British expats in Thailand feeling the misery as the UK pound drops to record low levels.

[Craig krup]

5 minutes ago, Mover1 said:

Ah well, like i said at the start mate, it's all a risk. 

 

As i side note every accountant (bar one) has been a colossal pain in the rear by overcomplicating things and missing the big picture. Just doing their jobs i guess, much like solicitors. Got to justify the hourly fee.........

 

Have a great evening. 

 

I know I shouldn't be so intemperate, but it drives me nuts. Things that seem absolutely self-evident to me can't be established with ten years of aggravation and 300,000 words. Example - the split capital investment scandal. They key question was/is, "How could the holders of the zeros possibly benefit from the borrowing?"  Nearly 15 years on and people still haven't grasped that. Example 2 - the lottery versus premium bonds. All we need to is look at the "vig" - the total loss to the pool of gamblers in a pure gamble: the house stake. The UK lottery 50%. Premium bonds - a small nominal gain. So the lottery has a vig of 50%: it's much, much worse than any other form of gambling. But people can't see this. They want to talk about the prizes, the probabilities, how long you'd have to wait for a win....it drives me nuts. 

[nanglong218]

Don't you wish you understood this stuff, I'd have a yacht by now.  Education guys, keep it going.

[Craig krup]

7 minutes ago, nanglong218 said:

Don't you wish you understood this stuff, I'd have a yacht by now.  Education guys, keep it going.

You wouldn't, though! All you can do is work out what you're really being paid for, or to do. Suppose you're a retired footballer with (say) £1m and your pal says, "Invest in my nightclub, be a greeter, and we'll make a fortune. You'll make £200,000 a year". What should you say? 

 

"Mate, I couldn't take £200,000 from you for a poxy £1m investment. That would be wrong. The nightclub is your brilliant idea. You should get all the gains. Borrow the money at 6% from the bank, pay me £50k a year to be a greeter, and you're up ninety grand a year". 

 

He, of course, will say, "But the bank won't lend me the money"!!! Yup. Which is why I won't be investing. If all I'm doing is supplying the cash I shouldn't expect too much for doing that. What else could I expect to be rewarded for? Well, being patient. Tolerating volatility. Taking the long view. Being the bid in the market for people who are over-extended. You'd need to know a lot to believe you could genuinely beat the market, and if you think you do you're almost certainly wrong. You're probably taking three or four standard deviation risks that you don't understand and have never thought of. 

 

Keep it simple. Understand. Have a margin of safety. Diversify. Keep costs low. Aim at the long-term. Get rich slowly. 

[jeab1980]

8 hours ago, sandyf said:

 "Only last year did i find out that HM forces were opted out on mass back whenever."

 

enough said.

 

? Sort of backs up my statement that we didnt know at the time i think

 

Enough said:

 

[bazza73]

37 minutes ago, Craig krup said:

Well, if that's true you won't be worrying about volatility and paper losses, will you? 

Exactly

[bazza73]

34 minutes ago, Craig krup said:

 

I know I shouldn't be so intemperate, but it drives me nuts. Things that seem absolutely self-evident to me can't be established with ten years of aggravation and 300,000 words. Example - the split capital investment scandal. They key question was/is, "How could the holders of the zeros possibly benefit from the borrowing?"  Nearly 15 years on and people still haven't grasped that. Example 2 - the lottery versus premium bonds. All we need to is look at the "vig" - the total loss to the pool of gamblers in a pure gamble: the house stake. The UK lottery 50%. Premium bonds - a small nominal gain. So the lottery has a vig of 50%: it's much, much worse than any other form of gambling. But people can't see this. They want to talk about the prizes, the probabilities, how long you'd have to wait for a win....it drives me nuts. 

It doesn't matter where you go in the world, there will be shonks and sharpies trying to take your money. Legally. We've certainly had some of them in Australia.

[Tofer]

4 hours ago, scubascuba3 said:

8 hours ago, impulse said:

 
Sadly, a lot of folks I've met here seemed to fall in love with the cheap sex right about the same time their boss back home chewed them out once more.  
 
Lots of them don't "retire" as much as "quit working".  Then they get into the family way and are caught between a rock and a hard place.  They can't afford to re-patriate with the family, but they can't afford to stay, either.  
 
My heart goes out to them, largely because I almost did the same to the Caribbean when I was 25 years younger and thought I had enough $$ to make it work.  I didn't have nearly enough, but it was many years later before I realized it.
 

But you don't want to retire too late either otherwise you won't have long left. A US friend of mine showed me an article from the US that people were saving too much for their retirement and died with a decent amount still left.

How can you save too much for retirement?? 

 

The fact is nobody knows how long they are going to survive into retirement and I wouldn't want to run out mid stream and end up living in poverty if I was reliant on capital.

