What Should I Do With My Inheretance.

[chiangrai]

Hi,

I am about to inherit a large sum of money and don't know anything about investing.

I have been living in Thailand for years and I know that I can live here off of 100 euro per month.

 

I have begun researching  about retirement investing.I have ordered some books etc............

 

The first option I'm trying to understand is leaving it in the bank.Can anybody help me do the maths.

How much would I need in the bank to draw 1000 euro a month and keep up with inflation and not let my original amount decrease.

Maybe doing something like laddered long term deposit accounts.

 

I know that this is a very broad question but a simple example would be helpful untill I get the hang of it.

Thanks

[rgs2001uk]

Simple maths will give you the answer, how big is your inheritance, 16 million baht?

 

16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.

 

Thats assuming you can get 3% gross in Thailand.

[AnotherOneAmerican]

Simple maths will give you the answer, how big is your inheritance, 16 million baht?
 
16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.
 
Thats assuming you can get 3% gross in Thailand.

Depends on his age,
16M,
spending 50k/month would last 25 years with no investment or interest.
spending 90k/month with 3% bank interest would last him 25 years.

One bad investment and it's all gone!

PS
Don't take any financial advice from foreign IFAs working illegally in Thailand.
No protection of any kind, best to seek advice in your home country.

[rgs2001uk]

 

Simple maths will give you the answer, how big is your inheritance, 16 million baht?
 
16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.
 
Thats assuming you can get 3% gross in Thailand.

Depends on his age,
16M,
spending 50k/month would last 25 years with no investment or interest.
spending 90k/month with 3% bank interest would last him 25 years.

One bad investment and it's all gone!

PS
Don't take any financial advice from foreign IFAs working illegally in Thailand.
No protection of any kind, best to seek advice in your home country.

 

 

Can someone please tell me, why would an IFA be working in Thailand and not lets say, Singapore or Hong Kong, both of which are internationally known centres of finance.

When was the last time anyone ever heard of Thailand or Bkk being known as an investor "hub"?
 

I am not allowed to name and shame some of the Mickey Mouse products being offered on these shores, its suffice to say, I wouldnt touch them with a barge pole.

 

Some wanka was trying to get me to invest in Bulgarian REITs, no thank you my good man.

[isawasnake]

For each ten million baht you have, you will make about 25,000 baht per month.... almost as much as a 9 to 5 teacher her putting up with screaming kids all day. That is assuming 3%. So 15 million baht would bring home about 37,500 per month. 

 

Depends on how much you have, but if you have north of how much you need to live on with the money in the bank (discussed above), put the rest in a good Thai mutual fund and forget it. 

[chiangrai]

I was not thinking of investing it in Thai banks.

I might put in different banks around the world like a Swiss bank,a German bank and maybe an Ausie bank to spread my risks out.

 

Would I get more than 3% like that.

 

So are these maths right...300K @4%=12K Euros a year.

 

I don't know how much my inheritance is until the will is read and I will be back in Europe for that.

I will have to decide whether I have enough to retire or not when I know the amount.

 

If it's not enough to retire on I will need a plan B.

Is 4% a realistic rate for 5 year term deposits and are my maths right in saying I  need.

 

Thanks for the help so far.

[chiangrai]

saying I need 300k to make 12k per anim

[cocopops]

How much would I need in the bank to draw 1000 euro a month and keep up with inflation and not let my original amount decrease.

 

 

I don't think any amount of money will do that these days. Nobody knows what future inflation rates will be, but I don't think they'll be lower than current deposit rates in most currencies. Almost definitely not if you have to pay any tax at all on the interest.

 

William Bernstein is an excellent author to read if you wish to understand the basics of investing without spending too much time on it. Search on Amazon.

 

Good luck with it all. Remember to keep yourself motivated and happy even though you're now a 1%er. Too many folks 'round these parts fuck that bit up and it really is a pity...
 

 

[beau thai]

If you have been living here comfortably without your inheritance, why not 'invest' some of it in yourself??

