Advice Needed: How You Would Invest 200 K Usd ?

[DummDays]

I am living in Thailand

I have 200 k USD cash

how should I invest to have a reasonalble life here?

[gk10002000]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now. A decent part of my portfolio. Netting me about 9,000 USD a year. Relatively risk free. If you want higher returns, and more risk (probably), then buy some REITs. ARR, NLY, FMY. They return 10% and 15%. Of course you will be taxed on that. In between there are some decent dividend paying stocks. This approach generates income. If you want capital gains, well, good luck trading, buy some stocks. You coulds ell some Covered Call Options ( I do) along the way against the stock shares you own. Other than that, $200 K USD is not going to generate enough money to live on for too many years. All depens on how much you spend and how low you are willing to live. People certainly can do it.

[manarak]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now. A decent part of my portfolio. Netting me about 9,000 USD a year. Relatively risk free. If you want higher returns, and more risk (probably), then buy some REITs. ARR, NLY, FMY. They return 10% and 15%. Of course you will be taxed on that. In between there are some decent dividend paying stocks. This approach generates income. If you want capital gains, well, good luck trading, buy some stocks. You coulds ell some Covered Call Options ( I do) along the way against the stock shares you own. Other than that, $200 K USD is not going to generate enough money to live on for too many years. All depens on how much you spend and how low you are willing to live. People certainly can do it.

Currently, I'd invest it in gold, with 300% leverage if you can afford to lose that money.

Resell at 10% higher if the economic situation doesn't change much and hold on it for longer if news from Europe, US and China worsen.

Edited August 27, 2012 by manarak

[yoshiwara]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now. A decent part of my portfolio. Netting me about 9,000 USD a year. Relatively risk free. If you want higher returns, and more risk (probably), then buy some REITs. ARR, NLY, FMY. They return 10% and 15%. Of course you will be taxed on that. In between there are some decent dividend paying stocks. This approach generates income. If you want capital gains, well, good luck trading, buy some stocks. You coulds ell some Covered Call Options ( I do) along the way against the stock shares you own. Other than that, $200 K USD is not going to generate enough money to live on for too many years. All depens on how much you spend and how low you are willing to live. People certainly can do it.

Currently, I'd invest it in gold, with 300% leverage if you can afford to lose that money.

Resell at 10% higher if the economic situation doesn't change much and hold on it for longer if news from Europe, US and China worsen.

Yes, and if you had gone for that gamble a year ago you would have by now lost over 30%. Well done that advisor.

Assuming $200k is your total life savings and you have no other income? no pension, no job?

Actually a pretty borderline situation. Let us assume you can place the money on deposit in a Thai bank and get 4%.

That will give you $8000 per year (ignoring tax, can we?)

That's ~ 8k * 30 = 240,000 baht per year.

That's 20,000 baht per month.

Can be done, but subject to shocks depleting the capital, and no permanent relationship.

Slightly hand to mouth.

On the other hand you can go out in a blaze of glory and then top yourself.

[PattayaPhom]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now. A decent part of my portfolio. Netting me about 9,000 USD a year. Relatively risk free. If you want higher returns, and more risk (probably), then buy some REITs. ARR, NLY, FMY. They return 10% and 15%. Of course you will be taxed on that. In between there are some decent dividend paying stocks. This approach generates income. If you want capital gains, well, good luck trading, buy some stocks. You coulds ell some Covered Call Options ( I do) along the way against the stock shares you own. Other than that, $200 K USD is not going to generate enough money to live on for too many years. All depens on how much you spend and how low you are willing to live. People certainly can do it.

Currently, I'd invest it in gold, with 300% leverage if you can afford to lose that money.

Resell at 10% higher if the economic situation doesn't change much and hold on it for longer if news from Europe, US and China worsen.

[craigt3365]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now. A decent part of my portfolio. Netting me about 9,000 USD a year. Relatively risk free. If you want higher returns, and more risk (probably), then buy some REITs. ARR, NLY, FMY. They return 10% and 15%. Of course you will be taxed on that. In between there are some decent dividend paying stocks. This approach generates income. If you want capital gains, well, good luck trading, buy some stocks. You coulds ell some Covered Call Options ( I do) along the way against the stock shares you own. Other than that, $200 K USD is not going to generate enough money to live on for too many years. All depens on how much you spend and how low you are willing to live. People certainly can do it.

