What % of your portfolio is invested in Thailand?

[AyG]

I find myself constructing a portfolio for an elderly person who lives in Thailand. When it comes to what percentage to allocate to Thailand equities, my head says 15%, but my heart says it's too much, too risky. For my own portfolio I have 5% in Thailand.

So, what percentage of your investment portfolio is invested in Thailand? And what percentage would be about right for pensioner here?

[DLang]

About 5-6 inches. Or 70-80%.

[IMA_FARANG]

As a pensioner living in Thailand who has time for an "investment portfolio"?

Unless your "pension" is a lot bigger than mine, my entire "investment portfolio" is called "monthly living expenses".

[DLang]

Most smart people with investments I know don't keep more than 20% in Thailand.

That is usually a condo worth x million baht, 400/800k baht in a savings account such as BAY Mee Tae Dai for visa stuff, some gold in their safe, some play the SET for fun with some play money.

None recommend going past the 20% mark.

[siam2007]

0%.

basically I have no chance to buy Thai stocks as my portfolio has to be based in my country of origin. No chance to open a portfolio here. I would have bought BTS shares for sure some years ago when there was an offering.

But I hold GALENA (NAS: GALE) whose shares were up 12% yesterday with more positive news to follow so I will survive anyway ;-)

[NeverSure]

Another question. Should an elderly pensioner be in equities at all unless wealthy? In other words, should an elderly pensioner have money he can't afford to lose in equities?

That's a rhetorical question when not knowing the person's circumstances but it's worth thinking about.

Cheers

[NeverSure]

It's a tough time for me to invest in passive assets. Interest rates are at or near record lows giving little to no return and if countries begin raising rates the bond values will fall. Many stock market indexes are near historic highs. Currencies, gold, silver, all speculative.

I actually have had just two other times in my life when I really didn't have a direction I could believe in. That doesn't mean I'm a doomsayer, it just means I don't\ see anything that isn't overpriced or speculative in my mind. Except for some US real estate I believed in and bought after the crash (Quality selling for way below replacement cost) I'm on the sidelines.

OP, that's my answer to you "for me." I'm not diving into a Thai stock market when the economic news is weak. I'm not diving into a stock market that's holding high values when I can't see the underpinnings for it "yet."

Good luck with your project, and Cheers

[gk10002000]

Another question. Should an elderly pensioner be in equities at all unless wealthy? In other words, should an elderly pensioner have money he can't afford to lose in equities?

That's a rhetorical question when not knowing the person's circumstances but it's worth thinking about.

Cheers

Some money should be in equities, the dividend paying kind. I for one own a lot of ATT, and a few other what I consider solid companies. Just holding stocks and hoping for capital gains however, is not something I would recommend for older folks. I definitely side with dividends, interest, bonds, bond funds, etc, as I get older. 58 now and have a decent sized portfolio that just keeps reinvesting the divvies and interest. I am not too concerned with the ups and downs since I still get paid and I earn double what I thought a comfortable retirement would cost and those earnings are compounding nicely as long as I live to the next month.

But if you are asking about equities in Thailand, I can't see justifying the risk of investing in much. I am in the USA and not living in Thailand, just visit there a lot. If I do spend more time there, possibly a condo that I might buy and live in, but nothing too exotic. And even then, I am leaning towards renting. Much better brokerage places (I use Etrade) and banks in the USA. Plus I hate the bother of the paperwork to hold any sizable assets out of the USA. Have to report the darn things.

My hats off to those that really did make the leap and bank and invest in Thailand. I came close to buying a small hotel and a nearby bar/room place back in 2009 when I was contemplating taking the plunge. But my contract work picked up like gangbusters and hasn't let up so I kept working here in the USA. I am happy with the way things went. Now I really can afford to retire and in 4 years I can start tacking on Social Security should I choose to. Sure I would have had some fun in Thailand, but I also know the odds of making a decent living and enjoying the place had I bought into some places. Lots of work and lots of risks. I am content with the several two month vacations I took each year. Can't wait to return. Sorry for being long winded. It has been an 11 hour day.

[AyG]

Another question. Should an elderly pensioner be in equities at all unless wealthy? In other words, should an elderly pensioner have money he can't afford to lose in equities?

