Cyberoy69 Posted October 16, 2006 Report Share Posted October 16, 2006 I just sold my house and retired from my job, at 47 yrs of age. I have about 500k (USD) no debts and no dependents. Next year, i will move to Thailand permanently. I parked the funds in the bank which pays about 6.6% per annum, which gives me more than i can spend. Should i seek out higher returns on my capital, or should i be content to cruise along with the bank interest, bearing in mind that i don't want to be exposed to any risk of losing my money. Link to comment Share on other sites More sharing options...
samak Posted October 16, 2006 Report Share Posted October 16, 2006 it depends on what you need as a living and whether you consider to do something in future to get some additional income. 6.6% is not so bad at the moment but of course the usd could loose value against the THB during coming years Link to comment Share on other sites More sharing options...
dddave Posted October 16, 2006 Report Share Posted October 16, 2006 I really know nothing about this, but I remember reading something not long ago about annuity's having significant benefits for somebody in your situation. what I read had to do with money management stratagies for lottery winners. Link to comment Share on other sites More sharing options...
Nervous_Dog Posted October 16, 2006 Report Share Posted October 16, 2006 <> Mutually impossible Link to comment Share on other sites More sharing options...
drogon Posted October 16, 2006 Report Share Posted October 16, 2006 moving to thailand permanently...... You will have to spend money to do it now with the "new rules" for visa regulations. Link to comment Share on other sites More sharing options...
cardinalblue Posted October 16, 2006 Report Share Posted October 16, 2006 You will have to figure out how to stay in thailand until you qualify for a retirement visa. Three years can be a long time... I am not a money manager but can share some basic wisdom. While it is nice to generate monthly imcome, you should not forget about trying to grow your nest egg. That means having a good chunk of money in growth investments or else you will fall behind inflation/cost of living rates especially given you expectancy age. One will hear a wide range of what percentages should be in income vs growth investments but you need also to calculate if you will someday have liabilities, dependents, marraige, health care costs or capital costs like cars, condo, house, etc. If you only base your net worth on the income side and not forsee future capital costs, then you will never get past treading water or improve your economic life or lifestyle... You need to at least remove growth investments, IRAs, social security and these estimated capital costs from saying this is my real principal income source. This will give you a better picture of money management and built in fexibility as needs and wants and the unexpectedness DOES happen and will change in one's future... CB Link to comment Share on other sites More sharing options...
the_numbers Posted October 16, 2006 Report Share Posted October 16, 2006 I would second you CB that "treading water" financially is never a smart move given how wild the world is and how things change : currency values, economies, property markets, cost of living... just everything!!!! It's a jungle out there... Do you need condos, cars, etcetera? Or do you plan to rent indefinitely?? If you have all that then your principle is alot stronger. If not I'd say that rather than give any long winded advice you should set up something to generate capital, and/or diversify your money into some longer term investments. This is just my two satang as well, but I would not keep my money in the greenback. I'd sooner have it in Euros or even Pounds these days. Fiscal responsibility will eventually bite back in the U.S. Cheers, the_numbers Link to comment Share on other sites More sharing options...
zzzz Posted October 17, 2006 Report Share Posted October 17, 2006 6.6% is a good return on your money so I would leave it there, unless you have a track record of making money investing. At 47, $500,000 is not a lot to live off for the rest of your life. Do you also have a pension? Assuming you live to be 65 -- which is about the average life expectancy of a hard life punter [if you're optimistic, that is] you would only have about $28,000 per year to spend in today's dollars. [i hope you are not talkin' AUS dollars.] Maybe you can start a business (risky) or get a job (yikes!) in LOS. Link to comment Share on other sites More sharing options...
Sporty Posted October 17, 2006 Report Share Posted October 17, 2006 6.6% is a good return on your money so I would leave it there, unless you have a track record of making money investing. At 47, $500,000 is not a lot to live off for the rest of your life. Do you also have a pension? Assuming you live to be 65 -- which is about the average life expectancy of a hard life punter [if you're optimistic, that is] you would only have about $28,000 per year to spend in today's dollars. [i hope you are not talkin' AUS dollars.] Maybe you can start a business (risky) or get a job (yikes!) in LOS. ??? $500,000 x 6.6% = $33,000 interest only. Never touching the Principal. Divided by 12, months in the year, $2,750 per month. Actually more, if taken on a month to month basis, slighly more in interest, each year. If you can live on that, you'll be fine. Link to comment Share on other sites More sharing options...
cavanami Posted October 17, 2006 Report Share Posted October 17, 2006 In the USA, the financial folks say a minimum of $2M, cash, to retire. At 47, with $500K, risky, especially with the dollar be worth so little. The USD has lost 10% over the last year, compareed to the Thai Baht, and looks not to recover anytime soon. Link to comment Share on other sites More sharing options...
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