Currently, I'd invest it in gold, with 300% leverage if you can afford to lose that money.

Resell at 10% higher if the economic situation doesn't change much and hold on it for longer if news from Europe, US and China worsen.

Yes, and if you had gone for that gamble a year ago you would have by now lost over 30%. Well done that advisor.

Assuming $200k is your total life savings and you have no other income? no pension, no job?

Actually a pretty borderline situation. Let us assume you can place the money on deposit in a Thai bank and get 4%.

That will give you $8000 per year (ignoring tax, can we?)

That's ~ 8k * 30 = 240,000 baht per year.

That's 20,000 baht per month.

Can be done, but subject to shocks depleting the capital, and no permanent relationship.

Slightly hand to mouth.

On the other hand you can go out in a blaze of glory and then top yourself.

The best I've seen is 3.5% here. Where can you get 4%???? Thanks!!

[Time Traveller]

Why don't you invest it in Thai dividend stocks?

$200k is about 6 M.Baht which could give you annual dividends of conservatively 300,000 baht per year. - based on 5% yield

On the 300k dividends, you should have (Thai) tax credits of around 75k baht, so if you have no other Thai taxable income and after filing annual thai tax return you should get a return of around 60k+ baht (this is depending upon the each company's dividends and if they have paid corporate taxes)

So you would net return after tax of 360k baht or roughly 30,000 baht per month.

Finally the US tax liability would be covered by foreign (Thai) tax credits as shown by the Thai withholding taxes of 10%

Edited August 28, 2012 by Time Traveller

[54321]

How would I invest it?

If that's all I had in the world and wanted to live in Thailand I would buy a small 1 bed condo for c. $45,000 and invest the rest in high yielding shares split between my home country and thailand, and then try to get myself a job.

[davejones]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now. A decent part of my portfolio. Netting me about 9,000 USD a year. Relatively risk free. If you want higher returns, and more risk (probably), then buy some REITs. ARR, NLY, FMY. They return 10% and 15%. Of course you will be taxed on that. In between there are some decent dividend paying stocks. This approach generates income. If you want capital gains, well, good luck trading, buy some stocks. You coulds ell some Covered Call Options ( I do) along the way against the stock shares you own. Other than that, $200 K USD is not going to generate enough money to live on for too many years. All depens on how much you spend and how low you are willing to live. People certainly can do it.

Currently, I'd invest it in gold, with 300% leverage if you can afford to lose that money.

Resell at 10% higher if the economic situation doesn't change much and hold on it for longer if news from Europe, US and China worsen.

Yes, and if you had gone for that gamble a year ago you would have by now lost over 30%. Well done that advisor.

Assuming $200k is your total life savings and you have no other income? no pension, no job?

Actually a pretty borderline situation. Let us assume you can place the money on deposit in a Thai bank and get 4%.

That will give you $8000 per year (ignoring tax, can we?)

That's ~ 8k * 30 = 240,000 baht per year.

That's 20,000 baht per month.

Can be done, but subject to shocks depleting the capital, and no permanent relationship.

Slightly hand to mouth.

On the other hand you can go out in a blaze of glory and then top yourself.

And over the years you'll get less and less, because inflation will make it worthless.

[ace]

How would I invest it?

If that's all I had in the world and wanted to live in Thailand I would buy a small 1 bed condo for c. $45,000 and invest the rest in high yielding shares split between my home country and thailand, and then try to get myself a job.

+1 to this although you could consider 2 cheap condos for baht income. The roi on low price condos is ok here, depending on occupancy of course.

[Microwave]

What are your goals? Are you married and have children? If yes, how old are your children? Any visa issues for you in Thailand?

You may wish to seek the advice of a financial advisor, in Thailand and/or your home country, and ask for their advice. Free advice via an internet site may be best or it may not. I would seek out as many opinions as you can, taking into account your personal situation which you haven't elaborated upon.

Your question is much too open-ended to be answered in much detail...

Edited August 28, 2012 by Microwave

[ExpatJ]

Re seeking advice from a financial advisor for goodness sake don't use a farang financial advisor who is based in Thailand!!!!!!!!!!