The alternatives, though, are pretty grim. Keeping the money as cash means inevitably losing out against inflation. Bond markets have been so distorted by American policy that a significant fall in value is almost inevitable. They also have a very limited upside. Gold generates no income and no real underpinning to its value. Rental property is impractical.

The asset classes I think make sense for a retiree are equities, infrastructure, index linked bonds, and (but with less confidence) emerging markets bonds. Infrastructure and index linked bonds provide income with a measure of protection against inflation, whilst equities provide the potential for capital growth. EM bonds are somewhere between the two.

Given that people are living much longer than they used to, I think that equities have an important place in any retiree's portfolio, whether wealthy or not, albeit with a lot of diversification to reduce the downside risk.

[Robert24]

depends what you a call portfolio but if you include total assets (i.e. properties as well) then I would say 5% in Thai stocks is enough. And I wouldn't go beyond 25% for equities. I split my assets in property, equities, bonds, cash/money market and commodities (incl precious metals). Right now I'm 25% equities, 30% property, 5% bonds, 20% commodities, 20% cash.

[Robert24]

Another question. Should an elderly pensioner be in equities at all unless wealthy? In other words, should an elderly pensioner have money he can't afford to lose in equities?

The alternatives, though, are pretty grim. Keeping the money as cash means inevitably losing out against inflation. Bond markets have been so distorted by American policy that a significant fall in value is almost inevitable. They also have a very limited upside. Gold generates no income and no real underpinning to its value. Rental property is impractical.

The asset classes I think make sense for a retiree are equities, infrastructure, index linked bonds, and (but with less confidence) emerging markets bonds. Infrastructure and index linked bonds provide income with a measure of protection against inflation, whilst equities provide the potential for capital growth. EM bonds are somewhere between the two.

Given that people are living much longer than they used to, I think that equities have an important place in any retiree's portfolio, whether wealthy or not, albeit with a lot of diversification to reduce the downside risk.

agree with you that bond markets are expensive. I don't understand why you don't put any money in properties, nor commodities. In addition I certainly would advocate lightening up your portfolio in assets that are very expensive, i.e. equities and bonds and keep some cash. Cash allows you to buy when something becomes cheap. Also if you manage your cash well, you can still make some good money here, i.e. I'm long $, short Yen, short Euro and have done ok so far.

And don't forget commodities. Especially investments in agriculture can yield very good returns.

Recommend your investments to be a bit more diversified, this will help to reduce risk, protect the wealth which I consider especially important for an elderly person.

[AyG]

Another question. Should an elderly pensioner be in equities at all unless wealthy? In other words, should an elderly pensioner have money he can't afford to lose in equities?

The alternatives, though, are pretty grim. Keeping the money as cash means inevitably losing out against inflation. Bond markets have been so distorted by American policy that a significant fall in value is almost inevitable. They also have a very limited upside. Gold generates no income and no real underpinning to its value. Rental property is impractical.

The asset classes I think make sense for a retiree are equities, infrastructure, index linked bonds, and (but with less confidence) emerging markets bonds. Infrastructure and index linked bonds provide income with a measure of protection against inflation, whilst equities provide the potential for capital growth. EM bonds are somewhere between the two.

Given that people are living much longer than they used to, I think that equities have an important place in any retiree's portfolio, whether wealthy or not, albeit with a lot of diversification to reduce the downside risk.

agree with you that bond markets are expensive. I don't understand why you don't put any money in properties, nor commodities. In addition I certainly would advocate lightening up your portfolio in assets that are very expensive, i.e. equities and bonds and keep some cash. Cash allows you to buy when something becomes cheap. Also if you manage your cash well, you can still make some good money here, i.e. I'm long $, short Yen, short Euro and have done ok so far.

And don't forget commodities. Especially investments in agriculture can yield very good returns.

Recommend your investments to be a bit more diversified, this will help to reduce risk, protect the wealth which I consider especially important for an elderly person.

I personally do have a small allocation to physical property in the Asia-Pacific region. However, for the pensioner concerned I'm only recommending investments denominated in GBP to keep things simple. (I'm only involving myself in the initial portfolio construction, not in its longer term maintenance. It needs to be a "buy and hold" portfolio.) Also, whilst some offshore brokers do offer a range of funds, most of these are not denominated in GBP and I am not familiar with the fund managers so would not be confident making recommendations. In short, the portfolio is limited to investment trusts and ETFs traded on the London Stock Exchange.

