# Money



## 55hb

How long could someone live in Thailand if they have $500,000 USD available. At age 55 could I live comfortably in Phuket on this amount of money until age 75?


----------



## KhwaamLap

With a rough calculation using 30k Baht a month as a fair average for expat living expenses here (Phuket is towards the upper end of the cost of living slipping in under Pattaya and Bangkok and topping Chiang Mai I would suggest). It would give you a little over 44 years assuming no interest etc. Of course if you invested it and got a nice tax-free offshore return of say 6% (which is fair now a days for a safe investment - savings account for example) you would have a return of around 80k baht a month. So assuming you could invest it safely you could easily live off the interest and not touch the lump sum.

This is excluding any taxes etc you need (or want) to pay back home of course.


----------



## 55hb

KhwaamLap said:


> With a rough calculation using 30k Baht a month as a fair average for expat living expenses here (Phuket is towards the upper end of the cost of living slipping in under Pattaya and Bangkok and topping Chiang Mai I would suggest). It would give you a little over 44 years assuming no interest etc. Of course if you invested it and got a nice tax-free offshore return of say 6% (which is fair now a days for a safe investment - savings account for example) you would have a return of around 80k baht a month. So assuming you could invest it safely you could easily live off the interest and not touch the lump sum.
> 
> This is excluding any taxes etc you need (or want) to pay back home of course.


Thank you for the reply. Thailand is looking better & better.


----------



## Guest

Couple of caveats... obviously there is inflation, and there are fluctuations in exchange rates. You would need to build that into your calculations. 30K a month could well be poverty level sustenance 10/15 years down the road.

Oh, and don't end up buying herds of buffaloes, paying hospital bills for a Thai companion's many 'brothers and sisters', etc.


----------



## 55hb

I have heard and read to many "falling in love" stories concerning Thai companions. A little to old to begin thinking with my "little head" instead of my pocket book.



frogblogger said:


> Couple of caveats... obviously there is inflation, and there are fluctuations in exchange rates. You would need to build that into your calculations. 30K a month could well be poverty level sustenance 10/15 years down the road.
> 
> Oh, and don't end up buying herds of buffaloes, paying hospital bills for a Thai companion's many 'brothers and sisters', etc.


----------



## Guest

55hb said:


> I have heard and read to many "falling in love" stories concerning Thai companions. A little to old to begin thinking with my "little head" instead of my pocket book.


That's what they all say


----------



## 55hb

Well I have met Thai women here in the states and I must say they do have an enchanting way about them. So a little practice goes along way.


frogblogger said:


> That's what they all say


----------



## Guest

Back to the original question, I know offshore investments could bring in a good return, but I'm wondering whether a sizeable sum shouldn't be invested within Thailand itself, and if so, what the most secure method of doing so would be. It really is a key issue, the extent to which a major appreciation of the Thai baht against a basket of currencies could affect one's income from a foreign source, or indeed a major depreciation of the US dollar. Or both at the same time.

Taking the pound sterling as an example, it's fallen by ... what ... 11% against the baht in six months?


----------



## 55hb

If I could get 6% on my money that would be great. But these days that does not seem likely. With looming inflation on the horizon in the U.S. who has any idea what the future value of any currencies will be. I would like to find work in Thailand.


frogblogger said:


> Back to the original question, I know offshore investments could bring in a good return, but I'm wondering whether a sizeable sum shouldn't be invested within Thailand itself, and if so, what the most secure method of doing so would be. It really is a key issue, the extent to which a major appreciation of the Thai baht against a basket of currencies could affect one's income from a foreign source, or indeed a major depreciation of the US dollar. Or both at the same time.
> 
> Taking the pound sterling as an example, it's fallen by ... what ... 11% against the baht in six months?


----------



## KhwaamLap

There are accounts offering around 6% now if you search about - especially with the sort of money you are talking about and the fact with that rate of return you could afford to lock it up. Interest rates are going to be fun for a while, but with 80K (that's using 32 to the Baht as a guestimate average for the rest of the year) you will more than fine. When the rates lift you will be even happier. 

The problem with investing in Thailand is the rate of return is very low for low risk (mostly zero for foreigners). For higher risk you are limited by return as you can only take so much out of the country again. The baht is strong (many say artificially, but for now Thailand's balance of payment is good so the Baht say strong against the crapped out currencies for now) at some point the dollar will pick back up and the Baht will start to feel the loss of tourism (less than 10% GDP anyway) and revenue due to export costs and lost industry (from struggling Korean and Japanese manufacturers) . However,whatever u can say about Thaksin, he paid of the IMF and left the economy in great shape with reserves, so Thailand is fairing well. 

