Retirement Plan

[JurgenG]

I'll try to be very specific to avoid a repeat of the endless discussion in other threads.

I agree that 200K+ a month is a minimum if you are an international executive living and working in Bangkok. And if you have kids negotiate that their education is taken care of by your company. But here we are talking about retirement in Isan.

Our houses, both in Isan and Bangkok are fully paid. We plan to live in Isan but expect to spend every other week end in Bangkok for a bit of shopping and a good meal. And make an oversea trip at least one or two time a year. Based on that, we estimate that 60K per month is reasonable for a couple.

We will have no pension, just a lump sum to retire. We expect to live 40 years after retirement but plan for 10 extra years. Based on our estimation we should retire with around 50M Bahts (excluding the houses). What do you guys think ? Is it too little or too much ? And how to invest this sum to maximize the return with very little tolerance for risk ?

Additional question : what kind of insurance you will recommend ?

[Johnniey]

I'll try to be very specific to avoid a repeat of the endless discussion in other threads.

I agree that 200K+ a month is a minimum if you are an international executive living and working in Bangkok. And if you have kids negotiate that their education is taken care of by your company. But here we are talking about retirement in Isan.

Our houses, both in Isan and Bangkok are fully paid. We plan to live in Isan but expect to spend every other week end in Bangkok for a bit of shopping and a good meal. And make an oversea trip at least one or two time a year. Based on that, we estimate that 60K per month is reasonable for a couple.

We will have no pension, just a lump sum to retire. We expect to live 40 years after retirement but plan for 10 extra years. Based on our estimation we should retire with around 50M Bahts (excluding the houses). What do you guys think ? Is it too little or too much ? And how to invest this sum to maximize the return with very little tolerance for risk ?

Additional question : what kind of insurance you will recommend ?

way too much if you have property.

im looking at a lump sum of 10 million baht.

Sent from my GT-I9100T using Thaivisa Connect App

[flying]

I would think most many could live off the interest alone of 50 million baht

Of course interest rates can vary...but still

If as you said the homes are already free & clear.

Of course your mileage may will vary according to life style

Edited July 2, 2012 by flying

[NomadJoe]

I live in an expensive part of Thailand, but have visited potential in-laws in Isan before.

Typical Thai wage is about 6000B-12000B a month. So you can easily live on 60K especially if you are not paying rent or a mortgage. But styles of living vary widely in Thailand. Your international travel is going to be the most expensive thing. There are private hospitals in Isan but they are typically smaller. You may be sent to a government hospital for specialized or major things. Private hospitals sell their own insurance. Popular is a sort of discount card of varying flavors. Not sure how wide spread BUPA is up there, but that is a popular health insurance carrier for foreigners here.

No idea on investments. Talk to a specialist. Getting advice on a forum is a bad idea. Beware there are a lot of farang investment scammers operating in Thailand.

Edited July 2, 2012 by NomadJoe

[somtampet]

I live in an expensive part of Thailand, but have visited potential in-laws in Isan before.

Typical Thai wage is about 6000B-12000B a month. So you can easily live on 60K especially if you are not paying rent or a mortgage. But styles of living vary widely in Thailand. Your international travel is going to be the most expensive thing. There are private hospitals in Isan but they are typically smaller. You may be sent to a government hospital for specialized or major things. Private hospitals sell their own insurance. Popular is a sort of discount card of varying flavors. Not sure how wide spread BUPA is up there, but that is a popular health insurance carrier for foreigners here.

No idea on investments. Talk to a specialist. Getting advice on a forum is a bad idea. Beware there are a lot of farang investment scammers operating in Thailand.

there are great ones too

[KNJ]

_{50 MTHB invested in an annuity with dual people would give you a income index linked of about 160 000 a month.}

_{I would not suggest that you put it all into one scheme, but with that amount you will have no problems what so ever.}

_{If you go the annuities route shop around, tell them if you smoke, overweight, astmatic or whatever, you could get 20% more.}

_{Better with that amount to speak with an true independent financial consutant ( NOT IN THAILAND )}

[GreenSnapper]

The typical Thai wage is irrelevant for you.

You are totally right, to have a proper living standard above "just existing", you need proper funds.

