Would You Do It And Retire Early?

[Gary74]

If you had US$600,000 and can make US$50,000(no benefits) a year working 3 months a year back home, would you retire early in your 40's. I currently make US$140,000(+full benefits) a year but taxes take $60,000. Yes we have too many people on welfare, disability, convicts, debts, etc, etc.

I'll will get a small pension when I turn 55 and social security at 62 if there are any money left. I can live in Thailand 9 month and work 3 month back home in US and I still don't have to touch the principle.

I'm in good health and no bad habits except Thai women. I can live fine on 50,000 baht a month and get a better quality of life in Thailand with more options and activities.

Would you say hel_l with it and go for the gusto?

Edited December 8, 2009 by Gary74

[Jingthing]

Of course!

[aussiechick]

Wouldn't have to ask me twice!!!

No bad habits?

[loong]

If you are able to be sensible with your cash, why not.

If you are one of those that buy cars and houses for girls 10 minutes after meeting them - forget it.

Life is short - so enjoy

[ThailandLovr]

It all depends on how much you enjoy your style of living in the States. If you can adapt to the differences, I would say sure, try it for awhile especially if you could return to full time life back in the U.S. 50,000 baht/month is not enough to live high on the hog in Thailand, plus enjoy the ladies which it appears would intend to do unless you live up country and many expats prefer more westernization as the major expat areas offer.

[taurus88]

If you are able to be sensible with your cash, why not.

If you are one of those that buy cars and houses for girls 10 minutes after meeting them - forget it.

Life is short - so enjoy

I think you've already made up your mind and why not. You have a sound system. Be prudent and B50,000/month should be adequate. Rather be happy than made lots of money and be miserable. Welcome to Thailand, bro.

[Curt1591]

"I can live fine on 50,000 baht a month and get a better quality of life in Thailand with more options and activities."

How much time have you really spent here. You pocket 5 grand a month and don't have options in the States?

[rmicheald]

hel_l Yes!!!! You have to remember that $50K translates to 1,500,000 Baht. Depending on your expenses in the US, if that is all clear then for 9 months in Thailand you would have 167K baht per month. Even on 80K baht a month you can live like a king and be a slut too...<G>

GO FOR IT...

[PattayaParent]

Just do it!

[Methuselah]

Retirement is great,but many people will miss some form of work if they retire too early.The novelty of continuous partying wears off after a year or so.

My advice would be to keep your full time work options open for a while before you make an irreversible decision.

[gotlost]

No bad habits? You will after you retire in Thailand.

[Crypt36]

50.000thb a month will get you a small condo in Nirun, 9 Karat, next to Exzite disco or Jomtien for example with internet (all a man ever needs) a motorbike, you'll have to cook yourself or eat cheap out doors and you'll have enough money left to attend soi 6 20 times a month. Alcohol and other drugs or extra comfort not included.

Edited December 8, 2009 by Crypt36

[chiang mai]

Retirement is great,but many people will miss some form of work if they retire too early.The novelty of continuous partying wears off after a year or so.

My advice would be to keep your full time work options open for a while before you make an irreversible decision.

Sound advice indeed.

[Crypt36]

Retirement is great,but many people will miss some form of work if they retire too early.The novelty of continuous partying wears off after a year or so.

My advice would be to keep your full time work options open for a while before you make an irreversible decision.

Sound advice indeed.

Doing groceries, cooking, cleaning and sport 4x a week pretty much is a job for me...

Edited December 8, 2009 by Crypt36

[torrenova]

You can't live that well on 50k a month if you cover everything (including replacing stuff and insurances) and you haven't thought about set up costs. Even without buying a place to live you need wheels so there is a million or so and 10-15k a month running costs (including depreciation).

Currently, a 3m property may rent out for maybe 16.5k a month or 200k a year at the top end. Maybe 15k a month. At 180k a year you'd need to generate 6%pa on your 3m to offset the cost of renting over buying. I have ignored capital appreciation and depreciation of F&F in this example.

I think you need to look at your net income position more carefully. Your cash position of 140-60=80 versus 50 is simple enough but the benefits are the key as are the costs you incur generating the 140k.

If LOS living costs $2k a month for example but USA living costs are 4k a month then your proposed cost base is 9*2+3*4=30k versus 12*4=48k. Thus, your first year income gap is not really 80-50=30 but rather 80-50-(48-30)=12k.

You cannot purchase your pension benefits if you don't work so you have to think about the longer term. Purely as a pension, your $600k would give you an annuity of next to nothing at your current age and marginally more at 55, but that is some 10 or so years away. If you spend all you earn then you cannot add to this pot, though you may be able to grow it I concede.

