Early Retirement Or Work Another 5 Years?

[simcity]

It took four pages, but here's a big problem; YOU CANNOT GET A RETIREMENT VISA AT THAT AGE.  Are you going to do 12 30-day visa runs every year?

I held out to age 56, then retired early.  Been getting SSA since birthday 62.  I think you're not ready.  If you think you're bored now, you'll be crazy-bored with nothing to do in Thailand.

If you don't intend to have more children but intend to be heterosexually active, get a vasectomy.

<{POST_SNAPBACK}>

have to do a visa run every three month , I am on a 1 year visa without problem ! done it from 40 year old , no dependence !

[SoCal]

Gary74,

Better to stick a gun in your mouth at 75 because of lack of funds, than at 49 because you hate your life.

Not saying you are there, but life is to short not to enjoy it.

April '04 I left a company I loved. Almost from day one I knew it was a mistake, but I had a contract and the money was good, so I figured I would hate my life for 2 years, then move on.

Let me tell you, I spent the next 15 months hating my life, until they bought me out 9 months early for violating my contract. Even with the pay off, I wish I would have quit at 6 months.

In July I went around the US seeing family that I have not spent enough time with. I am so thankful for that time.

In August I left for Vietnam & Thailand. While I was in Saigon, I ran into an old colleague (last company) who asked me what I thought of comming back.

I am now back in LA, I love the company I work for, love my job, and love my life.

In January I will move to Vietnam to become country manager for this company, and while I am excited, it seems irrelevant to me, as it plays very little in me loving my job again, the people I work with, the projects that I am given, etc.

My advice if you truly hate your job, and this is effecting at how you look at your life, is to take some time off. If you are on good terms, and your company likes you, maybe they will give you the time off. If they won't, then throw caution into the wind, and do it for yourself.

Work will be there when you get back. It may be a different company. It may pay less. It may be a career that you only toyed with in your head at 18, but work will always be there waiting for you.

Maybe you stay in Thailand the rest of your life, come back to the US to work at the same or new job, win the lottery, or get struck by a car. Who knows? I certainly didn't know that the opportunity I now have would find me in Saigon.

Just try to know that you have lived the most from your life when it comes to an end.

Best of luck!!!!!!!!!!

[SiamOne]

Why on earth are you asking what I presume are complete strangers what to do with the rest of your life?

reading all the answers to your post, you can see that everyone has definite ideas about what you should do, based on their own life experience.....which is nothing to do with yours

you may not be old enough to retire, but you are certainly old enough to make your own decisions based on all the contradictory repiles given!!

if you can't make your own decisions, maybe you had better stay in your job anyway, so much safer

or....TAKE A RISK and see what happens

whata life eh??

[loong]

I've been in thailand for over 7 years now, and I don't have even a third of the money you have.

<{POST_SNAPBACK}>

You've been retired for 7 years with $130,000 ?

How do you manage?

[haha]

actually, I have less than that.

but back to your question....

first off, I don't smoke, gamble, take drugs, or drink a lot. I'm not into parties. and I don't take out girls all the time.

what do I do, you ask?

I workout at the gym, hangout at starbucks, or coffee world, see movies, window shop at the malls, eat at cheap buffets/food courts, surf the internet, watch tv, play computer games, and of course, I hang out with friends in various places in the city that don't require that you spend money to enter their premises.

before in the past, I would also go bowling a lot, play pool, and take thai language courses.

I live in a inexpensive studio apartment that costs me about 7k baht a month. (I used to live in a cheaper accommodations that averaged 5k baht a month. hehehe. ..an upgrade.)

it's a full life.

I think what causes a lot of people to spend a lot of money is peer pressure. people all around you endlessly try to influence you to "keep up with the jones". and when you fall prey to this brainwashing, you end up spending more money than you need to. I have no need to impress everybody with clothes and other material things. mind you, I have a closet full of clothes, even a few suits, and dress shoes. but I have no need to always buy the latest fashions, or to replace things with each new year.

last, but not least, I don't have this "big shot" mentally that a lot of people have where they have to constantly show off their weatlh. frankly, I think this mentally is a sign of a weak self-image.

but then, that's me. everybody is different. if I have a family, I know my expenses would grow. but on the other hand, I don't think by much.

would you believe that many of my friends have less and spend less money than me? it's true.

in fact, many of my friends think I'm rich.

tip: pick your friends carefully. much of your happiness in this world will depend on who they are.

[nagasaki]

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}>

I am in a similar position to This, am 43 rather than 49, and want to do something similar, spend 6 months in UK (summer) and 6 months in Thailand (Winter). I dont want to live in Thailand full-time as I like both places, certainly to start with anyway.