Your funds of 50 Million plus paid real estate is proper - unless you lose your money with risky investments.

At the current market situation, you can expect a return of 5% per year on your investments. This would allow a spending of 200.000 Baht per month. Enough for what you aim for and enough for future devaluation and inflation. So don't spend it all, maybe keep spendings below 150.000 Baht.

If you have no knowledge how to invest your money, you need to gain this knowledge at first. This is not an easy task, and you should not use "financial advisors" or advise from this forum.

You have to do your homework yourself. I'd say, you need at least 6 months of serious reading on financial matters to get some idea before you invest a single Baht.

For a start, there are lots of websites for retirement calculations. Then go to good bookshops and buy some more to fund your knowledge. Diversify your protfolio. Don't listen to people with easy solutions: no, gold will not always go up and real estate may fall badly. You have to learn about the markets and have to learn to recognize BS in the media and internet.

5% is realistically achievable if invested wisely. But keep most of your assets outsides of Thailand, or any other 3rd world country without proper legal protection.

Edited July 2, 2012 by GreenSnapper

[giddyup]

_{50 MTHB invested in an annuity with dual people would give you a income index linked of about 160 000 a month.}

_{I would not suggest that you put it all into one scheme, but with that amount you will have no problems what so ever.}

_{If you go the annuities route shop around, tell them if you smoke, overweight, astmatic or whatever, you could get 20% more.}

_{Better with that amount to speak with an true independent financial consutant ( NOT IN THAILAND )}

Try increasing your font size please.

[JurgenG]

The typical Thai wage is irrelevant for you.

You are totally right, to have a proper living standard above "just existing", you need proper funds.

Your funds of 50 Million plus paid real estate is proper - unless you lose your money with risky investments.

At the current market situation, you can expect a return of 5% per year on your investments. This would allow a spending of 200.000 Baht per month. Enough for what you aim for and enough for future devaluation and inflation. So don't spend it all, maybe keep spendings below 150.000 Baht.

If you have no knowledge how to invest your money, you need to gain this knowledge at first. This is not an easy task, and you should not use "financial advisors" or advise from this forum.

You have to do your homework yourself. I'd say, you need at least 6 months of serious reading on financial matters to get some idea before you invest a single Baht.

For a start, there are lots of websites for retirement calculations. Then go to good bookshops and buy some more to fund your knowledge. Diversify your protfolio. Don't listen to people with easy solutions: no, gold will not always go up and real estate may fall badly. You have to learn about the markets and have to learn to recognize BS in the media and internet.

5% is realistically achievable if invested wisely. But keep most of your assets outsides of Thailand, or any other 3rd world country without proper legal protection.

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

But I'm open minded and because we are talking about long term planning, 6 month of serious reading is ok for me. And on top of that I like reading .

Do you have any title in mind to start with ?

I agree with you about investing in Thailand, beside our houses all our other investments are either in Hong Kong or Europe. But how to protect ourselves against currency fluctuations ?

[KNJ]

You have to do your homework yourself. I'd say, you need at least 6 months of serious reading on financial matters to get some idea before you invest a single Baht.

5% is realistically achievable if invested wisely. But keep most of your assets outsides of Thailand, or any other 3rd world country without proper legal protection.

All good advice especially the 6 month part. Research, compare, read, compare, split, diversify. You will be fine

[NBD]

It depends on your expectations. As pointed out it's certainly a grand wage for Isan, but international trips, cars, games of golf and so forth all eat up cash, and 60K a month will go pretty quickly.

[flying]

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

. But how to protect ourselves against currency fluctuations ?

If you have risk aversion you can easily get 3.75% on 60 month fixed deposit rates

Personally I will not chase 5% with risk if 3.75 is guaranteed risk free

http://www.bangkokba...osit Rates.aspx

http://www.krungsri.com/inc/download.aspx?file=../download/Interest_728Deposit-01-06-2012.pdf

To protect against fluctuation the simplest method is to have a few years expense in the currency

your bills are in. Of course there is FOREX hedging but again risk/reward has to be considered.

