Retiring with 16mn Baht

[Scotwight]

17 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. 

Just a guess but I'd say that most of the falang who live in Thailand from the West live on 666,000 per year.  The retirement amount required from immigration is 800,000 and 400,000 for marriage.  

Airline Pilot average salary	PPP $ 3,335	$ 1,064	Men employees, 2005.	48,036	bahts	11%	39.0
General Physicianaverage salary	PPP $ 2,936	$ 937	Men employees, 2005. Women make 25,130 bahts per month.	41,358	bahts	9%	52.0
Engineer average salary	PPP $ 2,369	$ 756	Chemical engineer. Men employees, 2005. Women make 30,000 bahts per month.	32,655	bahts	7%	48.0
Dentist average salary	PPP $ 2,273	$ 725	Men employees, 2005. Women make 35,300 bahts per month.	31,325	bahts	7%	42.0
Accountant average salary	PPP $ 1,948	$ 621	Men employees, 2005. Women make 21,113 bahts per month.	26,562	bahts

http://www.worldsalaries.org/thailand.shtml

Edited August 16, 2016 by Scotwight
add link

[Dene16]

3 hours ago, Agent Sumo said:

 

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

 

Sorry sumo i meant that he used at least 60 or 70% capital and yes i am assuming low interest rates as until the UK reduces it;s debt raising interest rates will in effect bankrupt us as a nation. The only reason they have been low is because it would be suicide to raise them.

 

i remember the 80's well also because i was one of those people living in a shoe box. It still enrages me  as i had never ever missed a payment but when i wanted to rent it out no one would give me a mortgage or time of day. everyone wanted their pound of flesh. I had to pay an extra £100 over and above the mortgage to rent it. (but still the best thing i ever did)

 

House prices are likely to stagnate or even drop (i won't hold my breath) but nothing will affect him as he would have no need or inclination to sell.

 

To be honest the new rules governing buy-to-let are not going to stop anything ( maybe slow) but will have a big effect on landlords with large portfolios claiming tax relief on all their mortgages. The steam that you claim is more down to Brexit uncertainty rather than the rule changes. In fact these rules could end up forcing up rents.

 

If the housing market burst it certainly would not be big as i always rate affordability with average wages in relation to property prices and this still has a long way to go (London aside)

 

Bottom line is very few people have ever regretted buying into the housing market and he could also take further sums out when the price increases ( and they will, quite considerably, even if we are talking 10 years) but as someone stated ensure you vet your tenants well.

 

 

[55Jay]

22 hours ago, 4MyEgo said:

 

When you have had enough, enough is enough, I bailed at 55 and will never return to the working rat race, although you give some good advise, but everyone has a breaking point.

<snip>

Of course, we don't know that much about the guy but it's not unheard of for people to go a little bonkers if they come into a financial windfall.  This guy's savings and the inheritance total 16m Baht.  Perhaps this is the most money he's ever had, or dreamed of having, all at one time, and that can be intoxicating and lead to poor decisions.  All I, others and even the OP, are suggesting is he sit tight, let the, "OMG I'm rich!!!" moment pass, then approach this rationally.

[evilebxxx]

On ‎8‎/‎15‎/‎2016 at 4:47 PM, uptoyoumyfriend said:

i live in chiang mai ,my house has two floors and a garden-1.5 mio. monthly fixed costs about 2000.-.

motorbike was 40.000. after that it is basically groceries and drinks.clothes are also real cheap at markets and malls.

girls are another story but otherwise i would never spend 1000 daily.some days yes .

the guy just needs to budget himself at around 400.000 a year and stick to it.

I reside alone on a dead end small soi in the outskirt at Udon Thani, own house and land 225 talang wah thru proxy person for the past 22 years.

Total monthly expender is 10,000 baht, cable TV, internet, air running 24/7, skipping at Big C once a week and are very good friends with the people living in rest of the 8 houses here. .

[chiang mai]

4 minutes ago, evilebxxx said:

I reside alone on a dead end small soi in the outskirt at Udon Thani, own house and land 225 talang wah thru proxy person for the past 22 years.

Total monthly expender is 10,000 baht, cable TV, internet, air running 24/7, skipping at Big C once a week and are very good friends with the people living in rest of the 8 houses here. .

 

You are very very much the exception: the cost of air con alone, 24/7 would run to 5k, unless you have solar, in which case maybe 3k; TV/Internet if black market, say 500/month, grow your own, no entertainment other than neighbours, it's dooable but a spartan life, each to their own.

[evilebxxx]

53 minutes ago, chiang mai said:

 

You are very very much the exception: the cost of air con alone, 24/7 would run to 5k, unless you have solar, in which case maybe 3k; TV/Internet if black market, say 500/month, grow your own, no entertainment other than neighbours, it's dooable but a spartan life, each to their own.

