Do I have enough money to live in Thailand, and how to do it

[sirineou]

After getting up every morning at 4:30 am to go to work, not coming home until 5:00 pm, long commutes, cold winters etc. we all have or had a dream of retiring, doing nothing if we wanted, lay around, cach up with reading , play some pool etc. 

 I am retired one year now and I am bored to death. I have kindle unlimited, and have read more books than I know, now I spend as much time searching for something good to read as I do reading.  I had plan to do a lot of traveling but covis 19 took care of that. 

The point being that if you retire, but for whatever reason you can't do the things that you like, retirement can be pretty boring.

So it is  not only to have enough money  to not work , that can get old pretty fast, it is to not work for a living but to have enough money and work for fun, with whatever hobbies you like. 

Especially when you are 42 years old,  and still full of <deleted> and vinegar. 

Another point  to consider is that  you are 42 now but if you are lucky you will get old at some point, and by that time you will have exhausted you saving , life back in the old country will have outpaced you, and if you want to return to your home country you might not be able to afford it.  combine that with some other personal mishaps and you will understand why you read of so many expats jumping off balconies. 

Why don't you put 550 k of the  money  in a safe investment vehicle.  take 50,000 and come to thailand, 550k at 6% will return 32k probably after taxes and fees you will net 25 K plush you will have the 50k to draw on. Rent a place for a year or so , write your book and see how that works out, After that who knows maybe you will meet that girl, maybe you will have a kid, maybe you will start a life here and go back work for a few months and then come back as I did until I retired. Who knows.

Chase your dream But have a plan B. 

[nauseus]

4 hours ago, gordog said:

 

I should have added: I have lived in Thailand off and on since a teenager, and speak Thai

 

My post is just about the financial aspect of retiring here, not everything else

 

You seem to have a few advantages already and sound like you know Thailand quite well as it is? Not so many years ago you could have realised at least 30k pounds a year just in interest from a regular bank account but safe income from a cash nest is not easily had these days. The money you have could be enough but that depends on the budget that you think you can manage on. If you are not sure (about anything) then probably better to wait and work for longer to build your fortune up if you can. 

 

 

Edited January 13, 2021 by nauseus

[1FinickyOne]

8 minutes ago, sirineou said:

550k at 6% will return 32k

Where is anyone getting 6% these days? Safely? 

 

my bank MM is down to .25% and my last CD at 2.3% is coming due in March... I would love 3% if I could get it... 

 

ps - boredom can be an issue for most retirees... and I am sure it is tougher in USA where you can't go out much... I have wealthy friends in NYC who have lost the Broadway Show/fine dining lifestyle... 

[ivor bigun]

5 hours ago, BritManToo said:

I had a joint mortgage in the UK, then I paid it off, then she divorced me and the judge gave her the house 100%.

I was happily married for 28 years, and unhappily married for another 2, she claimed to have been unhappy for the last 20 years.

I guess she just stuck it out for the free house, and half my pension.

 

The great thing about Thailand, renting is cheaper than buying, you can quickly move if the neighbours start being a pain, and your woman will never get entitlement to any of your assets back in the home country.

back in the home country (england) we have joint bank accounts???? here in Thailand ,my wife and son own our house ,,<deleted>,she owns the car as well ,some of us live on a knife edge ???? 

[Saraburi121]

6 hours ago, NCC1701A said:

should have kept the house and rented it out. use the cash to buy another one and rent it out. come to Thailand when you are over 50. 1900 baht a year for the "visa".

 

600,000 pounds converted to baht = 24,619,782.14 and this exchange rate will only get worse over time as the West is in decline against Asia. 

 

45,000 baht per month X 12 = 540,000 baht per year. (good luck actually doing this for 45 years)

 

24,619,782.14 divided by 540,000 baht per year = 45.59 years.

 

42 years old plus 45.59 = 87.5 years old you run out of money.

 

of course nothing else factored in like inflation, medical expenses, car.  no new anything included or any unexpected expenses. really more like 65-70 you crash.  

 

 

 

I think NCC1701A hit the long pole in the tent, unforeseen expenses, especially medical. If I didn't have a good medical policy from my retirement that covered me till expiring I would have thought differently about retiring here.  Who ever dreamed of COVID coming?