Long term it may be different - Thailand's protective and stifling foreign trade, company ownership and visa laws are putting more and more investor off - and neighbours are getting the message and doing the opposite. Thailand will continue to loose its position if things don't change - and with nothing but Nationalist political parties (all of them) it doesn't look likely soon. The populace have no idea about this as the Thai media feeds them stories that make them thing Thailand as some kind of super hub of everything. It is no vote winner - so will probably be far too late when it turns. So, five years or so could well see ur income go up steadily.


----------



## Cer

Would that 500.000$ be after housing-transport(car) and healthinsurance costs are paid?


----------



## Serendipity2

55hb said:


> How long could someone live in Thailand if they have $500,000 USD available. At age 55 could I live comfortably in Phuket on this amount of money until age 75?


55hb,

If you invited me to manage your money [while I am also in Thailand] it would last you a lifetime. But you really DO need me!  You would live large.


----------



## Serendipity2

frogblogger said:


> Couple of caveats... obviously there is inflation, and there are fluctuations in exchange rates. You would need to build that into your calculations. 30K a month could well be poverty level sustenance 10/15 years down the road.
> 
> Oh, and don't end up buying herds of buffaloes, paying hospital bills for a Thai companion's many 'brothers and sisters', etc.


frogblogger,

What's wrong with a herd of buffaloes? At least you could eat well!


----------



## Serendipity2

frogblogger said:


> Back to the original question, I know offshore investments could bring in a good return, but I'm wondering whether a sizeable sum shouldn't be invested within Thailand itself, and if so, what the most secure method of doing so would be. It really is a key issue, the extent to which a major appreciation of the Thai baht against a basket of currencies could affect one's income from a foreign source, or indeed a major depreciation of the US dollar. Or both at the same time.
> 
> Taking the pound sterling as an example, it's fallen by ... what ... 11% against the baht in six months?


frogblogger,

He might be safer investing in a safer country like Singapore. Thailand has a nasty habit of changing rules as they go and you could find out, like my dad did [invested in a banana plantation in the Philippines] where you can not take the money out of the country.


----------



## Guest

Serendipity2 said:


> frogblogger,
> 
> What's wrong with a herd of buffaloes? At least you could eat well!


Not so much wrong with owning the buffaloes, but I hear those belonging to the families of farangs tend to need regular funds advanced for vets fees on top of the purchase price . For some reason many turn out to be rather sickly animals...



Serendipity2 said:


> He might be safer investing in a safer country like Singapore. Thailand has a nasty habit of changing rules as they go and you could find out, like my dad did [invested in a banana plantation in the Philippines] where you can not take the money out of the country.


It's a situation that interests me too. A buffalo farm isn't really my idea of security...


----------



## Serendipity2

frogblogger said:


> Not so much wrong with owning the buffaloes, but I hear those belonging to the families of farangs tend to need regular funds advanced for vets fees on top of the purchase price . For some reason many turn out to be rather sickly animals...
> 
> 
> 
> It's a situation that interests me too. A buffalo farm isn't really my idea of security...




At least you can eat your mistakes should they not "pan" out. Or, if all else fails, you could Wok them!


----------



## KhwaamLap

The golden adage of Thailand, "Never invest more here than you can afford to walk away from". The cost of living is low enough here that you can live well enough on the return from a safe external investment - don't bring it here. There is a saying here that goes, "The only way to leave Thailand with a small fortune is to bring a big fortune with you when you arrive!"


----------



## Serendipity2

KhwaamLap said:


> The golden adage of Thailand, "Never invest more here than you can afford to walk away from". The cost of living is low enough here that you can live well enough on the return from a safe external investment - don't bring it here. There is a saying here that goes, "The only way to leave Thailand with a small fortune is to bring a big fortune with you when you arrive!"


KhwaamLap,

The fly in the ointment of that adage is if you want to build a future for your wife and family - if you plan to have one. Having her on a month-to-month future can't be very edifying for her and what does that say about your commitment? I think the government has us sized up. They provide the "bait" ie, beautiful, available, willing women and we provide them with a future. 

The key is to make sure they're as faithful as an old hound dog. The other aspect is that, at any time, the Thai government could put a boot in your ass and you're gone - permanently. So, the paradox.....

Any good solutions to this insoluble dilemma? Perhaps real estate you can pick up and move to another country? If so I'M INTERESTED. 

Serendipitously....