I would also worry that the 50k you say you can earn from 3 months work may not be sustainable in the longer term. If it is not and indeed, if it does not increase, then any plans are blown out of the water.

In the long term I'd want to buy a place to insure against future rent increases and variations in income so there is $100k. Chuck in another $50k start up costs including a new vehicle and you have $150k. I would not really want to take that out of $600k if I wasn't going to be able to put it back.

I think your position is quite healthy but if there was no $50k 3 month job, you'd be screwed. You'd have to buy benefits as well. Also, is this $600k coming from a property sale which would make it harder to go back to the USA ? If so, it is another negative point. What about family and kids, if applicable ?

On the face of it, living in LOS seems to only cost a few thousand a year on a net net basis but that is not the true picture. I would be more willing to say go for it if you had your place to live and a vehicle bought and paid for and perhaps that, coupled with the idea of working 6 months and not 3, might be a more secure balance.

[denboy]

Theres a bit more to retirement than just having enough money. Of course it is the dream we all have when we are tasking everyday to earn a crust.

I would think to have to have the mind set to accept being free and easy to to just what you want everyday could wear you down. Even more so when you are as young as 40.

Everyone has goals in their lives and without them you can soon become lethargic and depressed. The Pattaya bar/lady scene pays a toll after a couple of years of consisent partaking.

If you so financially secure I'm sure there a lot of places to see in the world other than hanging around Pattaya 24/7. By all means make a base here like already suggested but get out and about whist you still have the health and energy.

I hung on until I was 61 to earn that extra cash before retiring, reckon I left it to late as I soon lost the energy to pursue some of the things I always envisaged I could do once retired.

Only way is to try it and see, take a sabbacital for a couple of years, only you can decide so I don't really understand why you are even asking the question other than the financial need in Thailand.

Cheers

[ericthai]

First 50K a month is low, I would budget more like 80K, with $50K USD per year coming in then unless you have allot of bills in the US this should be doable.

Second, you need to get a new accountant. You are paying too much in taxes if you are working for a company.

Income tax on that amount is about 21% so you should only be paying about 30K USD per year in taxes with no deductions. You do have SS tax, but this is only on the 1st 109K and is 7.65% if you are working for a company, if you are working for yourself then 15.3%. Depending on where you live in the US their might be a state tax.

Also, you are going to still have to pay taxes on the $50K you make. To be eligible to qualify for not paying taxes on this you have to be out of the USA for 330 consecutive days in a 12 month period. You will still need to pay SS too.

however, with all of this you should be able to have around $3K USD per month so that should be livable. I would look into investments for the $600K, put this into Annuities or bonds, (at only 5% you will double your money by the time you are 65) these are no risk investments, returns are low but steady and again no risk. Also I would still try and put away more money into savings, maybe start an annuity and put $500 per month into it until you are 65.

The idea to move, why not. I have been living in Thailand full time for the last 10 years, but now expanding my business and living in Thailand 1/2 the year and the US 1/2 of the year and enjoy this much better, get to spend time with the family for the holidays enjoys the good foods and then return to Thailand and enjoys things here. Works really well. I'm a little older than you 43, but its great, best of both worlds.

Do it pal!!!!

[clip]

50k a month ???? entertaining ladies and rent , drinks , ect ect i dont think so!!!!

[PattayaParent]

I did what you propose to do for about 8 years before I ruined the plan and got married and had a kid and have returned to work full time for the last 7 years.

It's good while you can get the contract work but be aware that you are probably in your highest earning ptotential years at the moment and if you can work a few more years and increase your pot you'll be in a better situation down the road.

Pattaya will always be here but earning potential might not.

[Dave the Dude]

Yes, I did it at 48 and still think I had the right idea 4 years on.

You need to be careful with that one habit of yours, It could be your downfall, but please condider there is also (Thai) life OUTSIDE Pattaya

Dave

[Trickcyclist]

Yes.

[ralston3057]

Gary,

I would definitely do it. If you are earning 140k in the US, then, you are obviously a professional in your given field. So, you have to say that you never lose your experience and education. In short, if things did not work out in Thailand, you could always go back and get another job in the US.

I am in a pretty similar boat except that I am 35. Don't have 600k saved but around 1/2 of that and I earn around 150k/yr to 160k/yr. I just got back to the states from a month long vacation in Pattaya. I fell in love with the place, the people, and of course the women. Since I have been back in the states, I always think of Pattaya. I am always thinking of what I can do to get back and live there. I even considered being an english or math teacher in Bangkok. Could make around 66k baht/mo in bangkok teaching math (Registered Professional Engineer in the US) and had already discussed a job with a private school in Bangkok. In any case, I am consumed with thinking of how I can move to Thailand on a permanent basis. I don't feel comfortable with the money I have saved and hate to think of making so much less in Thailand (English teachers can make as little as 30k baht/mo).