With commodities I got badly burned with the Castlestone funds. If professional fund managers can't make remotely reasonable returns, then it's not an asset class for me. I now stick to the rule that if an asset doesn't generate income it can't be rationally valued, so I won't invest.

[KittenKong]

I own the condo I live in. I own my car. I have a few million Baht in the bank here which is my retirement extension deposit and living expenses money and a buffer in case of unexpected expenses.

Apart from that everything is outside of Thailand and nothing tempts me to bring it here.

Mentally I dont count any of my assets in Thailand as being part of my net worth. That way if they all get separated from me for some reason I wont feel any worse off.

[Estrada]

I invest 100% in Thai Stocks and have done for 20 years. I am a pensioner and I invested B6,000,000 in the Thai Stock Market in 2009 and have made B31,000,000 with my initial investment in the last 5 years. I invest in high dividend stocks with a 20% or more upside on valuation. BTS paid 7% in dividends in the past year and guarantees to pay 8% in 2015 to 2016. Other good stocks are Advance (AIS), TrueIF, and Intuch also paying 7-8% Dividend with 20% potential upside.

Edited May 28, 2015 by Estrada

[NUUM]

I invest 100% in Thai Stocks and have done for 20 years. I am a pensioner and I invested B6,000,000 in the Thai Stock Market in 2009 and have made B31,000,000 with my initial investment in the last 5 years. I invest in high dividend stocks with a 20% or more upside on valuation. BTS paid 7% in dividends in the past year and guarantees to pay 8% in 2015 to 2016. Other good stocks are Advance (AIS), TrueIF, and Intuch also paying 7-8% Dividend with 20% potential upside.

[whiteman]

Im 68 and have 7.2% in Thai shares 1 million bhat in the thai bank for my retirement visa a nice car and a home that I bought for my wife with a 30 year lease on it for 10 million bhat which I do not count as in my total assets.

The balance is in a very good defined benifit pension that is cpied every year. The rest is in ausy nz shares and term deposits 9 months rolling at 4.5% some spare nz cash and life insurance wol which I have had for agers.

My budget that I update often gives me a good life style and covers a good health but expensive health cover plan for me and my partner. So after all the monthly expensers you can name there covered I have 44,525 bhat left over per month that i can spend if need be. Or I can cash up my shares which I will not do. So again 7.2% in the SET for an older person my dad is still alive at 95. Hope this helps

[bazza40]

I invest 100% in Thai Stocks and have done for 20 years. I am a pensioner and I invested B6,000,000 in the Thai Stock Market in 2009 and have made B31,000,000 with my initial investment in the last 5 years. I invest in high dividend stocks with a 20% or more upside on valuation. BTS paid 7% in dividends in the past year and guarantees to pay 8% in 2015 to 2016. Other good stocks are Advance (AIS), TrueIF, and Intuch also paying 7-8% Dividend with 20% potential upside.

Are you an Australian? Do you draw an Age Pension? If so, I'm sure Centrelink would love to hear from you.

[khunPer]

You (OP) ask how much of the portfolio is invested in Thailand. In my case about 20% now – excluding property investment, visa-deposit and “rainy day” emergency account – but slowly moving more in when currency exchange rate is favorable, think it will end up being something like 50/50. I was skeptical in the beginning, but after nearly 10 years experience, beginning with a small amount, I find the Thai equity (bonds/shares/mutual funds) working fair and save enough.

If the money/dividend is going to be used Thai baht, it may be better to avoid currency risk and invest a major part in Thailand, if the elderly person in question expects to live the rest of life here.

[wowfactor10]

Would like to invest in a land plot of one rai with some house on it and then set up a small business in Thailand but cause of Thailand their un fair laws for foreigners i have decided not to invest one single BAHT here..

Shares and stocks in Thailand i could consider but i not expect its the right time to buy local stocks now due too thailand unstable political situation..

[dotpoom]

As a pensioner living in Thailand who has time for an "investment portfolio"?

Unless your "pension" is a lot bigger than mine, my entire "investment portfolio" is called "monthly living expenses".

You said it for me. While reading the OP I was taking a quick inventory of my friends (along with myself) and applying the question to them. I came to the conclusion that they did not have those "luxury" problems to worry about.

