Return on money from pension fund - risks

[wordchild]

naam is right that you need to consider your tax position (and your wifes) , including in terms of withholding and inheritance taxes ,both now and in the future. One of the most important decisions you need to make is where to base your assets. related to this decision will be issues like your will (eg which jurisdiction) and also how to structure things in such a way as to avoid/minimize the Swiss taxman now and also when your wife inherits. This can be a complex area and maybe worth getting specialist advice ( ie from experts rather than financial planners). As a general rule of thumb, for tax planning, it is best to base your assets somewhere different from where you live now (say Thailand) and also from where you used to live and work. Singapore has many advantages from this perspective .

[fatdrunkandstupid]

I checked out the Australian situation before retiring last year.

I kept all of my pension money in the pension fund, as they had very good returns on investments and provided me with enough to live on in Thailand. Only minor downside is that the pension fund can only pay monies into a bank in Australia, so I have to transfer the pension into my Thai bank when I need money.

Also kept my savings in an Australian bank short-term investment account (one month on call), currently earning 4.67%, before tax.

Yes, the A$ has been sliding a little againt the Baht and US$, but ....

I am an Australian and a sophisticated investor.

I call Bullsh_t on your claim of 4.67% interest on a one month call account.

Happy for you to provide a link to prove me wrong.

[Krataiboy]

But - the AUD is declining and 10% tax is deducted as well.

-during the last 5 years AUD gained 27.9% vs. Thai Baht (see graph)aud thb 5y.jpg

-there is no tax on any AUD invested outside Oz,

-yield on triple A rated Australian government bonds presently,

maturity 10 years = 4.16%

maturity 15 years = 4.58%

of course risk of currency fluctuation vs. Thai Baht still exists.

note: sometimes i wish that people who have no idea...

[Krataiboy]

For what it's worth, HSBC (which I don't think even the most arrogant ThaiVisa poster would claim to be "people with no idea" about financial investment) has been warning clients off the Aussie dollar, which other financial expects, also, predict is due for a correction. The same outfit was proved right when, against the tide, it warned of sterling's fall from grace.

[Krataiboy]

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.

[fatdrunkandstupid]

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

Ridiculous and complicated approach.

4.5 percent is acheivable by a brain dead monkey with no previous financial experience.

Here is what I do.

Step one

I am an Australian.

The tax free threshold for an individual is $18200.

http://www.ato.gov.au/rates/tax-free-threshold-for-individuals/

The current rates of return on at call T2 online banks is about 3.8 percent and slightly higher. Two examples:

Commonwealth bank has a goal saver account. Currently 3.9 percent maximum investment 100K per account maximum two accounts.

Ubank 3month term with loyalty bonus 3.9 percent

There are many other similiar products including ING direct.

Open as many of these accounts as possible to avoid risk of collapse. Also note the deposit guarantee in Australia is only $250K per account.

Some accounts require a periodic top up to obtain bonus rates, however this is acheived simply by setting up scheduled automatic payment from one account with the interest chanelling back to the same account. An hours work to calculate and schedule payment and then forget.

466K x 3.9 = 18200

Australian interest rates are at an all time low (perhaps they will also move lower this year) but you can top up or decant off your principal to maintain the 18200 tax free interest payment.

Step two

Then to hedge against local currency and inflation and increase yield a little more (without depositing money into Thailand):

Open an offshore personal account with Citibank singapore. Free and you can open a SGD, AUD and USD account. All done from Thailand with no visit to Singapore required. Also open a trading account.

Purchase Ishares THD. 4.15% dividend yield. As an aside I thought that this investment was a no brainer over the last few months. I purchase a large parcel of THD during the height of the protests in Bangkok for just under 62 and sold a few days back for 72. I made just over 16 percent profit in 3 months with no tax.

Step three (optional)

Even if you fancy yourself as a stock picker, chances are that you will not outperform and index fund like THD. However, with a little homework you can invest a small percentage of your capital (10 percent) to have a punt and keep your mind active. A little known perk here is that you will also be invited along to the investment dinners regularly held by your broker. Here you wlll get some great food, at some lavish venue, and get to mix with Hiso Thais. I met my current girlfriend at one of these things. She was sat at the table next to me. She is in her early twenties and had just started stock trading. I discussed, and scribbled on a napkin dividend scalping, trading channelling stocks and other simple strategies....She asked if we could meet to discuss on a weekly basis over coffee...and the result is I have a beautiful, young, educated GF who is also savy with money...but i digress....