It is really hard to give up good money. But hel_l, you have to say to yourself the only reason we work so hard is so we can enjoy life. In the month I was in Pattaya, I had more fun than I ever had in the US. So, if we seek enjoyment out of life, Thailand is the place. I'll still stay for a few years in the US to work, earn and hopefully save.

Also, be cautious with your $600k US Dollars. The dollar has been falling for a while and will likely fall more. We have borrowed too much money and continue to do so. What happens when we start monetizing our debt? Then the dollar will go down further. You could do a hedge or something and put some of your dollars in another currency. Maybe the Austrailian Dollar. I would look into it or at least keep your eye on the dollar index. A falling dollar is NOT good for non-working principal. It is the same thing as losing money every day.

Just something to consider.

Live your life and enjoy Thailand. I am jealous Good Luck.

-Anthony

[Gary74]

If you are able to be sensible with your cash, why not.

If you are one of those that buy cars and houses for girls 10 minutes after meeting them - forget it.

Life is short - so enjoy

I think you've already made up your mind and why not. You have a sound system. Be prudent and B50,000/month should be adequate. Rather be happy than made lots of money and be miserable. Welcome to Thailand, bro.

Yes I already made my mine up and I'm going to retire early. I guess I needed to hear it from someone who already done it. I can get a fantastic pension if I work until 60 but money isn't everything but quality of life and less stress is.

$600K plus pension, SS, and work 3 month a years is plenty and I'm very fortunate that I have this option. Yes I've been to Pattaya many times and its not Thailand and I know how to keep my time occupied without getting into trouble.

[Gary74]

Gary,

I would definitely do it. If you are earning 140k in the US, then, you are obviously a professional in your given field. So, you have to say that you never lose your experience and education. In short, if things did not work out in Thailand, you could always go back and get another job in the US.

I am in a pretty similar boat except that I am 35. Don't have 600k saved but around 1/2 of that and I earn around 150k/yr to 160k/yr. I just got back to the states from a month long vacation in Pattaya. I fell in love with the place, the people, and of course the women. Since I have been back in the states, I always think of Pattaya. I am always thinking of what I can do to get back and live there. I even considered being an english or math teacher in Bangkok. Could make around 66k baht/mo in bangkok teaching math (Registered Professional Engineer in the US) and had already discussed a job with a private school in Bangkok. In any case, I am consumed with thinking of how I can move to Thailand on a permanent basis. I don't feel comfortable with the money I have saved and hate to think of making so much less in Thailand (English teachers can make as little as 30k baht/mo).

It is really hard to give up good money. But hel_l, you have to say to yourself the only reason we work so hard is so we can enjoy life. In the month I was in Pattaya, I had more fun than I ever had in the US. So, if we seek enjoyment out of life, Thailand is the place. I'll still stay for a few years in the US to work, earn and hopefully save.

Also, be cautious with your $600k US Dollars. The dollar has been falling for a while and will likely fall more. We have borrowed too much money and continue to do so. What happens when we start monetizing our debt? Then the dollar will go down further. You could do a hedge or something and put some of your dollars in another currency. Maybe the Austrailian Dollar. I would look into it or at least keep your eye on the dollar index. A falling dollar is NOT good for non-working principal. It is the same thing as losing money every day.

Just something to consider.

Live your life and enjoy Thailand. I am jealous Good Luck.

-Anthony

Thanks Anthony. I've been planning it for many years. I was in your shoes once so you can also do it in few more years.

Edited December 9, 2009 by Gary74

[ericthai]

Gary,

I would definitely do it. If you are earning 140k in the US, then, you are obviously a professional in your given field. So, you have to say that you never lose your experience and education. In short, if things did not work out in Thailand, you could always go back and get another job in the US.

I am in a pretty similar boat except that I am 35. Don't have 600k saved but around 1/2 of that and I earn around 150k/yr to 160k/yr. I just got back to the states from a month long vacation in Pattaya. I fell in love with the place, the people, and of course the women. Since I have been back in the states, I always think of Pattaya. I am always thinking of what I can do to get back and live there. I even considered being an english or math teacher in Bangkok. Could make around 66k baht/mo in bangkok teaching math (Registered Professional Engineer in the US) and had already discussed a job with a private school in Bangkok. In any case, I am consumed with thinking of how I can move to Thailand on a permanent basis. I don't feel comfortable with the money I have saved and hate to think of making so much less in Thailand (English teachers can make as little as 30k baht/mo).

