Thanks for the nap KS, next time maybe you will be more even handed with the smack down with all parties instead of singling out one.
What I find interesting is the level of envy and hypocrisy on this board at times. Some feel it is low class and I am bragging when I say "I" need a minimum of US$10,000 per month to retire in Thailand yet those same blokes take pride in being able to survive on less, even to the point of bragging about it. Sorry old chaps but we all have different needs and wants. I don't want to be a pauper in a 3rd world country nor have to return to my own penniless or not have the financial means to return. $10k a month should hopefully cover that.
Now time to get back to business.
It is apparent by reading this thread how so many members are the equivalent of financial simpletons and have no concept of money and retirement planning. Now I could go into an entire economic gobbledygook type of argument citing a bunch of sources but I believe in the KISS method(Keep It Simple, Stupid!)
What I hear is how many people list the same sources of retirement income, namely a company or government pension and some savings or the sale of a residence as sufficient. The appalling part is not the sources of funds but the wholesale belief that these sources are guaranteed to be solvent, deliver a predetermined amount of fixed income and will outlast the life of the retiree.
Let us bust a couple of myths.
1. Pensions and medical benefits are guaranteed.
This is completely false. Pensions are promised but never guaranteed. Most people do not even realize that their pensions are not fully funded, actually almost all are underfunded. Basically what you are hoping for is that the company will continue to stay in business and that it can continue to pay out benfits. A bankrupt company cannot pay a pension or benefits and insurance if you are lucky will cover 45%. The same with social security type programs, what you are hoping for is that the next generation will support the current generation and maintain the promised benefits.
Even if a company or government stays solvent they still have the ability and right to change all benefits and income payments in the future, regardless of what they promised you. You don't believe me then take a look at what is going on with the American auto industry as well as the airline industry. Take a look at the huge social welfare burden which is a ticking time bomb for some Western European countries as they cannot replenish their workforce because citizens are not having babies and baby boomers start to retire(Italy comes to mind).
2. Your fixed income today will take care of you tomorrow.
Have you people never heard of INFLATION or STAGFLATION? For all of you who think that US$5000 dollars will set you up comfortably until the day you die in Thailand, you have no concept of history nor do you understand the volatility of global financial markets. You know it was not too long ago that in the good old USA (circa 1980) Fed funds was 22% and inflation was 12%. We have $60 a barrel oild and some are predicting $110 in a couple of years. You don't think that history can repeat itself and your precious $5k a month won't be able to cover your living expenses? Inflation is the enemy of people on fixed incomes.
3. When you retire you will need less money.
Complete and utter bullshit. Some people find that they need more money because they have more time on their hands to pursue other interests. Some don't know how to ratchet down their expenses. Who is to say a retiree won't knock up his TG and now he has a family to support? Start a business and get wiped out? Live another 40yrs?
4. Prices/expenses in Thailand today will be there tomorrow.
More bullshit and poor forecasting. Every reccomendation I hear from some of you financial whiz kids are all based on what expenses are in Thailand today. Have a little foresight and at least attempt to think 10-20yrs down the road. Don't be surprised if your priced out of your Pattaya pussy haven in a few years.
5. Your next egg is in safe investment vehicles.
The biggest myth around. I am willing to bet 90% don't even know how to diversify your savings and more importantly what they would be invested in. Some will say "mutual funds". I bet 99% of you never read your mutual fund prospectus or have a clue as to how the fund is run or what it owns. Add to that, you have no clue as to how those funds will perform in certain economic environments. I bet like most people u simply looked at the historical return of the fund and that was good enough for you.
6.. Your money will outlive you.
Guess again, with the improvements in biotechnology and healthcare you will probably live longer. Your more valuable alive than dead, Don't be suprised that at the age of 105 your not hooked up to some machine and suckking down pharmaceuticals so your healthcare provider can milk every last shilling out of you until you expire.
7. The western based currency will always be strong against the Asian currencies.
Yeah right. Keep on buying those cheap goods from China and outsourcing your services to India and selling your debt to Asia. Do u honestly think these countries will always be low cost providers and suppliers with a Western currency hungry economy ? Some of that hard currency will eventually purchase real assets and debts will have to be paid.
Don't sleep, they want the good life and a strong economy too. Won't be too long before some of you and your kids will be working for an Asian based corporation.
8. You can predict the future.
Not one person knows what his financial needs will be going forward. The problem with some of you blokes is that your basing your future needs on what you do today and at todays prices. No one knows what tomorrow holds yet you all seem to financially plan as if you do. Never think you have to leave Thai;and and return to youur own country for medical care or better yet Thailand tosses you out on your ass?
My advice is that you better continue to invest as if you are going to live to be over 100yrs old(think of more growth vs solely income). Make sure your able to retire from the workforce and always think of ways to add to your retirement income. You keep thinking that once you get your $5k a month in retirement income your set for life; well you already lost your retirement before you spent it.