[sirineou]

1 minute ago, 1FinickyOne said:

Where is anyone getting 6% these days? Safely? 

 

my bank MM is down to .25% and my last CD at 2.3% is coming due in March... I would love 3% if I could get it... 

 

ps - boredom can be an issue for most retirees... and I am sure it is tougher in USA where you can't go out much... I have wealthy friends in NYC who have lost the Broadway Show/fine dining lifestyle... 

I will admit that 6% can be difficult in 2020. but there are plenty of ETFs that mirror the S&P that will easily  return 6% which is why I chose that number.  There is always a risk that the market could crush as it did last spring, but it recovered. Also the Op can use the funds to purchase an income property, thus not only having  an income ,but low risk and property appreciation to keep up with inflation, for a fee he can have it professionally managed. I don't suggest he does this thins, all I suggest is that he considers them while at the same time considering all the other things I said also. 

[nauseus]

6 minutes ago, ivor bigun said:

back in the home country (england) we have joint bank accounts???? here in Thailand ,my wife and son own our house ,,<deleted>,she owns the car as well ,some of us live on a knife edge ???? 

 

Yes. It can certainly keep one on one's toes. 

[nauseus]

Just now, sirineou said:

I will admit that 6% can be difficult in 2020. but there are plenty of ETFs that mirror the S&P that will easily  return 6% which is why I chose that number.  There is always a risk that the market could crush as it did last spring, but it recovered. Also the Op can use the funds to purchase an income property, thus not only having  an income ,but low risk and property appreciation to keep up with inflation, for a fee he can have it professionally managed. I don't suggest he does this thins, all I suggest is that he considers them while at the same time considering all the other things I said also. 

 

Fair comments but, unfortunately, the risk that the market could crash as it did last spring but not recover for years is also now rising rapidly. 

[sirineou]

10 minutes ago, nauseus said:

 

Fair comments but, unfortunately, the risk that the market could crash as it did last spring but not recover for years is also now rising rapidly. 

All true, we do live in interesting times. which is why I said low risk rather than no risk. Perhaps re-investing in income property might be the better solution, people will always need a place to live in, and at the very least, the Op will always have a place to return too. I am struggling with some of these decision also. but unlike the OP I wave a pension , and when I die my wife gets 70% of it for life. We also little by little build our house in Thailand mortgage free and we have out car there.  .

That's why I suggest he take a sabbatical for a year or two , sow his wild oats, and if he still has attachment to Thailand do the few months here, few months back home working in such arrangement can be accomplished, If nothing else , after a couple of years he would have a clearer idea about Thailand, and what he wants to do with the rest of his life. 

Having been associated with Thailand for  about 15 years ,and the up and downs I always cringe when i hear about someone burning their bridges and using the proceeds to retire, especially at such a young are. Perhaps it's because I am getting older and more risk averse  but i like bridges LOL.

[madmen]

3 hours ago, Lacessit said:

Nothing wrong with my 35 sqm condo in Chiang Rai, it's my man cave. Screw gardening, done more than enough in my lifetime.

The OP only said a modest life in Thailand, which could mean anything. Didn't specify location or lifestyle.

I think it's fair to assume he is not going to rent a place on the outskirts of town or in a village because he does not speak Thai. 

 

He will have plenty of time for village life after he marries his bar girl but he has to meet her first and that will obviously be in a tourist area 

[NCC1701A]

2 hours ago, Saraburi121 said:

I think NCC1701A hit the long pole in the tent,

that's what all the girls say.

[Salerno]

  

1 hour ago, madmen said:

I think it's fair to assume he is not going to rent a place on the outskirts of town or in a village because he does not speak Thai. 

 

Not really that fair ...

 

7 hours ago, gordog said:

I should have added: I have lived in Thailand off and on since a teenager, and speak Thai

[DDBKK]

Easily enough. 

 

400K into a UK property will yield some nice monthly income to live off whilst always ensuring you have that safety net to return to and have a foot in the UK property market. 

 

I'd be tempted to buy a condo somewhere along the new BTS line in BKK also and either rent it out or live in which could be the base in Thailand or just rent something nice but cheap in any other location. 

 

Another 50K GBP on some higher risk investments and pay attention to how well they perform and play the markets somewhat. 