 

A few treats. More travelling. Better hotels. New big screen tv. Eat out more at better restaurants, enjoy more massages etc etc.  A new bed, chair, home. Money should enrich your life. Whatever floats your boat but have some fun with it- and maybe a little help for some deserving disadvantaged if you are feeling charitable-orphanages spring to mind.

 

But dont let worrying about your investments drive you mad- and whatever you decide, dont put all your eggs in one basket but spread your risk. And when someone offers you such  a great deal that looks too good to be true, it is.

 

Check out the internet for help. As suggested above, funds seem a good idea if you dont want to sweat over individual stocks etc- have a look at Morning Star website which covers about 30k funds of all shapes and sizes and gives their risk assessment and fund performance-and the usual warnings about past performance not necessarily being a good guide to the future etc.

 

Oh, and congratulations! What a nice problem to have

[meatboy]

enjoy it while you can,live for today,get your self a thai gf.build a house,get a car,and a bike,pick up for dil.big party for the wedding,sinsod,so if its 300k euro's that should be just about it,problem over. where did you see 4% or was it a dream.

[ldnguy]

Simple maths will give you the answer, how big is your inheritance, 16 million baht?

 

16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.

 

Thats assuming you can get 3% gross in Thailand.

And if inflation is 3% he will get nothing, or his money will slowly disappear. 

[ldnguy]

 

Simple maths will give you the answer, how big is your inheritance, 16 million baht?
 
16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.
 
Thats assuming you can get 3% gross in Thailand.

Depends on his age,
16M,
spending 50k/month would last 25 years with no investment or interest.
spending 90k/month with 3% bank interest would last him 25 years.

One bad investment and it's all gone!

PS
Don't take any financial advice from foreign IFAs working illegally in Thailand.
No protection of any kind, best to seek advice in your home country.

 

Don't give advice if you don't know what you're talking about. You need to take inflation into account. If he stick to 50K a month, but year 20 he'll be able to afford one cup of coffee a month. Inflation will seriously eat into your money. 

[ldnguy]

Some really bad advice on here. If inflation is 3% and interest rates are 3% you'll be back to square 1. Spend that 3% interest and the 1,000,000 baht will be worth 3% less in real terms. 10% less after 3 years. Worthless after 20 years or so. If inflation rose to 10% for a few years you'd get wiped out quickly. You need to earn enough to cover inflation plus enough for yourself. You won't get that with normal deposit accounts. Put the money in banks abroad and you also run currency risks. They could go in your favor or against you. Your 1,000,000 baht could easily be worth 500,000 in a year or two with a big swing against you. Ask the people on here who have been here for years. They get much less now than they used to and costs have gone up as well.

 

You have some serious learning to do. I suggest you talk to some people who know about these things and not take the nonsense advice offered above. You'd be broke pretty quickly if you followed the advice for most people that commented above.

Edited August 10, 2014 by ldnguy

[modafinil]

Give some of your money to me!

 

Failing that, split it 3 or 4 ways, and invest in different types of things. Maybe 25% Gold, 25% Euro/US stocks, 25% Dollar or Euro, 25% Yen/Yuan/Property/UpToYou

 

Don't worry about getting an income from your capital right away, it could lead you to make an unwise investment. Bide your time and keep your eyes open for good investment opportunities.

 

If you really want a guaranteed income from your capital, Google "annuity", although I would not recommend taking out a large annuity in the current economic climate.

[chiangrai]

O.K.

I did think of just blowing it but I am not yet 50 so that wouldn't work.

 

I know  that if I put it in an ordinary savings account I couldn't live off the interest.

So I'm trying to find out if I can live off the interest if I put it into long Term deposit accounts and laddering the accounts so as one account matures every year.

 

What I didn't consider was Idnguys' point that if I do that outside Thailand I could get caught out by currency exchange rates.

I need to get advice that is "farang in Thailand"specific.

 

Do Thai banks do these kind of accounts and would it be safer to take your chances with the exchange rates than with the Thai economy.

 

Also, are there professionals in Thailand that could be trusted to advise on these matters.