It is really hard to give up good money. But hel_l, you have to say to yourself the only reason we work so hard is so we can enjoy life. In the month I was in Pattaya, I had more fun than I ever had in the US. So, if we seek enjoyment out of life, Thailand is the place. I'll still stay for a few years in the US to work, earn and hopefully save.

Also, be cautious with your $600k US Dollars. The dollar has been falling for a while and will likely fall more. We have borrowed too much money and continue to do so. What happens when we start monetizing our debt? Then the dollar will go down further. You could do a hedge or something and put some of your dollars in another currency. Maybe the Austrailian Dollar. I would look into it or at least keep your eye on the dollar index. A falling dollar is NOT good for non-working principal. It is the same thing as losing money every day.

Just something to consider.

Live your life and enjoy Thailand. I am jealous Good Luck.

-Anthony

Whatever you don't change USD to AUD, they AUD lost all it's value in the last 2 years. You would be better in the Yen or Euros.

Also Anthony some teachers are making even less than 30K I know one guy working for a government school only making 16K, I just don’t know how they can live on that. You might want to check with an international school as you might be able to make more. I have heard of teachers in the international schools making up around 100K. You might even be able to get work as an engineer. I came to Thailand in 2000 when I was 33 as an Elec. engineer and worked for a few companies and then did consulting work making decent money. I know things have changed in this field in the last 5 yrs or so. I opened my own company so Im not involved in that field anymore but check around with some recruitment companies they maybe able to find you some work as an engineer, you still wont make what you made in the US, but can make better money than what you would teaching.

Good Luck to both of you,,,, I know I'm 100% happy that I decided to move to Thailand when I did.

[sirbrinkie]

If you are in your 40's - and healthy - you still have a very long life ahead of you - 600,000.00 is not considered a large retirement fund at your age.

If you can guarantee a yearly net income of $50,000.00 NET including inflation for a period of at least 10 years you might start to think about it.

With your present income you no doubt have a very good standard of living and it is usually easier to go "up" then taking a "downsizing"

Regardless what you might hear and read 50,000.00 Baht a month is not a large sum to live on and again you must take into consideration inflation - prices here have gone up substanially in the past few years.

Before making a final decision you would be well adviced to get some profesional input plus what taxes you would be paying at home.

Good luck

[Tolley]

Personally I don’t think you have near enough money.

First off if you are on an income like 140k and have a certain lifestyle in the US do you really believe you can be happy on 50k baht a month in Thailand?

Do you live in a nice apartment and drive a car in the US? If you want a similar lifestyle you probably need around 100k a month in Thailand especially if you want to have women in your life be it temporary partners or a permanent one.

Or do you want to live in a bedsit and count your pennies for the next 20 years and end up drinking beers in tops supermarket at lunchtime. Even worse not having enough money to return to live a reasonable retirement in the US if you tire of Thailand.

You really should think of how much money you need to retire in the US and use that as your yardstick for when to retire in Thailand.

What I think you need is probably around 1.5 million in investments plus a property fully paid off and that would give you around 75k a year indexed for the rest of your life. Bear in mind that is still half of what your current income is now so you would not be living in great luxury.

If you have a job where you can get time off then go and live in Pattaya for 6 months and see how you go.

You might start off with few bad habits but 6 months in Pattaya may well change all that.

[rick75]

Ericthai you must be on Crack to say that the Au dollar has lost all its value over the last two years, I am not sure I would be advising him to hedge in Au dollars, but my man, the Aussie enconomy has faired probably the best out of all economies over the last year, the Au dollar has gained against almost all currencies over the last year.

[ericthai]

Ericthai you must be on Crack to say that the Au dollar has lost all its value over the last two years, I am not sure I would be advising him to hedge in Au dollars, but my man, the Aussie enconomy has faired probably the best out of all economies over the last year, the Au dollar has gained against almost all currencies over the last year.

Yes you are right the AUD is coming back up to what it was, what about $0.90 ish to the USD, and Im sorry, you are correct that was an an incorrect statement, as the AUD did not loose all of it's valve it only lost some of it late last year were it was at what mid 60's last part or 2008 and the beginning of the this year. I should have checked my facts before making that statement, I was just going from memory when I was trying to get a contract with a buyer there. Sorry.... Still would not convert my USD to AUD, best would be to invest in gold, Euro possibly the Yen.

[rick75]

No worries bro, just seemed like an odd thing to say. We Aussies are still flying high ( well a lot of us anyway )