I could almost retire in Thailand now, (but certainly not UK) but I dont know if i want to do it, I have propety in UK which I can rent out full time, and think I could earn enough in the other 6 months to be quite happy in Thailand, decisions decisons

[Gary74]

Thanks you all for your inputs. It appears working another 5 years until 49 then retire makes the most sense. By that time I should be able to save another $60K per year for the total of $300K. Plus the interests and dividends I'll be getting on my investments. I should have close to $400K at 49 to live on and $800K+ in my retirement accounts at 60. Plus another 5 years of credit on my SS account. And I'm still young enough to enjoy my retirement. I guess I knew all this but I needed to hear it from others.

For your info., if I stay until 55, my pension increases to $1500+/month at 55, $3000+/month at 60, and $4800+/month at 65. But I have no intention to work this late, although vast majority of all other Americans do so and/or have no choice.

Mean while, I'll stick it out and take my 6 weeks of vacation per year in Thailand.

Edited September 15, 2005 by Gary74

[middlepath]

"You've been retired for 7 years with $130,000 ?

How do you manage?"

Haha, Loong's question was a fair one and you answer was a fair and to the point too.

Really, I was looking forward to your answer.

Some of us ( me included) need to save just a little more. I hope not to get in the "little more" rut, becuase it will always be just a little more, just a little more, all most there, till one's to old to enjoy it. help me guys if I am in this grove, becuase as of right now, I just need to save a "little more"

So really amire your answer, Haha. thanks.

MP

[ThaiPauly]

Most people live within their own means. if you are earing $1000,000 a year then thats probably what you'll spend, and if you earn a fifth of that you will live within those means. People who earn high incomes also have the highest borring levels too (flash cars, big houses) as HaHa said, "keeping up with the Jones's"

The following analagy has always served me well:

Income : 1 dollar a month

Expenditure: 99 cents.

Result: Happiness

Income : I dollar a month

Expenditure: 1 dollar ,one cent

Result: Misery

What I am trying to get at is it really does not matter how much income you have ,you will adjust your lifestyle to match it, so as long as you have the basic requirement the Government requires you to have here, you can live off it and be HAPPY

Edited September 15, 2005 by ThaiPauly

[middlepath]

Good Post Thaipauly, something to think about.

[jrincon17]

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}>

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.

huh ?

hmmmm dont know if that will last you in thailand but if i were in your shoes i would try , the u.s. is getting worse and worse . if had that type of cash i'd do it and im 34

[loong]

Income : 1 dollar a month

Expenditure: 99 cents.

Result: Happiness

Income : I dollar a month

Expenditure: 1 dollar ,one cent

Result: Borrow one cent plus another dollar for extra whisky

Thai philosophy

[TizMe]

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!

And nobody died wishing that they spent an extra 5 years in a job that sucked.

To the OP,

Invest your money wisely, live within your means, don't be that guy at the end of the bar, and go for it.

[loong]

Word of warning

Many retirees (including me) rely on renting out their house to finance their retirement.

I bought a 2nd house some years back to rent out and have experienced the damage that tenants can do to the property. It can be very distressing.

The danger with renting out your HOME is that you have probably invested a lot of emotion into that property and it can be very difficult to step away from that emotion. How will you feel if your home is wrecked by uncaring tenants?

My home is now rented to family members at a cheap rate, but still I feel like they don't care about it the same way as I do.

I would advise anyone to sell their home and use the proceeds to buy different properties to rent out. Look into the logistics of it.

In many cases, by selling your home, you may realise enough to buy 2 small flats in a different area and total rental income could well be 50% higher than you will get from the 1 house.

You will have no emotional investment in the new properties, so damage will not distress you so much.

[RDN]

Word of warning

Many retirees (including me) rely on renting out their house to finance their retirement.

I bought a 2nd house some years back to rent out and have experienced the damage that tenants can do to the property. It can be very distressing.

The danger with renting out your HOME is that you have probably invested a lot of emotion into that property and it can be very difficult to step away from that emotion. How will you feel if your home is wrecked by uncaring tenants?

My home is now rented to family members at a cheap rate, but still I feel like they don't care about it the same way as I do.

I would advise anyone to sell their home and use the proceeds to buy different  properties to rent out. Look into the logistics of it.

In many cases, by selling your home, you may realise enough to buy 2 small flats in a different area and total rental income could well be 50% higher than you will get from the 1 house.

You will have no emotional investment in the new properties, so damage will not distress you so much.

