Retirement Plan Advice Needed

[888]

The problem is as follows:

I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0.

I currently hold a job that pays about 1,000 US a month, which is enough to get by quite comfortably. However, i had a bit of a wake up call and now start to be really concerned with the future to come - if i keep living like this - there never will be a time when i can retire... well, i cant really afford to get sick either...

i completely lack the knowledge on the saving-investment strategies.

Please advice if you think there is a way for me to somehow start walking the path towards some sort of financial independence.

Any piece of information will be greatly appreciated.

Thank you in advance for your time and consideration.

[hhgz]

"I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0. I currently hold a job that pays about 1,000 US a month..."

After reading your tale, most of us are sitting with our mouths wide open. We've worked for decades, accumulating wealth, and now we're retired with sufficient financial resources to support ourselves for the rest of our lives.

I hope that you've lowered your expectations considerably. Not only do you not want to go anywhere in the future, it looks you haven't come very far to date. It seems you have wasted, and will continue to waste your peek earning years. You need to spend less than you make, and invest wisely. The strategy is to "buy low and sell high". It's up to you to develop your tactics.

[Jingthing]

I think based on my reading (about US based people) that the majority of 33 year olds are in the same boat. That doesn't make it a good situation, but the OP isn't some kind of freak either. Some may say it is easier for most people to build a nest egg in their home country but that doesn't mean its guaranteed in any case.

Edited September 3, 2009 by Jingthing

[changnaam]

I would seek professional advice as well. You will get some good advice on here but there are also the odd cynic around as well those who have the knowledge to do things on their own.

There are some good multinational offshore brokers in Bangkok but I would say see a few and make your mind up. You need someone who will guide you over the long term and not only "sell" you a savings plan.

I believe there are some good advisors out there but a lot of sales people so do your research.

As was said already a lot of people get this wake up call a lot later than you and have little chance of a secure future. You could have 30 years of saving if you stay "fit"

[888]

"I hope that you've lowered your expectations considerably. Not only do you not want to go anywhere in the future, it looks you haven't come very far to date. It seems you have wasted, and will continue to waste your peek earning years. You need to spend less than you make, and invest wisely. The strategy is to "buy low and sell high". It's up to you to develop your tactics."

I know that I have "wasted" those years in investment terms - I might have got something else instead. But that is not a question here - i am not really asking for your judgment on my life - i got a lot of that already from people around me - i am sincerely asking for an advice.

buy low - sell high sounds good, but buy what? sell what? and where?

well, i guess you got to see that not everyone is as smart as you, but we all got our lives to deal with. I asked for help - so if you can please help, if not - thank you anyway.

[Jingthing]

I started at a similar age as you and retired 15 years later. Most of it was luck, but of course I did invest in stuff. However, I will give you the most basic advise. You need to find out a way to make a LOT more money than you are making now, that is the basic first step. If you don't manage to do that, you really won't have enough to even begin to invest.

[changnaam]

I started at a similar age as you and retired 15 years later. Most of it was luck, but of course I did invest in stuff. However, I will give you the most basic advise. You need to find out a way to make a LOT more money than you are making now, that is the basic first step. If you don't manage to do that, you really won't have enough to even begin to invest.

Agree 100%.

Do you "have" to be in Thailand?

Is there opportunity for advancement in the company that you are in which is keeping you there?

Could you earn significantly more elsewhere?

Do you have skills which you can transfer into a higher paying career?

[loverboy44]

Well for the start i would recommend what my banker told me decades ago, when i was in the same stage as you.

He said, Mr. Loverboy, just put a small ammount of money away, as much as you can. One month, in your case 200 baht, another maybe 1000 baht or more. Just as you can afford and do as this money does not exist.

The second step is to develop your career. Which is not easy in the LOS. I don't know about your qualifications. But for the start forget about high returns and just save up some money.

[Robert44]

Your 33 and earning 1000 ud and you want to figure out how to save enough so you can retire???

No realistic chance on that type of salary and would guess you are either a teacher or in the leisure industry as no one who is transferred over would be on so low a salary. So your chances of getting a promotion in your current employment that would allow you a high enough salary to save are very small.

So you have either to change job and doing that over here is not easy

Start your own business or market trading and again not easy without money

Go home and get a better job

Live for today and forget about tomorrow

Buy lottery tickets and visit the wat as much as you can.

To retire in Thailand and live fairly well you need at around 100K Baht a month, so would guess you need a fund in the region of 500k UD

Good luck as I think you are really going to need it.

[888]

just like i thought... pretty bad situation i am in... i am not a teacher - nor in leisure, but not much prospect either due to lack of a formal education diploma... it seems like there are no legal options to secure one's own future currently available...

at least i got around thinking about it, who knows maybe i will find something...

