Americans Retired In Thailand

[Ulysses G.]

It's actually quite simple. Get a cheap room and eat Thai food for a while and eventually the dollar will gain strength.

[Jingthing]

It's actually quite simple. Get a cheap room and eat Thai food for a while and eventually the dollar will gain strength.

That sounds better than leaving Thailand. Or move to a cheaper area if you like in a beach resort or Bangkok.

[gk10002000]

I do plan to "retire" in Thailand. however, because the USA IRS keeps its fingers in one's financial affairs no matter where one lives, and because there are reasons to maintain a USA presence, my plan is to split my time between the two countries. 6 months in Thailand and 6 months in the USA. While in the USA rent cheap. I am a Florida resident and in the future would buy a cheap mobile home out of the way somewhere or share a rental with somebody. I imagine some years fly to Thailand and stay for 90 days (30 days on arrival and then two visa runs are still allowed under current rules) then go home. Maybe every other year stay for 180 days at a time?

Heck who knows. This is about 5 years away anyway so I am just throwing out ideas.

Been to Thailand 8 times and averaging two times a year now at 30 days each visit.

[CWMcMurray]

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.

Aren't there still a few 3rd world countries out there that have their currency pegged top the USD?

If I am not mistaken Cambodia is one of them, so some may not have all that far to move if they choose to do so.

[Ratsima]

Since Ratsima has revived this thread after seven months of dormancy

Sorry for resurrecting a dead thread, but I'm absolutely certain it was on Page One after I hit the "View New Posts" button first thing this morning. Software glitch? Recent post deleted?

Anyway, it's generated some interesting replies.

[zaphodbeeblebrox]

In August '07, I put half my savings/retirement into a gold ETF as a hedge against the falling dollar. I have a 40% gain on that part of my portfolio. A perfect strategy against a plummeting currency. No need to leave Thailand.

[PeaceBlondie]

Just to repeat a point that I think I made earlier. Many suggest that a newbie to Thailand plan to live here on a far weaker currency if that happens. That is precisely what we did five or less years ago. We nearly got caught in a very tight squeeze.

[ChiefBEM]

For the Vietnam War era guys, any exchange rate above 22 should be considered as gravy.

The exchange rate was 22 bt to the $ during the 60's and 70's

Regards,

ChiefBEM

[dclaryjr]

For the Vietnam War era guys, any exchange rate above 22 should be considered as gravy.

The exchange rate was 22 bt to the $ during the 60's and 70's

Regards,

ChiefBEM

Yep, it was 20-1 when I was stationed there in 75-76. Made conversion real easy: one baht = one nickel!

[dclaryjr]

I do plan to "retire" in Thailand. however, because the USA IRS keeps its fingers in one's financial affairs no matter where one lives, and because there are reasons to maintain a USA presence, my plan is to split my time between the two countries. 6 months in Thailand and 6 months in the USA. While in the USA rent cheap. I am a Florida resident and in the future would buy a cheap mobile home out of the way somewhere or share a rental with somebody. I imagine some years fly to Thailand and stay for 90 days (30 days on arrival and then two visa runs are still allowed under current rules) then go home. Maybe every other year stay for 180 days at a time?

Heck who knows. This is about 5 years away anyway so I am just throwing out ideas.

I think the benefits of this plan may be less dependent on the exchange rate and more on the price of jet fuel!

[vagabond48]

I don't really have any place to go, so I'm doing my best to adjust:

- No more road trips. We used to do one a month. I do bicycle road trips. Usually pretty cheap

- No more wine. Don't buy it now

- No more farang food out. Rarely do it now. Love Thai and Indian food

- No more drinking out. A few beers on the front porch is what I get these days. Don't drink much in or out.

- Much less meat in the diet. We have salad and veggies four nights a week now. I already eat 95% vegetarian and cook 50% of the meals

- No big purchases. Struggling with a five year old computer, mattresses on the floor instead of proper beds, an empty living room, etc. My lifestyle as well

I can actually spend 4X the money I spend now so my simple lifestyle is my choice.

[Gary A]

When I decided for sure where I was going to retire, I based my cost of living on 25 baht to a dollar. For the past five or so years I have enjoyed a healthy surplus. Quite truthfully I didn't expect things to go so well and didn't expect the baht to stay weak for so long. I'm by no means wealthy but I expect to remain comfortable for the rest of my life right here in Thailand.

The stock market has NOT been kind to me the past year or so but I was a little surprised to find my net cash about the same as when I retired. Hopefully I will never need to touch my small and getting smaller nest egg, but it is there if I need it.

[vagabond48]

The stock market has NOT been kind to me the past year or so but I was a little surprised to find my net cash about the same as when I retired. Hopefully I will never need to touch my small and getting smaller nest egg, but it is there if I need it.

I am assuming that you understand that if your net cash is about the same as 5 years ago, then you lost approximately 15% of its original value due to approx 3% annual inflation.

[Gary A]

The stock market has NOT been kind to me the past year or so but I was a little surprised to find my net cash about the same as when I retired. Hopefully I will never need to touch my small and getting smaller nest egg, but it is there if I need it.

I am assuming that you understand that if your net cash is about the same as 5 years ago, then you lost approximately 15% of its original value due to approx 3% annual inflation.