Actually I do have 3 aircon, only at living room is couple of Hitachi floor fans, AIS 700 baht/month my HS internet provider, HOME CABLE 80 channels is the provider 300 baht/month, swimming pool, 2 guest rooms, have around 8 good  Thai friends, don’t drink, of course Hua Hin and Bangkok is extra.

[chiang mai]

12 minutes ago, evilebxxx said:

Actually I do have 3 aircon, only at living room is couple of Hitachi floor fans, AIS 700 baht/month my HS internet provider, HOME CABLE 80 channels is the provider 300 baht/month, swimming pool, 2 guest rooms, have around 8 good  Thai friends, don’t drink, of course Hua Hin and Bangkok is extra.

 

So your figure of 10k a month is really, if annualized, totally misleading! I thought so but wanted to give you the benefit of the doubt, sadly.

[Witblitz]

4 hours ago, evilebxxx said:

I reside alone on a dead end small soi in the outskirt at Udon Thani, own house and land 225 talang wah thru proxy person for the past 22 years.

Total monthly expender is 10,000 baht, cable TV, internet, air running 24/7, skipping at Big C once a week and are very good friends with the people living in rest of the 8 houses here. .

And what about amounts needed for visas/extensions ?

What about costs for medical insurance ?

What about transport costs ? 

[Johnniey]

4 hours ago, chiang mai said:

 

You are very very much the exception: the cost of air con alone, 24/7 would run to 5k, unless you have solar, in which case maybe 3k; TV/Internet if black market, say 500/month, grow your own, no entertainment other than neighbours, it's dooable but a spartan life, each to their own.

I use 5 air conditioners in  my house, quite small rooms. 3 bedrooms are on all night  for about 8 months of the year. One is on all day.

My lecky bill is never over 3500. 4 of us in the house. If I lived in the house myself I guess elect would be about 1500 a month with one ac on all the time.

[Johnniey]

7 hours 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. 

Yet you only can afford 15000 BAHT a month for a house?

 

[EddieAnd]

8 hours ago, Agent Sumo said:

 

Yeah whatever, mate

i agree ...if you're spending 20,000 USD a month in Thailand ....you should take a good look at yourself..cant even spend that in Australia...Total BS...

[JaiLai]

2 hours ago, EddieAnd said:

i agree ...if you're spending 20,000 USD a month in Thailand ....you should take a good look at yourself..cant even spend that in Australia...Total BS...

It's only approx 20K baht a day, not beyond the realms of possibilities....

[Naam]

2 hours ago, EddieAnd said:

i agree ...if you're spending 20,000 USD a month in Thailand ....you should take a good look at yourself..cant even spend that in Australia...Total BS...

 

not total BS but can be done easily

 

Quote

A newly crafted white caviar "Strottarga Bianco" is being sold at a value of 100,000 euros ($113,630) per kilo

http://www.cnbc.com/2015/02/19/is-this-the-worlds-most-expensive-food-white-gold-caviar-selling-for-100000-euros-a-kilo.html

 

no problem to eat 250g of caviar and drink a $ 12,000 bottle of wine for brunch. et voilà... 40,000 Dollars are gone... per day!

Edited August 16, 2016 by Naam
addendum

[Naam]

3 hours ago, Johnniey said:

I use 5 air conditioners in  my house, quite small rooms. 3 bedrooms are on all night  for about 8 months of the year. One is on all day.

My lecky bill is never over 3500. 4 of us in the house. If I lived in the house myself I guess elect would be about 1500 a month with one ac on all the time.

 

"a/c on" means nothing without adding thermostat setting in ºC. i have a car with 550HP which doesn't use fuel on any given weekday...

 

...because i only drive it on sundays mornings   

 

 

[Pdaz]

Reminds me of the old joke,

 

"Why don't my dog eat meat ?"

 

..........."Cos I don't give it any"    

[mrfaroukh]

I heard some banks give around 4.2 percent interest. If he buy a nice condo for about 4 million he is then left with 12 million. It give him 500 000 a year in interest or around 40 000 a month. It will help him a lot. Also if you have your own place to live you actually do not need a big money to live well here. Of course you have to avoid all the big luxury stuff. You can't eat in 5 star hotel everyday but you can sure eat once or twice a week. You can go out with super beautiful girl everyday, etc. but for the next 20 000 years he will not have any trouble. Specially if he is also going to get some pension at age 65.

[chiang mai]

43 minutes ago, mrfaroukh said:

I heard some banks give around 4.2 percent interest. If he buy a nice condo for about 4 million he is then left with 12 million. It give him 500 000 a year in interest or around 40 000 a month. It will help him a lot. Also if you have your own place to live you actually do not need a big money to live well here. Of course you have to avoid all the big luxury stuff. You can't eat in 5 star hotel everyday but you can sure eat once or twice a week. You can go out with super beautiful girl everyday, etc. but for the next 20 000 years he will not have any trouble. Specially if he is also going to get some pension at age 65.

