Is $Us2 Million Enough To Retire In Thailand, At Age 40?

[GuestHouse]

$2million enough to retire at 40 - plenty.

The challenge is keeping it in your control.

I promise, you'll be smiling has you hand it over.

[wannascuba]

For normal people, yes, as long as you don't do anything too stupid. Not enough for the 1 percenters who I'm sure will be showing up shortly to explain how how it's not enough to cover even the basic necessities.

DP25,

You just contradicted yourself. The OP is in the 1 percent group, think about it!

I know, I know those evil 1 percenters.....Just joking

[JurgenG]

How much you need to survive ? It all depends of what you consider what your basic needs are.

For example Linda Evangelista considers that she can't give her son a good education at less than $550,00 a year ( $46,000 - B1.5 Million / month). That what she asked the father of the child for child support.

An old man with a stunner, that's the current rate. I'm afraid that a number of new comer will find life in Thailand much more expensive than they expected.

[nocturn]

Am I the only one to smell Troll?

what difference does it make, many seem to find the discussion interesting.

looking for a moderator gig already?

[geriatrickid]

USD 2 milliom earning a guaranteed 5% (OP said 5%), you would have enough money to live in about 90% of the world. That's 100k USD a year. That is 3 times the median income for my city in the US. You could afford to have a small place in Manhattan even.

Anyways, I agree, the visa situation is an issue.

Where can I obtain a guaranteed 5% ROI? My investments are generating around 1% now.

[ExpatJ]

If you expect to have a family then the outlays- based on real expat package couples i know living in Bangkok with two kids- will be 300,000-400,000 baht per month. That gives you a western standard of living and top schools for your kids in Bangkok. Presumably if you have amassed 2 million you are used to a certain higher standard of living.

Your assumption that you will live to 80 is a extremely risky- 70-80 is average age of death, which means many many people live to their late 80s, 90s- you need to budget for that or you could easily spend the last years of your life in virtual poverty and actual stress!

Edited July 10, 2012 by ExpatJ

[meatboy]

beware a fool and his money are soon parted.not saying you are one but if this is your first venture to los it can be easy to join that club.

[MrZM]

Don't see the need to invest any money. You will have 60 million baht.

That's 1 million a year, roughly 85,000 baht a month for 60 years.

Or

2 million baht a year, roughly 170,000 baht per month for 30 years.

Why do people ask these questions, if your clever enough to have acquired $2m before your 40, you know what to do.

[mikekim1219]

This is very similar the post "Retirement Plan" He is about same age (I assume) and wants to retire with 50 million baht. Except he has a wife. You should refer to his post for advice. Some are useful (most not)

I have been doing lot of thinking about the required fund to live comfortably in Thailand. With 2 million, you have lot of options. The trick is spending as much as you can without draining minimum required to live rest of your life. You don't want too much left in your piggy jar or be penniless before you die, specially in Thailand.

Once you figure out what your return is going to be and work it in the spreadsheet with inflation forecast, you will get pretty good idea what your standard of living is going to be.

[phl]

in 1960 40,000 us $ would have seemed enough to live with an income of 2000 us$ a year (at 5%) until now but at age of 80+If I relied on that id be living with my maid in a hut and eating mama noodles all day. Think about it. What a IMO humbly stupid comment.

speaking of stupid comments, in 1900 $1 was enough to last for a week, get on with reality

[Payboy]

I think you need to break the 10m dollars mark first. Yes, you can get a Burmese maid with a degree and a Bangladeshi houseboy, but your upkeep for your private estate may surprise you.

There are not many Ferrari dealerships and you may have to go above the book price. The airports really hit you for private jet hanger fees. Lastly, you would be shocked how much it costs to book out the local golf course for the weekend for a private session.

I am increasingly favouring Rio.

And don't forget that every time the Bangladeshi impregnates the Burmese, she'll claim the child is yours and make you pay for the abortion. Would be quite a sum total until you're 80.

[Darrel]

The thought of +40 years of doing absolutely nothing meaningful or rewarding and just pissing about in SE Asian backwaters spending 2 million bucks is just too depressing for me.

I can think of a lot worse.

Only having 20 years for a start.

[Darrel]

Why do people ask these questions, if your clever enough to have acquired $2m before your 40, you know what to do.

Do you have to be clever to win the lottery or get some compensation payout?

[phl]

Why do people ask these questions, if your clever enough to have acquired $2m before your 40, you know what to do.

Do you have to be clever to win the lottery or get some compensation payout?

Why do people ask these questions, if your clever enough to have acquired $2m before your 40, you know what to do.

Do you have to be clever to win the lottery or get some compensation payout?

Absolutely.

You must be clever to buy the ticket to win and clever to know to be in the wrong place at the right time

[Jingthing]

Don't see the need to invest any money. You will have 60 million baht.