 

Retirement planning should incorporate a reliable income / pension, and the capital is really of no consequence unless you have a crystal ball and can predict your day of departure.

[nanglong218]

The soundest advice I received was to get rich slowly, land in the right location, now and again, without planning, you get lucky with exchange rates which is why my two up,  two down in UK Midlands back in 2006 converted into a beautiful 4 bed etc in an unpopular Melbourne outer suburb. Now the place is raving, values through the roof.  So what, I'll be dead before I get the chance to spend it. When the AUD was 32 baht we bought more land here.  I would rather be earning  money from the markets than shoveling pig shit from their sties. But then I always wanted to be a farmer.

[scubascuba3]

Don't you wish you understood this stuff, I'd have a yacht by now.  Education guys, keep it going.

Not so sure, PMs would be best

[scubascuba3]

How can you save too much for retirement?? 
 
The fact is nobody knows how long they are going to survive into retirement and I wouldn't want to run out mid stream and end up living in poverty if I was reliant on capital.
 
Retirement planning should incorporate a reliable income / pension, and the capital is really of no consequence unless you have a crystal ball and can predict your day of departure.

I think its pretty well accepted the risk of dying of a condition/old age increases as you get older 50s / 60s / 70s / 80s etc. So the longer you wait to retire Ill health can limit your retirement and enjoyment, so its a balance of saving up but not for too long or you won't be around to spend it. I read the other day in an article that Americans are retiring younger whilst some other countries its getting older.

[Celer et Audax]

 
I live in Thailand and I am not an immigrant. I have a Non Immigrant visa and an extension based on that. I used to work internationally and was an expat then and I still am.

You may like me have an Non Immigrant B visa but as you are not a Thai national you will also like me be an immigrant no matter what the terminology used on your visa maybe so get over it

[pigeonjake]

think ill just keep working and buying houses,

im for the safe route,

 

but its an interesting read

[hashmodha]

I want to know what options or which kind of Financial advice is being taken for the Personal pension plans which have the 25%Tax free option and Annuities or draw downs (,taxable)...Looking for to having some help here please...Thanks

Please excuse spelling mistakes/misunderstanding
Best
HM

[Craig krup]

19 minutes ago, hashmodha said:

I want to know what options or which kind of Financial advice is being taken for the Personal pension plans which have the 25%Tax free option and Annuities or draw downs (,taxable)...Looking for to having some help here please...Thanks

Please excuse spelling mistakes/misunderstanding
Best
HM
 

 

It's rarely worth monetising a public sector income. For personal pensions it's probably worth taking the cash and clearing debt or investing in an income-producing asset. I've got a personal pension and a public sector pension. The tax-efficient strategy in those circumstances is to take the tax-free lump sum and about £12k a year for the five years to 60. With 80k you can get it all out tax-free; 20k lump sum and a grand a month.

[bomber]

1 hour ago, Craig krup said:

 

It's rarely worth monetising a public sector income. For personal pensions it's probably worth taking the cash and clearing debt or investing in an income-producing asset. I've got a personal pension and a public sector pension. The tax-efficient strategy in those circumstances is to take the tax-free lump sum and about £12k a year for the five years to 60. With 80k you can get it all out tax-free; 20k lump sum and a grand a month.

would the grand a month not be taxable.

[SheungWan]

3 hours ago, pigeonjake said:

think ill just keep working and buying houses,

im for the safe route,

 

but its an interesting read

 

Most guys are either heading towards or already in retirement. Their savings have a low risk requirement. They are hardly going to suddenly start playing in the options market, nor should they be encouraged to do so, whatever the possible rewards. The risk is too high. Even property has its own risks and overheads and as for Thailand property for investment purposes, please no. Those who are seeing their savings undershoot what they think is required to live in Thailand due to sterling weakness, either reconsider costs or review the plan, but do not feel pressured into chasing higher returns through higher risks. There are no one-way bets. If you want to play with stocks then do it with play money, but make sure that that is really what it is.

[SheungWan]

Monday blues.

Edited September 4, 2017 by SheungWan

[impulse]

4 hours ago, SheungWan said:

Even property has its own risks and overheads and as for Thailand property for investment purposes, please no. 

 

Some guys forget that one bad transaction could more than negate all the money made on 10 good ones.  The question in Thailand is whether that bad transaction will be the next one, or won't ever happen to them like it has to so many others.  Even well connected Thai people...

 

 

 

[shanesox]

Don't spend up to your income, don't retire without a safety margin, don't assume that 56 to the pound has to continue....
 