 

Not on planet earth they don't, perhaps in a parallel universe.

[bkk6060]

30 years easy.  That is about 40,000 b a month.  Go to Pattaya.  Get a one room with fan for 3000 b a month, eat street food, get toilet paper from the malls (I have seen guys showering in the mall restrooms), use free internet outside a restaurant or coffee shop but drink water.  Also, forget about medical insurance, walk everywhere, makes friends who will buy you drinks,  go to one of the 45 b draft beer Gogo's and sit for 2 hours.  You should even have some left for saving and to meet a coconut worker.

 

PS:  I know guys that do this.

[evilebxxx]

8 hours ago, Witblitz said:

And what about amounts needed for visas/extensions ?

What about costs for medical insurance ?

What about transport costs ? 

Visa extension, on retirement O-A visa extension, have a private, excellent, econometrical, hospital, highly recommend by Thai friends of health care service,   

Have an old motor bike, but mostly make use of friend’s sailor, van, private car service.  

Of course buying capital goods are extra also trips, but is not a problem as I have cash enough in a bank abroad, also have pension more enough to spend here/plus….

[evilebxxx]

11 hours ago, chiang mai said:

 

So your figure of 10k a month is really, if annualized, totally misleading! I thought so but wanted to give you the benefit of the doubt, sadly.

Right

[Agent Sumo]

11 hours ago, Johnniey said:

Yet you only can afford 15000 BAHT a month for a house?

 

 

Muhhhahahahahahahahahahaha

 

Pure Mitty

[Tagaa]

Just saw this topic...read about half of the first page & skipped to the last.

 

Somebody may have addresses this, but I'm not wasting time to read 6 pages of argument to find out.

 

A very good basic rule of thumb is that you never spend more than 4% of your nest egg. After startup costs of approx 4 M, 4% of 12M is 480,000 per year or 40,000 Bt p/month...Not doable in Pattaya, Phuket, BKK or CM.

 

To find out how long your money will last go here:

 

http://www.mycalculators.com/ca/retcalc1m.html

 

As that will probably be removed, use this as your guide:

 

mycalculatorsdotcom/ca/retcalc1m.html

 

With this calculator, you can enter your savings amount, calculate life expectancy, factor inflation, and return.

 

A few pieces of advice :

 

1) if you are fifty, calculate life expectancy at 25 years....30 is probably more realistic.

 

2) figure 3% inflation

 

4) figure ZERO % return on savings and investment. This will give you a good cushion when things go to crap in the next 2 to 4 years. Plus, it's fairly accurate for today as well as the foreseeable future. If you do earn any return, you just got a bonus, but don't count on it. If you are retired, you can't be in the stock market as you can get wiped out with any market correction. The stock market is for young people starting out. If they get wiped out, they have time to start again.

 

5) for your savings amount, enter what you have left after startup costs here.....car/truck, land, house, furnishings, etc. Probably at least 4 million.

 

You will see that 16M is not enough

 

Factoring that will will have 12M after startup expenses and 25 years life expectancy, the first year you will have 329,134 available to spend. That's only 27,427 Bt per month available. As the years go by your available spending limit goes up, but inflation eats that up. So, if you can live on 27,427 Bt p/month now, go for it. You can live on that if you are single & live up country, but you can't live on that in Pattaya, Phuket, BKK with a wife or a GF.

 

Some of my basic expenses are SAT TV- 1568 p/mth

Internet 631p/mth

Electricity - avg 2682 p/mth

Truck insurance 1377 p/mth

Health ins - 3275 p/mth

Phone/data plan expense - 800 p/mth

 

 

That's 9072 per month in BASIC expenses...Now add food, beer, gas for MC or truck, clothes, unexpected expenses.....27,427 Bt p/mth is not enough.

 

Tell him to continue to work until he's 55 and save every penny he can, living like a pauper in Ole Blightey, then come to LOS. He'll be fine.

 

He still won't be able to afford a wife or GF, but he can live here by himself and not worry.

Edited August 17, 2016 by Tagaa

[dick dasterdly]

16 hours ago, evilebxxx said:

I reside alone on a dead end small soi in the outskirt at Udon Thani, own house and land 225 talang wah thru proxy person for the past 22 years.

Total monthly expender is 10,000 baht, cable TV, internet, air running 24/7, skipping at Big C once a week and are very good friends with the people living in rest of the 8 houses here. .

 

16 hours ago, chiang mai said:

 

You are very very much the exception: the cost of air con alone, 24/7 would run to 5k, unless you have solar, in which case maybe 3k; TV/Internet if black market, say 500/month, grow your own, no entertainment other than neighbours, it's dooable but a spartan life, each to their own.

