Retiring with 16mn Baht

[whaleboneman]

7 hours ago, mcfish said:

Thats not how it usually ends up in LOS.Here is what will happen.

After a few years of mungering he will get bored hangin with whores.Next step is internet dating,relationship,she may have kids or she will pressure him,Boom...screaming baby and a family  plenty of 70 year old dads here that didnt see it coming...

Vasectomy?

[tomacht8]

Live over 20 years in Thailand.
Can live quite well from my rental houses in Europe and no longer had to work really.

But all day doing nothing?
Perhaps the first time, travel, beach, bars and girls.
But that can also become boring after a while.
In my first 2 years in Thailand (20 years ago) I have spent around 5 million baht on party, girls and travel.

16 million is a good basis.
But my advice would be that your friend might considering a part time job that he likes the way he can make and wants. Here maybe develop some activity/working ideas which brings some extra money alongside.

If no regular money coming in, and you only live from a capital stock, the beautiful life can be over quickly here. It depends then entirely on the spending discipline.
And Thailand can be very alluring for newcomers. Have already seen a lot of foreigners here who have come with pockets full of money, and after a time had with empty pockets to fly back home.

 

Edited August 15, 2016 by tomacht8

[EddieAnd]

7 hours 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.

I agree mate I've life ....

[Dene16]

14 hours ago, Peterw42 said:

Invest the money, shares, a uk rental property etc, a return of 6-8% would be around 1m baht a year. Dependent on lifestyle, its feasible.

 

 

 I totally agree with this. UK rental property is far the better idea to create a cash flow as i do this now but still have other funds. 

However i don't believe for one moment he will do this and only doom and gloom awaits him.

Maybe another suicide to read about in 5 years time.

2 years ago a good friend of mine (46) sold his house (divorce) and had 30k after settling debts. 3 trips to Thailand in 9 months and the money was no more.He was also earning good money on his return to UK each time.

Only those in there latter years have any chance of this working as i also know people who have done it (on this sum), but without an extravagant lifestyle 

Also he would need to take into consideration that tax would need to be paid on the rental in the UK but 6-8% is still valid after this. 

He could get 2 buy to let properties (depending on location) with 70% or less mortgages which will still leave him cash to spend initially.

This would give him safety options when he realises he cannot control his spending.

There are many options for safeguarding but many people ignore them and fall into the curse of Thailand

 

[EddieAnd]

5 hours ago, Johnniey said:

That makes sense if you want to die a rich man 

better to die a poor man and to have spent it wisely...

[EddieAnd]

4 hours ago, sezze said:

 

 

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

there is no way you'll get that return from any bank....all the banks and I mean ALL are basically insolvent anyway......they are all part of a giant global ponzie scheme paying dividends to shareholders out of others investments or by borrowing from other banks. The world financial system is worse now than the GFC ... get all your money out of the bank ... buy gold and property....Gold is pretty liquid here in Thailand. At least you have something tangible....Bank accounts are only a series of numbers on a screen. The fact that the bank you are depositing with is insolvent means that your money is well and truly at risk.....

[55Jay]

6 minutes ago, EddieAnd said:

better to die a poor man and to have spent it wisely...

"I spent half my money on gambling, alcohol and wild women.   The other half I wasted".

~ W.C. Fields.

 

 

[EddieAnd]

18 minutes ago, Dene16 said:

 

 I totally agree with this. UK rental property is far the better idea to create a cash flow as i do this now but still have other funds. 

However i don't believe for one moment he will do this and only doom and gloom awaits him.

Maybe another suicide to read about in 5 years time.

2 years ago a good friend of mine (46) sold his house (divorce) and had 30k after settling debts. 3 trips to Thailand in 9 months and the money was no more.He was also earning good money on his return to UK each time.

Only those in there latter years have any chance of this working as i also know people who have done it (on this sum), but without an extravagant lifestyle 

Also he would need to take into consideration that tax would need to be paid on the rental in the UK but 6-8% is still valid after this. 

He could get 2 buy to let properties (depending on location) with 70% or less mortgages which will still leave him cash to spend initially.

This would give him safety options when he realises he cannot control his spending.

