vote next year. the choice is yours

[Maestro]

Americans Retired In Thailand, Would 25 baht to the dollar be bpai bpai time?

What is bpai bpai?

--

Maestro

[Naam]

If the baht goes to 25 to the $, would you leave Thailand? no real alternative as the currencies of other "third world" countries would appreciate too.

For the most part, but there may be a few exceptions:

Mexico (joined with US at the hip, so to speak)

Argentina (which I think will strengthen though with their new Madame President Kirchner)

Ecuador (they are dollarized, so no currency risk)

Spanish lessons anyone?

and a rampant double digit inflation which will eat your dollars faster than any THB appreciation.

[chicowoodduck]

Yep I would just tighten up the belt a little, it would be ridiculous to think of retiring in S. Ca. would have to work till I dropped dead.

I agree! I figure I'll just buy a belt with a few more notches and tighten as needed. You can't run from price increases or devaluation of the dollar by moving to the next green pasture, sooner or later, it all catches up to you. Hopefully, later than sooner........like when they are throwing dirt on my face as I get ready for my "dirt nap"!

[thaiflyer1]

Americans Retired In Thailand, Would 25 baht to the dollar be bpai bpai time?

What is bpai bpai?

--

Maestro

Could be 2 things Maestro.............either bpai (thai) = go (english) or Jingthing was trying a play on words and putting across bpai (thai) = bye (as in goodbye, english).

[tropo]

If the baht goes to 25 to the $, would you leave Thailand? no real alternative as the currencies of other "third world" countries would appreciate too.

For the most part, but there may be a few exceptions:

Mexico (joined with US at the hip, so to speak)

Argentina (which I think will strengthen though with their new Madame President Kirchner)

Ecuador (they are dollarized, so no currency risk)

Spanish lessons anyone?

Surprisingly you left out Cambodia which is not only tied to the US dollar, it's their primary currency.

[tropo]

If you have any savings you can put them in commodities, foreign stocks and foreign currencies.

34 to 25 is about a 25% decrease. The dollars future will be determined by fundamentals in the current market. the fact that it used to be 45baht/dollar doesn't mean anything.

It means a lot to people who retired back when it was worth 45 and did all their budget calculations at that rate.

My rent has already gone up over $100 per week since last year and approaching back-home prices if you consider what I get for my money here. If the dollar sank to 25 I would be paying back home rent. I didn't come to Asia to pay back-home prices. As it is I pay more than double for a lot of my food here...I'm not a roadside foodstall kind of guy.

I'm also not going to move into a one-room dump to compensate for the falling dollar....it would be bye bye Thailand for me.

Ironically the visa situation maybe the first problem to send me away rather than a seriously devalued dollar.

Edited November 5, 2007 by tropo

[Ski_Goong]

Lucky for me after 6 months of moving to Thailand I managed to start a business that generates good income. For the last 3 months, I have not touched my U.S military retirement pay. But if I solely depended on my retirement pay, I would just decrease my unnecessary expenses like----food and maybe switch to riding a bicycle.

Ski and Goong

[Naam]

My rent has already gone up over $100 per week since last year...

I'm also not going to move into a one-room dump to compensate for the falling dollar.... it would be bye bye Thailand for me.

you are paying nearly 15,000 Baht more rent than last year, i.e. your monthly rent exeeds 70,000 Baht? if that is the case you still have a long way to go to a "one room dump". a friend of mine just rented a nice, brand new and fully furnished but rather small house (120m², 3 bedrooms, 2 bathrooms) Pratumnak Hill area and pays 25,000 Baht a month.

[ronz28]

We had considered retiring in Thailand but will probably stay in the U.S. as the opportunity to continue earning an income if needed is easy here and is very limited in Thailand. Although I can retire and we can move to Thailand at 25 baht to the dollar, it’s hard for me psychologically to turn off the earned income stream and no longer be very productive when I am still able to work. It’s easier to say “no I won’t go there” if the cost of living for us is doubling in Thailand due to the conversion rate, etc.

[Heng]

Most of our family assets and income streams derived from were acquired in the 25 to the $ days, so a return to those rates would not be a huge issue. My folks both get social security, but they have always plugged each monthly payment into the stocks through eTrade and Ameritrade, not bothering to withdraw it over here.

[ronz28]

Another way to look at this is it is costing us about $3,000 a month now in total living expenses to live in a 2,100 square foot plus 2 car garage home in a nice area we own now plus two cars. I don't charge myself rent in the $3000 because it is offset by appreciation but I do include property taxes and insurance.

