Early Retirement Or Work Another 5 Years?

[Gary74]

I'm thinking about early retirement. I'm 44 years old and I have around $400,000 altogether. $200,000 in retirement accounts and $200,000 in cash. If I stay another 5 years with my company, I'll receive $1200 a month in pension for life with COLA when I turn 60 but the problem is I hate my job and my boring life in the states. I'm in excellent health with no debt. I should also get Social Security at 62 with another $1200 per month, if SS still exists.

My question is should I quit and move to Thailand or should I stick it out and suffer for another 5 years then retire at 49?

Edited September 10, 2005 by Gary74

[Eric Davis]

If you hate your job then get out now!!!

[chownah]

You should learn to make decisions for yourself about things that have to do with the unique person that is you.

[aughie]

Why not stick around for some responses? You can do five more years standing on your head. I wouldn't want to be caught anywhere without any income. Wait and retire with a check coming in.

[Firefan]

Only you can answer that question.

We might all be dead in 5 years - so looking like it from that point of view quit now.

From a financial point of view it naturally depends on what life style you want.

$400k is a lot of money but you would need it to generate an income for a long period of time. Without touching principal it can probably generate $20k/year safely (CDs/fixed income funds Etc.). But don't forget about the dreaded inflation.

If you are willing to take on a bit more risk (normally meaning higher equity exposure) you can naturally generate more income.

I know (early) retired people here living a good life for $1k/mth.

To figure out your cost of living, come here for a "test-retirement" first for a few months and live the life you would want here. Always good advise no matter what.

Cheers!

[GuestHouse]

If I stay another 5 years with my company, I'll receive $1200 a month in pension for life with COLA when I turn 60

Done deal. Work the five years and walk away with the lump sum you have and the security of the pension.

People don't normally think about pensions the right way - a pension is more important than a job. During your working life you can change jobs, but when you are retired you can do NOTHING about your pension.

Fiive years more work but how many more years pension? 10, 20 , 30, 40 Years?

And as someone above said - Inflation!

Your 400K will very quickly look small if Thai inflation continues at its current rate.

[opothai]

personally i want 250.00 gdp maybe 1-2 years more and thats it.

as firefan said we can all be dead in 5 years, so if you can enjoy life now while it's still here and you have good health, why not.

up to you

[thaiflyer1]

If i were in your shoes i/d stick it out for the next 5 years......you/ll still be young enough to enjoy yourself.

I/m 42 and have lived in Pattaya for the last 7 years however i havn't sold up back in the UK and derive an income from property there.

400K might seem a lot now but what will it be worth in 30 years hence?..............i/d say 600K would be a better figure to see you live your days out.

[ThaiPauly]

Already stated: ou could be dead in five years without ever really enjoying your life. If you can afford it DO IT.

I did it at 50, although after a year and a half of not working I have just bought a small business out here to keep me occupied, but until you have EXPERIENCED retirement, you don't know what it's like.

The BEST thing is not knowing what day of the week it is or CARING

Good Luck with your choice whatever it is

TP

[Morden]

Gary, I'm going through much the same thought process as you, although I'm a bit nearer to normal retirement age.

Some years ago a really nice guy that I worked with reached 60. He said that he had 5 more years to go until retirement and had borrowed money to move house and buy a new caravan for holidays and a new car to tow it. He said that the long journey to the office from the new house and the cost of repaying the loans would be a real burden that would stop him and his wife from doing very much in the way of leisure activities for 5 years but he was set up now for retirement. At 62 he had a heart attack and died.

There is a mid way between continuing the present job and retiring. You could take your funds as income, quit the present job and work where when and how you choose for extra cash. That way, if you don't like the work you can walk away and still be able to eat.

You could buy properties to rent and use the income from them to live. Rents increase more or less in line with inflation.

Once you have a bit of cash, the world's your oyster if you use it wisely!

Whatever you decide, I suggest that you make sure that you enjoy what may well be the only life that you will have. Were we really put on this planet to earn profits for someone else and be miserable ourselves?

[opothai]

.

