Retiring with 16mn Baht

[1FinickyOne]

I would have more questions than answers... he is 50 which is a nice time to retire - he inherited 16mm baht, but has he saved anything to add to that? It really is going to be a balancing act of several factors, investments & frugality will be the largest factors... not knowing his habits, if he is going to come here feeling rich, the money will likely be gone in short order... if he is going to do this smart, then he can make it work.... of course, the biggest variable will be how long he lives and how his health holds up along the way... 

 

if he has no savings to add to the inheritance, it does not sound like he has been clever with his money so far...  I would not expect that to change. 

[Johnniey]

24 minutes ago, chiang mai said:

 

Somebody who earns 12 million baht a year will almost certainly spend over 1.2 million baht a year so you seem to be making the story up as you go along. Please stop that or we wont talk any more!

 

As for why or how a person could see their net worth reduced by 16 million over 13 years: think currency exchange rates versus fixed term investments versus the Lehmans financial crisis of 2008.

 

Of course he did, you missed the obvious point. He lived like a superstar. 1.2 million a year is a lot to live with just a normal car, house/condo.

I don't give a t*** if you speak to me or not. Call me a liar again and I will  block you, how rude. 

 

Edited August 15, 2016 by Johnniey

[NancyL]

Anyone who has reached age 50 and hasn't saved some money for retirement probably doesn't have the disciple to make an inheritance last for the rest of his life.  There's a good chance he'll come here and meet up with an Issan maiden who will have some great ideas of how to spend that money.  A home on her family farm and a business that she'll convince him will be a source of income.  Yeah, right that's just the ticket.

[Berty100]

49 minutes ago, Johnniey said:

Or he might be bored shitless and die in 9 years.

I cam to Thailand on Aug 10, 1985 with 1000 BGP. I spent it in 2 weeks and had to get a job. I'm still here.

 

Get on that plane mate, there is SO much one could do with 12 million baht. I wouldn't listen to the rich guys here. Time for Naam to come in and tell us that's how much he gives his gardener, butler and maid in a couple of years.

 

 

You spent in Thailand  1000 GBP in 2 weeks in 1985?

 

Guess you bought a house then.

[chiang mai]

17 minutes ago, Johnniey said:

Of course he did, you missed the obvious point. He lived like a superstar. 1.2 million a year is a lot to live with just a normal car, house/condo.

I don't give a t*** if you speak to me or not. Call me a liar again and I will  block you, how rude. 

 

So the following from YOUR post 88 above is not true:

 

"I had a mate who earned 12 million a year and even with cars a speedboat and a <deleted> airplane he couldn't spend that much"?

[Johnniey]

14 minutes ago, Berty100 said:

 

 

You spent in Thailand  1000 GBP in 2 weeks in 1985?

 

Guess you bought a house then.

That was only about 2500 baht a day! Mind you hotels and everything else were cheaper then. I had a great time!

Edited August 15, 2016 by Johnniey

[Johnniey]

5 minutes ago, chiang mai said:

So the following from YOUR post 88 above is not true:

 

"I had a mate who earned 12 million a year and even with cars a speedboat and a <deleted> airplane he couldn't spend that much"?

No it's perfectly true.

 

I assume your are not a native English speaker.

[chiang mai]

1 minute ago, Johnniey said:

No it's perfectly true.

 

I assume your are not a native English speaker.

 

Goodbye!

[fiddlehead]

Read through the 1st 2 pages only. 
Everybody talking about money. 
No one talking about his time. 
What's he gonna do with his time? 
 

He's got to have some hobbies. 
How he spends his time will determine if he is to be successful in this endeavor. 

 

Maybe he likes music?   Art?  Photography?  Yachting?  Kite surfing?  Swimming?  Cooking? 
Maybe he could immerse himself into his hobby until he gets good enough to start a business, or teach, or go to trade shows. 
I'd have to meet the guy but the world is full of opportunities. 
Much more so to those who have some money to spend on their hobbies. 

 

Life isn't just about trying to make your savings last until you die. 
It's about living it doing something you enjoy. 

 

[Naam]

1 hour ago, bazza40 said:

It's possible; however, he would have to generate income while waiting for a UK pension to preserve capital. Fairly difficult in these times as savers are being dudded in favour of debtors.

 

The worst thing he could possibly do is bring the 16 million baht to Thailand. His best course of action is to invest 80 - 90% of his funds in the UK for income, and only bring 10-20% here.

 

Retiring at 50 is a rather drastic step. I found it difficult to come to terms with retiring at 70.

 

 

 

i retired 27 years ago and regret not having taken that drastic positive step six years earlier at age 40 

[cadle1]

Yes Hi .. I would say 16 mil bht was easy enough if you live within your means if you like the girls well they are going to burn your money. Rent not buy good idea.. Pattaya and Bkk are going to be more expensive....

[up-country_sinclair]

IF the OP's friend is a reasonable and responsible person, 16 million baht is probably enough to come to Thailand for the remainder of his days.  At 4% interest that's 53,000 baht per month.   But there are some things he's going to need to do for it to be a smooth transition.