Open a brokerage account in Thailand. You do not need a WP to invest.

Request your broker provide you with a list of high dividend yielding shares on the SET.

Try your hand. There are some great profits to be made (or lost) on the volatility inherent in the SET. It is commonplace for share to rally more than 3 percent in a day an sometimes more than 20 or even 30 percent (the later being the daily cap).

For example I am currently heavily invested in DSGT.

This company is basically a franchise from Malaysia trading in Thailand. It has a simple model. I LIKE SIMPLE. It makes and sells diapers for babys and old people.

After researching this company I thought it was a no brainer. Thailand has (per capita) the largest amount of Teenage mums on the planet. They all want to look HiSo and so they buy disposable nappys at the 7/11. Thailand also has the Boon Khun or Tamboon mentality of getting merit for paying back your birth debt and taking care of your parents. DSGT actually use this very concept in their marketing for their incontinence nappys.

Anyway, I purchased a large parcel of DSGT at the height of the trouble in Bangkok for 9.65. They are currently trading at 10.90. Capital gains on the SET for foreigners is tax free so that is a paper profit of just 12.95 percent in under three months.

Good luck to all...

FD&S

Edited March 11, 2014 by fatdrunkandstupid

[Krataiboy]

The Cyprus bank robbery is a precedent which is being enthusiastically implemented elsewhere - not least across the EU, where, from January 1 2016, banks will no longer be bailed out by taxpayers.

Instead, "creditors, according to a pre-defined hierarchy, (will) forfeit some or all of their savings".

A depositor is legally a creditor. Which means YOUR savings can be seized if the bank goes belly up.

Don't take my word for it. Get it from the horse's mouth:

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

[Krataiboy]

The Cyprus bank robbery is a precedent which is being enthusiastically implemented elsewhere - not least across the EU, where, from January 1 2016, banks will no longer be bailed out by taxpayers.

Instead, "creditors, according to a pre-defined hierarchy, (will) forfeit some or all of their savings".

A depositor is legally a creditor. Which means YOUR savings can be seized if the bank goes belly up.

Don't take my word for it. Get it from the horse's mouth:

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

[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

Ridiculous and complicated approach.

4.5 percent is acheivable by a brain dead monkey with no previous financial experience.

Here is what I do.

Step one

I am an Australian.

The tax free threshold for an individual is $18200.

http://www.ato.gov.au/rates/tax-free-threshold-for-individuals/

The current rates of return on at call T2 online banks is about 3.8 percent and slightly higher. Two examples:

Commonwealth bank has a goal saver account. Currently 3.9 percent maximum investment 100K per account maximum two accounts.

Ubank 3month term with loyalty bonus 3.9 percent

There are many other similiar products including ING direct.

Open as many of these accounts as possible to avoid risk of collapse. Also note the deposit guarantee in Australia is only $250K per account.

Some accounts require a periodic top up to obtain bonus rates, however this is acheived simply by setting up scheduled automatic payment from one account with the interest chanelling back to the same account. An hours work to calculate and schedule payment and then forget.

466K x 3.9 = 18200

Australian interest rates are at an all time low (perhaps they will also move lower this year) but you can top up or decant off your principal to maintain the 18200 tax free interest payment.

Step two

Then to hedge against local currency and inflation and increase yield a little more (without depositing money into Thailand):

Open an offshore personal account with Citibank singapore. Free and you can open a SGD, AUD and USD account. All done from Thailand with no visit to Singapore required. Also open a trading account.

Purchase Ishares THD. 4.15% dividend yield. As an aside I thought that this investment was a no brainer over the last few months. I purchase a large parcel of THD during the height of the protests in Bangkok for just under 62 and sold a few days back for 72. I made just over 16 percent profit in 3 months with no tax.

