Return on money from pension fund - risks

[Naam]

Herr Naam

The AUD has been declining substantially against the USD and other major currencies (and the Thai Baht) in recent months. Further declines are expected.

I will tell my Thai bank that the tax deducted from my AUD account should be reversed.

-that further declines are expected is an unsubstantiated assumption based on the present wishful thinking of Glenn Stevens, (Governor of Australia's Central Bank) who would love to see USDAUD at 85 or even lower.

-only "not well informed" investors deposit AUD (or any other currency) in a country where they reside (such as Thailand) and are therefore liable to pay 15% income tax on interest earned.

[Naam]

I have been living on dividend income since I retired to Thailand. You can pretty easily find safe investments producing 4%. Risk increases as you look for higher dividend income. The trick is to find those investments that produce that steady dividend income and growth in the underlying investment. I have more money now then when I came here four years ago. Just remember the risk/reward rules. Diversification will lower risk. Stay away from gold. I would not invest in Thailand. I can't be more specific because I can only recommend American market investments but low cost ETFs are the way to go. Some people prefer investing in specific companies like Exxon and McDonalds with steady dividends and growth. If you don't know what you're doing get help and start educating yourself. I would get a number of opinions. Investment counselors take their cut off the top so beware.

I too am getting around 4% return through dividends, however, be aware that the value of your portfolio can and will fluctuate on a daily basis. If you need extra cash quickly you may have to sell some investments when the market is at a low.

I use a company called Fisher Investments based in the Bay Area (San Francisco). Google them for more info.

Agree regarding the comment about ETF's. A good way to go if you are nervous about investing in individual companies.

the OP is a Swiss national who is not liable to pay Swiss income tax when residing outside Switzerland. any dividends derived from U.S. shares will trigger a non-refundable IRS withholding tax of 30% which he cannot compensate like a U.S. citizen/person who is liable to pay income tax.

to avoid the U.S. tax on dividends he may invest in interest paying assets which are free of withholding tax for foreigners after submitting Form W-8BEN via his bank.

[Daniel Boon]

Regardless of the current Aussie $, the US$ is sure to crash and burn, just give everyone time to extricate themselves from their US$ holdings and prepared to write off the rest. (you just cannot keep printing money with an expectation the $ will eventually be like the Deutsche Mark circa 2nd world war or Zimbabwe.

The Euro was started to break the US monopoly on the world currencies and several countries are considering their own bourse; the Arab countries were stylizing their own and the BRIC (Brazil, Russia, India & China) is who knows how far off, but ready (IMO) for the collapse of the US$.

Anything associated with any share market anywhere in the world - IMO - is a sure bet on losing most if not all your money.

In fact, I believe now is the least secure time ever, in the festering world economy, to invest in anything, 'blue chip' or otherwise. As the 'too big to fails' proved, bankers get richer and the rest are just - as the Americans pen it - killed by friendly fire.

[bangkapi]

Invest your money in a politician... bribe him to give your new fake company a long term government contract.

The return can be phenomenal.

Do it in any country other than Thailand.

[SheungWan]

Regardless of the current Aussie $, the US$ is sure to crash and burn, just give everyone time to extricate themselves from their US$ holdings and prepared to write off the rest. (you just cannot keep printing money with an expectation the $ will eventually be like the Deutsche Mark circa 2nd world war or Zimbabwe.

The Euro was started to break the US monopoly on the world currencies and several countries are considering their own bourse; the Arab countries were stylizing their own and the BRIC (Brazil, Russia, India & China) is who knows how far off, but ready (IMO) for the collapse of the US$.

Anything associated with any share market anywhere in the world - IMO - is a sure bet on losing most if not all your money.

In fact, I believe now is the least secure time ever, in the festering world economy, to invest in anything, 'blue chip' or otherwise. As the 'too big to fails' proved, bankers get richer and the rest are just - as the Americans pen it - killed by friendly fire.

Hell, the same wise guys have been telling us from their bed sits with wi-fi that Central London property is going down as well.