The BEST thing is not knowing what day of the week it is or CARING

TP

<{POST_SNAPBACK}>

perfect,

[ThaiPauly]

. Were we really put on this planet to earn profits for someone else and be miserable ourselves?

<{POST_SNAPBACK}>

I bloody well hope not

[Morden]

. Were we really put on this planet to earn profits for someone else and be miserable ourselves?

<{POST_SNAPBACK}>

I bloody well hope not

<{POST_SNAPBACK}>

Me neither. But so many people do - and then they retire and die!

[snoophound]

Tried it four years ago at 43....Pattaya

Lasted 18mths ,wasnt short of money ,went crazy with boredom,did the usual buy bar for GF to run,earn some money,drank way too much.

The main problem in Thailand is finding something useful to do,except whinge....just read the letters to ed in pattyamail.

Most of my retired mates in Thailand are prob less happy than they would be in Aus,except for the fact they get laid more.

I think the key factor in retirement is making sure you have things to do.

Golf and Drinknig arent enough.

Its a shame the Thai govt doesnt recognise theres a lot of talent going to waste in some retirees,and find a way for them to work in certain areas ,consulting etc and add value to the society.

I'm thinking about early retirement. I'm 44 years old and I have around $400,000 altogether. $200,000 in retirement accounts and $200,000 in cash. If I stay another 5 years with my company, I'll receive $1200 a month in pension for life with COLA when I turn 60 but the problem is I hate my job and my boring life in the states. I'm in excellent health with no debt. I should also get Social Security at 62 with another $1200 per month, if SS still exists.

My question is should I quit and move to Thailand or should I stick it out and suffer for another 5 years then retire at 49?

<{POST_SNAPBACK}>

[GuestHouse]

Great post Snoophound.

I'd add one thing too. At 44 the OP would have to be someone really strange not to wind up in a relationship in Thailand and probably kids too.

It's not just his own secure future the OP should consider but also the future of children he might have.

There's a lot of guys enter Thailand blowing a trumpet, but sneak out quietly when the cash runs out, or the just decide life has to be more than what they have in Thailand.

[Beachcomber]

Hi

It’s all been said already. The choice is up to you but for what it is worth, as you did ask for opinions, stick with the job and retire with as much as you can get.

Inflation and the rising costs over a number of years is unpredictable. A million dollars now seems like a lot yet in 20/30 years time it’s not going to be so much. Just look back over the price of things in your lifetime. How much was a car or house 20 years ago?

My two cents worth (inflation excluded) is stick with the job. Save the money get the pension and enjoy your worry free “retirement”. Another few years investment in your job will be worth the extra benefits.

Trust me, this I know about.

Good luck.

[ThaiPauly]

I agree, great post snoopy.

When I first retired I must admit that I would start drinking at noon until bedtime out of boredom, not good for my health or my marriage. It lasted about 4 months until I realised where it was gonna take me, now I rarely drink before 6pm.

My Boys always warned me about the "bloke at the end of the bar" you see one in every watering hole in every tourist area where falags settle down. He's the guy who's retired, unmarried, got money, and gets laid when he is sober enough to manage it.

None of us want to end up as "the bloke at the end of the bar" retirement can be a wonderdul experience, but not for him!

Go into any bar now and you will find him, in the busy bars in BKK where there is more tan one bar within a bar ,you can find four or so, don't let retirement take you down this road as so often happens.

(Stern warning from TaiPauly )

[sriracha john]

$400k is a lot of money

I know (early) retired people here living a good life for $1k/mth.

at $1k/month, 400k would last over 33 years... even without investing any of it for additional interest income... and even without considering any additional income from SS retirement at 62.

why wait to quit work?

[snoophound]

Hehe Weaned myself back to a post 6pm start now too!!

Bloody hard some days!!!

I suppose what really drove it home to me ,was my last visit a couple mths back to the buffalo bar in Patts ,and thinking man I dont want to end up like those old barflies.

I agree, great post snoopy.

When I first retired I must admit that I would start drinking at noon until bedtime out of boredom, not good for my health or my marriage. It lasted about 4 months until I realised where it was gonna take me, now I rarely drink before 6pm.