Step three (optional)

Even if you fancy yourself as a stock picker, chances are that you will not outperform and index fund like THD. However, with a little homework you can invest a small percentage of your capital (10 percent) to have a punt and keep your mind active. A little known perk here is that you will also be invited along to the investment dinners regularly held by your broker. Here you wlll get some great food, at some lavish venue, and get to mix with Hiso Thais. I met my current girlfriend at one of these things. She was sat at the table next to me. She is in her early twenties and had just started stock trading. I discussed, and scribbled on a napkin dividend scalping, trading channelling stocks and other simple strategies....She asked if we could meet to discuss on a weekly basis over coffee...and the result is I have a beautiful, young, educated GF who is also savy with money...but i digress....

Open a brokerage account in Thailand. You do not need a WP to invest.

Request your broker provide you with a list of high dividend yielding shares on the SET.

Try your hand. There are some great profits to be made (or lost) on the volatility inherent in the SET. It is commonplace for share to rally more than 3 percent in a day an sometimes more than 20 or even 30 percent (the later being the daily cap).

For example I am currently heavily invested in DSGT.

This company is basically a franchise from Malaysia trading in Thailand. It has a simple model. I LIKE SIMPLE. It makes and sells diapers for babys and old people.

After researching this company I thought it was a no brainer. Thailand has (per capita) the largest amount of Teenage mums on the planet. They all want to look HiSo and so they buy disposable nappys at the 7/11. Thailand also has the Boon Khun or Tamboon mentality of getting merit for paying back your birth debt and taking care of your parents. DSGT actually use this very concept in their marketing for their incontinence nappys.

Anyway, I purchased a large parcel of DSGT at the height of the trouble in Bangkok for 9.65. They are currently trading at 10.90. Capital gains on the SET for foreigners is tax free so that is a paper profit of just 12.95 percent in under three months.

Good luck to all...

FD&S

FD&S

Better find yourself that brain dead monkey as your strategy has more holes than a sieve

I'm guessing you havent been doing this long. Some tips:

Have a google on portfolio survival rates.

Read some of the post from a decade or so back with people doing similar large cash in GBP and USD and impacts from Fx rates and interest rates.

You re heavily reliant on AUD cash and Thai equities.

Your CITI acc in SGD and USD pays next to nothing and probably negative real returns.

Think how the Thai wife fits in.

Aside from your Thai equities you re under the 4.5% OP was looking for and doing little on the bulk of your money to retain capital as Thai real inflation bites over the decades.

When considering Thai equities let us know how you adjusted the above strategy for 2000 and 2008. Hope you dont have to google why and the impact but just tell us straight off.

Well done on your 3 months in Thai equities. Please dont plan on those take outs for long term.

Cheers

Fletch

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

[SheungWan]

The Cyprus bank robbery is a precedent which is being enthusiastically implemented elsewhere - not least across the EU, where, from January 1 2016, banks will no longer be bailed out by taxpayers.

Instead, "creditors, according to a pre-defined hierarchy, (will) forfeit some or all of their savings".

A depositor is legally a creditor. Which means YOUR savings can be seized if the bank goes belly up.

Don't take my word for it. Get it from the horse's mouth:

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

Cyprus was a good example of dealing with dodgy marginal fringe economies which expect to be bailed out. Greece mark 2 in effect.

[CeeBee]

Krataiboy

I wish I could share Herr Naam's optimism regarding the strength of the AUD in the near future (let us not make "unsubstantiated assumptions" for years ahead). The Governor of the Reserve Bank of Australia and the HSBC are not alone in predicting the decline of the AUD against the USD and other major currencies. The Deutsche Bank has also recently supported this scenario. Moreover, Australian politicians and many business leaders are talking the AUD down.

[CeeBee]

FD&S

Your strategy has given me some useful ideas.

What I cannot understand is the relevance of the Australian income tax threshold of AUD18,200 in your calculations for interest earned in Australia.. This threshold only applies to Australian residents for tax purposes.

If you are tax-resident do you not earn other assessable income for living expenses? In this case all income is added together and the interest is taxed at the marginal rate. You also have to legally declare and add all income from overseas sources.

If you are not tax-resident then the income tax threshold does not apply to you. Instead a 10% withholding tax is deducted from the interest earned in Australia. In any case, interest is well below your target of 4.5%.

Am I missing something?