I wish it were only fifteen percent. Fortunately my pensions are more than I spend so I have added to my nest egg only to lose it. Anyone planning to live on income from the stock market had better be a lot smarter than I am.

[Firefan]

Vagabond; using only 3% inflation is VERY optimistic. Real inflation in most countries probably closer to 10% the last several years.

That includes my own inflation personal calculations for Thailand the last 3-4 years.

Cheers!

[siamamerican]

Vagabond; using only 3% inflation is VERY optimistic. Real inflation in most countries probably closer to 10% the last several years.

That includes my own inflation personal calculations for Thailand the last 3-4 years.

Cheers!

If you eat and drink oil. In the short term, some are saying Thailand might reach double digit inflation. The Euro zone is near 2% and America around 3%. Thailand is at 7.6% which is a 10 year high. In the long term, 3-4% would be a much better estimate than 10%.

Edited July 8, 2008 by siamamerican

[Firefan]

I am talking my personal real inflation (buying/doing the same things) over the last 3-4 years in Thailand/Europe.

3-4% is core inflation nos without energy and food....... still trying to figure out to live without either......

Cheers!

[Heng]

What happens if you don't account for inflation at all? Should one be worried?

[BEENTHEREDONETHAT]

Inflation rose to 10 year high 8.9% in June

http://www.bangkokpost.com/020708_Business...l2008_biz31.php

[Shotime]

This is the las time Buy US $s!

[jaideeguy]

If you figure in inflation, the buying power of the dollar is well below 25THB=$1.

When the dollar was 25, you could buy 2.75 liters of gas @ 9 THB/ltr and now you can buy less than .75 ltr for that same dollar.

That's fuel and we know that is the most inflated comodity now, but when you average it out, WE'RE THERE NOW!!

So maybe the OP should read ....'when the $ reaches 15THB=$1', because it looks like we're heading that way.

[astral]

I can't help feeling that this topic is not really Thai related.

It is not really the Thai baht that has appreciated, it is the US dollar that has fallen, almost out of sight.

As one poster mentioned all the Asian currencies have apparently risen.

Perhaps this topic should be addressed to the US administration??

By the by, the rate was B25 to the US$1 until 1997.

[AmeriThai]

By the by, the rate was B25 to the US$1 until 1997.

That's true. I was recalling 15 or so years ago, it was 24-25 baht to the dollar. But then you got a lot more for your money back then.

[AmeriThai]

Five years ago I agreed to purchase some property in Thailand (technically I supplied the funds for my brother-in-law to buy the land). It wasn't until construction was underway that I learned that I had agreed to a house as well!! I was upset at first but now I'm kind of glad I did it. I will finish paying for it in another five years while I'm still making good money. I figure with a paid off house, my wife and I will be ok because we each will have Social Security and government pension (retired military for me--GS for her).

We bought a bit less than a rai of land and built a modest house on it. It was pretty much my wife's idea. I wasn't too crazy about it at first because the cost seemed too high for the location. But it'll be paid off in a just few more months. Now I'm rethinking that maybe it wasn't such a bad idea after all.

[teej]

What happens if you don't account for inflation at all? Should one be worried?

Infla-what? Huh?

Made me think of Unfrozen Caveman Lawyer from SNL haahahahha god I loved that skit.

"I'm just a caveman. I fell on some ice and was later thawed by some of your scientists. Your world frightens and confuses me..."

[jaideeguy]

Yeah, I'm glad I made most of my major purchases [houses, 3 lots and swimming pool] 5+ yrs ago when the $ was 40. I wouldn't even think of starting now when the $ has less than 50% buying power with devaluation and increased cost of materials and labor.....but can I sell my property and break even, probably not because of the surplus of inventory in the real estate market.

[Ratsima]

I can actually spend 4X the money I spend now so my simple lifestyle is my choice.

Lucky you. And such discipline.

[ChiefBEM]

By the by, the rate was B25 to the US$1 until 1997.

That's true. I was recalling 15 or so years ago, it was 24-25 baht to the dollar. But then you got a lot more for your money back then.

Again, I recall back in the 60's the rate was always 21-22 baht to the US dollar.

In fact, you could get a taxi ride from one side of Bangkok to the other for just one American Apple.

The times have changed and the price of oil is as much at fault as the US economy!

[AmeriThai]

By the by, the rate was B25 to the US$1 until 1997.

That's true. I was recalling 15 or so years ago, it was 24-25 baht to the dollar. But then you got a lot more for your money back then.

Again, I recall back in the 60's the rate was always 21-22 baht to the US dollar.

In fact, you could get a taxi ride from one side of Bangkok to the other for just one American Apple.

The times have changed and the price of oil is as much at fault as the US economy!

LOL! You'd need a mighty BIG apple these days. I agree that oil prices have indeed made a huge impact on nearly everything everywhere. As to whether or not it's worth retiring in Thailand, IMO Thailand is still a good choice, even if a person has to be a bit more economically selective. And sometimes, depending on where you are in the country, some things are still somewhat economical, such as sharing the company of family and good friends. For example, "community pot lucks" helps keep food costs down a little by spreading the expense around, and it's fun to do. I suppose it's not every person's cup of tea though. But where our house is, even the cost of rice is getting expensive for some of the locals.

[Maizefarmer]

Baht 25 to the USD again will almost certainly result in another devaluation if the government wished to keep its export market going.

Hang on to those dollars, at this rate good chance it could happen.