Early retirement v Prudent retirement

[Guest]

How early to retire?

 

I guess it depends on finances, expected living standard & what one wants to do.

 

If someone could secure ~$25,000 per year in his forties, is that enough?

Let's assume he has 50% of that from dividend income and 50% from renting out his home in the west. There's always a possibility that the baht value of the rental income could fall by as much as 50% over the medium term, due to currency fluctuations, tax changes etc.

The equity part could be mainly invested in the Asian region, to reduce currency risk.

 

Maybe $25,000 is enough to live on in Thailand & the surrounding countries. However, start adding in a couple of long haul flights per year & currency fluctuations & it starts to look very inadequate.

 

If the farang works a longer until he could secure $45,000 per year, that has more safety margin, but there's less time to enjoy retirement.

 

What's a good solution? [i recognise the farang may have to travel round SE Asia for a few years, if a visa cannot be secured until 55]

[Gaybutton]

I recognise the farang may have to travel round SE Asia for a few years, if a visa cannot be secured until 55

You can get the Thai retirement visa at age 50.

[Guest lvdkeyes]

Unless you really love your job, my suggestion is to retire as soon as it is financially possible.

[Guest]

Unless you really love your job, my suggestion is to retire as soon as it is financially possible.

 

The problem is one might retire as soon as possible, then find exchange rate movements of maybe 20~30% drop the income from just comfortable to "scraping a living". Making that call in your 40s might leave another 30 years of poverty.

[Guest lvdkeyes]

That's why I said "financially possible". Of course, there are variable factors that must be considered.

[Guest fountainhall]

Making that call in your 40s might leave another 30 years of poverty.

Too right. There are so many factors you have to weigh up. Politically, will Thailand be as welcoming to farang in 10 -20 years time? Will the cost of living here jump at a faster pace than other countries? In the Asian financial crisis, currencies lost much of their value and fluctuated wildly. Now the same is happening to western currencies. From what I read and see on TV, the future for the dollar , sterling and the euro is not so bright. Are you sure your nest-egg will not just keep its value but grow at a rate sufficient to keep you in the style to which you wish to live?

 

If I could turn the clock back to my 40s, I certainly would have saved more than I did. So if I were you, i'd aim for quite a bit more than $25,000.

[Gaybutton]

Certainly there is the risk factor to consider when deciding whether to retire early and/or whether Thailand is the place where you wish to retire. You can try to guess what things will be like years from now. You can also guess whether you'll even be alive years from now.

 

To me, there are some things in life worth the risk. For me, Thailand has been worth the risk. I would rather risk and lose than years from now regret not having taken the risk.

[Guest]

I figure it's reasonable to aim for $40k+ per annum AND ensuring a high proportion of the equity element is invested in Asia, to reduce currency risk.

 

The risk of early retirement will be taken, just not quite yet. If the political situation in Thailand changes, I just go somewhere else.

[Guest beachlover]

Unless you really love your job, my suggestion is to retire as soon as it is financially possible.

 

I think if you don't love your job, then unless it gives you enormous wealth for very little effort or time, you should be looking for an occupation you do love.

 

I find it hard to understand why people stick with jobs they dislike for decades of their lives...

 

As Steve Jobs said:

 

"You've got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. The only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it."

[Bob]

I find it hard to understand why people stick with jobs they dislike for decades of their lives...

 

People stick with jobs they dislike (mildly to severely) because it's a job they have, they're not qualified for other jobs, they've got bills to pay, etc., and I suspect that

most people at least dislike part of what they do for a living. But that's the reality for most people. Rich people(like Steve Jobs) and those with unique job qualifications have other options and are the rather haughty ones out there proclaiming that everybody just simply should seek the job they love to do. Life and employment, unfortunately, don't work that way all that often for most people.

 

I'm retired now from a job/profession I liked at times and intensely disliked at other times. And that's just about how everybody else I knew felt about their jobs - whether they were lawyers, accountants, nurses, factory workers, or whatever.

 

With respect to Z's question, it seems to me that you probably shouldn't retire until you believe you can afford to do so. You ought to know what lifestyle you want and the cost of it by the time your in your 50's and the rest of it is simply a matter of figuring out if you have enough financial resources to safely make it into your mid-80's or so (and one certainly ought to factor in some form of likely inflation). It's not a gamble one ought to take lightly, at least in my view. I probably could have retired a decade ago if all I wanted to do was to move permanently to Thailand; however, I wasn't (and still am not) ready to sell my house in the US or to not return to the US for a few months a year to maintain relationships with friends and family. And essentially maintaining two residences, flying back and forth, etc., adds a substantial figure to your financial needs. I felt financially safe and secure when I permanently retired last year but I would say I ultimately didn't make the decision until I realized or accepted that I was fully entitled to expend my resources during my lifetime (i.e., before I was somewhat hesitant because of the notion that I needed to only live off income from my assets and not ultimately expend the assets themselves).

[Guest travelerjim]

To be...or not to be..retired that is!

 

For each of us it is a major decision.