[Naam]

Krataiboy

I wish I could share Herr Naam's optimism regarding the strength of the AUD in the near future (let us not make "unsubstantiated assumptions" for years ahead). The Governor of the Reserve Bank of Australia and the HSBC are not alone in predicting the decline of the AUD against the USD and other major currencies. The Deutsche Bank has also recently supported this scenario. Moreover, Australian politicians and many business leaders are talking the AUD down.

i wish people wouldn't post invented rubbish drawn out of thin air.

there was not even a hint of optimism in my factual posting concerning AUD yield triple A debtor, income tax on interest, statement of the RBA Governor and last not least

of course risk of currency fluctuation vs. Thai Baht still exists

note: the Governor of the Reserve Bank did not predict any decline but was hoping for a weaker AUD. unfortunately his comments caused AUD to strengthen.

Jawboned: RBA indicates Australian dollar needs to fall further

RBA governor Glenn Stevens resumed the central bank's 'jawboning' for a weaker Australian dollar, noting that while the "decline in the exchange rate seen to date will assist in achieving balanced growth in the economy", the dollar "remains high by historical standards".

The renewed call for a lower exchange rate was likely to be a reflection of the central bank's concern over the local currency's rally following the February meeting, Macquarie economist Gabby Hajj said.

At the time, the dollar jumped from US87.5¢ to trade above US89¢ after the RBA dropped its comments that the currency was "uncomfortably high".

http://www.smh.com.au/business/the-economy/jawboned-rba-indicates-australian-dollar-needs-to-fall-further-20140304-341xp.html

[Naam]

FD&S

Your strategy has given me some useful ideas.

What I cannot understand is the relevance of the Australian income tax threshold of AUD18,200 in your calculations for interest earned in Australia.. This threshold only applies to Australian residents for tax purposes.

If you are tax-resident do you not earn other assessable income for living expenses? In this case all income is added together and the interest is taxed at the marginal rate. You also have to legally declare and add all income from overseas sources.

If you are not tax-resident then the income tax threshold does not apply to you. Instead a 10% withholding tax is deducted from the interest earned in Australia. In any case, interest is well below your target of 4.5%.

Am I missing something?

yes, you and a bunch of others are missing the fact that investment in AUD is not limited to Australia or residents of OZ but can be quite easily done in any civilised country with a "real" bank (not a Thai joke) free of any withholding tax.

[CeeBee]

Herr Naam

I am seeking clarification from FD&S - not you. Thank you.

There is no mention of withholding tax on AUD invested outside Australia.

[Naam]

Herr Naam

I am seeking clarification from FD&S - not you. Thank you.

There is no mention of withholding tax on AUD invested outside Australia.

Dear Sir,

the OP is a Swiss national and based on his posting he does not seem to be brain-amputaded planing to become a resident or non-resident of Oz and neither will he transfer his dough to a bank in Australia and then pay whatever tax the OZ taxman charges.

in short, the OP asked for advice. elaborating on taxes in Australia is not advice... i think

[fatdrunkandstupid]

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

Ridiculous and complicated approach.

4.5 percent is acheivable by a brain dead monkey with no previous financial experience.

Here is what I do.

Step one

I am an Australian.

The tax free threshold for an individual is $18200.

http://www.ato.gov.au/rates/tax-free-threshold-for-individuals/

The current rates of return on at call T2 online banks is about 3.8 percent and slightly higher. Two examples:

Commonwealth bank has a goal saver account. Currently 3.9 percent maximum investment 100K per account maximum two accounts.

Ubank 3month term with loyalty bonus 3.9 percent

There are many other similiar products including ING direct.

Open as many of these accounts as possible to avoid risk of collapse. Also note the deposit guarantee in Australia is only $250K per account.

Some accounts require a periodic top up to obtain bonus rates, however this is acheived simply by setting up scheduled automatic payment from one account with the interest chanelling back to the same account. An hours work to calculate and schedule payment and then forget.

466K x 3.9 = 18200

Australian interest rates are at an all time low (perhaps they will also move lower this year) but you can top up or decant off your principal to maintain the 18200 tax free interest payment.

Step two

Then to hedge against local currency and inflation and increase yield a little more (without depositing money into Thailand):

Open an offshore personal account with Citibank singapore. Free and you can open a SGD, AUD and USD account. All done from Thailand with no visit to Singapore required. Also open a trading account.