[lannarebirth]

just like i thought... pretty bad situation i am in... i am not a teacher - nor in leisure, but not much prospect either due to lack of a formal education diploma... it seems like there are no legal options to secure one's own future currently available...

at least i got around thinking about it, who knows maybe i will find something...

Why don't you attempt an online degree from overseas while you continue to work. It might take you 4 years, but in 4 years you'll be 37 without a degree. Better to be 37 with a degree.

[Jingthing]

Got any rich old relatives? Let them know you are skint, you never know ... I am only half kidding. I am not sure spending a lot of time and money for a degree is such a great idea at your age. Perhaps a technical skills program in a high demand area that would immediately at least double your income. I totally disagree that in today's money retirees need 100K baht a month to live. Not nearly.

[changnaam]

Don't give up just cos the super rich on here say you are doomed. Saving something is better than saving nothing at all.

In the UK the government suggest you should save 20% of your income towards your future. Could you cut down your spending by $200 a month and still live?

If you put $200 away now into something which could give you a better return than the bank then at least you are addressing the issue and making a start, then hopefully in the future you are in a position to put away more.

I agree looking at getting more qualifications would be a good idea because you still have up to 30 years of working to go, so 4 years out of this to get a degree would place you better for a higher salary later in your career.

[Jingthing]

Yeah, that was pretty good. Most of the people I know who have any thing saved got it from real estate gains and/or real estate gains that were inherited. That's a problem in Thailand where we can't own land and condos don't really appreciate historically in the way they do in the west.

Edited September 3, 2009 by Jingthing

[givenall]

The problem is as follows:

I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0.

I currently hold a job that pays about 1,000 US a month, which is enough to get by quite comfortably. However, i had a bit of a wake up call and now start to be really concerned with the future to come - if i keep living like this - there never will be a time when i can retire... well, i cant really afford to get sick either...

i completely lack the knowledge on the saving-investment strategies.

Please advice if you think there is a way for me to somehow start walking the path towards some sort of financial independence.

Any piece of information will be greatly appreciated.

Thank you in advance for your time and consideration.

Being expat in Thailand, mean you are not eligible for Thai retirement plan although probably is a dismal one anyway.

My advice is for you to go back home and make more money, save a lot more and like me in 20 years you should have enough money to retire in LOS

[thrilled]

My advise,

Go back to your home country.Go to some kind of A school to learn A trade etc.Welding,tractor trailer ,whatever.Get A job and save and invest as much as you can.

Later in life when you have made enought to live on the interest come back to thailand.

[ericthai]

The problem is as follows:

I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0.

I currently hold a job that pays about 1,000 US a month, which is enough to get by quite comfortably. However, i had a bit of a wake up call and now start to be really concerned with the future to come - if i keep living like this - there never will be a time when i can retire... well, i cant really afford to get sick either...

i completely lack the knowledge on the saving-investment strategies.

Please advice if you think there is a way for me to somehow start walking the path towards some sort of financial independence.

Any piece of information will be greatly appreciated.

Thank you in advance for your time and consideration.

If I were you, I would invest in an annuity, not sure if they have any companies in Thailand offering them. but your home country should. This is an investment plan made for retirement. There are many options on how to set this up, in your case you can pay-in so much each month. Then when you hit 50,60,65 whatever age you want you can start to withdraw this money. Of course this money is invested and you receive interest on the money typically 6-7%, again there are many options so yeilds can be higher but will have risk. I suggest a straight forward fix rate, so there is no risk. You can have a beneficiary so if you die the paid up premiums goes to them. If you want some help PM me.

[jazzbo]

"... I am not a teacher - nor in leisure." Well, what are you in? Maybe you should use a keen eye to see what opportunities you might uncover with something you do, as of today, know about here in Thailand. Think ahead to when the economy picks up. Sometimes opportunities present themselves today because those already invested are having tough times.

You may have more going for yourself than you realize and it is not the current salary that is important; just that you are working in Thailand right now which puts you ahead of many.

[coxhoedave]

The problem is as follows:

I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0.

I currently hold a job that pays about 1,000 US a month, which is enough to get by quite comfortably. However, i had a bit of a wake up call and now start to be really concerned with the future to come - if i keep living like this - there never will be a time when i can retire... well, i cant really afford to get sick either...

i completely lack the knowledge on the saving-investment strategies.

Please advice if you think there is a way for me to somehow start walking the path towards some sort of financial independence.

Any piece of information will be greatly appreciated.

Thank you in advance for your time and consideration.

33 years is an age where you reach some sort of crossroads. The joys of youth is being replaced by the fear of what is to come in one's latter years.