My Boys always warned me about the "bloke at the end of the bar" you see one in every watering hole in every tourist area where falags settle down. He's the guy who's retired, unmarried, got money, and gets laid when he is sober enough to manage it.

None of us want to end up as "the bloke at the end of the bar"  retirement can be a wonderdul experience, but not for him!

Go into any bar now and you will find him, in the busy bars in BKK where there is more tan one bar within a bar ,you can find four or so, don't let retirement take you down this road as so often happens.

(Stern warning from TaiPauly )

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[thaiflyer1]

My Boys always warned me about the "bloke at the end of the bar" you see one in every watering hole in every tourist area where falags settle down. He's the guy who's retired, unmarried, got money, and gets laid when he is sober enough to manage it.

Only one stage after the above and thats sat in front of the computer logged into Thaivisa for 10 hours a day.

[snoophound]

And not in Thailand

My Boys always warned me about the "bloke at the end of the bar" you see one in every watering hole in every tourist area where falags settle down. He's the guy who's retired, unmarried, got money, and gets laid when he is sober enough to manage it.

Only one stage after the above and thats sat in front of the computer logged into Thaivisa for 10 hours a day.

<{POST_SNAPBACK}>

[loong]

Agree with most posters, the decision is yours.

You have to think what type of lifestyle you will expect and what it will cost to support it.

I'm in a simmilar financial postion as you.

For 5 years I spent 6 months in Thailand, 6 months working in Uk.

By doing this, I now have a good idea of costs to support my lifestyle and so I retired last year. I have enough income to support me and if the worst happens, I could sell one of my properties.

I'm 49, retired and happy

[ThaiPauly]

Agree with most posters, the decision is yours.

You have to think what type of lifestyle you will expect and what it will cost to support it.

I'm in a simmilar financial postion as you.

For 5 years I spent 6 months in Thailand, 6 months working in Uk.

By doing this, I now have a good idea of costs to support my lifestyle and so I retired last year. I have enough income to support me and if the worst happens, I could sell one of my properties.

I'm 49, retired and happy

<{POST_SNAPBACK}>

Loong, I am pleased for you I really am BUT do you think you have realised your full potential at 49. That was the age I "thought" I had retired at but it's just not possible for me to do squat at my age!

If you have it sussed then good on ya mate

Cheers

TP

[barryofthailand]

First of all, if you come from America you cannot touch your retirement account until you are 59 1/2 years old. Then thiers the problem of taxes that has never been paid on that account. then at your age, by the time you reach retirement age you will probably not be able to draw social securety until the age of 67. And lastly it takes more than $1000.00 per month to live comfortably. What's the hurry? Is thier a Thai lady in your life. If so Imigrate her to the USA, and retire at a later age and live comfortably ever after in Thailand. I retired at the age of 58, live ine tHailand, and still have no real income.

Barry

[pnustedt]

I was in the same position three years ago - now just two to go. One thing for sure - you won't wake up one morning regretting that you have too much money!

[Old Croc]

I'm thinking about early retirement. I'm 44 years old and I have around $400,000 altogether. $200,000 in retirement accounts and $200,000 in cash. If I stay another 5 years with my company, I'll receive $1200 a month in pension for life with COLA when I turn 60 but the problem is I hate my job and my boring life in the states. I'm in excellent health with no debt. I should also get Social Security at 62 with another $1200 per month, if SS still exists.

My question is should I quit and move to Thailand or should I stick it out and suffer for another 5 years then retire at 49?

When I was offered a generous package I didn't even take the time to slam the door behind me. I never went back. If the money works for you and the work is just for the money or to fill in your days. Get out. It took me about a year to slow down, get used to the new lifestyle and generate other interests, but a return to work was never on the agenda.

Despite what others say here, I believe propping up a bar near a beach in Thailand is infinately preferable to eying off that in-tray on a monday morning if you hate what you do. You just need to manage your life in a different way.

(However, I must admit to spending a bit too much time on this forum. I must hurry up and get to Thailand and that bar!)

[Khun Jean]

If I stay another 5 years with my company, I'll receive $1200 a month in pension for life with COLA when I turn 60 but the problem is I hate my job and my boring life in the states.