<{POST_SNAPBACK}>

I looked into renting out my house but decided to sell up and invest the money. I make more in the investment than I would have on the rent. Of course, I no longer have a house and the money invested could not buy the same quality house now if I wanted to return. But I don't .

My next door neighbour just went back to London to get a new tenant - one of his 3 was leaving. He was gone for 3 months! Couldn't get people to repair the flat - holiday season - and couldn't find a new tenant to rent the place. I don't fancy being called away from my new home for 3 months sorting out what is basically just "an income source". I'd much rather it was just earning interest without any need for trips "back home".

[TizMe]

Same, same. I sold my house and re-invested all the procedes. Over the last 12 months I've recieved 4.2% return in dividends and 28.3% capital growth. I'm more than happy with that.

The best part is:

No tenant problems.

No realestate agent problems.

No repair problems.

No tenant vacancy problems.

No council rates to pay.

No realestate commissions to pay.

No insurance policies to pay.

Have I left any out?

[loong]

Same, same. I sold my house and re-invested all the procedes. Over the last 12 months I've recieved 4.2% return in dividends and 28.3% capital growth. I'm more than happy with that............................................

<{POST_SNAPBACK}>

Over 30% return - do you have crystal balls ????

[middlepath]

"The best part is:

No tenant problems.

No realestate agent problems.

No repair problems.

No tenant vacancy problems.

No council rates to pay.

No realestate commissions to pay.

No insurance policies to pay.

Have I left any out?"

Yes, House Taxes. High as heck here in California.

We sold our house in May this year. So happy we did. My co-workers say "MP you sure are going to miss your house when it comes tax time becuase you will not have the interest on the payment to deduct", this may be true but I love what i read from a poster here...SEEL HIGH RENT LOW.....

[ray23]

"The best part is:

No tenant problems.

No realestate agent problems.

No repair problems.

No tenant vacancy problems.

No council rates to pay.

No realestate commissions to pay.

No insurance policies to pay.

Have I left any out?"

Yes, House Taxes. High as heck here in California.

We sold our house in May this year. So happy we did. My co-workers say "MP you sure are going to miss your house when it comes tax time becuase you will not have the interest on the payment to deduct", this may be true but I love what i read from a poster here...SEEL HIGH RENT LOW.....

<{POST_SNAPBACK}>

Boy an interesting subject, I guess it takes a bit of time to realize that Thailand is a real world with a lot of the same things you had to deal with in your home country. how many people come here thinking they can live on next to nothing, only to find out that yes Thais can make it on 6K a month, but to live a lifestyle that even resembles the ones we are used to, you can't.

I live in Udon, my household budget is 50K a month and believe me there are months that we go over budget. That provides a lifestyle that I'm comfortable with, but it does not provide enough to live as I did when I came here on vacation and had all that excitment 24 hours a day.

I also beleive there is a learning curve that is very expensive, before you really know how to live here.

I have friends that took early retirements, some of them can not even afford airconditioning. A lot as they laying there awake at night in a pool of sweat, are thinking about to get back home and get a job. It's really tough for them, even if they go back they have lost the networking abilty that they had and the job market doesn't look good for them.

When I came here I had completed one career and had a retirment of 3k a month dollars and was working in a second career. I had about 7,000 in the bank. I took a five month leave of absence and never went back. The first two years were really tough a 50% of retirement went to child support.

It can be done but it takes total commitment, you can't look back and that will be very tempting at first. Heck after three years I still have my moments. I've came a very long ways in a short period of time, since I started with three suitcases and the money I mentioned earlier.

I ride motorcycles and bowling is a part of our leisure acrivities, I also go to Thia classes. I don't drink as norm that is for my short vacations, to the big city LOL I don't hang out with the bar girls except on those short vacations.

I would never had done this without that monthly income, even when I made stupid mistakes and I made a lot of them, I always had that new money each month.

[Boon Mee]

actually, I have less than that.

but back to your question....

first off, I don't smoke, gamble, take drugs, or drink a lot.  I'm not into parties.  and I don't take out girls all the time.

what do I do, you ask?

I workout at the gym, hangout at starbucks, or coffee world, see movies, window shop at the malls, eat at cheap buffets/food courts, surf the internet, watch tv, play computer games, and of course, I hang out with friends in various places in the city that don't require that you spend money to enter their premises.

before in the past, I would also go bowling a lot, play pool, and take thai language courses.

I live in a inexpensive studio apartment that costs me about 7k baht a month.  (I used to live in a cheaper accommodations that averaged 5k baht a month. hehehe.  ..an upgrade.)

it's a full life.