I guess the OP knows the answer to his question already.

If you cannot afford to get sick, how can it be possible to form a realistic retirement strategy?

You're a lucky guy living the best years of your life in the LOS but it comes at the expense of long term security.

Maximize your income. If it means leaving the LOS so be it.

One thing is for certain, earning $1,000 a month is a guaranteed way NOT to walk down the path of financial security.

Best of luck whatever you do.

[Naam]

The problem is as follows:

I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0.

I currently hold a job that pays about 1,000 US a month, which is enough to get by quite comfortably.

If I were you, I would invest in an annuity...

with what money? the OP is making 34,000 Baht a month on which he lives

"quite comfortably". how much of that comfort can or is he willing to forgo without being miserable? 10,000 Baht ~300 Dollars / month at today's value of money? how much will that yield if he keeps saving 3.5k Dollars per annum for 32 years? will he be able to live on the proceeds? the answer is a clear NO! assuming an annuity or any fair yield 2% above inflation will get him a monthly income of 250 Dollars in today's money when he is 65. 3% above inflation = 450 / month. to achieve any yield above that with a conservative investment is a wet dream.

what the OP has to do is leave Thailand, work hard, earn more, perhaps improve his educational background and SAVE!

[flying]

what the OP has to do is leave Thailand, work hard, earn more, perhaps improve his educational background and SAVE!

I was wondering when someone would mention that. He said right off he makes 1k a month & wants to know how to retire

[CaptainNemo]

"I am 33 y.o. expat living in Thailand and really not wanting to go anywhere else in the future. So far I have lived my life pretty much on a day to day basis, which now can be summed up like this: savings - 0, investments - 0, assets - 0. I currently hold a job that pays about 1,000 US a month..."

After reading your tale, most of us are sitting with our mouths wide open. We've worked for decades, accumulating wealth, and now we're retired with sufficient financial resources to support ourselves for the rest of our lives.

I hope that you've lowered your expectations considerably. Not only do you not want to go anywhere in the future, it looks you haven't come very far to date. It seems you have wasted, and will continue to waste your peek earning years. You need to spend less than you make, and invest wisely. The strategy is to "buy low and sell high". It's up to you to develop your tactics.

Oh lay off 'im! I'm about the same age, and I haven't achieved much either! ...

I'm guessing you're American, which I'm aware can make life tougher than for us socialist Brits!

It seems like you opted to retire first, and work later

The others are right though, you are going to have to conjure up more resources and "get a trade" (as you probably secretly know or fear, that means probably returning to your home country for a while)... or become a high-class gigolo! ...or the opposite extreme, and get religion!

Bluntly, you can't sensibly hang around anywhere in the far east for too long without a western wage...

I can totally understand the reluctance to leave the land of the lotus eaters for the relative dullness of home, and the sense of having failed... but you have to make a choice about which category (or payscale) of farang you want to remain in. Old age can be a cruel experience for those who put it far from their minds in their youth.

I left the far east a while ago after an academic sojourn, realising that you had to have a proper job to make it worth being there, notwithstanding the opaque arts of pensions and all that. I took a gamble on more education (in what I hope is a pretty marketable technical subject) and training since then, and hopefully it will make possible a return to the far east in comparative comfort in the very near future.

I don't think you really need traditional assets (e.g.: a house or something) necessarily, when rent can be cheaper; but you definitely need a marketable and viable profession or trade (not a tautology IMO), so you can make investments; you probably can't save your way out of the situation.

If you are American, from my limited knowledge, your best bet might be to join the military... (try the blue ones for less chance of getting deadded?!)... I'm pretty sure they'll train you and qualify you in something useful in return for all the squarebashing... the initial training might come as a bit of a shock after a few years relaxing in Thailand though , you might want to take up samlor-pedalling to get fit?!

Edited September 3, 2009 by CaptainNemo

[Naam]

what the OP has to do is leave Thailand, work hard, earn more, perhaps improve his educational background and SAVE!

I was wondering when someone would mention that. He said right off he makes 1k a month & wants to know how to retire

there is of course a way to stay in Thailand if he follows the path which a number of poster in TV (so they claim) have gone. marry the only daughter of an industrialist, general or highly placed politician and tell the father-in-law that the laws and traditions of the home country demand a "reverse sin sod", starting with a few million cash, silent 10% partnerships in a couple of very successful enterprises, a 500m² fully furnished home and an S-class Mercedes. all of course for starters only!

[flying]

I'm guessing you're American, which I'm aware can make life tougher than for us socialist Brits!