----------



## sweenjr56

I'm hoping to do this in a year or 2 at about the same age (56-57) but with only around 230K USD. After age 64 I'll be able to draw about 18k USD per year from Social Security. I'm looking at relocating probably to Hua Hin with my Thai wife. Is it possible to live in Thailand on Social Security from the US? Or is that cutting it close. Both I and my wife are pretty low maintance.


----------



## KhwaamLap

Serendipity2 said:


> KhwaamLap,
> 
> The fly in the ointment of that adage is if you want to build a future for your wife and family - if you plan to have one. Having her on a month-to-month future can't be very edifying for her and what does that say about your commitment? I think the government has us sized up. They provide the "bait" ie, beautiful, available, willing women and we provide them with a future.
> 
> The key is to make sure they're as faithful as an old hound dog. The other aspect is that, at any time, the Thai government could put a boot in your ass and you're gone - permanently. So, the paradox.....
> 
> Any good solutions to this insoluble dilemma? Perhaps real estate you can pick up and move to another country? If so I'M INTERESTED.
> 
> Serendipitously....



You can build a future with a job that has excess earning like most couples in the world. If there is a nest egg available, then it should still be invested (safely), but this doesn't have to be within Thailand - and it doesn't need to be signed away just to get around Thai law (such as investing in land here). If you can afford to walk away from a $50k property for example, then fine take the chance - if doing so would leave you no safety net, then why take the risk? It is easy enough to rent accommodation.

PS: Wanna buy a caravan? 555


----------



## Serendipity2

sweenjr56 said:


> I'm hoping to do this in a year or 2 at about the same age (56-57) but with only around 230K USD. After age 64 I'll be able to draw about 18k USD per year from Social Security. I'm looking at relocating probably to Hua Hin with my Thai wife. Is it possible to live in Thailand on Social Security from the US? Or is that cutting it close. Both I and my wife are pretty low maintance.



sweenjr56,

I don't want to be the bearer of bad news but how are we going to pay for ObamaCare? There are going to be huge tax increases - on everything plus I wonder if Social inSecurity will still be there by then. If it is then they will, at the least, bump the retirement age by 2-3 years. Except for their friends. I hope I'm wrong but so far my pessimism has been deadly accurate. Wish it weren't so!

Serendipity2


----------



## sweenjr56

Serendipity2 said:


> sweenjr56,
> 
> I don't want to be the bearer of bad news but how are we going to pay for ObamaCare? There are going to be huge tax increases - on everything plus I wonder if Social inSecurity will still be there by then. If it is then they will, at the least, bump the retirement age by 2-3 years. Except for their friends. I hope I'm wrong but so far my pessimism has been deadly accurate. Wish it weren't so!
> 
> Serendipity2


Of course you have a good point there Serendipity2, but I believe they will finiance ObamaCare with a VAT, which they are already taking about. I don't think that would have much impact on those of us living in the LOS (if and when I move there). I also find it hard to believe that at my current age (54) they would increase the min. age for SS... they will probably do it for those younger but I'm hoping to slip under the wire and be safe at least as far as most of the current commitment to my monthly benefits is concerned. I also have an additional sum as a backup.
Do you know of anyone there in LOS now who lives just on SS?
Plus, I'm hoping to find something to supplement my income,,, teaching English maybe? My Thai wife is an RN here in the States but has no interest in going back and doing that type of work in LOS.
Thanks for the reply.


----------



## Serendipity2

sweenjr56 said:


> Of course you have a good point there Serendipity2, but I believe they will finiance ObamaCare with a VAT, which they are already taking about. I don't think that would have much impact on those of us living in the LOS (if and when I move there). I also find it hard to believe that at my current age (54) they would increase the min. age for SS... they will probably do it for those younger but I'm hoping to slip under the wire and be safe at least as far as most of the current commitment to my monthly benefits is concerned. I also have an additional sum as a backup.
> Do you know of anyone there in LOS now who lives just on SS?
> Plus, I'm hoping to find something to supplement my income,,, teaching English maybe? My Thai wife is an RN here in the States but has no interest in going back and doing that type of work in LOS.
> Thanks for the reply.



sweenjr56,

Just remember Murphy's Law - and Murphy was an optimist! Plan on NOT working here. If you can, great but don't count on it. They prefer younger teachers and probably, like Japan, female.

With the massive amount of spending Obama is doing he will need HUGE revenue sources. Nothing will be left untouched. Trust me, he will have an army of liberals suggesting added ways to steal what is ours and making it his.  

Serendipity2


----------