I think what causes a lot of people to spend a lot of money is peer pressure.  people all around you endlessly try to influence you to "keep up with the jones".  and when you fall prey to this brainwashing, you end up spending more money than you need to.  I have no need to impress everybody with clothes and other material things.  mind you, I have a closet full of clothes, even a few suits, and dress shoes.  but I have no need to always buy the latest fashions, or to replace things with each new year.

last, but not least, I don't have this "big shot" mentally that a lot of people have where they have to constantly show off their weatlh.  frankly, I think this mentally is a sign of a weak self-image.

but then, that's me.  everybody is different.  if I have a family, I know my expenses would grow.  but on the other hand, I don't think by much.

would you believe that many of my friends have less and spend less money than me?  it's true. 

in fact, many of my friends think I'm rich.

tip: pick your friends carefully. much of your happiness in this world will depend on who they are.

Best post of this multiple-page thread I've read, haha.

Good on you - excellent philosophy here.

When I lived in Thailand full-time I ran into a slew of retired folks in their late 40's & early 50's who were literally at loose-ends. Some were retired military living on small/medium range pensions that got by OK monetarily but they were drinking themselves to early deaths.

One key factor here that's been pointed out several times already is whether an individual enjoys his work/job or not. I've never put myself in the position where I have not enjoyed my employment and after witnessing the scores of unhappy early retirees in LOS 'am postponing my retirement and (the operative term here) staying in shape to enjoy said retirement.

But, as it's said in Thai, 'Tham jai khun' - Up To You!

[Storekeeper]

Gary,

Recommend you work the additional 4 years. I' "retiring" in 18 months at the ripe old age of 45 after 28 years at the same job. I could stay till 30 but by "retiring" at 28 I start collecting my pension two years early and when the numbers are "ran" I won't start losing any money until I'm over 65 years old.

I'm in the same situation at the "Richard" poster and can also count on the historical average of a 2% annual cost of living adjustment.

But I'm not going to actually just retire. So in addition to a pension much larger than needed, I should easily pull in 28,000 - 40,000 a month as a TEFLer.

(Do you have a 4 year degree?)

So, I fully appreciate what's going on in your head right now and aching to get to Thailand real quick. Pad that pension and savings for another 4 years mate.

Also, don't lose faith in the viability of the SS system. There will still be some form of SS for the next 30-50 years. But probably with much further reduced benefits.

[The Coder]

Sorry this is stepping a bit off topic, but some fallacies here could not be ignored.

Yes, House Taxes. High as heck here in California.

California has very low property taxes at just 1.1%. Some states are 3% or higher. It would be interesting to see how much the average person spends in property taxes by state; I doubt California would be the top even with its high housing prices.

"you sure are going to miss your house when it comes tax time becuase you will not have the interest on the payment to deduct", this may be true...

There are benefits to owning a house, but don't fall for the tax deduction myth. This ranks right up there with so-called income tax refund myth. Here is a simple to understand why:

Two people show up at a building to pay property tax. Person A owns a house; he pays $3 at the window and gets handed back $1. Person B does not own a house; he goes to the window, but neither pays nor receives any money. After it's over, person A says to person B: this is great, I got $1 back and you got nothing, I bet you wished you owned a house too!

[middlepath]

"Sorry this is stepping a bit off topic, but some fallacies here could not be ignored.

QUOTE

Yes, House Taxes. High as heck here in California.

California has very low property taxes at just 1.1%. Some states are 3% or higher. It would be interesting to see how much the average person spends in property taxes by state; I doubt California would be the top even with its high housing prices."

You are not stepping on this topic at all, and are most welcome.

I guess I had it better then I thought, thanks. I still will not miss paying them this November even if they were a bargin compared to other States.

[Storekeeper]

Coder is right about the tax deduction myth. I can't remember why but my tax preparer this year said I couldn't claim it. I had him prove it to me but I was so flustered by then I didn't make a copy of the reference.

[middlepath]

"Coder is right about the tax deduction myth. I can't remember why but my tax preparer this year said I couldn't claim it. I had him prove it to me but I was so flustered by then I didn't make a copy of the reference."

This is so true. Like my post above, my work mates tell me how much I am going to miss my tax deduction on my income tax, they would rather make payments on a home then have one paid off. If this was the case then why I tell them do you want a low interest rate on you mortage payment, you might as well get a 10% loan on you house so you have even a larger tax deduction. I'll take a house free and clear anyday. Better for me anyway, when it come to investing I suck.

[Gary74]

I'm on a 5 year countdown and I feel good about it. Thailand will be there but without money, Thailand is not fun. I saw lots of conmen trying to cheat and steal from farang newbies so they can stay in Thailand longer. How sad but reality.