If you are American, from my limited knowledge, your best bet might be to join the military... (try the blue ones for less chance of getting deadded?!)... I'm pretty sure they'll train you and qualify you in something useful in return for all the squarebashing...

hahahah yes the Brits will do just fine this year I'm sure. Trust me this is one mess all the white boys will feel this equally

As for the military fugget about it. It aint what it use to be & now is about the worst time to even consider it.

Pay sucks & the training manuals for all weaponry was dumbed down to pre 10th grade comprehension a couple years back...comforting thought I know.

But if you fancy a walk in snipers paradise here is a few pics.......

Notice they look like they are 18-20 years old for the most part?

Sad to say an aweful lot of these kids will not be going home. This is not where a young..Thinking...man wants to be.

http://www.michaelyon-online.com/precision-voting.htm

Edited September 4, 2009 by flying

[longball53098]

I changed this post as I made an error so disregard please

Edited September 4, 2009 by longball53098

[changnaam]

I would seek professional advice as well. You will get some good advice on here but there are also the odd cynic around as well those who have the knowledge to do things on their own.

There are some good multinational offshore brokers in Bangkok but I would say see a few and make your mind up. You need someone who will guide you over the long term and not only "sell" you a savings plan.

I believe there are some good advisors out there but a lot of sales people so do your research.

As was said already a lot of people get this wake up call a lot later than you and have little chance of a secure future. You could have 30 years of saving if you stay "fit"

I disagree. The "professionals" usually are not much better off then the OP, they are riddled with debt, living the lifestyle. And besides, most offshore brokers require a min around the sum of 50K.

For your case, I would focus firstly on gaining more income. By getting either another job, or a higher paying job, you are instantly improving your returns, and you need money to make money if you want to invest.

If you do manage to increase your income, then you are beginning to have more options as to what you can invest in.

If I was in your situation, I would do the following.

1. Increase my income

2. Ensure all debts are pay off

3. Ensure I was not spending more than I was earning.

4. Open up a discount brokerage account and start to buy solid dividend paying companies, in resource rich countries. Stay away from mutual funds, as they take a % regardless if the fund makes or losses money. If you like what a particular fund holds, then mimic it in your own brokerage account. And by buying in different countries you are also diversifying your holding as you are now holding that countries currency.

5. I would start to buy physical bullion in small denominations on A REGULAR BASIS. A few 1oz silver bullion coins every month, and a palladium or platinum coin a few times a year. These are out of site, out of mind, and will build up quickly.

6. Then, if my income permits, look to acquire some property.

Never invest in something you dont understand. Just keep it simple and buy something of VALUE. But the main thing is.....to get started!!

Good luck!

The "professionals" who you refer to are probably the ones you drink with. And this would suggest why they are hanging out in high class establishments on a regular basis and not successful in their career. The ones making a good living will probably lead a normal expat family life and will not come into contact with you or the sorts who you obviously socialise with.

50k minimum is way off the mark, I know some guys who are on lower incomes who are saving $300 a month into offshore savings plans, looking at 8-12% return which will give them something to start with but as others have said this will not give them a good standard (or any) of living when inflation is considered.

You make some good points regarding the way forward but if you read the OP post he has no idea which way to go forward so you suggest he do it all himself.... do you fix your own car?

[lannarebirth]

http://soc101.wordpress.com/2006/10/28/edu...ducation-level/

[12DrinkMore]

I know some guys who are on lower incomes who are saving $300 a month into offshore savings plans, looking at 8-12% return

Can you post a pointer to one or two of these schemes?

[changnaam]

I know some guys who are on lower incomes who are saving $300 a month into offshore savings plans, looking at 8-12% return

Can you post a pointer to one or two of these schemes?

Sure, I will find out the bank or institution they are saving with. Think they are based Isle of Man or one of the offshore areas off the UK

[F4UCorsair]

I'll tell you how to make a small fortune from the stock market, and quite quickly. Start with a big fortune!!

Seriously, if/when you come to invest in shares, don't go anywhere near other than blue chip. That has been my investment philosophy; find the top ten companies (and that's easy on the net), buy and never sell. The top ten companies in Australia are almost the same ten as they were 20 years ago; I think there are eight from back then still up there, and one of those ten 20 years back was swallowed by another in the top ten. They are there because they are big and well managed.

I have friends who have played the speculative shares, spent huge amounts of time and caused themselves enormous stress buying and selling, and are not even close to where I am financially.

But, you have to make a plan, and fast. Figure out a savings plan and then start investing when you have enough to start buying shares.

The poster who says he needs B100,000 a month must be living extravagantly. That's more than the average Australian worker earns as a net salary, about A$4,500. I believe I could easily live in Thailand on less than half that and still live well

Edited September 4, 2009 by F4UCorsair