 

I would advise that he take one of those TEFL courses so he can supplement his monthly budget.  My understanding is that 30,000 baht is essentially the minimum salary for foreign English teachers, so that brings him to 83,000 per month.  I have no idea if he wants to be an English teacher, but having nothing to do all day at 50 (in Bangkok!) is a recipe for disaster.  He could teach for a year or so to see if he likes it.  Actually this brings up a more important point.  He should definitely live in Bangkok for at least a year before he even considers buying a condo.  I can't even imagine how much he would lose if he tried to sell a condo a year later if he realized Bangkok wasn't a good fit for him.

 

I would advise that he stick faithfully to that 83,000 baht budget and do his best to find a woman who has a job outside of the "entertainment" industry.  Perhaps a teacher at his school or the sister of a teacher at his school?  Anyway, he should aim for a woman with older children;  because the last thing he can afford on his budget is young dependents that need essentials and want iPads.  Since he's 50 years old,  he should try to find someone age appropriate, and a Thai woman over 40 is likely to have older kids.  Yes, this might be difficult for him to find a woman like this, but it is definitely do-able.  If he were lucky enough to find a good woman who make north of 25,000 per month, they would be able to live a comfortable life together.

 

No, it's not going to be easy.   But it can be done.  

 

 

 

Edited August 15, 2016 by up-country_sinclair

[Naam]

2 hours ago, ThaiPauly said:

I Retired in Thailand at 49, I am still here, but I came with a lot more than 16m, I have already spent more than that in 13 years here

 

important is not the amount you had or how much you spent. important is that today you still have more money than 13 years ago.

 

the latter would indicate that you handled your finances wisely 

[Chivas]

1 hour ago, Johnniey said:

The bread heads have arrived and like to boast about how much they need.

 

Personally, with 4 kids, one at Uni in the UK, I need slightly more than 100k a month but when the last kid is finished in a couple of years, house paid for, I could live well on 50k a month. That includes holidays abroad.

 

You need to read what I wrote a little more closely...........

[Naam]

Quote

...bring it all to Thailand....no.....

 

..place some of it and get a return....
 

...I heard there was a verified Trade Program backed by The Banks...and Legal...that offers 50-75% Returns per year....

 

...but the minimum is $250,000......(8649875.00 Thai Baht)

 

[Johnniey]

27 minutes ago, Naam said:

 

important is not the amount you had or how much you spent. important is that today you still have more money than 13 years ago.

 

the latter would indicate that you handled your finances wisely 

That makes sense if you want to die a rich man 

[Berty100]

52 minutes ago, Naam said:

 

i retired 27 years ago and regret not having taken that drastic positive step six years earlier at age 40 

 

We have retired the same year then,  only difference is that I was only 32.

[Naam]

Quote

Naam said:

important is not the amount you had or how much you spent. important is that today you still have more money than 13 years ago.

 

the latter would indicate that you handled your finances wisely 

2 minutes ago, Johnniey said:

That makes sense if you want to die a rich man 

 

there's nothing wrong dieing rich or well-off if you could afford and spent when alive whatever money was required on all the goodies you liked.

let the heirs celebrate!

[Johnniey]

Just now, Naam said:

 

there's nothing wrong dieing rich or well-off if you could afford and spent when alive whatever money was required on all the goodies you liked.

let the heirs celebrate!

Lucky heirs! Very selfless!

[Naam]

4 minutes ago, Berty100 said:

 

We have retired the same year then,  only difference is that I was only 32.

 

at 32 i just started to make "real" money. left university (sponsored by the army) and had my first civilian job at 29.

[4MyEgo]

3 hours ago, Mansell said:

I find this conversation very amusing. If I had that kind of money I would have been here years ago, and probably most people on here. The comment about going a few blocks to save a few baht is right on the money. If the guy is an idiot the money will be gone quickly whether he stays in London (which is very expensive) or if he comes here. Look at all the lottery winners with millions of pounds who blew it all in a few years. The average person doesn't have a clue how to handle real money, and that is why there are so many investment advisors thriving. The smartest thing to do with real money is property wherever you live.....everything else does not appreciate steadily in the long run.

 

The one thing you may have overlooked is, what are the tax implications for owning property as a non-resident, further to this would capital gains tax at 100% be payable, the case in Australia is 32.5 cents in every dollar you earn is taxed up to $80,000, and any capital gains made on the property is kissed good buy as the government takes it, so property might not be as good as you think as that would leave him with 67.5 cents in the dollar, then you have to take out the associated costs to keep the property, such as council rates, water rates, insurance on the property, landlord insurance against the tenant forfeiting/damaging, agents rental commission, releasing fees, and last but not least, vacancy factor.

 

I did the math, its about 50% so the math don't work, trust me I sold up and split the proceeds into term deposits and shares providing fully franked dividends, blue chip bank stock of course, depending on how that goes, might increase the shares in a year.

[louse1953]

10 hours ago, ezzra said:

 

Get a local GF or a missus and most of that money gone not before long,

not sure what  your friend marital status, but this is one of the biggest mistake

novices to this county fall for....

That may have happened to you but some of us have a missus who works.