That's 1 million a year, roughly 85,000 baht a month for 60 years.

Or

2 million baht a year, roughly 170,000 baht per month for 30 years.

Why do people ask these questions, if your clever enough to have acquired $2m before your 40, you know what to do.

Don't have to invest? I guess you're not clever enough to have the 2 million, eh?

[Gary A]

I too smell troll. It's possible that the OP inherited the money and that's why he posted here. If he has accumulated two million dollars by age forty, he is certainly smart enough to figure out how much he needs to live here.

[chuang]

Heavens....you don'r have to invest the money...

USD 2 millions = 60 millions bahts = 125000 bahts monthly expenses for 40 years..

[KNJ]

2 000 000, 5 % at the moment, if you want a safe bet you are unlikely to get, 4 % is more realistic,

OK so lets say he wants a reasonable place to live 250 000, another 50 000 to deck it out and 100 000 for a car

Now we are down to 1 600 000, @ current best rate 4% that would return 64 000 a year.

Wherever you plant it you most probably have to pay tax, lets say 25% that leaves you with 48 000 divide by 12, 4000 a month or 120 000 THB

Not looking so brilliant if he becomes married with kid(s)

If he remains single then no issues, until we look at the effect of inflation:

In 40 years, @ 3% inflation, it would be the equivalent of a bit less 40 000 THB a month, take 4% inflation and it equivalent would be a little over 20 000 THB

So if he spends 120 000 THB a month he may be in trouble.

can it be done, oh yes but you better do some investing wisely with the 2 000 000

I wonder how many people here in teh 40-50 year age bracket have taken this simple maths into consideration.

I fear that too ,many members here with minimal savings and reliant on a UK government pension. it is a time bomb already started ticking.

The 30 000 THB brigade, @ 3% inflation, will be having to live off teh equivalent in 10 years of 20 000 THB today

And in 23 years the equivalent of 15 000 THB

So back to the OP, yes more than possible but be careful, it is not as much as you think in the long term and you genuinely think you will live to 80

Edited July 10, 2012 by KNJ

[Jingthing]

Heavens....you don'r have to invest the money...

USD 2 millions = 60 millions bahts = 125000 bahts monthly expenses for 40 years..

Inflation. Not investing would be idiotic. The question is the balance of risky investments vs. safer ones.

[nietzche]

For normal people, yes, as long as you don't do anything too stupid. Not enough for the 1 percenters who I'm sure will be showing up shortly to explain how how it's not enough to cover even the basic necessities.

I think if you had that kind of money you would be smart enough to answer that question for yourself!

That said, I'll entertain you!

Buy a small apartment building in a major city in your home country (I'm talking 4 or so apartments). The rent roll on a $2 million building will give you around $8,000/month. Hire a building management company to run things for you (they generally take 15% of the rent roll and handle everything related to payment collection, finding tenants, etc.). That should give you steady net income of around $5,000/month ($60,000/year).

Property in a major city generally appreciates at around 6%/year. You can sell anytime and recover your initial principle + any compounded return on the asset.

However, this is clearly a fantasy on your part. I say this because no serious individual with assets in the 7 figures would be soliciting financial advice from a forum. They would be consulting with their accountant or financial advisor.

You sir are a charlatan!

[Jingthing]

Two million ain't what it used to be. The OP is talking about living in Thailand, at least for awhile. It would be very intelligent to seek a range of advice before making your own decisions. Anyone, any time can pose as something they're not on the internet. So what? There was nothing really trollish about the PM's posts on this topic, and I find the accusations distasteful.

[WebBangkok]

Easily.

I almost retired on much less than that, but I got really bored and I was only 29 at the time and need a challenge.

After not doing anything for a few months, you will want to un-retire.

[KNJ]

For normal people, yes, as long as you don't do anything too stupid. Not enough for the 1 percenters who I'm sure will be showing up shortly to explain how how it's not enough to cover even the basic necessities.

I think if you had that kind of money you would be smart enough to answer that question for yourself!

That said, I'll entertain you!

Buy a small apartment building in a major city in your home country (I'm talking 4 or so apartments). The rent roll on a $2 million building will give you around $8,000/month. Hire a building management company to run things for you (they generally take 15% of the rent roll and handle everything related to payment collection, finding tenants, etc.). That should give you steady net income of around $5,000/month ($60,000/year).

Property in a major city generally appreciates at around 6%/year. You can sell anytime and recover your initial principle + any compounded return on the asset.

However, this is clearly a fantasy on your part. I say this because no serious individual with assets in the 7 figures would be soliciting financial advice from a forum. They would be consulting with their accountant or financial advisor.

You sir are a charlatan!

Agreed with last comment, but lets just think about property prices, in real terms, probably round about 5-6 % however would it shock you that average house price increases in the USA over the last 100 years when taking inflation into account was less than 1%, infact only 0.2% .