Good Luck

Edited July 2, 2012 by flying

[GreenSnapper]

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

But I'm open minded and because we are talking about long term planning, 6 month of serious reading is ok for me. And on top of that I like reading .

Do you have any title in mind to start with ?

I agree with you about investing in Thailand, beside our houses all our other investments are either in Hong Kong or Europe. But how to protect ourselves against currency fluctuations ?

I'm not against the stock market, but you must be very careful here. You need regular income from your investments, and what you don't want is a 3 year waiting period until your stocks have regained their losses. But have a lookout at dividend strategies.

Hedging currency fluctuations: keep investments not only in one currency, but at least have EUR, GBP, USD, AUD... Thai Baht will probably be close enough to Singapore Dollar, so keep some assets there too.

Don't count on those 3% Thai banks give you at the moment. You may keep a few months of your spendings on those accounts, but keep the majority of funds outside the country. The major Thai banks will probably not crash, but the often incompetent situation there and the general lack of law here would make me hesitate to keep more than 1-2 million Baht inside the country.

[wana]

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

. But how to protect ourselves against currency fluctuations ?

If you have risk aversion you can easily get 3.75% on 60 month fixed deposit rates

Personally I will not chase 5% with risk if 3.75 is guaranteed risk free

http://www.bangkokba...osit Rates.aspx

http://www.krungsri....-01-06-2012.pdf

To protect against fluctuation the simplest method is to have a few years expense in the currency

your bills are in. Of course there is FOREX hedging but again risk/reward has to be considered.

Good Luck

Some good rates in australian banks ive been hearing

if you can get 5% fixed there for a term of years you dont have to worry

about the rates dropping

all currencies will probaby devalue due to printing presses being left on overnight

by bankrupt countries but theres not much we can do about that

As long as your beating the rate of inflation ,you should be fine with 50 million and 2 properties though ........

[somtampet]

The typical Thai wage is irrelevant for you.

You are totally right, to have a proper living standard above "just existing", you need proper funds.

Your funds of 50 Million plus paid real estate is proper - unless you lose your money with risky investments.

At the current market situation, you can expect a return of 5% per year on your investments. This would allow a spending of 200.000 Baht per month. Enough for what you aim for and enough for future devaluation and inflation. So don't spend it all, maybe keep spendings below 150.000 Baht.

If you have no knowledge how to invest your money, you need to gain this knowledge at first. This is not an easy task, and you should not use "financial advisors" or advise from this forum.

You have to do your homework yourself. I'd say, you need at least 6 months of serious reading on financial matters to get some idea before you invest a single Baht.

For a start, there are lots of websites for retirement calculations. Then go to good bookshops and buy some more to fund your knowledge. Diversify your protfolio. Don't listen to people with easy solutions: no, gold will not always go up and real estate may fall badly. You have to learn about the markets and have to learn to recognize BS in the media and internet.

5% is realistically achievable if invested wisely. But keep most of your assets outsides of Thailand, or any other 3rd world country without proper legal protection.

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

But I'm open minded and because we are talking about long term planning, 6 month of serious reading is ok for me. And on top of that I like reading .

Do you have any title in mind to start with ?

I agree with you about investing in Thailand, beside our houses all our other investments are either in Hong Kong or Europe. But how to protect ourselves against currency fluctuations ?

Its a possibility to get 12% per annum

[wana]

The typical Thai wage is irrelevant for you.

You are totally right, to have a proper living standard above "just existing", you need proper funds.

Your funds of 50 Million plus paid real estate is proper - unless you lose your money with risky investments.

At the current market situation, you can expect a return of 5% per year on your investments. This would allow a spending of 200.000 Baht per month. Enough for what you aim for and enough for future devaluation and inflation. So don't spend it all, maybe keep spendings below 150.000 Baht.

If you have no knowledge how to invest your money, you need to gain this knowledge at first. This is not an easy task, and you should not use "financial advisors" or advise from this forum.

You have to do your homework yourself. I'd say, you need at least 6 months of serious reading on financial matters to get some idea before you invest a single Baht.

For a start, there are lots of websites for retirement calculations. Then go to good bookshops and buy some more to fund your knowledge. Diversify your protfolio. Don't listen to people with easy solutions: no, gold will not always go up and real estate may fall badly. You have to learn about the markets and have to learn to recognize BS in the media and internet.