There are many options for safeguarding but many people ignore them and fall into the curse of Thailand

 

 

[slipperylobster]

Best he could do is invest that in his home country, on property that might produce monthly income while retaining at least the original value.  (rent it out and sell at a profit in 10 years).  He could then live here, using the rental income.  It would have to generate at least the equivalent of 75 thousand baht a month. (That is flexible, depending on the quality of life he wants to lead).  I would not buy a home here, as he may have to travel back to the homeland, if the house were to be empty. 

 

The whole idea is...invest the principal and hope it generates income.   

 

 

 

 

Edited August 15, 2016 by slipperylobster

[Dene16]

1 hour ago, EddieAnd said:

 

 

If you are referring to the value of property in central London then 'Yes' my figures are way out of context. But what rule states you have to buy in London, although the returns can be much higher.

i lived on the outskirts of London for 4 years and although still expensive are a fraction of the cost (still too expensive i have to admit)

I'm sure many on here wish (jealous even) they could have your care free outlook on life. Nothing wrong with that as long you have a good head on your shoulders if things go wrong.

please don't make me watch 20 minutes of irrelevant material again i nearly fell asleep

 

[Estrada]

20 hours ago, MikeyIdea said:

I have my investments with Broadgate Advisory Group, part of deVere Group. British of course, very professional, office in Exchange Tower Sukhumvit

 

Far from 16 million though

 

Investments should be left to professionals, it's bad times out there now but still, average returns over a 10 year period should be 5%. Better than 7-8% and ouppps, half gone

Steer well clear of Broadgate  and deVere and just do your due diligence via the internet for scam artists i.e. "deVere Scams, Scandals, boiler rooms etc". Idiot rang me from Broadgate last week and gave me the same BS as you. I told him that I make my own investments on the Thai Stock exchange and had made 468% in 10 years and he kept insisting that you couldn't make more than 10% or average of 5% over 10 years. However, you sound like a Broadgate financial advisor looking for another sucker. It is easy to make at least 20% a year on B16Million invested in one of the few trustworthy Thai Companies.

 

Your professional advisors is telling you that it is bad times out there whilst pocketing the substantial profits that a professional investor can make and feeding you with scraps.

[JB300]

Buy a bar... [Joke]!!!

 

IMHO 16Million is not enough to retire at 50 without any other income streams but is a decent amount of money for your friend to use to set himself up for retirement over the next 3-5 years.

 

What does he do for a living? Can he do it for himself? If he's really feel up of working can he switch to part time?

 

 

[Estrada]

17 hours ago, Oxx said:

 

I don't believe that is true.  As far as I can tell (and despite rumours that it has) deVere hasn't even been the subject of an SEC Investor Alert.  (You can search at http://market.sec.or.th/public/idisc/en/InvestorAlert - I found nothing relevant there.)

That is because deVere was trading as an unlicensed broker and there were many complaints against this group. If you search for licensed companies you will find that they were operating under Broadgate Financial which was registered by them in 2012 with the SEC. http://market.sec.or.th/public/idisc/en/companyprofile/Intermediaries/0000007756

However the SEC web site says that it is now not operating since 16/3/2016.

[Oxx]

49 minutes ago, Estrada said:

That is because deVere was trading as an unlicensed broker and there were many complaints against this group. If you search for licensed companies you will find that they were operating under Broadgate Financial which was registered by them in 2012 with the SEC. http://market.sec.or.th/public/idisc/en/companyprofile/Intermediaries/0000007756

However the SEC web site says that it is now not operating since 16/3/2016.

 

Sorry, that's irrelevant.  I was responding to:

 

  18 hours ago, Agent Sumo said:

 

Is this the same deVere Group recently sanctioned by the Thai SEC?

 

There is no evidence that I can find that deVere was ever sanctioned by the SEC here, or even had an SEC alert issued about them.

 

Indeed, the fact that Broadgate was registered with the SEC from 2012, with the main shareholder listed as "DeVere Group" would suggest that the SEC didn't have any concerns about them.

 

[Agent Sumo]

16 hours ago, Mansell said:

The smartest thing to do with real money is property wherever you live.....everything else does not appreciate steadily in the long run.

 

LOL!

Tell that to investors in stocks & bonds.

Why spend the £355,000 on a shoebox when he'll be competing with every other late arrival to rent out.

What happens in periods when he has no tenant. Buying in at the top of a market cycle is a mug's game and while no one can say with any accuracy when the UK market will crash, it's reasonable to assume that it's nearer downturn than it is an upturn.