[Naam]

Regardless of the current Aussie $, the US$ is sure to crash and burn, just give everyone time to extricate themselves from their US$ holdings and prepared to write off the rest. (you just cannot keep printing money with an expectation the $ will eventually be like the Deutsche Mark circa 2nd world war or Zimbabwe.

The Euro was started to break the US monopoly on the world currencies and several countries are considering their own bourse; the Arab countries were stylizing their own and the BRIC (Brazil, Russia, India & China) is who knows how far off, but ready (IMO) for the collapse of the US$.

Anything associated with any share market anywhere in the world - IMO - is a sure bet on losing most if not all your money.

In fact, I believe now is the least secure time ever, in the festering world economy, to invest in anything, 'blue chip' or otherwise. As the 'too big to fails' proved, bankers get richer and the rest are just - as the Americans pen it - killed by friendly fire.

the $ will eventually be like the Deutsche Mark circa 2nd world war

your history knowledge does need a brush-up!

[Naam]

Regardless of the current Aussie $, the US$ is sure to crash and burn, just give everyone time to extricate themselves from their US$ holdings and prepared to write off the rest. (you just cannot keep printing money with an expectation the $ will eventually be like the Deutsche Mark circa 2nd world war or Zimbabwe.

The Euro was started to break the US monopoly on the world currencies and several countries are considering their own bourse; the Arab countries were stylizing their own and the BRIC (Brazil, Russia, India & China) is who knows how far off, but ready (IMO) for the collapse of the US$.

Anything associated with any share market anywhere in the world - IMO - is a sure bet on losing most if not all your money.

In fact, I believe now is the least secure time ever, in the festering world economy, to invest in anything, 'blue chip' or otherwise. As the 'too big to fails' proved, bankers get richer and the rest are just - as the Americans pen it - killed by friendly fire.

Hell, the same wise guys have been telling us from their bed sits with wi-fi that Central London property is going down as well.

it's those goddàmn moles digging underneath Central London which make the property go down.

[scorecard]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I'm not able to directly answer your questions but a few comments may help

- be extremely cautious in taking action on any advice you receive unless the source is above reproach. Thailand is still the wild west when it comes to the 'financial planning' business

- even worse is taking advice or implementing any advice from a company or individual located outside Thailand in which case you have zero protection

- I would do as you ate doing and keep investments out if Thailand - the risks and likely volatility makes this a good move (nit investing here)

- you should be able to transfer funds into your Thai bank by internet from most developed markets in 24-47 hours

- what you want - a fixed drawing that slowly depketes the capital at the beginning but accelerateds as the capital gets lower is known as an annuity. These are offered by some insurance companies and there are two types ) one offers just the financial calculations for a fixed term and the other guarantees the yearly income as long as you live - fall off your perch early and the company makes a windfall profit - live to 120 and they lose

- the money is already in one if the most sophisticated and well regulated global markets where you are more likely to find sensible advice - why not leave it there, find a mid tier financial management crowd and then make sure your investment funds can be managed online by you (selling some mutual funds is not hard) and make sure your bank has online facility for you to log in and make a transfer direct to your Thai bank

- when eventually you do thus always attach nites to the fund transfers for living costs, household expenses, etc. Don't use terns like 'capital' otherwise you'll end up explaining things you shouldn't need to explain. And avoid humour as I have experienced saying you plan to use the money for plutonium ends up making a problem. It seems as long as its clear the money us for living expenses its ok but not ok if you ate transferring funds for investment purposes, money laundering, drug running, terrorist funding ir plutonium. Especially plutonium.

-what you really need us an asset allocation strategy based in your needs and risk tolerance. if you could get this done you could probably manage the investments yourself. if you send me a private message I can give you some suggestions

sorry fir the spelling errors Im too mean to buy the app

Copied from above:

"be extremely cautious in taking action on any advice you receive unless the source is above reproach. Thailand is still the wild west when it comes to the 'financial planning' business

- even worse is taking advice or implementing any advice from a company or individual located outside Thailand in which case you have zero protection".