Purchase Ishares THD. 4.15% dividend yield. As an aside I thought that this investment was a no brainer over the last few months. I purchase a large parcel of THD during the height of the protests in Bangkok for just under 62 and sold a few days back for 72. I made just over 16 percent profit in 3 months with no tax.

Step three (optional)

Even if you fancy yourself as a stock picker, chances are that you will not outperform and index fund like THD. However, with a little homework you can invest a small percentage of your capital (10 percent) to have a punt and keep your mind active. A little known perk here is that you will also be invited along to the investment dinners regularly held by your broker. Here you wlll get some great food, at some lavish venue, and get to mix with Hiso Thais. I met my current girlfriend at one of these things. She was sat at the table next to me. She is in her early twenties and had just started stock trading. I discussed, and scribbled on a napkin dividend scalping, trading channelling stocks and other simple strategies....She asked if we could meet to discuss on a weekly basis over coffee...and the result is I have a beautiful, young, educated GF who is also savy with money...but i digress....

Open a brokerage account in Thailand. You do not need a WP to invest.

Request your broker provide you with a list of high dividend yielding shares on the SET.

Try your hand. There are some great profits to be made (or lost) on the volatility inherent in the SET. It is commonplace for share to rally more than 3 percent in a day an sometimes more than 20 or even 30 percent (the later being the daily cap).

For example I am currently heavily invested in DSGT.

This company is basically a franchise from Malaysia trading in Thailand. It has a simple model. I LIKE SIMPLE. It makes and sells diapers for babys and old people.

After researching this company I thought it was a no brainer. Thailand has (per capita) the largest amount of Teenage mums on the planet. They all want to look HiSo and so they buy disposable nappys at the 7/11. Thailand also has the Boon Khun or Tamboon mentality of getting merit for paying back your birth debt and taking care of your parents. DSGT actually use this very concept in their marketing for their incontinence nappys.

Anyway, I purchased a large parcel of DSGT at the height of the trouble in Bangkok for 9.65. They are currently trading at 10.90. Capital gains on the SET for foreigners is tax free so that is a paper profit of just 12.95 percent in under three months.

Good luck to all...

FD&S

FD&S

Better find yourself that brain dead monkey as your strategy has more holes than a sieve

I'm guessing you havent been doing this long. Some tips:

Have a google on portfolio survival rates.

Read some of the post from a decade or so back with people doing similar large cash in GBP and USD and impacts from Fx rates and interest rates.

You re heavily reliant on AUD cash and Thai equities.

Your CITI acc in SGD and USD pays next to nothing and probably negative real returns.

Think how the Thai wife fits in.

Aside from your Thai equities you re under the 4.5% OP was looking for and doing little on the bulk of your money to retain capital as Thai real inflation bites over the decades.

When considering Thai equities let us know how you adjusted the above strategy for 2000 and 2008. Hope you dont have to google why and the impact but just tell us straight off.

Well done on your 3 months in Thai equities. Please dont plan on those take outs for long term.

Cheers

Fletch

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

Fletch.

I find your didacticism rather repugnant.

Why would you assume that I am, in your words, "heavily reliant on AUD" and "doing little on the bulk of [my] money". Just because I have 500K in AUD does not mean that I am heavily reliant on AUD, nor is the aforementioned sum the bulk of my money.

You wannabe fundies are hilarious.

Research proves year after year that the bulk of active fund managers under perform their reference indices.

Op, ignore the ridiculous egos here and keep things simple as follows:

1. Get a trading account. Buy and hold the following: a domestic stock index ETF, an international stock index ETF, and a domestic short term bond ETF. Choose only passive funds with lowest management fees.

2. Balance yearly. Keep your age in bonds and the rest in stocks. Stock fund holdings shoud be balanced 50% domestic and 50% international.

Avoid listening to financial drivel as, more often than not, the provider is a penniless <deleted>...

[Naam]

Fletch.

I find your didacticism rather repugnant.

Why would you assume that I am, in your words, "heavily reliant on AUD" and "doing little on the bulk of [my] money". Just because I have 500K in AUD does not mean that I am heavily reliant on AUD, nor is the aforementioned sum the bulk of my money.

You wannabe fundies are hilarious.

Research proves year after year that the bulk of active fund managers under perform their reference indices.

