How I retired in Thailand at 48.

[Thaidup]

Do you want to live the dream? Well this is what I did, just follow some basic steps and you may be able to retire early in comfort.

1. Pay down your personal debt. Do it now no matter how old you are,get out of the debt cycle, there are many financial advisers available to help you accomplish this.

2. Cut out un-needed spending, Simply ask yourself, "do I need it".

3. Cut out impulsive buying, Don't buy the coke or pepsi at the corner store on the way home, you can buy at your leisure when you retire in paradise.

4. Work all the overtime you can, this will give you an added bonus of being known as a dependable employee by the boss.

5. Consolidate your home mortgage and savings account. like an "offset account" The amount in your savings account reduces the amount of the lein on the mortgage, but at the same time you are basically getting the mortgage account interest rate and as an extra benefit you don't pay tax on that interest.

6. Try to buy a cheap investment property that you can pay out for a positive income when you sell your living home.

I did all this from the age of 32 (wage of $27000 pa) and buying my first home, to 48 living in retirement in Thailand,(With a sore body from all the hard work)

And the Thai missus I met in 1999 helped too, it was a combination of her and I working hard until we could pay cash for the house in Thailand and keep one in Australia as an income and a backup.

I honestly wish you all the best of luck in being a retiree in Thailand, you will love the freedom and diversity, Just work on getting out of debt and you all can do it.

Edited March 18, 2022 by Thaidup

[BigHewer]

Kudos @Thaidupand thank you for posting. A matter close to my heart. 

What to do with mortgages and investments depends on location, but the formula is the same. Pay down on debt and invest at the same time. Always come out a winner. 

10-11% long term returns, regular modest contributions, minimum mortgage repayments = multi million portfolio at retirement. 

[TiT]

6 minutes ago, BigHewer said:

minimum mortgage repayments

We had considered paying extra to principal every month to pay down the mortgage faster, however it seems like returns elsewhere may accrue more wealth over the long-term rather than just saving on bank interest with such a low interest rate.  Good point to mention @BigHewer

[Thaidup]

Whoe whoe, I did neglect to add I personally received a $70,000 redundancy payout from work and that helped markedly in my decision to go at 48, otherwise it may have been 55, Phuck im sorry, but we where trying to get there regardless.

[BigHewer]

16 minutes ago, TiT said:

We had considered paying extra to principal every month to pay down the mortgage faster, however it seems like returns elsewhere may accrue more wealth over the long-term rather than just saving on bank interest with such a low interest rate.  Good point to mention @BigHewer

Absolutely right @TiT. It depends on the property dynamics in where you are and your mortgage rate. 

Low fixed mortgage rate + property value volatility = US stocks win every time.

Paying off a mortgage more quickly seems like the right thing to do, but it is a catastrophic financial mistake when that extra money could be invested at a higher return.

 

[Thaidup]

21 minutes ago, TiT said:

We had considered paying extra to principal every month to pay down the mortgage faster

My origional mortgage was 8%, you are right to seek better returns, its all a game of cat and mouse, But my personal experience is getting that one big debt gone gave me world of opportunity.

[Sparktrader]

But I shall assume you are perceiving a pension from back home? 

Or how does this work? Cuz I am completely lost. Are you relying on investments? or you get a pension?

[Thaidup]

27 minutes ago, Sparktrader said:

But I shall assume you are perceiving a pension from back home? 

Or how does this work? Cuz I am completely lost. Are you relying on investments? or you get a pension?

No pension, Only rental income and savings after selling the main living house. I bought a house in 1996, paid down the mortgage as best I could, then bought an investment property in 2006 on a 5 year interest only loan, spent 35000 to make it look nice, then sold the living house in 2012, paid off the mortgage on the rental and banked the rest, some in 5 year term accounts at 5.2% at the time that paid a monthly income, Now interest has changed and all my income is off the investment house and savings, I envisage when I turn 60 i will start a income stream off my superannuation (tax free) to suppliment for inflation ,and when I turn 70 I will sell the investment property to live out my life.

Edited March 18, 2022 by Thaidup

[Naanlaew]

Kinda sucks when your income stream turns into a trickle though.

Inflation will be soon be outdoing  any modest income derived from "safe" investments. Loss of purchasing power as well as currency fluctuations can throw a wrench into long term future plans.   

Edited March 18, 2022 by Naanlaew

[Thaidup]

I feel I must add that this is only my personal financial situation, I have no children and have only ever been married to my current Thai wife, I did make other means of income working weekends, i basically worked 7 days a week for 5 years, I stopped going to the pub and socializing, and I ate only what i made at home. I did lose a job in the middle of this and then started working as a laborer for a plumber digging trenches and the like, It is not easy. And I have no formal education, infact I did not receive a year 12 education. It's just my personal experience.

[Marc26]

2 minutes ago, Thaidup said:

I feel I must add that this is only my personal financial situation, I have no children and have only ever been married to my current Thai wife, I did make other means of income working weekends, i basically worked 7 days a week for 5 years, I stopped going to the pub and socializing, and I ate only what i made at home. I did lose a job in the middle of this and then started working as a laborer for a plumber digging trenches and the like, It is not easy. And I have no formal education, infact I did not receive a year 12 education. It's just my personal experience.

The thing is, to some that is not living the dream

 

To you that is, you accomplished your goals and that is awesome. I really mean that.