Totally agree on these points, beware.

[akentryan]

If you plan to live in Thailand forget the exchange rate. Bring the money in and leave it. Avoid the stock market, I used to work for a brokerage house before the big crash in 97-98. You would not believe the things they did, Safest investment at present is a 5-year, 4%, fixed deposit at Krung Thai Bank. Interest is paid monthly. Don't know about Krung Thai but if you have a lot of money to deposit the Fixed Rate is usually a bit negotiable. At Siam Commercial Bank I squeezed and extra .3% on my funds. They will withhold 15% tax on the interest but file an annual Thai Income Tax return and get some of the tax back. I think the family exempt income was just raised to 150,000 baht. Just got 28K back and I loved it.

[Daniel Boon]

'naam' ... so what will you give me for a 50,000 Deutsche Mark note?

'naam' ... (such a knowledgeable chap) haven't they (the moles) drowned now, from the continued flooding?

Dykes for the UK? https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/7772/pps25guideupdate.pdf

[SheungWan]

'naam' ... so what will you give me for a 50,000 Deutsche Mark note?

If one was made of that value I would give you a 500,000 Reichsmark note for it as you don't seem to know the difference.

[riclag]

The problem with the ''Stock'' market is, your investment can go up or down..

If i was you, i would definetly keep my money in ''Switzerland'', why not buy a property and rent it out ??, so at least you are getting rent money, and also the property prices are increasing...

If not ''Switzerland'' , London is a great place to invest in property, especially the right areas...., its all about ''Location Location Location''..

best of luck whatever you decide,

Cheers

Maybe I'm missing something here and maybe this is off topic."Rental property" in any country = a maintenance mgr and expenses.Won't that take a rather big bite of the pie?

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Thanks FiftyTwo

But I am retiring early with 59 years (meaning I do not get the full pension, but only a fraction) and then it depends on how long you live - and this may - unfortunately - be quite limited for me, too. Taking into account that my wife is quite young, she then gets an even smaller fraction of the pension. So the option to take out the money is in my particular case better. I just need to invest it in the best possible way.

I thought that even a simple fixed asset account in LoS gets you more than 3%. There must be options overseas (funds etc.) which do not mean to much risk and yield more.

I and many other pension holders thought the same, I know of nobody who hasn't made large losses in a short space of time. Thailand is on the brink of civil war, it's not a good place to hold large amounts of money, 1MBht tops IMHO.

But,
Australia can still get you 4% on a yearly bank investment, maybe you could look into that.

Can you open a Australian account without being a resident . I believe that they are paranoid pricks when it comes to money and tax.

[Daniel Boon]

'sheungwan' ... The Deutsche Mark (help·info) (German pronunciation: [ˈdɔʏtʃə ˈmaʁk], German mark, abbreviated "DM") was the official currency of West Germany (1948–1990) and unifiedGermany (1990–2002) until the adoption of the euro in 2002. It is commonly called the "Deutschmark" in English but not in German. Germans often say "Mark" (help·info)or "D-Mark" (help·info). It was first issued under Allied occupation in 1948 replacing the Reichsmark, and served as the Federal Republic of Germany's official currency from its founding the following year until 1999, when the mark was replaced by theeuro; its coins and banknotes remained in circulation, defined in terms of euros, until the introduction of euro notes and coins in early 2002. The Deutsche Mark ceased to be legal tender immediately upon the introduction of the euro—in contrast to the otherEurozone nations, where the euro and legacy currency circulated side by side for up to two months. Mark coins and banknotes continued to be accepted as valid forms of payment in Germany until 28 February 2002.

[Daniel Boon]

no need to make derogatory statements ... we are not paranoid ... (we know people are out to get us)

[Suradit69]

Thanks FiftyTwo

But I am retiring early with 59 years (meaning I do not get the full pension, but only a fraction) and then it depends on how long you live - and this may - unfortunately - be quite limited for me, too. Taking into account that my wife is quite young, she then gets an even smaller fraction of the pension. So the option to take out the money is in my particular case better. I just need to invest it in the best possible way.