 

Another 50K in slush fund for travel etc but try not to touch it and live purely off the yield from UK property. 

 

Sorted.

[mstevens]

At age 42, odds are you have 40 - 45 years to live.

 

You presently have around 24 million baht. That's a great lump sum but you really need to make that money work for you. Either invest in property or shares or something that will provide a passive income so that you don't touch the principal.

 

24 million baht sounds like a lot of money and it IS a lot of money.....but you're still a relatively young man and I would not expect that it's anywhere near enough to last you 40 - 45 years unless it is invested wisely.

[onebir]

4 hours ago, madmen said:

I think it's fair to assume he is not going to rent a place on the outskirts of town or in a village because he does not speak Thai. 

OP mentions in a later post that he does speak Thai

[AlexRich]

I would say that 600,000 is more than enough if you invest that capital and use dividend income to finance your day to day expenses. If you don’t know much or have no interest in investment I’d suggest investing in low cost tracker funds that move up and down with the general market and pay a dividend. You should  be able to generate a steady income whilst growing the capital ... over 20 years that might be a tidy sum of money. You can set up a broker account in a safe overseas country, but you will need to do some homework on suitable funds. Be very careful with anyone who describes themselves as a financial advisor, especially if Thailand based. There are many conmen around so best do some research yourself.

 

A selection of funds generating a 3% dividend would result in £18,000 per annum, or 60,000 Baht per month, which is more than enough to live on. As long as you don’t bring the income into Thailand in the same year as it was earned you can avoid a tax liability. If you use a brokerage outside the UK you will not be subject to UK tax either. But be careful when returning to the UK, if you stay too long on any tax year you’ll find yourself resident for tax purposes.
 

At 42 you are not at retirement age. You could make use of an education visa, involving language classes, or an Elite Visa, but that is expensive. At 50 you can apply for the retirement visa. It’s not so easy to stay in Thailand at your age, and I suspect that is your major challenge.

[kokesaat]

We moved to Thailand in 1996 at age 46 with $200,000 in the bank and a military pension and 75% medical coverage through my military program.  When you're young and healthy, the last thing on your mind is the need for health insurance.  A French friend of mine had a money knock him off his bicycle in Huahin.....needed a new hip for $5000.  An American friend of mine was practicing with his new motorcycle doing laps on a vacant street.  He forgot to raise the kickstand and it grabbed the curb......he was in the hospital for several days.  Of all the things potential expats don't seem to put at the top of their priority list is the need to have a pool of money available for medical care.  You can't use the same gauge to measure medical care as you do your rent or bowl of noodle soup.  Given your young age and lack of other sources of income, I'd suggest working another 10 years, bank every penny you can, and reevaluate.   Thailand will still be here in 10 years.   If you come here now and find yourself draining too much money from your savings after 5 or 10 years, you'll be that much less likely to reenter the workforce in your home country.  Be patient!

[ukrules]

2 minutes ago, kokesaat said:

When you're young and healthy, the last thing on your mind is the need for health insurance.

The first time I stayed more than 90 days, on day 91 I took out one of the best full health policies available.

 

I was in my mid 30's and this was more than 10 years ago. Still got it now. It's a priority.

 

The younger you get in the healthier you are and the cheaper it is!

[Nemises]

9 hours ago, 1FinickyOne said:

boredom can be an issue for most retirees.

No such thing as a bored, single, retiree living in Thailand who has money. OP has more than enough money to live the dream. He just needs to invest it wisely.

[bikerlou47]

DO NOT RETIRE HERE

 

Rules change there is no uniformity in the laws.

I would suggest vacation here and in other countries.

Rent a small place in your home country and travel.

Invest your money in a conservative program.

Health care in yoUr home country will be much better than Thailand.

Enjoy your life..TRAVEL!

[tonray]

17 hours ago, gordog said:

So I recently sold my house in the UK. I have around 600,000 pounds in my UK bank account. Divorced, I have no pension, no other savings, investments or assets and I am 42 years old.

 

I would like to permanently retire and live in Thailand, leading a modest lifestyle. 