So... at a conversion rate of 25 baht to the dollar $3.000 would get us 75,000 baht a month and we would not be saving much if any for a comparable standard of living in Thailand.

[Wrong Turn]

US interest rates are definitely not going to be raised anytime soon, but there is a decent chance they will be lowered. Smart people have diversified their currency holdings, others will continue to chase their losses. If you live overseas I cant think of a single reason not to diversify.

TonyLeung,

I've invested inside the U.S. but have no experience diversifying by buying other currencies. (You mean diversifying into hold other currencies right? Or do you mean investing in foreign equities?)

Is buying Euros (which are at an all-time high), assuming that the US Dollar will slowly further slide a good idea?

Or buying other currencies? Swiss Franc?

Thanks, if you answer.

[IMA_FARANG]

So if the dollar continues to fall, and it gets to pre-Asian crisis levels, 25 to the the dollar, what will you do?

In my case, I would wait it out and see if I could still be happy with a definitely reduced standard of living. So, I am a not sure. How about you?

To those of you who say, no problem, just get out of dollars, not usually possible completely for Americans. Social security pays in dollars, and not even strong Canadian ones.

I can recall working in Saudia Arabia for an American company that had some Brits working for it. At the time the U.K. pound was dropping against the dollar. The Brits were complaining that they kept getting fewer pounds for their dollars. So the American company I worked for agreed to pay the Brits at a rate of about $1.30 to the pound. The kicker was that the Brits had to agree to take that rate for a whole year. At first the pound kept falling, but after about 6 months (or less) the pound began to go back up. It went above $1.40. and all the Brits started complaining about being "cheated" on the exchange rate.

Anyhow as a retiree, living in Thailand, there are things I can do to earn money.....even if it isn't exactly legal, and it won't be work done in Thailand. I'd rather be in Thailand and poor, then in the "New-knighted strakes of America" and making money.

[TonyLeung]

http://www.currencyshares.com/content/products/index.shtml

this should give you a good idea. you purchase shares on the NYSE and it trades like a stock. they also earn interest. its pretty much like opening a bank account in another country and earning a modest amount of interest.

if you want growth, then invest in companies that make money overseas.

checkout the international ETFs - http://www.ishares.com/home.jhtml?investor...equestid=567406

exchange traded funds are like mutual funds except they trade as shares, like a stock. its a great way to painlessly get into the foreign markets.

Edited November 5, 2007 by TonyLeung

[TonyLeung]

http://www.ishares.com/get_started/track_2...TCBBGSFGQ0EOD50?

this explains ETFs

[skipvice]

Moving to Thailand was to support Wife,s Family, the Exchange rate will not effect me that much, when the people your are supporting have next to nothing to start with even a little bit helps. Living in a small Village if fun, it seams like almost every day there is somthing new to learn or do.

[toptuan]

No worries. Economies and currencies generally follow cycles. May if you're lucky another Asian currency crises will befall us. After all you folks dump your dollars into stocks or foreign currencies, then the dollar will hit 45baht/$1, and those of us who relaxed will be back in the big time!

[TonyLeung]

Maybe if you're lucky another Asian currency crises will befall us.

The free market decides the price of the dollar, not a bunch of little fairys sprinkling pixie dust.

[toptuan]

Maybe if you're lucky another Asian currency crises will befall us.

The free market decides the price of the dollar, not a bunch of little fairys sprinkling pixie dust.

If you wanna call me gay for making my post, just come out with it!!!

[PeaceBlondie]

I'm considering a move back to Mexico, but not sure yet. Its currency has remained remarkably stable against the US$, actually weakening in contrast to the Thai baht which strengthened. Their inflation is higher than here or the US, but probably no more than ten percent per year. I could survive here on 25 baht to the $, but it would be tougher. My contacts in Mexico say that I might spend less money there. I could speak the language. I could teach legally. I would be closer to home. I could even eat half the food, and tell them how to cook my eggs!

[farang prince]

Well, here we go again...another thread discussing personal finances. The last time I laid out my finances, I had a couple of idiots really flame me. So running that risk again, my monthly income has a base of $4,800 in fixed retirement funds and another $2,400 per month when I'm renting our home in Santa Fe. My cost of living in Bkk is 60,000 baht to 80,000 baht. So having the dollar drop to 25/1 is not going to impact me. However, I live six months of the year in the USA and the cost of living is much higher there. If I didn't live six months of the year in Bkk, I'd start to really feel it financially.