And this is partly why the OP's question is impossible to answer.

 

Some can live on 10,000 bht p.m. (although I'd question this when, if I understood correctly, the poster also said he used aircon and had a swimming pool - which on their own are going to cost upwards of 2,500 p.m in elec. charges), whereas others apparently need at least 660,000 bht p.m.!

[Tagaa]

I just ran my numbers again...I'm 60...if i calculate 20 year life expectancy, I can spend about 50K p/mth. If I bump it down to 15, I can spend 71K p/mth. These figures are for this year, they will go up as the years go by to account for inflation. I do have investments, but again, for calculations sake, I always figure rate of return as zero. That way, I'm always safe, fat, dumb & happy. Plus, my SS from the US will kick in in about 2 years. So, in another 2 years, I'll be living on my old age pension, and the cash I have left will be available for other things.

 

I live a very Western lifestyle, spend far to much on food & beer/alcohol and it's just me and the dog. Avg cost p/mth this year is 34,385. So I can travel some if I choose and/or afford "company" as I choose. I already have a truck, house, all furnishings with nice stereo/TV/computer. If I decide I want a 65" UHD TV or a new truck, I can afford it.

 

Life is good,  but 27,400 p/month would not be enough even for me, much less a noob that is 50 years old.

[evilebxxx]

38 minutes ago, dick dasterdly said:

 

And this is partly why the OP's question is impossible to answer.

 

Some can live on 10,000 bht p.m. (although I'd question this when, if I understood correctly, the poster also said he used aircon and had a swimming pool - which on their own are going to cost upwards of 2,500 p.m in elec. charges), whereas others apparently need at least 660,000 bht p.m.!

Regards to swimming business, 10x4x1.5 M, self-made dug-out dirt rebar,, color cement. Rain water feed from house roof. No pump, PH always around 5 meaning clear water.  Cost 30,000

[amykat]

6 hours ago, bkk6060 said:

30 years easy.  That is about 40,000 b a month.  Go to Pattaya.  Get a one room with fan for 3000 b a month, eat street food, get toilet paper from the malls (I have seen guys showering in the mall restrooms), use free internet outside a restaurant or coffee shop but drink water.  Also, forget about medical insurance, walk everywhere, makes friends who will buy you drinks,  go to one of the 45 b draft beer Gogo's and sit for 2 hours.  You should even have some left for saving and to meet a coconut worker.

 

PS:  I know guys that do this.

 

I'm SURE this is the exact dream the 50 year old guy in London,  who is sick of his job and thinks he just got rich, is dreaming of each night about his new life in Thailand ....

[JerryinTH]

6 hours ago, bkk6060 said:

30 years easy.  That is about 40,000 b a month.  Go to Pattaya.  Get a one room with fan for 3000 b a month, eat street food, get toilet paper from the malls (I have seen guys showering in the mall restrooms), use free internet outside a restaurant or coffee shop but drink water.  Also, forget about medical insurance, walk everywhere, makes friends who will buy you drinks,  go to one of the 45 b draft beer Gogo's and sit for 2 hours.  You should even have some left for saving and to meet a coconut worker.

 

PS:  I know guys that do this.

 

I was laughing about your sarcasm until I saw the PS line.. unbelievable. 

[Agent Sumo]

6 hours ago, bkk6060 said:

30 years easy.  That is about 40,000 b a month.  Go to Pattaya.  Get a one room with fan for 3000 b a month, eat street food, get toilet paper from the malls (I have seen guys showering in the mall restrooms), use free internet outside a restaurant or coffee shop but drink water.  Also, forget about medical insurance, walk everywhere, makes friends who will buy you drinks,  go to one of the 45 b draft beer Gogo's and sit for 2 hours.  You should even have some left for saving and to meet a coconut worker.

 

PS:  I know guys that do this.

 

40,000 baht a month would afford a far more luxurious lifestyle than that

 

TEFLers in BKK on 40K still manage air con, paid internet and eat well

[Ronuk]

18 hours ago, evilebxxx said:

I reside alone on a dead end small soi in the outskirt at Udon Thani, own house and land 225 talang wah thru proxy person for the past 22 years.

Total monthly expender is 10,000 baht, cable TV, internet, air running 24/7, skipping at Big C once a week and are very good friends with the people living in rest of the 8 houses here. .

That sounds absolutely fantastic.......

[chiang mai]

1 hour ago, dick dasterdly said:

 

And this is partly why the OP's question is impossible to answer.

 

Some can live on 10,000 bht p.m. (although I'd question this when, if I understood correctly, the poster also said he used aircon and had a swimming pool - which on their own are going to cost upwards of 2,500 p.m in elec. charges), whereas others apparently need at least 660,000 bht p.m.!

 

If you see further on you'll see that the 10k a month post was a wind up and not true at all.