5% is realistically achievable if invested wisely. But keep most of your assets outsides of Thailand, or any other 3rd world country without proper legal protection.

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

But I'm open minded and because we are talking about long term planning, 6 month of serious reading is ok for me. And on top of that I like reading .

Do you have any title in mind to start with ?

I agree with you about investing in Thailand, beside our houses all our other investments are either in Hong Kong or Europe. But how to protect ourselves against currency fluctuations ?

Its a possibility to get 12% per annum

is it guaranteed risk free ?

[somtampet]

The typical Thai wage is irrelevant for you.

You are totally right, to have a proper living standard above "just existing", you need proper funds.

Your funds of 50 Million plus paid real estate is proper - unless you lose your money with risky investments.

At the current market situation, you can expect a return of 5% per year on your investments. This would allow a spending of 200.000 Baht per month. Enough for what you aim for and enough for future devaluation and inflation. So don't spend it all, maybe keep spendings below 150.000 Baht.

If you have no knowledge how to invest your money, you need to gain this knowledge at first. This is not an easy task, and you should not use "financial advisors" or advise from this forum.

You have to do your homework yourself. I'd say, you need at least 6 months of serious reading on financial matters to get some idea before you invest a single Baht.

For a start, there are lots of websites for retirement calculations. Then go to good bookshops and buy some more to fund your knowledge. Diversify your protfolio. Don't listen to people with easy solutions: no, gold will not always go up and real estate may fall badly. You have to learn about the markets and have to learn to recognize BS in the media and internet.

5% is realistically achievable if invested wisely. But keep most of your assets outsides of Thailand, or any other 3rd world country without proper legal protection.

So far I've been allergic to any investment in the stock market. All the money we have come from profit in real estate.

But I'm open minded and because we are talking about long term planning, 6 month of serious reading is ok for me. And on top of that I like reading .

Do you have any title in mind to start with ?

I agree with you about investing in Thailand, beside our houses all our other investments are either in Hong Kong or Europe. But how to protect ourselves against currency fluctuations ?

Its a possibility to get 12% per annum

is it guaranteed risk free ?

U would have to speak with my cousin,he is the expert not me,he looks after my money.pm me for his email address,then i can give u more details rather than on here

[GreenSnapper]

One more note:

Do have health insurance!

Don't over-insure. You don't need to insure the 1000 Baht doctor visit or the chinese herbalist.

But you must insure a heart operation of 2 million Baht or the motorbike accident which leaves you 3 months in a hospital. And you want a good hospital in those cases, with a single room and good care.

[giddyup]

12% risk free? I doubt it. I have been getting 6% from my Australian bank for the last 2 years, until very recently when it dropped to 5.30%. That's for terms up to one year, longer terms offer less.

[somtampet]

One more note:

Do have health insurance!

Don't over-insure. You don't need to insure the 1000 Baht doctor visit or the chinese herbalist.

But you must insure a heart operation of 2 million Baht or the motorbike accident which leaves you 3 months in a hospital. And you want a good hospital in those cases, with a single room and good care.

very good point,extremely important here

[somtampet]

12% risk free? I doubt it. I have been getting 6% from my Australian bank for the last 2 years, until very recently when it dropped to 5.30%. That's for terms up to one year, longer terms offer less.

where did it say risk free???

I asked the other guy if he wanted details,he could contact direct,as my cousin is the expert.I am only giving a heads up and obviously giving out his good name,i owe him big style with my bonds

[GreenSnapper]

U would have to speak with my cousin,he is the expert not me,he looks after my money.pm me for his email address,then i can give u more details rather than on here

This is exactly the advise you shall not listen too. And why you should train your bullshit detector to easily recognise the scammers.

[giddyup]

One more note:

Do have health insurance!

Don't over-insure. You don't need to insure the 1000 Baht doctor visit or the chinese herbalist.

But you must insure a heart operation of 2 million Baht or the motorbike accident which leaves you 3 months in a hospital. And you want a good hospital in those cases, with a single room and good care.