Also, I think the type of job you have is a factor.  As you stated, your jobs weren't easy. So maximizing your earnings and getting out early is a real incentive

 

I am 50 and have zero desire to retire, and I love to socialize

 

To me, plenty of time to retire and do nothing at 60, maybe 56-57

Although even at 60, may pursue other ventures, while retired

 

But the beauty is everyone has a different idea of what life should be

 

Congrats on achieving  yours...........

[Thaidup]

8 minutes ago, Naanlaew said:

Kinda sucks when your income stream turns into a trickle though.

Inflation will be soon be outdoing  any modest income derived from "safe" investments. Loss of purchasing power as well as currency fluctuations can throw a wrench into long term future plans.  

Yeah it's scary, especially if you are a landlord that has experience of how rent increases hurt the tenant, but that 10 a week I may rise in the rent in Aus is worth 250 baht on average a week to me, so it can cover a decent amount of inflation, I know not all of it, But inflation from my position living in Thailand is like me explaining to people that a meal used to be 1 dollar when I first came here, now its 2 dollars.

[Sparktrader]

1 hour ago, Thaidup said:

No pension, Only rental income and savings after selling the main living house. I bought a house in 1996, paid down the mortgage as best I could, then bought an investment property in 2006 on a 5 year interest only loan, spent 35000 to make it look nice, then sold the living house in 2012, paid off the mortgage on the rental and banked the rest, some in 5 year term accounts at 5.2% at the time that paid a monthly income, Now interest has changed and all my income is off the investment house and savings, I envisage when I turn 60 i will start a income stream off my superannuation (tax free) to suppliment for inflation ,and when I turn 70 I will sell the investment property to live out my life.

WoW. I must congratulate you for working so hard to make your dream come true. 

But I must say, if I was in your own situation, I would wake up scared shitless everyday. 

If you depend on your "investment house", what if there's a flood and the house gets ruined? what if there's a fire? what if there's a gas explosion? Will you be able to pull through without that income, or will everything collapse? 

On the other hand, if you rely on income from investments in the stock market, what if there's a global crisis that hits really really hard and everything collapses and your money is gone? what if WW3 comes and your money is gone?

[Thaidup]

32 minutes ago, Sparktrader said:

If you depend on your "investment house", what if there's a flood and the house gets ruined? what if there's a fire? what if there's a gas explosion? Will you be able to pull through without that income, or will everything collapse? 

On the other hand, if you rely on income from investments in the stock market, what if there's a global crisis that hits really really hard and everything collapses and your money is gone? what if WW3 comes and your money is gone?

Don't take this as sarcasm, but really, What if WW3 comes. LOL we will all be in shit, and people living in big cities won't be worrying about their assets. Your credit card wont work.

As far as a flood, fire, gas explosion goes,= Building insurance, I have made 2 claims in 15 years.

As far as damage or non payment by tenants = Landlord Insurance. 0 claims.

As far as being prepared if there is no income for several years from the investment, savings from the sale of the old lived in home.

Yes, I have meager assets that I worked to my benefit, for the people that like to drive fancy cars and wear expensive cloths, its not for you, But for a working class uneducated person like me to be able to retire and visit exotic places by driving there when I want is amazing to me.

 

 

[Marc26]

1 hour ago, Thaidup said:

 

Yes, I have meager assets that I worked to my benefit, for the people that like to drive fancy cars and wear expensive cloths, its not for you, But for a working class uneducated person like me to be able to retire and visit exotic places by driving there when I want is amazing to me.

I really liked this line..............good for you man   :)

[Thaidup]

Just ask yourself, do I want to work myself to death or not? An easy question for a working class or blue collar person, We tend to work our life out then retire and within a few years we die, The politicians and the white collars get all the benefits, The pollies erk me the most, they get to work one term then get a lifetime pension. What a joke. And they will give non citizens that arrive in boats a house and food for free but we have to prove that we looked for for a job, not very nice. I paid my taxxes, have worked since I was 17 years old. my body is sore from that work,but i never dicsclose that to anyone for the next job, I am an AUSSIE, we just pull through. Thank you Lord above for connecting me with my Thai wife, otherwise I would still be in Aus, paying for refugees and dole bludgers. end of rant.no harm meant to anyone, just personal feelings.

[BeerIsLife]

Some good advice here. Me, I am looking to finish at 60, when I can start to collect a couple of small pensions.  Plus have decent savings invested (hopefully) wisely. I am a believer in staying liquid and flexible. 

 

I know a few people who try the real estate route and it can be stressful. Always worrying about the tenants, the weather, possible damage to the property etc.  Personally, if I were into real estate as an investment I would sell the properties and invest the money into a REIT or possibly a real estate based ETF.  Returns are usually good and your capital is easily accessable.  Vanguard in Canada has a good ETF that has returned dividends of 3% per year, plus grown in value at a near 10% rate for the past decade.  

[Thaidup]

Still can`t believe the amount of people that think they deserve to spend their money how they want and then expect to get into the housing market without any control over their spending.

The only reason I got to retire was to stop spending on shit and getting out of debt, the advise given here is the best that can be be given, stop spending and start saving.

 

They complain about the prices of housing market in inner Sydney but refuse give up their plush inner city lifestyle and go out west to rent a house or flat at 10% the cost. Up to you.