I thought that even a simple fixed asset account in LoS gets you more than 3%. There must be options overseas (funds etc.) which do not mean to much risk and yield more.

I and many other pension holders thought the same, I know of nobody who hasn't made large losses in a short space of time. Thailand is on the brink of civil war, it's not a good place to hold large amounts of money, 1MBht tops IMHO.

But,

Australia can still get you 4% on a yearly bank investment, maybe you could look into that.

"I know of nobody who hasn't made large losses in a short space of time. "

While I agree that a well-run pension plan may be a safer, more productive option, there's no way of knowing that regarding the O/P's pension. As he said, because of his age he is getting a reduced pension and when he dies his wife will get even less,

I kept most of my pension in place, but withdrew a portion and also began taking payments from it before i actually retired (although at that time I was working for a different employer than the one paying the pension). I also began taking US Social Security payments at 62 even though that meant the monthly payments were reduced.

I rolled the pension disbursement into a tax deferred IRA (and shifted some of that into a non-taxable IRA over time) and invested the pension and Social Security payments in a taxable account for several years. I've not had any net losses on those investments. And have been using some of the income without affecting the principal investments. If I die after ten years of starting the pension, that will be the end of it, but the money I invested will be there until I or my heirs choose to spend it.

My only suggestions to the O/P are: 1. take any recommendations here on TV with several grains of salt, 2. it's probably best to invest in your own country where you are familiar with the rules, regulations and risks and have some idea who is reputable and who is not, 3. make sure that your wife will understand what she needs to do to continue receiving income or to receive a payout from any financial assets you intend to leave her.

Edited March 10, 2014 by Suradit69

[nithisa78]

Could connect you with colleague in, USA. It is his profession. Have done business with him, he doesn't lie or cheat.

[Naam]

Well, if I were in your shoes I would purchase couple studio flats or maybe 2-room ones. You know your country and the rental level. Good location and small size flats are always sought after.

Nowadays situation IMHO does not make stock market attractive. Virtual currency pumped into it is a bubble waiting to burst. Rental property is more permanent and if you can't manage it yourself, hire a company to look after.

This way money coming to your account every month and a related credit card to make purchases or withdrawals. If you are not a seasoned investor, don't start now.

any rental income in Switzerland means paying Swiss income tax.

[Naam]

The problem with the ''Stock'' market is, your investment can go up or down..

If i was you, i would definetly keep my money in ''Switzerland'', why not buy a property and rent it out ??, so at least you are getting rent money, and also the property prices are increasing...

If not ''Switzerland'' , London is a great place to invest in property, especially the right areas...., its all about ''Location Location Location''..

best of luck whatever you decide,

Cheers

Maybe I'm missing something here and maybe this is off topic."Rental property" in any country = a maintenance mgr and expenses.Won't that take a rather big bite of the pie?

not to forget income tax.

[Naam]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Thanks FiftyTwo

But I am retiring early with 59 years (meaning I do not get the full pension, but only a fraction) and then it depends on how long you live - and this may - unfortunately - be quite limited for me, too. Taking into account that my wife is quite young, she then gets an even smaller fraction of the pension. So the option to take out the money is in my particular case better. I just need to invest it in the best possible way.

I thought that even a simple fixed asset account in LoS gets you more than 3%. There must be options overseas (funds etc.) which do not mean to much risk and yield more.

I and many other pension holders thought the same, I know of nobody who hasn't made large losses in a short space of time. Thailand is on the brink of civil war, it's not a good place to hold large amounts of money, 1MBht tops IMHO.

But,

Australia can still get you 4% on a yearly bank investment, maybe you could look into that.

Can you open a Australian account without being a resident . I believe that they are paranoid pricks when it comes to money and tax.

investment in AUD does not require an account in Australia nor does an investment in Russian Rubles require residency in Moscow or Vladivostok.