OK if you are still relatively young, but at my age (nearly 70) the cost of health insurance in Thailand is prohibitive. I think I was quoted around US$5000 a year and there still may be a ceiling on what they are prepared to pay. If I was unlucky enough to get a prolonged illness, or required major surgery, I would probably have no choice but to return to Australia.

[somtampet]

U would have to speak with my cousin,he is the expert not me,he looks after my money.pm me for his email address,then i can give u more details rather than on here

This is exactly the advise you shall not listen too. And why you should train your bullshit detector to easily recognise the scammers.

do u want his details by pm,he even has a work permit lol.

I dont give a flying what u think khun snapper,my idea was to try and help someone on here,so its up to you if you dont believe that IT IS POSSIBLE TO GET 12% PER ANNUM.

The only advise i gave was to pm me fopr his email address as he is in his uk company until the 15th then back to his company in Jomtien,and i am not sure about forum rules for advertising here.He is far too busy to have a membership here but will do in the near future when he isnt going back to the uk every month

[giddyup]

12% risk free? I doubt it. I have been getting 6% from my Australian bank for the last 2 years, until very recently when it dropped to 5.30%. That's for terms up to one year, longer terms offer less.

where did it say risk free???

I asked the other guy if he wanted details,he could contact direct,as my cousin is the expert.I am only giving a heads up and obviously giving out his good name,i owe him big style with my bonds

You didn't say, but someone else asked if it was risk-free and I said I doubt it. The old adage "the higher the return the greater the risk" holds true. Why someone would invest their life savings in anything but with the absolute minimum of risk is beyond me, especially retirement money, you are never going to be able to recover your losses.

Edited July 2, 2012 by giddyup

[somtampet]

12% risk free? I doubt it. I have been getting 6% from my Australian bank for the last 2 years, until very recently when it dropped to 5.30%. That's for terms up to one year, longer terms offer less.

where did it say risk free???

I asked the other guy if he wanted details,he could contact direct,as my cousin is the expert.I am only giving a heads up and obviously giving out his good name,i owe him big style with my bonds

You didn't say, but someone else asked if it was risk-free and I said I doubt it. The old adage "the higher the return the greater the risk" holds true.

It costs nothing to speak with somebody about financial matters,and as somebody said,there are some untrustworthy people living here,and some companies that dont know what they are talking about.

Heads up only no flame no scam,just a very honest guy thats going to do extremely well in Thailand

[giddyup]

12% risk free? I doubt it. I have been getting 6% from my Australian bank for the last 2 years, until very recently when it dropped to 5.30%. That's for terms up to one year, longer terms offer less.

where did it say risk free???

I asked the other guy if he wanted details,he could contact direct,as my cousin is the expert.I am only giving a heads up and obviously giving out his good name,i owe him big style with my bonds

You didn't say, but someone else asked if it was risk-free and I said I doubt it. The old adage "the higher the return the greater the risk" holds true.

It costs nothing to speak with somebody about financial matters,and as somebody said,there are some untrustworthy people living here,and some companies that dont know what they are talking about.

Heads up only no flame no scam,just a very honest guy thats going to do extremely well in Thailand

I don't know how you can predict that someone is "going to do extremely well". I wish I had that kind of crystal ball.

[SteveLynch]

hi

maybe im just a knob but really

how have you amassed aa nnesst eggg oof 50 million baht ,living a lifestyle that spends around 200k a month ,own 2 houses ,be in your late 30s early four ties and not have any idea about money planning or retirement options in a country were you live

i earn a similar wage i have 2 houses and based on what i spend a month im nowhere near savings of 50 million baht

so rather than ask posters how to invest it ,why don't you tell us how to accumulate it

[SteveLynch]

apologies for the spelling ,i have a poxy keyboard

[giddyup]

hi

maybe im just a knob but really

how have you amassed aa nnesst eggg oof 50 million baht ,living a lifestyle that spends around 200k a month ,own 2 houses ,be in your late 30s early four ties and not have any idea about money planning or retirement options in a country were you live

i earn a similar wage i have 2 houses and based on what i spend a month im nowhere near savings of 50 million baht

so rather than ask posters how to invest it ,why don't you tell us how to accumulate it

Good question. Maybe he inherited it.