 

Much agonizing over it and to add the added decision

of where I will retire? My home country or Thailand? or ???

 

I remember chatting with a client of mine about her retirement.

She asked me if she had saved enough?

and will she be able to live my life into retirement OK?

 

She was looking for true advice, from a trusted person.

 

I told her, she had made sacrifices by saving during her work years,

and whenever she wanted, she could retire with peace of mind.

 

She then said...No tj, I love my job so...

I can't imagine retiring any time soon.

 

I said to her...One morning will come,

when you are in front of your mirror putting on your makeup,

making ready for work, and you will look at yourself in the mirror

and say "Why am I doing this?"...And that is the day you retire!

 

She said Oh No! I love my job so much!

 

Several months later I got a call from her. She said she had that moment

in front of the mirror..and that she could not stand the new Managing

Director that had been assigned to take over the major consulting firm office

she had worked in as Office Manager for 27+ years.

 

He changed many things, and the office was now in great turmoil.

It is so stressful now. He will not listen to her advice..

so she said "I am retiring"!

 

My friends, never say never, and be prepared when and if that day comes

that you say to yourself "Why am I doing this"...

Retire with peace of mind by saving for that day.

 

tj

 

footnote... On the day before her retirement date, she had a heart attack and

was in the hospital the next day when that Managing Director she had come

to despise so much entered her hospital room. He said he was saddened that

she had had a heart attack and he had her retirement request letter in his hand.

 

He said she could not yet retire... as he proceeded to tear up her retirement letter.

 

He placed her on fully paid short term disability with full benefits to continue

with the company for her benefit. She was so happy!

[Guest fountainhall]

People stick with jobs they dislike (mildly to severely) because it's a job they have, they're not qualified for other jobs, they've got bills to pay, etc., and I suspect thatmost people at least dislike part of what they do for a living. But that's the reality for most people. Rich people(like Steve Jobs) and those with unique job qualifications have other options and are the rather haughty ones out there proclaiming that everybody just simply should seek the job they love to do. Life and employment, unfortunately, don't work that way all that often for most people.

I think Steve Jobs is only partly right. You must aim not just for a job that you love, but one for which you have a passion. For some reason unknown to me and every member of my family, I wanted a career in what seemed a rather exotic profession (no, not hair stylist!), one that I really knew little about, but which totally fascinated me. I was always told, "Be more realistic!" When my first job turned out to be not at all what I was seeking, I ignored all the advice to "hang in there" for at least 4 years so I could establish my employment credibility. I resigned after 15 months. It turned out I had no difficulty getting the next job, one I really wanted. Since then, I have done a variety of jobs all in roughly the same field. Although there have been the usual ups and downs along the road, I can say in all sincerity I have been extraordinarily fortunate in my career and in the people with whom I have had the privilege and pleasure to work.

 

The passion is still there and so I do not want to retire. I have eased up recently in order to do other some things in life. But I hope to continue doing at least some work well into my 70s. I just cannot imagine life without it!

[Guest GaySacGuy]

Retirement is a big step in life, but one that way too many people wait too long to begin.

 

It can be all about finance. Many don't retire because they have nothing else to do..their job is their life. In this position, I can't say when to retire.

 

If you have some things you want to do and can afford to do, then get with it. Any outlook on finance is only as good as the person who is guessing...and that is what it is, a guess.

[Guest Astrrro]

A rule of thumb is that you have a nest egg, 4% a year is a safe withdrawal rate. However, this does not apply to guys in there 40's.

 

One important note is that in addition to one's cash flow from real estate or a pension, it is advisable to have a lump sum cushion that you can fall back on in case of emergemcies.

[Guest beachlover]

People stick with jobs they dislike (mildly to severely) because it's a job they have, they're not qualified for other jobs, they've got bills to pay, etc., and I suspect that

most people at least dislike part of what they do for a living. But that's the reality for most people. Rich people(like Steve Jobs) and those with unique job qualifications have other options and are the rather haughty ones out there proclaiming that everybody just simply should seek the job they love to do. Life and employment, unfortunately, don't work that way all that often for most people.

 

Totally true... But I think it's important to make it a high priority (finding an occupation you enjoy) and strive for it.

 

I suppose it's a sliding scale weighing up the benefits and cons... You might put up with an intensely draining and unenjoyable job (e.g. investment banking for some) because it will set you up for 'retirement' (i.e. the freedom to do something you love) by age 30. Or you might find something you enjoy more, like opening a restaurant, that won't make you as much, but you will enjoy more.

 

The point is... if you don't enjoy your job and it isn't taking anywhere quickly, start searching for something you will enjoy... you'll probably be better at it too.

 

I'm retired now from a job/profession I liked at times and intensely disliked at other times. And that's just about how everybody else I knew felt about their jobs - whether they were lawyers, accountants, nurses, factory workers, or whatever.

 

Of course, I'm sure even Steve Jobs has parts of his job he dislikes. I sure do too. It's when you hate every day that I think you need to rethink what you're doing.