Op, ignore the ridiculous egos here and keep things simple as follows:

1. Get a trading account. Buy and hold the following: a domestic stock index ETF, an international stock index ETF, and a domestic short term bond ETF. Choose only passive funds with lowest management fees.

2. Balance yearly. Keep your age in bonds and the rest in stocks. Stock fund holdings shoud be balanced 50% domestic and 50% international.

Avoid listening to financial drivel as, more often than not, the provider is a penniless <deleted>...

i agree with some of your points FD&S but i think your advice (directed at the OP) is, except for the closing statement, not applicable. simple reason for my claim is that the OP needs obviously quite some time to educate himself in order to follow any advice without very sound and simple explanation of financial basics.

[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

Ridiculous and complicated approach.

4.5 percent is acheivable by a brain dead monkey with no previous financial experience.

Here is what I do.

Step one

I am an Australian.

The tax free threshold for an individual is $18200.

http://www.ato.gov.au/rates/tax-free-threshold-for-individuals/

The current rates of return on at call T2 online banks is about 3.8 percent and slightly higher. Two examples:

Commonwealth bank has a goal saver account. Currently 3.9 percent maximum investment 100K per account maximum two accounts.

Ubank 3month term with loyalty bonus 3.9 percent

There are many other similiar products including ING direct.

Open as many of these accounts as possible to avoid risk of collapse. Also note the deposit guarantee in Australia is only $250K per account.

Some accounts require a periodic top up to obtain bonus rates, however this is acheived simply by setting up scheduled automatic payment from one account with the interest chanelling back to the same account. An hours work to calculate and schedule payment and then forget.

466K x 3.9 = 18200

Australian interest rates are at an all time low (perhaps they will also move lower this year) but you can top up or decant off your principal to maintain the 18200 tax free interest payment.

Step two

Then to hedge against local currency and inflation and increase yield a little more (without depositing money into Thailand):

Open an offshore personal account with Citibank singapore. Free and you can open a SGD, AUD and USD account. All done from Thailand with no visit to Singapore required. Also open a trading account.

Purchase Ishares THD. 4.15% dividend yield. As an aside I thought that this investment was a no brainer over the last few months. I purchase a large parcel of THD during the height of the protests in Bangkok for just under 62 and sold a few days back for 72. I made just over 16 percent profit in 3 months with no tax.

Step three (optional)

Even if you fancy yourself as a stock picker, chances are that you will not outperform and index fund like THD. However, with a little homework you can invest a small percentage of your capital (10 percent) to have a punt and keep your mind active. A little known perk here is that you will also be invited along to the investment dinners regularly held by your broker. Here you wlll get some great food, at some lavish venue, and get to mix with Hiso Thais. I met my current girlfriend at one of these things. She was sat at the table next to me. She is in her early twenties and had just started stock trading. I discussed, and scribbled on a napkin dividend scalping, trading channelling stocks and other simple strategies....She asked if we could meet to discuss on a weekly basis over coffee...and the result is I have a beautiful, young, educated GF who is also savy with money...but i digress....

Open a brokerage account in Thailand. You do not need a WP to invest.

Request your broker provide you with a list of high dividend yielding shares on the SET.

Try your hand. There are some great profits to be made (or lost) on the volatility inherent in the SET. It is commonplace for share to rally more than 3 percent in a day an sometimes more than 20 or even 30 percent (the later being the daily cap).

For example I am currently heavily invested in DSGT.

This company is basically a franchise from Malaysia trading in Thailand. It has a simple model. I LIKE SIMPLE. It makes and sells diapers for babys and old people.

After researching this company I thought it was a no brainer. Thailand has (per capita) the largest amount of Teenage mums on the planet. They all want to look HiSo and so they buy disposable nappys at the 7/11. Thailand also has the Boon Khun or Tamboon mentality of getting merit for paying back your birth debt and taking care of your parents. DSGT actually use this very concept in their marketing for their incontinence nappys.

Anyway, I purchased a large parcel of DSGT at the height of the trouble in Bangkok for 9.65. They are currently trading at 10.90. Capital gains on the SET for foreigners is tax free so that is a paper profit of just 12.95 percent in under three months.

Good luck to all...