[Jonmarleesco]

In the current climate, I should say 3% to 4% would be a reasonable expectation for a moderate-to-low risk investment. But diversity, of assets, currencies and income-generating vs capital growth, is key. Bear in mind you can invest in some higher risk investments and, dependent on the ratio to low-risk, still have a moderate-to-low-risk exposure.

Obviously, accessing capital, especially a substantial portion of it, reduces future income generation, so taking some higher risk with a percentage of the funds, in order to realise a higher income, should reduce the need for capital withdrawal.

Income on a joint basis, or with your wife continuing to be able to draw income in the event of your death, would address any concerns you might have over her surviving you.

[robertthebruce]

The problem with the ''Stock'' market is, your investment can go up or down..

If i was you, i would definetly keep my money in ''Switzerland'', why not buy a property and rent it out ??, so at least you are getting rent money, and also the property prices are increasing...

If not ''Switzerland'' , London is a great place to invest in property, especially the right areas...., its all about ''Location Location Location''..

best of luck whatever you decide,

Cheers

Maybe I'm missing something here and maybe this is off topic."Rental property" in any country = a maintenance mgr and expenses.Won't that take a rather big bite of the pie?

I hear what you are saying, but my properties that i rent out in ''London'' i dont have a ''Maintenance Mgr'' and i do not let it out via an ''Agent'',

this i manage myself... and have done for years ....

[Naam]

'naam' ... so what will you give me for a 50,000 Deutsche Mark note?

'naam' ... (such a knowledgeable chap) haven't they (the moles) drowned now, from the continued flooding?

Dykes for the UK? https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/7772/pps25guideupdate.pdf

a 50,000 Deutsche Mark note

never existed. the highest denomination till inception of the €UR was DM 1,000.-

p.s. you still haven't brushed up your knowledge as far as the "Deutsche Mark" is concerned. so why not stop shooting yourself in the foot with irrelevant remarks?

[Diddl]

I would like to say a few words here although I am not a financial expert by any means.

Be aware of the Cyprus bail-in” that happened last year where money was taken by the banks from the savings accounts of customers. This procedure, “bail-ins” as opposed to “bail-outs”, has now been approved by the European Union for all European Member States. Canada, I believe, has also approved this, and either Australia or New Zealand (can’t remember which one of these two countries) has also. The US is also contemplating this procedure. This procedure will eventually go global so beware of banks. Also, there is much talk about currencies going into crisis, as well as eliminating pensions.

I would suggest you invest in property and get rent money, as well as buying yourself a property to live in, hence saving on rent expenditure for yourself.

This is just my opinion on what I have heard so bear all this in mind and do some research yourself about such things. Good luck, I wish you well.

[CeeBee]

Hi Jim

As far as I am aware, the Australian 10% interest withholding tax for non-residents has been around for quite a number of years. If you are an Australian resident for income tax purposes, you will be taxed at your full marginal rate.

[whiteman]

I took a pension AXA in a defind benifit plan saved into it for nearly 30 years it pays out 8% tax paid and is increased each year with the CPI My break even was 11 years on the lump sum I left in there after if I am still alive it carries on till I die.

I am 66 and at the age of 72 they start losing (that's the break even 72) the bet if I live past that date.

My father is 94 my mother died at 90.

If I die b4 my money is used eg 72 years of age the balance goes to my son.

So for me a pension was the way to go.

I also have fix term deposits in New Zealand that pays 4% - 10% tax plus a rental property that my father lives in for free

Also have Thai and some NZ shares that pay a div of 4% after tax all in all am happy and feel safe with my investments hope this helps you. If you take your lump sum there are many traps that can make you spend it eg new car and other such things. A steady good monthy tax free income is the way to go. Then live with in your means but do not forget to smell the rosers

Edited March 10, 2014 by whiteman

[Naam]

I would like to say a few words here although I am not a financial expert by any means.