Do I think property is a bad buy , hell no, but it should only be part of a balanced portfollio, and if you need money in a hurry ( emergency ) not wise to have 100% tied up.

[seasia]

1/4 million baht a month on the 5 % return mentioned.

Spend some, save some.

Should be enough

[KNJ]

1/4 million baht a month on the 5 % return mentioned.

Spend some, save some.

Should be enough

minus tax, and as asked previously where are you going to at the moment get 5%, without substantial risk.

Also where in the world you going to deposit money that is not subject to some form of tax, and if teh OP is american, there is nowhere for him not to pay tax.

And once more over 40 years inflation will erode the buying power substantially.

Goodness sake all you simplistic calculators, did your fathers not teach you anything about money, is this what you are teaching your children?

[samsiam]

For normal people, yes, as long as you don't do anything too stupid. Not enough for the 1 percenters who I'm sure will be showing up shortly to explain how how it's not enough to cover even the basic necessities.

I think if you had that kind of money you would be smart enough to answer that question for yourself!

That said, I'll entertain you!

Buy a small apartment building in a major city in your home country (I'm talking 4 or so apartments). The rent roll on a $2 million building will give you around $8,000/month. Hire a building management company to run things for you (they generally take 15% of the rent roll and handle everything related to payment collection, finding tenants, etc.). That should give you steady net income of around $5,000/month ($60,000/year).

Property in a major city generally appreciates at around 6%/year. You can sell anytime and recover your initial principle + any compounded return on the asset.

However, this is clearly a fantasy on your part. I say this because no serious individual with assets in the 7 figures would be soliciting financial advice from a forum. They would be consulting with their accountant or financial advisor.

You sir are a charlatan!

Bullcrap.

It could well be for real.

The guy is 40yo and in the age bracket that he could have lost parents or any such thing....and an inheritance or business sale, or property sale etc.

You do not have to be an Einstein to fall by such funds.

I never go to these expert financial advisers....they are working 9 to 5 right ??...ask how much they are worth and to prove it and how they got it, then listen to them if they are wealthy.....accountant....just for tax issues and setup advice of holding facilities etc......many are not wealthy to warrant advice from.

But certainly invest it for some growth to keep up with inflation at least one way or another.....otherwise it will be worth 4/5th's of <deleted> all in 20 years let alone 40.....don't forget to factor in that you just might live till 99....

[nietzche]

For normal people, yes, as long as you don't do anything too stupid. Not enough for the 1 percenters who I'm sure will be showing up shortly to explain how how it's not enough to cover even the basic necessities.

I think if you had that kind of money you would be smart enough to answer that question for yourself!

That said, I'll entertain you!

Buy a small apartment building in a major city in your home country (I'm talking 4 or so apartments). The rent roll on a $2 million building will give you around $8,000/month. Hire a building management company to run things for you (they generally take 15% of the rent roll and handle everything related to payment collection, finding tenants, etc.). That should give you steady net income of around $5,000/month ($60,000/year).

Property in a major city generally appreciates at around 6%/year. You can sell anytime and recover your initial principle + any compounded return on the asset.

However, this is clearly a fantasy on your part. I say this because no serious individual with assets in the 7 figures would be soliciting financial advice from a forum. They would be consulting with their accountant or financial advisor.

You sir are a charlatan!

Bullcrap.

It could well be for real.

The guy is 40yo and in the age bracket that he could have lost parents or any such thing....and an inheritance or business sale, or property sale etc.

You do not have to be an Einstein to fall by such funds.

I never go to these expert financial advisers....they are working 9 to 5 right ??...ask how much they are worth and to prove it and how they got it, then listen to them if they are wealthy.....accountant....just for tax issues and setup advice of holding facilities etc......many are not wealthy to warrant advice from.

But certainly invest it for some growth to keep up with inflation at least one way or another.....otherwise it will be worth 4/5th's of <deleted> all in 20 years let alone 40.....don't forget to factor in that you just might live till 99....

Again, I'm calling B.S!

Regardless of whether it is true or false; If he has ever been to Thailand, then he knows exactly how much things cost....

If he hasn't already been to Thailand, why the hell is he talking about moving to a place he has never visited????

Where's your common sense?!

[Jingthing]

This kind of harassment scares off sincere posters. It ain't right!

[CaptHaddock]

- Assuming safe investments earning annual return of 5%.

- Assuming lights out at 80 years of age.

You may assume those parameters to simplify the problem, but the fact is you don't know. Where would you get a safe 5% right now, for instance? The other thing that you don't know is the value of a dollar in the future, both in terms of baht and goods and services. Very difficult to plan effectively over such a long time span and with so many huge unknowns.

I suggest you read James Otar's "Unveiling the Retirement Myth."

[Jingthing]

Here is another great resource for early retirees. (I was one but earlier is not so early anymore!)

http://www.retireearlyhomepage.com/