[parallaxtech]

You are in fine shape with 200KUSD as long as you stay single, don't invest in any Thai business, and don't waste it on wine, women, and smokes. Many are living on much less here. Also, remember at 62 your social security comes into play so you just have to make it until then. Here's how I do it: My budget is 1,000THB/day or round it up to 13,000 USD/yr. My money is in a Thai fixed account at 3.5% interest. I rented a bungalow here for several years until I sold two houses and then invested the money in a house here. If you have no other assets than just rent a bungalow for under 12,000THB/mos. I am assuming that you are at least 50 yrs old. 200,000USD at 13,000USD/yr will last you 15 yrs even at 0% interest (and depending on inflation). As they say it's not how much you earn but how much you keep. Manage your money wisely and you will be ok. On the other hand, if you are a 30-yr-old swinger than all this is meaningless. In that case I would make as much as possible in the US by the time I was 50 and then move over.

Edited August 28, 2012 by parallaxtech

[yoshiwara]

Why don't you invest it in Thai dividend stocks?

$200k is about 6 M.Baht which could give you annual dividends of conservatively 300,000 baht per year. - based on 5% yield

On the 300k dividends, you should have (Thai) tax credits of around 75k baht, so if you have no other Thai taxable income and after filing annual thai tax return you should get a return of around 60k+ baht (this is depending upon the each company's dividends and if they have paid corporate taxes)

So you would net return after tax of 360k baht or roughly 30,000 baht per month.

Finally the US tax liability would be covered by foreign (Thai) tax credits as shown by the Thai withholding taxes of 10%

That's fine if you think you know what you are doing and I do believe in blue chip dividend stocks, but there are still risks which have to be discounted. One is the consistency of the dividend payment. Another is that stock can still tank. Now this may be OK if there is a long-term lock-up of the stock, but otherwise you will be damaged if capital is needed. The other is position. If this capital is all you have can you afford to risk it on the SET?

[yoshiwara]

The best I've seen is 3.5% here. Where can you get 4%???? Thanks!!

And over the years you'll get less and less, because inflation will make it worthless.

I don't disagree with both of those comments, which means that having 200k is even less than one thinks if one wants to husband available resources.

You can of course probably/maybe get that higher interest rate if all the money is converted to an indexed annuity, but then no reserves

[Phronesis]

Give Thailand a miss and go live in Cambodia.

You can put your money in a USD account with any of the big banks in Phnom Phen and get circa 7 to 8% per annum at call. If you open an account in the local currency you will get 11%. That would equate to 14 to 15K USD per year income- on which you could live like a lord in a location such as Kampot.

You will also find it much easier to start a small business or get a job in Cambo. The paperwork required to pursue either of these options is now rather absurd in Thailand.

No doubt lots of TV posters will tell you what a huge risk the Cambodian banks are. But the same blokes probably haven't put their minds to the risks that could assail their Thai bank accounts when the unmentionable suddenly occurs.

[Yo Sup]

Give Thailand a miss and go live in Cambodia.

You can put your money in a USD account with any of the big banks in Phnom Phen and get circa 7 to 8% per annum at call. If you open an account in the local currency you will get 11%. That would equate to 14 to 15K USD per year income- on which you could live like a lord in a location such as Kampot.

You will also find it much easier to start a small business or get a job in Cambo. The paperwork required to pursue either of these options is now rather absurd in Thailand.

No doubt lots of TV posters will tell you what a huge risk the Cambodian banks are. But the same blokes probably haven't put their minds to the risks that could assail their Thai bank accounts when the unmentionable suddenly occurs.

After the unmentionable, there is the power grab, which is being set up as we breath... Cambo: worth consideration.

[apalink_thailand]

Just dont invest in a hair salon for a hooker like most do. Nor believe the sick herd of buffalo story. They never seem to get well again no matter how much money you send them. Lol.

Sent from my HTC One X using Thaivisa Connect App

[Dancealot]

Split the money in several savings accounts with different banks(on-/offshore). Keep it liquid and spread the risk.

[yoshiwara]

Give Thailand a miss and go live in Cambodia.

You can put your money in a USD account with any of the big banks in Phnom Phen and get circa 7 to 8% per annum at call. If you open an account in the local currency you will get 11%. That would equate to 14 to 15K USD per year income- on which you could live like a lord in a location such as Kampot.