FD&S

FD&S

Better find yourself that brain dead monkey as your strategy has more holes than a sieve

I'm guessing you havent been doing this long. Some tips:

Have a google on portfolio survival rates.

Read some of the post from a decade or so back with people doing similar large cash in GBP and USD and impacts from Fx rates and interest rates.

You re heavily reliant on AUD cash and Thai equities.

Your CITI acc in SGD and USD pays next to nothing and probably negative real returns.

Think how the Thai wife fits in.

Aside from your Thai equities you re under the 4.5% OP was looking for and doing little on the bulk of your money to retain capital as Thai real inflation bites over the decades.

When considering Thai equities let us know how you adjusted the above strategy for 2000 and 2008. Hope you dont have to google why and the impact but just tell us straight off.

Well done on your 3 months in Thai equities. Please dont plan on those take outs for long term.

Cheers

Fletch

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

Fletch.

I find your didacticism rather repugnant.

Why would you assume that I am, in your words, "heavily reliant on AUD" and "doing little on the bulk of [my] money". Just because I have 500K in AUD does not mean that I am heavily reliant on AUD, nor is the aforementioned sum the bulk of my money.

You wannabe fundies are hilarious.

Research proves year after year that the bulk of active fund managers under perform their reference indices.

Op, ignore the ridiculous egos here and keep things simple as follows:

1. Get a trading account. Buy and hold the following: a domestic stock index ETF, an international stock index ETF, and a domestic short term bond ETF. Choose only passive funds with lowest management fees.

2. Balance yearly. Keep your age in bonds and the rest in stocks. Stock fund holdings shoud be balanced 50% domestic and 50% international.

Avoid listening to financial drivel as, more often than not, the provider is a penniless <deleted>...

Firstly I suggest you go back and read what the thread was about: Swiss National, Thai wife, pension pot, investing for income etc

Secondly go back and read what you wrote, after some rather arrogant and disparaging remarks to what was simply a constructive post of how I approach this for a western pension and how I do for myself, for consideration, with some relevant suggestions.

Then go back and see what you wrote: step 1 put loads of money in AUD cash earning under 4% step 2 USD and SGD account with Citi and buy a Thai equity fund. Step 3 (optional) trade in Thai equities. As stated this:

- has little consideration for what OP actually wrote and is looking for

- is highly dependent on AUD cash and Thai equities. This is what you wrote!

- doesn't even achieve the 4.5% without the Thai equities, especially given the predominant amounts were AUD.

- portfolio survival rate with say Thai equity market crash and slowdown in China (Aus major trading partner) or recession in Aus itself, with a cut in interest rates,currency devaluation and OP would be stuffed

- So in summary what you suggested for OP is inappropriate. Had you been a bit less arrogant, self-centred, and disparaging I'd just have looked at your post as any other and not bothered to comment. But as you'd already commented on my suggestions thought I'd do likewise.

As for how you find things, I guess if you spent more time reading and understanding the context of other people's post you might find them less repugnant.

In case you hadn't notice the OP's post wasn't about you nor was my first reply.

Perhaps you post all your stuff while your emotions are running high, or you're drunk or whatever. Appears also you're forgetting that when you point a finger three point back at you. "The ridiculous ego" seems to be your own.

I notice in your reply above you've shifted what you originally wrote and now have bonds, and international ETF. A vast improvement and what you firstly put. That you prefer ETF/passive vs active is your choice.

But let's be honest your original post quoting mine didn't get anywhere near what OP needs, and was rude to boot.

Cheers

Fletch

[fatdrunkandstupid]

Fletch

Take another blood pressure pill and calm down.

The OP asked how to make 4.5 percent on his money.

You launched in with a 1000 word essay to preen your feathers and your own misguided belief that you actually know what is going on in today's markets. You attempted to swamp an obviously unsophisticated investor with your piffle.

I responded by demonstrating that a monkey can generate a 4.5 percent return. And that, statistically a monkey has as good a chance as you predicting future outcomes. Please read "you" as including yourself and any othe fundie...real or wannabe. I provided a simple example of how I achieve 4.5% on some of my AUD and THB assets. And I advised the OP to avoid listening to anyone dribbling on about complex investment strategies.

I also highlighted that there are other non pecuniary perks to involving oneself with direct investment.