Be aware of the Cyprus bail-in” that happened last year where money was taken by the banks from the savings accounts of customers. This procedure, “bail-ins” as opposed to “bail-outs”, has now been approved by the European Union for all European Member States. Canada, I believe, has also approved this, and either Australia or New Zealand (can’t remember which one of these two countries) has also. The US is also contemplating this procedure. This procedure will eventually go global so beware of banks. Also, there is much talk about currencies going into crisis, as well as eliminating pensions.

I would suggest you invest in property and get rent money, as well as buying yourself a property to live in, hence saving on rent expenditure for yourself.

This is just my opinion on what I have heard so bear all this in mind and do some research yourself about such things. Good luck, I wish you well.

for the record: the "bail-ins" existed always as far as cash deposits are concerned which were not guaranteed by a third party when a bank went belly-up. the Cyprus bail-in differed only because it was invoked to prevent the two banks going belly-up.

nothing new was "approved" or "ratified" by the EU or any specific state.

and should "currencies go into crisis" or "pensions eliminated" rent payments will be affected too.

[fletchsmile]

I manage my mum's investment since my father passed away. She's a pensioner in the west. So a few comments relevant to you:

- 4.5% is achievable with a moderate amount of risk

- I've been achieving 6% to 7% (after charges) on average per year by investing in unit trusts/mutual funds

- I usually take out 4%-ish and leave the rest invested to partly offset inflation

- The portfolio is a combination of equity funds, corporate bonds and property funds

- There is some capital risk here. In the worst year the return was negative (-4.7%), so you need to be prepared for how to manage negative years if you are taking any risks. it's best to have a buffer of a couple of years cash. For the negative year I minimised the take out from capital, using only dividends and interest, and in a good year take a little more from capital

- How you take money out of a portfolio is important. There will be naturally some dividends/coupons/interests, but you may need to make up the diff in selling units. Only sell when they are above cost, i.e maintain your capital

- So with a mix of funds you should be able to get a reasonable income stream, and take the rest from capital gains

Your situation has some key differences tho' to a pensioner living alone in the west

1) You have currency risk - as if living in Thailand your main expenses are in THB, but your income may be in another currency

2) You have a Thai wife, and dependent, who probably doesn't know much about investing money, and knows even less about how investments outside Thailand work

To address these I modify the original approach by:

1) Currency risk:

- Build some Thai assets. Buy some Thai equity funds and possibly some corporate bond funds and property funds in the same way you did with the other money to generate income and capital gains

- have around 2-3 years in THB cash. So you have a buffer if rates are going thru a patch where THB is temporarily a poor rate

- Personally I used to aim for 1/3 my money in Thailand, 1/3 offshore and 1/3 where I came from (also makes sure you could also go back if need be)

- Ignore people with the mantra/ dogma don't invest in Thailand blah blah. These are the same type of people who later moan about the exchange rate, interest rates, cost of living

- I remember people saying GBP 150k in a bank account earning 6% is enough to live on. What happened? Interest rates collapsed, and the GBP/THB rate went from 70+ to under 50.

- So having some Thai assets can be important

- Buying a place could be a good way to fix/hedge expenses. If you're happily married and trust your wife it makes sense. Plus it's nice to have your own home, and not be dependent on a landlord's whim. Besides there's more than just the financial aspects. Obviously there are stories of people picking the wrong girl from the wrong walk of life

2) Thai wife

- Buying a place as well as fixing/hedging your expenses, ensures she'll have a roof over her head when you're gone. She may not be a whiz with overseas financial investments, but she'll know how to manage a home, and pay bills

- When you die, she'll have enough on her plate. Having say 1/3 of your money here means she will be able to get access to it easier than overseas. She's Thai and get can help and will be more familiar wit Thai law. It'll be easier to find out what to do to sort out that 1/3 as she can ask in her own time and language. She can tackle the 2/3's offshore as well in her own time, and don't underestimate doing this for a Thai outside Thailand. But at least she will have assets and funds here she can easily access while sorting out your will/estate/legacy in Switzerland.