 

I do have some serious learning to do...........and that's what I'm doing.

[AnotherOneAmerican]

Simple maths will give you the answer, how big is your inheritance, 16 million baht?
 
16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.
 
Thats assuming you can get 3% gross in Thailand.

Depends on his age,
16M,
spending 50k/month would last 25 years with no investment or interest.
spending 90k/month with 3% bank interest would last him 25 years.

One bad investment and it's all gone!

PS
Don't take any financial advice from foreign IFAs working illegally in Thailand.
No protection of any kind, best to seek advice in your home country.

Don't give advice if you don't know what you're talking about. You need to take inflation into account. If he stick to 50K a month, but year 20 he'll be able to afford one cup of coffee a month. Inflation will seriously eat into your money.

Sounds like you're a dodgy financial advisor, working illegally in some boiler room.

[Bernard Flint]

O.K.

I did think of just blowing it but I am not yet 50 so that wouldn't work.

 

I know  that if I put it in an ordinary savings account I couldn't live off the interest.

So I'm trying to find out if I can live off the interest if I put it into long Term deposit accounts and laddering the accounts so as one account matures every year.

 

What I didn't consider was Idnguys' point that if I do that outside Thailand I could get caught out by currency exchange rates.

I need to get advice that is "farang in Thailand"specific.

 

Do Thai banks do these kind of accounts and would it be safer to take your chances with the exchange rates than with the Thai economy.

 

Also, are there professionals in Thailand that could be trusted to advise on these matters.

 

I do have some serious learning to do...........and that's what I'm doing.

You already have 1000euros,so you dont need to live off the interest on your inheritence,and you dont even know how much you are getting. Start a thread when you give all the info

[Cloggie]

If you want to invest and do NOT understand what you do - you will loose your money.

 

Whatever you do UNDERSTAND it for 1000%!!

[Naam]

I was not thinking of investing it in Thai banks.

I might put in different banks around the world like a Swiss bank,a German bank and maybe an Ausie bank to spread my risks out.

 

Would I get more than 3% like that.

 

So are these maths right...300K @4%=12K Euros a year.

 

I don't know how much my inheritance is until the will is read and I will be back in Europe for that.

I will have to decide whether I have enough to retire or not when I know the amount.

 

If it's not enough to retire on I will need a plan B.

Is 4% a realistic rate for 5 year term deposits and are my maths right in saying I  need.

 

Thanks for the help so far.

your maths €300k*4%=€12k/p.a. is correct but your expectations are wrong. nowhere in €URoLand you get 4% for a 5-year term deposit. a fistful of banks are offering 2.00-2.20% but that with strings attached.

 

take a look at this website, it's in German but not a problem to read the information.

 

http://www.vergleich.de/online/festgeld-vergleich/#!MinPLevel=0&sort=!zins&betrag=300000&laufzeit=1800

[Naam]

 

 

 

Simple maths will give you the answer, how big is your inheritance, 16 million baht?
 
16,000.000/100 = 160,000 * 3 = 480,000 baht per year/12 = 40,000 baht per month.
 
Thats assuming you can get 3% gross in Thailand.

Depends on his age,
16M,
spending 50k/month would last 25 years with no investment or interest.
spending 90k/month with 3% bank interest would last him 25 years.

One bad investment and it's all gone!

PS
Don't take any financial advice from foreign IFAs working illegally in Thailand.
No protection of any kind, best to seek advice in your home country.

 

Don't give advice if you don't know what you're talking about. You need to take inflation into account. If he stick to 50K a month, but year 20 he'll be able to afford one cup of coffee a month. Inflation will seriously eat into your money.

 

Sounds like you're a dodgy financial advisor, working illegally in some boiler room.

 

basically he is right warning about inflation but the "cup of coffee" is clearly an exaggeration

[harrry]

Maybe if you have to post here for information it may help if you found a course on handling your investments.  I do not know this field but someone here will and the money and time will be worth it to you.

[chiangrai]

Thanks for taking the time to explain things.