[JB300]

I find myself constructing a portfolio for an elderly person who lives in Thailand. When it comes to what percentage to allocate to Thailand equities, my head says 15%, but my heart says it's too much, too risky. For my own portfolio I have 5% in Thailand.

So, what percentage of your investment portfolio is invested in Thailand? And what percentage would be about right for pensioner here?

Why do you feel drawn to Thai Equities? If you want something in region then you could consider EM (Emerging Markets) funds (Aberdeen used to be very good in this space the last time I looked) or Equities in a neighboring (more "stable") country (e.g Singapore).

Ok so (most) Singapore equities don't meet your criteria of being listed on the LSE in GBP but the SGX is probably the next closest thing.

I agree with the poster who was reluctant to invest based on the political uncertainty but would recommend keeping a "Slush" (I call it "Punt") fund of cash for opportunities when things become clearer (and they will) as large gains can be made in a short period of time once the position does become clearer.

[NeverSure]

I invest 100% in Thai Stocks and have done for 20 years. I am a pensioner and I invested B6,000,000 in the Thai Stock Market in 2009 and have made B31,000,000 with my initial investment in the last 5 years. I invest in high dividend stocks with a 20% or more upside on valuation. BTS paid 7% in dividends in the past year and guarantees to pay 8% in 2015 to 2016. Other good stocks are Advance (AIS), TrueIF, and Intuch also paying 7-8% Dividend with 20% potential upside.

Capture.JPG

What something did in the past 5 years or even 20 years isn't any indication of what it will do in the future. Several years of a good run up could instead be signalling a correction.

One key element that brought the USA housing market down with a crash in 2007 was a belief by too many that "real estate always goes up." The more it went up the more people wanted some, right into a mindless buying frenzy. Buy low and sell high?

[thrilled]

0%. I spend money in Thailand.I don't need to invest in it.My investments are in the U.S.

[mrfaroukh]

0% do fine with me. I come and stay in Thailand few months at a time and about the total of 6 to 8 months. So before I come I send money for the few months ans when I live there still be some money left in my bank, and I live comfortably not on the low budget.

If you can not create more money from your money in your own country then it is a good idea to at least buy yourself a condo to avoid paying rent, but if your money generate more income than the rent you pay then keep it where it is.

For example if you can buy a condo in your own country, rent it out and with the income pay your rent in Thailand and may be you get little more even, then why to take the chance and invest in Thailand.

[smotherb]

Zero (0%), I spend money here; that is all.

[Dario]

100%. I only trade in the SET. I don't invest, I'm a daytrader. In and out every day. Mostly penny stocks. That's where the big money is. Took me 18 months to get to the point not to lose money anymore on average, but make profit constantly.

[Estrada]

I invest 100% in Thai Stocks and have done for 20 years. I am a pensioner and I invested B6,000,000 in the Thai Stock Market in 2009 and have made B31,000,000 with my initial investment in the last 5 years. I invest in high dividend stocks with a 20% or more upside on valuation. BTS paid 7% in dividends in the past year and guarantees to pay 8% in 2015 to 2016. Other good stocks are Advance (AIS), TrueIF, and Intuch also paying 7-8% Dividend with 20% potential upside.

Are you an Australian? Do you draw an Age Pension? If so, I'm sure Centrelink would love to hear from you.

I am British, I left the UK 21years ago and I am classed as non-resident for tax purposes by the Inland revenue. This is exactly the same for Australians ex-pats who are classed as non-resident for tax purposes. If you are non-resident then that does not affect the tax on your pension.

I opt not to claim back the 10% withholding tax on my dividends in Thailand so the Thai Inland Revenue does not require me to pay extra tax, no matter how much I earn in dividends. Secondly there is no capital gains tax in Thailand.

[regedit]

I am classed as non-resident for tax purposes by the Inland revenue.

I guess that is on UK income tax only. HMRC will go after your assets in Thailand for UK Inheritance Tax (and challenge any claims to non-dom status).

[AyG]

I am classed as non-resident for tax purposes by the Inland revenue.

I guess that is on UK income tax only. Also capital gains tax. HMRC will go after your assets in Thailand worldwide for UK Inheritance Tax (and challenge any claims to non-dom status).

[farangmick]

Given the expense of my wife and three children, my investment portfolio remains static at £10 in Premium Bonds bought in 1974 and yet to show any return.