- Make a will. Or preferably 2 or 3. 1 for Thai assets, 1/2 for overseas. Consider appointing an executor - someone you trust to help her with the will

- Consider letting her invest money in ways she understands. eg my wife bought some land and rents it to people. Thais understand cash, land and property well. Sure it generates less than maybe I could, but she knows what she's doing

- Ensuring you don't dip into capital too often again comes back to not taking too much out of your portfolio important. So again 4% take out even if making more is reasonable

- Another reason why I prefer funds to individual shares: Individual shares need more attention. A fund manager will still be managing the funds after you're gone, but individual shares can easily hit times where you should sell, and if there's no-one around that has a clue, value can be quickly eroded.

Also:

- I do buy individual shares in AUD/SGD/USD/GBP and keep it as a highly liquid portfolio which I could sell easily and quickly, as well as currency diversification. Not essential though if you have built up some decent funds. Part of it for me is a hobby. The amount I have in funds is much more

- I keep a year or so's money in foreign currency, in addition to a couple of year in THB cash

- Put money in joint names sometimes - again so she can access easier

- See about getting your wife a credit card in her own name. That's a pain when you die and she's a joint card holder - otherwise she loses the card and suddenly has no credit card. Make sure she pays it off by direct debit each month.

- Personally on a few hundred thousand CHF I wouldn't want to be tying large amounts up in property, except for the main home as above. If you want the property exposure you can buy property unit trusts/ mutual funds, including in Thailand and should easily get above 4% yield after charges. Plus it's highly liquid, and no management hassles. If you rely on say 2 properties for rental income, all you need is to have no tenant, or worse something happens and your income streams are hit big time. There are Thai property funds you can buy on the stock market here, not to mention unit trusts back where you come from. In addition to liquidity you can easily rebalance amounts - you can't sell half a house easily even in a liquid market

- Give serious thought as to how you expect your wife to manage all this when you're gone! One thing I realised is that while I can generate enough from our investments to live off, I doubt my wife could, as they require some degree of management. One answer to that is to make more money, eg work now and again when you feel like, and just build up extra reserves in cash. Another is getting her involved in investments she understands and letting her do them... Don't forget also when you're gone, there's always the risk some unscrupulous advisor comes along, or family members or friends. Hence income generating assets are better than just lump capital sums...

Cheers

Fletch

Edited March 10, 2014 by fletchsmile

[Diddl]

I would like to say a few words here although I am not a financial expert by any means.

Be aware of the Cyprus bail-in” that happened last year where money was taken by the banks from the savings accounts of customers. This procedure, “bail-ins” as opposed to “bail-outs”, has now been approved by the European Union for all European Member States. Canada, I believe, has also approved this, and either Australia or New Zealand (can’t remember which one of these two countries) has also. The US is also contemplating this procedure. This procedure will eventually go global so beware of banks. Also, there is much talk about currencies going into crisis, as well as eliminating pensions.

I would suggest you invest in property and get rent money, as well as buying yourself a property to live in, hence saving on rent expenditure for yourself.

This is just my opinion on what I have heard so bear all this in mind and do some research yourself about such things. Good luck, I wish you well.

for the record: the "bail-ins" existed always as far as cash deposits are concerned which were not guaranteed by a third party when a bank went belly-up. the Cyprus bail-in differed only because it was invoked to prevent the two banks going belly-up.

nothing new was "approved" or "ratified" by the EU or any specific state.

and should "currencies go into crisis" or "pensions eliminated" rent payments will be affected too.

http://www.europarl.europa.eu/news/en/news-room/content/20131212IPR30702/html/Deal-reached-on-bank-%E2%80%9Cbail-in-directive%E2%80%9D

[moogradod]

Wow ! I did not expect such a big interest in my question. But I would really like to thank everybody !

There is some really interesting information in there which I may use. Sorry if I cannot answer everything right away but to some posts I will. After I read through all this more carefully.

One thing very quickly: I do not believe in property abroad if I stay in Thailand. In fact we DO have property in Switzerland already - but we will sell it given the current market situation here. Prices are really up now. And the managing of the property from abroad would cost and could be troublesome I suppose. Not to talk about the final sell by my wife if I should die.......