You will also find it much easier to start a small business or get a job in Cambo. The paperwork required to pursue either of these options is now rather absurd in Thailand.

No doubt lots of TV posters will tell you what a huge risk the Cambodian banks are. But the same blokes probably haven't put their minds to the risks that could assail their Thai bank accounts when the unmentionable suddenly occurs.

After the unmentionable, there is the power grab, which is being set up as we breath... Cambo: worth consideration.

Yes, food for thought by Phronesis.

[soi41]

Re seeking advice from a financial advisor for goodness sake don't use a farang financial advisor who is based in Thailand!!!!!!!!!!

And this coming from a guy, who like to play financial guru here on TV.

To the OP, buy CPNRF. Yielding 7-8% yearly, paid quarterly. Flat tax 10%. Easy to trade as listed on SET, with reasonable daily turnover.

[Pseudolus]

Invest 100k in opening a business, and 100k in assorted bribes to win contracts. Job done.

[el jefe]

I'd ask a bunch of anonymous people on an internet forum that invest as a hobby and have lots of time to reply to every post.

i know a guy who used to offer 3% a month interest. Now it's just 2 - 2.5%. probably not worth it. but if you're really interested I can tell you where to send the money.

[chainarong]

I'd take in sovereign risk, with such a large sum ,anywhere in Asia, except HK and Singapore.

[ThaiBob]

DearOP

Consult a financial advisor. The first questions asked are your family situation, your age and most importantly your tolerance for risks.

[Thailand J]

Assuming you are a US citizen, Tax free and AMT free muni bonds will keep the IRS at bay. I have several hundred thousand in a combination of both. Averaging over all about 4.5% now.

Can you please give me some examples of such bonds? Thanks.

[Expat Financial Adviser]

The main thing that I would advise is not to keep all your eggs in one basket. Split your capital over a number of bank accounts, investment funds and corporate bond funds. If your main aim is capital protection then place the majority of the capital into bank based products. Some stocks are also cheap at the moment and you may wish to play the stock market with around 10% of your capital. Always make sure that you have access to your capital for income withdrawals and lump sum encashments. And DON'T be taken in by any investment that seems too good to be true, it probably won't be!

Mark

[yoshiwara]

Re seeking advice from a financial advisor for goodness sake don't use a farang financial advisor who is based in Thailand!!!!!!!!!!

And this coming from a guy, who like to play financial guru here on TV.

To the OP, buy CPNRF. Yielding 7-8% yearly, paid quarterly. Flat tax 10%. Easy to trade as listed on SET, with reasonable daily turnover.

A Thailand property fund. You sure that's a good idea?

[ExpatJ]

Re seeking advice from a financial advisor for goodness sake don't use a farang financial advisor who is based in Thailand!!!!!!!!!!

And this coming from a guy, who like to play financial guru here on TV.

lol,

I'm not charging anything and not giving advice just detailing MY trades.

[Pinot]

I would keep the money in the US. Open up an account with Charles Schwab. Use an American address, don't tell them you live in Thailand. You won't be able to trade mutual funds. Have a bank account with Charles Schwab Bank and transfer from the brokerage account when needed. Schwab ATM Visa card refunds the ridiculous 150 baht Thai bank charge.

I would then deserify into high yield dividend equities. This could be mutual funds or ETFs. REITs, Senior Loans, High Yield (junk) bond funds are good investments. Put no more than 10% in any one equity. I stay away from individual corporations. Put stops (sell orders) on your investments or sell if they fall 6%. During turbulent times just sit in cash.

I like to hold equities that produce a monthly dividend. 8% total return will get you $16,000 a year or 40,000 baht a month to live on. You do have to pay taxes in the US but it's minimul.

So, you don't bleed down principle with this method but you are going to have to budget. What happens for me is I live off the dividends and the equities appreciate in price. The principle actually grows a little. It's been a good year. Total return has been about 12% and I do that pretty consistently.

If you don't know what I'm talking about, start educating yourself. This is your job now, managing your money.

Stay away from Gold, financial advisors and experts on here. Don't buy anything you haven't researched and understand completely. Lower risk, high dividend is the sweet spot. Enjoy Thailand.