[Agent Sumo]

8 hours ago, Dene16 said:

 

 I totally agree with this. UK rental property is far the better idea to create a cash flow as i do this now but still have other funds. 

However i don't believe for one moment he will do this and only doom and gloom awaits him.

Maybe another suicide to read about in 5 years time.

2 years ago a good friend of mine (46) sold his house (divorce) and had 30k after settling debts. 3 trips to Thailand in 9 months and the money was no more.He was also earning good money on his return to UK each time.

Only those in there latter years have any chance of this working as i also know people who have done it (on this sum), but without an extravagant lifestyle 

Also he would need to take into consideration that tax would need to be paid on the rental in the UK but 6-8% is still valid after this. 

He could get 2 buy to let properties (depending on location) with 70% or less mortgages which will still leave him cash to spend initially.

This would give him safety options when he realises he cannot control his spending.

There are many options for safeguarding but many people ignore them and fall into the curse of Thailand

 

 

You're assuming interest rates on the 70% mortgages will always remain low and you're not taking the new rules governing buy-to-let that are already taking steam out of the market.

 

I remember the housing market crash of the late 80s in the UK when negative equity was rife. People took out mortgages on overpriced shoeboxes only to see their valuations collapse by 40 or 50%. Rates rose so they were hit with a double whammy - higher debt costs and lower valuations.

 

People just walked into the banks and building societies and handed back the keys.

 

I realise the central bank is doing everything it can to prop up the housing market in the UK but we're fast approaching the stage where the bubble can't get any bigger

[jacko45k]

I think it is enough if he has pensions kicking in at 66, but remember he will perhaps have to continue paying his monthly stamp to get the full state pension. 60 quid a month. It also depends on whether he breaks all ties to UK, maintaining a home there and a trip or two a year is a lot of money. He also just took a hit on the exchange rate after Brexit. Only small interest is avaialble to him and frankly negligible.

 

If he can live cheaply, rent not buy, doesn't need a car or truck, he can do it. The issue will be a partner with demands, a sick buffalo and sweet talking ways.

[Dagnabbit]

On 8/15/2016 at 0:22 AM, MikeyIdea said:

I have my investments with Broadgate Advisory Group, part of deVere Group. British of course, very professional, office in Exchange Tower Sukhumvit

 

Far from 16 million though

 

Investments should be left to professionals, it's bad times out there now but still, average returns over a 10 year period should be 5%. Better than 7-8% and ouppps, half gone

 

Hmmm.....

 

Broadgate and all of their ilk employ people on zero salary and pay them on commission only basis.

 

So their investment recommendations are made entirely based on what earns the salesman the most commission. 

 

I would steer well clear of these people in Bangkok. You would be shocked to know how much that sales man is making from you. In effect, they are investing 90% of your money, so you have a massive loss to make up on the investment. So longer term. they perform poorly.

 

[2008bangkok]

If you friend like to spend on beer and ladies then 100k a month is what he needs, if he is frugal with limited beer and ladies then 60k is enough. 

He could always supplement his income by doing teaching work, if he lived up top end of suk ie phra khanong or On nut then 10k will get a 1 bed place, 5k will get a studio.

[DrDave]

The only person who knows whether 16 million baht will be enough to retire on at age 50, is your friend. Only he knows the lifestyle he's expecting to live.

 

I would suggest that your friend take the time to do the same kind of research and due diligence that any responsible person would do when making any sort of important financial decision.  For many,  the biggest budget impact is housing. He should first search the web looking for locations that suit him, and get an idea of rental rates in that area.

 

Settling in on a budget for rent, then the monthly budget needs to be fleshed out for all other anticipated expenses. Unless he goes through this exercise, he might be surprised by all of the expenses he might not have considered. I'd suggest he estimates his monthly costs for the following bare minimum expenses:

- Rent

- Food (eating out)

- Groceries and Supplies

- Entertainment

- Transport (motorbike purchase/rental, taxi, petrol, etc)

- Utilities (Electric, Water, Cable TV, Internet)

- Cell Phone

- Insurance (Health)

- Furnishings (household, clothing, etc)

- Travel

 

He'd also be wise to budget a little something each month for local savings.

 

Most financial planners use a rule of thumb of 3-4% of savings as a reasonable annual savings draw for retirement, allowing for an income stream lasting 25-30 years or so, assuming an incremental increase to the annual draw, as well as a modest 3% or so of earnings on the balance. So in this case, starting with an equivalent of 16 million baht, a reasonable draw would be around 45,000 baht per month with a small increase (2-3%) per year. This of course assumes that his savings balance is earning 3% or so for the remainder of his life.