Nam

I have read the bulk of your posts and I have a good deal of respect for your simple no BS posts. If possible, I would like to catch up with you in person to discuss high yield bonds. I know you have exposure to a number of them.

[fletchsmile]

Fletch

Take another blood pressure pill and calm down.

The OP asked how to make 4.5 percent on his money.

You launched in with a 1000 word essay to preen your feathers and your own misguided belief that you actually know what is going on in today's markets. You attempted to swamp an obviously unsophisticated investor with your piffle.

I responded by demonstrating that a monkey can generate a 4.5 percent return. And that, statistically a monkey has as good a chance as you predicting future outcomes. Please read "you" as including yourself and any othe fundie...real or wannabe. I provided a simple example of how I achieve 4.5% on some of my AUD and THB assets. And I advised the OP to avoid listening to anyone dribbling on about complex investment strategies.

I also highlighted that there are other non pecuniary perks to involving oneself with direct investment.

Nam

I have read the bulk of your posts and I have a good deal of respect for your simple no BS posts. If possible, I would like to catch up with you in person to discuss high yield bonds. I know you have exposure to a number of them.

From your posts in this thread I think your avatar sums you up well.

You obviously have issues if you take offence and get wound up by one poster taking 5 or 10 mins to give some constructive thoughts to another. Too long for you? So what? Get over it. Either it was useful to OP or not.

Having been thru the situation myself with Thai wife and on behalf of parents I feel qualified to post.

What you replied to my post was drivel in the context of OP.

Seems to come down to your ego and thinking the thread is about you...

...and back to your avatar again. You chose well.

For your THD I suggest you also compare SET TRI for say 10 years deducting 0.6% for your fees to ING Good Governance ING Thai equity Aberdeen Growth etc and see how much you would have underperformed a decent active fund. (Not that ETFs and index funfs dont have their place). Not to mention how much easier it eould be for a Thai wife to just pop in and discuss locally after husband s death compared to offshore broker overseas probate etc...

Cheers

Fletch

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

[Naam]

I have read the bulk of your posts and I have a good deal of respect for your simple no BS posts. If possible, I would like to catch up with you in person to discuss high yield bonds. I know you have exposure to a number of them.

no objection FD&S. do you live in the vicinity of Pattaya? i hate to cross my property line and my "public hours/days" are quite limited

just PM me.

[retarius]

forget 4% return...hedge the money buying five or six currencies...this will maintain its value....talk to world first in London...biggest currency traders, best rates and instant access with no wire fees. Use Kasikorn in Thailand...the rest of the banks aren't worth a shit

[moogradod]

i agree with some of your points FD&S but i think your advice (directed at the OP) is, except for the closing statement, not applicable. simple reason for my claim is that the OP needs obviously quite some time to educate himself in order to follow any advice without very sound and simple explanation of financial basics.

I have studied economics at the University of Zurich - so far for the financial basics - but in fact I do lack a vast experience in investment. I am therefore open to advice. However I believe I am able to distinguish useful hints from not so useful hints and especially from downright rubbish. Yes, I do need some time (and will take some time) to educate myself but this is because this is a "failure is not an option" task. So thanks again to everybody trying to help.

Edited March 12, 2014 by moogradod

[Naam]

i agree with some of your points FD&S but i think your advice (directed at the OP) is, except for the closing statement, not applicable. simple reason for my claim is that the OP needs obviously quite some time to educate himself in order to follow any advice without very sound and simple explanation of financial basics.

I have studied economics at the University of Zurich - so far for the financial basics - but in fact I do lack a vast experience in investment. I am therefore open to advice. However I believe I am able to distinguish useful hints from not so useful hints and especially from downright rubbish. Yes, I do need some time (and will take some time) to educate myself but this is because this is a "failure is not an option" task. So thanks again to everybody trying to help.

glad that you noticed that there is a huge difference between theory and practice. my advice: take your time and don't act under pressure. surely at Uni Zürich the investment options nowadays available were not lectured. the latter also applies to banking and taxes.

[fatdrunkandstupid]

Well, I have just transferred AUD 450K into Singapore to buy some funds. I hold USD, AUD and SGD accounts and so can purchase funds struck in any of those currencies.

Fletchsmile, your suggestions.