 

I have no knowledge of finance, business (other than my original trade in the UK which I cannot do in Thailand )

 

I was wondering if this sum of money is enough, and if so what I should do with it to best see out my days in retirement here (I enjoy writing and wish to do it full time)

 

Thanks in advance for any suggestions and help ( please no replies about "why Thailand" , "other places are better" and so forth)

 

 

Why do you have 600K in your bank account earning nothing ? Should speak to someone (friend, trusted colleague) about getting it invested and returning dividends and some growth of capital for the future. 

[1FinickyOne]

2 minutes ago, tonray said:

Why do you have 600K in your bank account earning nothing

This past year it has been out of fear... at the first sight of what covid could do to a tourist area, I extrapolated out... and sold out.

 

A mistake in retrospect - but coming off 2 good years of returns averaging 12-15% - I had room to breathe but... who knows - the world does not look too stable... 

[Tagged]

For new guys 100 000,- a month until you have settled and figured out how to live

 

then maybe you can live on 30 000 bath a month, but that excludes insurance and for most an outgoing social life, if you do not live on the country side, and have found an decent lady who will not rip you off. 

 

24 million is not enough for an 42 year old retired single man. I would say 1 million a year with all included is a decent budget for most who want to live good, have insurance, something gets you around and a decnent girl who do not rip you off. 

 

Man, to live and learn how to live in thailand is art itself. Can be beautiful, can be aweful

[tonray]

17 minutes ago, 1FinickyOne said:

This past year it has been out of fear... at the first sight of what covid could do to a tourist area, I extrapolated out... and sold out.

 

A mistake in retrospect - but coming off 2 good years of returns averaging 12-15% - I had room to breathe but... who knows - the world does not look too stable... 

The world hasn't been stable since 1954....returns over time continue....not making thise returns means inflation eats into your 600K making it really only about 300K over your expected lifespan...invest conserviatively if that suits your temperment but invest you must to maintain your hedge against inflation. A very conservative portfolio allowing for growth over time, generating even a relatively low 2.5% dividend payout will provide you with over 50K baht monthly (before taxes of course)...makes you nestegg last a lot longer.

[spiekerjozef]

Buy 5 beer bars.

[Captain Monday]

You have a good chunk but too early to hang it up. Develop another income stream. Perhaps online work. Has anyone mentioned you must have a plan B that does not involve Thailand?  They keep changing the goalposts here.

[worgeordie]

17 hours ago, Moonlover said:

Retire in Thailand at 42? Sorry sonny, can't be done. Come back when you're 50, if you have any money left then.

Well that's exactly what I did,33 years later and I am still here,had a very

good life,very good wife and daughter, BUT I am not a drinker or party

animal,if you can control yourself and not associate with the wrong

women /people.

 

Don't make any stupid investments,protect your money,things ,well

everything were cheaper then,I did not know if I had enough funds

when I chose to make my home here,but just did it,turns out I did

and have more now than I came with.....Thailand has been good to me.

 

Good Luck

regards Worgeordie

[talahtnut]

 

Get into a business that interest you, a heap of cash is fragile.

[gordog]

Thanks for the responses.

 

As I mentioned in some posts. I have an elite visa currently, speak Thai (I have lived here sporadically since a teenager) and know the culture as well as a foreigner can. I just don't have any knowledge of business or investing.

 

Reading the responses it seems I need to do something with the 600k to create income. Given I don't know anything about investing, would the best option be to use a service or 3rd party, like this Vanguard that everyone talks about? As I don't think i'd be knowledgeable enough to pick investments myself.

 

 

[Peterw42]

4 minutes ago, gordog said:

Thanks for the responses.

 

As I mentioned in some posts. I have an elite visa currently, speak Thai (I have lived here sporadically since a teenager) and know the culture as well as a foreigner can. I just don't have any knowledge of business or investing.

 

Reading the responses it seems I need to do something with the 600k to create income. Given I don't know anything about investing, would the best option be to use a service or 3rd party, like this Vanguard that everyone talks about? As I don't think i'd be knowledgeable enough to pick investments myself.

 

 

A rental property (in home country or even Thailand) is a good investment. 

Your capital stays intact, the capital and the rent goes up with inflation.

If its in your home country, you always have a plan B, ie: a house to return to.

Its not hard to find a rental yield of 5-10%, more than enough to live a comfortable life in Thailand