 

After comparing his proposed monthly budget to his proposed monthly draw, he needs to determine if he'll have enough money left over for any extra or unplanned expenses (think about medical expenses, major purchases, rent increases, emergency trips back home, and so on).

[Johnniey]

4 hours ago, Oxx said:

 

Sorry, that's irrelevant.  I was responding to:

 

 

Is this the same deVere Group recently sanctioned by the Thai SEC?

 

There is no evidence that I can find that deVere was ever sanctioned by the SEC here, or even had an SEC alert issued about them.

 

Indeed, the fact that Broadgate was registered with the SEC from 2012, with the main shareholder listed as "DeVere Group" would suggest that the SEC didn't have any concerns about them.

 

 

Run a mile from these crooks

 

http://www.scmp.com/business/companies/article/1804094/devere-group-has-licence-suspended-following-probe

 

http://www.fsa.go.jp/en/refer/cold/index.html

 

http://www.ftadviser.com/2015/07/14/ifa-industry/companies-and-people/devere-conduct-brought-into-question-overseas-ioZFpW6TbCbA41LM9M1jnK/article.html

[Agent Sumo]

If I was the poster who said he was invested with Broadgate/DeVere, I'd be giving them a ring and asking for a portfolio valuation on the double.

 

If he's ahead or break-even, he should head for the exits.

 

These people are only a notch or two above the boiler rooms

Edited August 16, 2016 by Agent Sumo

[PomRakBKK]

16m baht? 2 years tops if he keeps it together. 

[DUS]

3 minutes ago, PomRakBKK said:

16m baht? 2 years tops if he keeps it together. 

 

 

LOL

[Agent Sumo]

2 minutes ago, PomRakBKK said:

16m baht? 2 years tops if he keeps it together. 

 

16 million, not 1.6 million

[Scotwight]

Sure 16 is OK.  Get a job here.  No reason to buy a condo - rents are cheap and no reason to buy a car mass transportation is good and not having those two things eliminates 66% of your problems in Thailand.  Find an educated age appropriate (minus 10 years East to West cultural difference) woman with a good job.  To do this you will need a job and language facility in Thai.  I got around the health insurance thing because (lucky situation) but that will always be a problem for older underfunded gentlemen.  This is not a place you want to be alone and a stroke (or whatever) or serious injury victim.   

[PomRakBKK]

25 minutes ago, Agent Sumo said:

 

16 million, not 1.6 million

 

Yes, I can read thank you. 

 

16 milion / 24 = about 666,000 baht a month which is not THAT much.. that is hardly $20k USD/month. 

Good luck living on that for more than a few years.. but lets not start the old thai visa bs, who earns more and what not. I am just saying I couldn't live on that longer than 2 years. 

Edited August 16, 2016 by PomRakBKK

[rsokolowski]

Why would you move to an exotic foreign country and then stay in the most expensive areas isolated with other expats? If you cannot live in Thailand on a fraction of that $20,000 per month you are in my opinion someone that will soon be parted from his money.

[robertson468]

If he has 16 mil to retire on I would suggest he buys 4 or 5 properties.  I did a similar thing 11 years ago and have a return on investment of 12%, which knocks the hell out of any investment/bank investment.  But he needs to know what he is doing and do a business plan, find a reputable construction company and know how to run his properties.  This gives me a little bit of work to do daily in managing the estate and running the bookings.  There are several good international websites for holiday rentals that would keep him pretty full throughout the year.  Plus, if he is getting it right, he will start to accumulate returning business - we are now on about 60% returning business per annum.  He may not achieve 12% at the off, but over the years he can creep his prices up, assuming his customers like what he provides, but should look at a minimum of 8% ROI.  Remember the three key phrases: Location, Location, Location.

[Agent Sumo]

16 minutes ago, PomRakBKK said:

 

Yes, I can read thank you. 

 

16 milion / 24 = about 666,000 baht a month which is not THAT much.. that is hardly $20k USD/month. 

Good luck living on that for more than a few years.. but lets not start the old thai visa bs, who earns more and what not. I am just saying I couldn't live on that longer than 2 years. 

 

Yeah whatever, mate