Is this all set in concrete!!

Can't you have it both ways?

Like finding out under what conditions you will get that $1200 pension. Can you quit now and still pay for it so you don't loose it.

Same for the social security. I don't know anything how it is done in the USA but in the Netherlands i can quit my job and continue to pay for my Social Security.

Good luck.

Edited September 10, 2005 by Khun Jean

[richard10365]

I'm thinking about early retirement. I'm 44 years old and I have around $400,000 altogether. $200,000 in retirement accounts and $200,000 in cash. If I stay another 5 years with my company, I'll receive $1200 a month in pension for life with COLA when I turn 60 but the problem is I hate my job and my boring life in the states. I'm in excellent health with no debt. I should also get Social Security at 62 with another $1200 per month, if SS still exists.

My question is should I quit and move to Thailand or should I stick it out and suffer for another 5 years then retire at 49?

<{POST_SNAPBACK}>

I was a soldier for 20 years. At the 10 year mark I was definitly thinking of quitting. At 15 years, it was almost unbearable. At 18 years thoughts of suicide and homicide crossed my mind. At 20 years I decided to come to Thailand.

I have been here for about 18 months now and don't work for anyone. Living off my pension gives me more freedom than I ever imagined.

With the money you have saved, you can set yourself up very nicely here in Thailand and live off your pension for the rest of your life.

But then again, what if you die before your 49 and never get a chance to retire. I know it sounds morbid, but my father is dying from Parkinsons disease. He got it right before his retirement. He never got the chance to retire.

I could have worked another 20 years and got another pension from the federal govt, but why work if one pension is enough. Also, seeing my fathers condition, helped me to make a decision.

With the money you have, if you budget, you could live off of your savings until you reach social security age (if its still there).

16 million baht ($400,000) divided by 20 years is 800,000 baht a year (40 baht =$1).

The pension will give you more options. 576,000 baht more a year (1,376,000 baht/yr).

What is more important to you, the money or the peace of mind?

Your decision.

[loong]

Agree with most posters, the decision is yours.

You have to think what type of lifestyle you will expect and what it will cost to support it.

I'm in a simmilar financial postion as you.

For 5 years I spent 6 months in Thailand, 6 months working in Uk.

By doing this, I now have a good idea of costs to support my lifestyle and so I retired last year. I have enough income to support me and if the worst happens, I could sell one of my properties.

I'm 49, retired and happy

<{POST_SNAPBACK}>

Loong, I am pleased for you I really am BUT do you think you have realised your full potential at 49. That was the age I "thought" I had retired at but it's just not possible for me to do squat at my age!

If you have it sussed then good on ya mate

Cheers

TP

<{POST_SNAPBACK}>

ThaiPauly,

Yes, you're absolutely right and sitting around doing squat all day wouldn't appeal to me in the least. Nor would being a Chang or Singha sponge

That's the important thing about realising what lifestyle makes you happy. I do keep myself busy in Thailand as I always have plenty to do in the garden and odd jobs round the house. The great thing is that very rarely do I consider anything a chore. I enjoy my life and have freedom from the need to earn a daily crust.

I am back in the Uk at the mo, as had to return to sort out some legal stuff and am itching to return home to Los.

My lifestyle is ideal for me, but I know it would not appeal to everyone.

A previous poster suggested that the OP should consider a 'trial retirement'. That is excellent advice. In a way, it is what I did by spending half the year in Thailand fo 5 years.

I think I do have it sussed. (fingers crossed) but there are no guarantees in life.

Thanks for the "Good on ya mate"

Good luck with your venture in Chiang Mai I hope it gives you fulfillment and happiness.

[LoveDaBlues]

Don't err on the side of having too little money. And don't count on being able to generate much income in Thailand. I retired last year at 48. Still taking care of some business here in the states then to Thailand forever I hope.

I could have retired sooner (from a job I hated) but I want to LIVE in Thailand not just EXIST so I stuck in out. For me it was the right decision; now I don't have any money worries (except for the long-haired boss who spends too much!)

Good luck.