[louse1953]

1 hour ago, up-country_sinclair said:

IF the OP's friend is a reasonable and responsible person, 16 million baht is probably enough to come to Thailand for the remainder of his days.  At 4% interest that's 53,000 baht per month.   But there are some things he's going to need to do for it to be a smooth transition.

 

I would advise that he take one of those TEFL courses so he can supplement his monthly budget.  My understanding is that 30,000 baht is essentially the minimum salary for foreign English teachers, so that brings him to 83,000 per month.  I have no idea if he wants to be an English teacher, but having nothing to do all day at 50 (in Bangkok!) is a recipe for disaster.  He could teach for a year or so to see if he likes it.  Actually this brings up a more important point.  He should definitely live in Bangkok for at least a year before he even considers buying a condo.  I can't even imagine how much he would lose if he tried to sell a condo a year later if he realized Bangkok wasn't a good fit for him.

 

I would advise that he stick faithfully to that 83,000 baht budget and do his best to find a woman who has a job outside of the "entertainment" industry.  Perhaps a teacher at his school or the sister of a teacher at his school?  Anyway, he should aim for a woman with older children;  because the last thing he can afford on his budget is young dependents that need essentials and want iPads.  Since he's 50 years old,  he should try to find someone age appropriate, and a Thai woman over 40 is likely to have older kids.  Yes, this might be difficult for him to find a woman like this, but it is definitely do-able.  If he were lucky enough to find a good woman who make north of 25,000 per month, they would be able to live a comfortable life together.

 

No, it's not going to be easy.   But it can be done.  

 

 

 

Bloody hell,you have got a job for him and a wife already.Let the poor bastard smell the roses 1st.

[Spaniel]

My advice concerning investing his windfall, keep as far away as possible from any expat in Thailand selling investment products.

Edited August 15, 2016 by Spaniel

[Testacall]

just curious... so you have amassed approximately $500,000 and you feel a need to come onto an open forum to ask advise ???  What would you have done a few years back without the Internet ???  Just curious

[smotherb]

1 hour ago, Naam said:

 

important is not the amount you had or how much you spent. important is that today you still have more money than 13 years ago.

 

the latter would indicate that you handled your finances wisely 

Yeah, he could simply invest in mutual funds--even at minimum risk he would make about 5% or 2k/mo, but can you live on B68k/mo?

 

Or he could just go to Cambodia and suck'em down

[sezze]

I'd say , at his age not enough . How many experience does he have in Thailand . 1 or 2 holidays a year for 5 years orso , is not enough by a huuuuge margin . Speaking the language and been going to Thailand for 25 years , i'd say enough and go for it .

Basiccally , there is no clear answer depending on experience , expectation , general knowladge , etc etc

My answer :

take a 1 year of for starters and do the thing you want to do in Thailand . If after 1 year you can live in your margins placed and you still like it , go for it . Being on a holiday , and living here are 2 big differences, especially money wise but also how the people ( and yes i mean Thai people ) see you .

[sezze]

Quote

...bring it all to Thailand....no.....

 

..place some of it and get a return....
 

...I heard there was a verified Trade Program backed by The Banks...and Legal...that offers 50-75% Returns per year....

 

...but the minimum is $250,000......(8649875.00 Thai Baht)

 

 

I heard there is a pot of gold stached at the end of the rainbow . That is a huge return , for minimal investment ....

[Global Guy]

If you just want to live off the money without investing it, it will last half as long as he predicts.

 

But if he wants to invest the money and do business online, then if he's smart, he can do it. There are many opportunities to be a digital nomad and do well. It's what I do. I invest in anywhere between 8-10 different asset classes at any one time. I don't do the "look at me, I live in a foreign country" type of blogs or anything like that either.

 

But he should be able to invest in some rental property before he moves here and have someone manage it for him. He can invest in p2p lending, real estate crowdfunding, long-term dividend stocks, ecommerce drop shipping, online auctions sites (ebay), angel investing (private equity), cryptocurrencies, purchase entertainment royalty contracts, energy contracts, and more. I currently or have done almost all of these and once you get a good stream of passive income, you set a monthly budget and live within it. And get some good health insurance to guard against any medical catastrophes out of your control. I retired early and spend my time monitoring and doing new investments. I also do some short term trading-3-6 month time frames (not day trading).

 

As long as you don't spend like a Westerner and adapt to the Thai economy, you can do well.

[ableguy]

11 hours ago, 55Jay said:

I would advise him to calm down, get some perspective and ideally, invest it wisely and keep working while he thinks this through a bit more.  

 

Does he have a house or other high value asset he would sell up or rent out?   With interest/dividends from the principle amount and potential rental income or, in the case of outright sale, that cash added to the principle amount to generate more passive income, that would provide a bit more breathing room and piece of mind.  Next boost down the road would be qualifying for a state pension to buffer reliance on the income producing assets.   I rather like the idea of keeping the house initially (if he's got one) and renting it out.  He could get here and later decide Thailand's not a good fit for him long term. 

 

Probably not what he wants to hear, but that's often the case when advice runs counter to emotions. 

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