I'm reading a book called  "starting a business in Thailand" and I will read more books on investing in Thailand and investing for retirement.

I will look into mutual funds and hiring an investment manager.

 

I am just starting out on this journey and wont invest a penny until I understand what I'm doing.

 

So long term deposits have been ruled out,next I will look at mutual funds and buying property to rent.

[Bpuumike]

Thanks for taking the time to explain things.
I'm reading a book called  "starting a business in Thailand" and I will read more books on investing in Thailand and investing for retirement.
I will look into mutual funds and hiring an investment manager.
 
I am just starting out on this journey and wont invest a penny until I understand what I'm doing.
 
So long term deposits have been ruled out,next I will look at mutual funds and buying property to rent.

Do not ever hire an investment manager.

In fact do not pay in any way for investment advice. That is something you can learn yourself. Well, these so called investment managers and advisers 'learnt' it, if they ever did. They are in business to earn money - your money.

The fees charged will drastically reduce the income from any advised investment.

[el jefe]

 

Thanks for taking the time to explain things.
I'm reading a book called  "starting a business in Thailand" and I will read more books on investing in Thailand and investing for retirement.
I will look into mutual funds and hiring an investment manager.
 
I am just starting out on this journey and wont invest a penny until I understand what I'm doing.
 
So long term deposits have been ruled out,next I will look at mutual funds and buying property to rent.

Do not ever hire an investment manager.

In fact do not pay in any way for investment advice. That is something you can learn yourself. Well, these so called investment managers and advisers 'learnt' it, if they ever did. They are in business to earn money - your money.

The fees charged will drastically reduce the income from any advised investment.

 

Right.

And don't ever higher a doctor either. They learned medicine. You can too.

 

There are good investment advisers and bad ones. Good ones charge a fee and never work on commission. They do this full time and deserve to be paid, just like anyone else. Ask friends who use a fee-based financial manager for recommendations.

 

And ldnguy is right with his comment on inflation.

 

finally, if you think you can live on 1,000 Euros/month, I assume you know for sure that for the rest of your life you will never have a big medical bill and that you will never do much traveling.

 

No, I am not a financial adviser.

[DogNo1]

Please be wary of the extremely large number of investment scams on the Internet. If you are American, I recommend Richard Lehmann's Income Security Advisory. He can put together a low-risk portfolio for you that will pay 5% a year, perhaps a little more than that. I paid him $2,500 to assemble a group of holdings that I then bought myself through my American brokerage. You can also pay him 1.5% of your portfolio every year to manage your portfolio, that is, do the buying and selling for you. I'm receiving about 6% on my holdings per year. Take a look at incomesecurities investor.com and see what you think. When I was younger, I traded stocks and options a lot and lost a lot of money even with big-name advisors and, I was being careful! Now that I'm retired, I like the safety of income securities and the regular monthly income. I don't have any dividends automatically reinvested but prefer to save up the dividends and interest that I earn to purchase new recommended securities that I read about in his news letter. He's an approachable guy and if you have Skype, you can call him up in Florida. Good luck with your investing!

[pomchop]

What Should I Do With My Inheretance?

 

 

Why not celebrate the fact that you are being given a gift by sharing some of it with a charitable gift to some poor Thai kids?

[burgdawg]

...maybe learn how to spell?

[chiangrai]

Good advice,I will find a good broker when I go home.

 

Are there any brokers in Thailand you would recommend.

[Paul888]

I think you are jumping the gun a little.

 

1. Wait for the reading of the will and get the money confirmed as yours and find out exactly how much it will be.

2. Establish if you have any tax liability on it.

3. Get it in your bank in you home country.

4. Ask your own bank for advice. 

5. Look at other options/educate yourself  with the money safely in a bank you trust.

Edited August 11, 2014 by Paul888

[chiangrai]

Yep,

       That's the plan.I will wait for the money and maybe start another post when I have read some books on the matter.

 

The only thing I''m trying to find out now is if I should invest some of it in Thailand to hedge against currency fluctuations.

 

The books will probably tell me that.

Thanks