People make loads of assumptions about what's reasonable and unreasonable. Last week someone who was part of a couple on £100,000 a year, in a cheap part of the country, was in a state because she hadn't made it to the bank to get £300 from a savings account. A couple of days before payday, nearly six grand hitting the account every month, and they didn't have a poxy £300 before payday without a special trip to the savings account. If you get £800 a month UK pension in 2014 (quite typical), and you spend 44,800 baht a month in a country where a decent condo is 6,000 or less, and big bottles of beer are 80, it's not what you'd call "prudent", is it? 

Drivel !!!


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[SheungWan]

7 hours ago, bomber said:

would the grand a month not be taxable.

Yes, but there would be some offset against personal allowances.

[sandyf]

15 hours ago, SheungWan said:

More of a dollar down rather than a sterling up story. Sterling hasn't exactly bounced back up against the baht.

Exactly. The slide in the dollar has helped prop up the pound against the baht. Indications are that the dollar will continue to slide which should help any further slide on the pound against the baht.

[sandyf]

14 hours ago, jeab1980 said:

? Sort of backs up my statement that we didnt know at the time i think

 

Enough said:

 

Wrong, you cannot talk for other people.

[Nemises]

Ausy and the N.Z. now have a stand down period for how long you have been away from your country and then you have to wait so long b4 you can get any benefit it works on a sliding scale in my case iv been in Thailand nearly 15 years so I have to wait approx 2 to 3 years b4 i can get the gov pension on my return I am not exactly sure but you get the gist of what i mean. other countries will follow they all need to save money any way they can

Are you 100% sure that Aus have a sliding scale stand down wait? I inquired about this and was informed that a flat 2 year prior residency i.e without having left the country, is required to get an Aus pension.

[jeab1980]

29 minutes ago, sandyf said:

Wrong, you cannot talk for other people.

Wrong i can talk for the thousands of other people in the same boat as me

[whiteman]

I inquired about this and was informed that a flat 2 year prior residency i.e without having left the country, is required to get an Aus pension.

 

Sorry can you clarify are you saying that if you have lived in Ausy for 2 years on Residency status as long as you do not leave the country for more than 6 months you will be fine?

 

So lets say you have had a residency for say 5+ years how long did they tell you saying for example you have lived in Thailand for 5 years solid what is the stand down time b4 you get the pension then?

[whiteman]

Just now, whiteman said:

I inquired about this and was informed that a flat 2 year prior residency i.e without having left the country, is required to get an Aus pension.

 

Sorry can you clarify are you saying that if you have lived in Ausy for 2 years on Residency status as long as you do not leave the country for more than 6 months you will be fine?

 

So lets say you have had a residency for say 5+ years how long did they tell you saying for example you have lived in Thailand for 5 years solid what is the stand down time b4 you get the Ausy pension again then?

 

[bazza73]

4 hours ago, Gregster said:

Are you 100% sure that Aus have a sliding scale stand down wait? I inquired about this and was informed that a flat 2 year prior residency i.e without having left the country, is required to get an Aus pension.

Not quite true. You have to be classed as resident in Australia on the day you become eligible for the OAP. If you are not, you have to come back to Australia and stay for 2 years before you'll get it.

The sliding scale operates below 35 years residency in Australia. Above that, you get your full entitlement.

As usual, the devil is in the detail. I know a couple of Aussies here who have been caught by the residency clause.

The best advice I can give to anyone is make an appointment to see a Financial Services Officer at any Centrelink office. Their advice is free, and provided that you ask the right questions it's the best advice you can get. They know their stuff.

 

[SheungWan]

4 hours ago, jeab1980 said:

Wrong i can talk for the thousands of other people in the same boat as me

I'm sure everybody in that boat are overjoyed to hear the news.

[Craig krup]

7 hours ago, SheungWan said:

Yes, but there would be some offset against personal allowances.

If you're maintaining UK tax residency the grand a month is pretty much your personal allowance - tax free. Whatever sum you take they assume that you'll take that sum every month, so if you take 12k in April you'll get shafted for tax and have to wait until after the next April for the refund. 

[Nemises]

Not quite true. You have to be classed as resident in Australia on the day you become eligible for the OAP. If you are not, you have to come back to Australia and stay for 2 years before you'll get it.
The sliding scale operates below 35 years residency in Australia. Above that, you get your full entitlement.
As usual, the devil is in the detail. I know a couple of Aussies here who have been caught by the residency clause.
The best advice I can give to anyone is make an appointment to see a Financial Services Officer at any Centrelink office. Their advice is free, and provided that you ask the right questions it's the best advice you can get. They know their stuff.
 

Yes, good idea to talk with an FSO when back in Aus, but until then I'm keen to know if someone (who has worked in Aus for 45 years) is classed as an Aus resident for OAP purposes if they "live" at a relatives Aus address for only 2 weeks at a time in between 90 day holidays to Thailand ....for the previous 7 years ?!