Retire In The Philippines With $200,000 Of Savings?

[Thomas]

I don't want to click the "Like" button to DH's post, even though it shows what can and does happen. I think that it really happens to many people. One of my friends took his pension out in a lump sum instead of monthly payments and now he is broke and back working. He invested in some lots that were supposed to be sub-divided and built on but it never happened.

If interest rates were higher, like 8 or 10%, I might buy a life annuity with a 10 year guarantee. Looking back, a $500K annuity would pay out $2500 per month for the rest of your life. No stress!

 

P.S. Don't even think that online poker will make up the difference.

You can get 20 % per MONTH, if you become a loan shark  :mocking:

Just joking concerning THAT,

but IF you know some farmers and/or baranggay Captain in a rural baranggay, you can put some money in "harvest sharing".   That's GOOD business for BOTH finansiere and poor farmers, who wouldn't afford what they need to get good harvest otherwice. Depending of crop, but for rice* a normal deal is money back plus 25-33 % of the rest. A good year that can be DOUBLING the money in 4 months.

I know two Swedes, One have got pay all the times, the other all times except one. But they did it with neighbours they know.

 

*My perhaps future wife put all her money in "harvest sharing" mango now. She expect the harvest will be worth 5 times her investment, but I don't know how big part she will get of that. Mango is work intensive, so I guess finasiere get some less than when it's rice, so if she guess corect concerning the harvest, she will almost double her money in 4 months.   And the farmer would earn ENDLESS   :) more than otherwice, because without money to spray there wouldn't have been any harvest at all...)

 

The fund has way less than $100K in it but will pay me $1,300 a month for life

 

Interesting.  How does that work?  I used an annuity calculator on line and it says I would only get about 350 a month from a 100K annuity.  Sounds like you have a great plan.

I don't know about that specific sum,

but there are for life retirement funds, which are as INSURANCES, where a company or a government count at average life length (no refunding to hiers) and the organicer GUARATEE the sum, or related to some inflation index or such.

 

(A have a such where my monthly pay depend much of how late I decide to start collecting.  In general if retire at 73 instead of 65, then get around double per month.  (=73 in around the middle between 65 and expected average death  (=around 80,7).  I HAD planned to delay it MUCH, because I plan to become 90 or so   :)     but I have changed my mind to not wait, because I believe I can in Phils grow my money more  than the difference e g by "harvest sharing".)

[Kuya John]

I believe I can in Phils grow my money more than the difference e g by "harvest sharing".)

I guess that's the nearest you can get to a Money Tree Thomas, :tiphat: 

[Thomas]

 

I believe I can in Phils grow my money more than the difference e g by "harvest sharing".)

I guess that's the nearest you can get to a Money Tree Thomas, :tiphat:

Yes   :)    If doing it with reliable enough farmers, or a fair Baranggay Captain who tell the missbehaving. Some Baranggay Captains can "authorise" such deals in START to add pressure at the farmer to follow it, but if offering them a good deal, the clever enough ones follow it anyway to get such deals again.

 

Some harvests are destroyed/much damaged, but when it's a normal harvest, the finansieres rather often double their money in 4 months.

I have forgot how much less the Swedes asked to get, their main purpouse was to support their neighbours, but they got good results too. (I believe more than 10 % in 4 months.)

[stevewool]

These figures some are saying on here $200,000 and $500,000 is such a vast amount of money, was you all just lucky or you worked hard all your life, can you say

[Dave Hounddriver]

$200,000 and $500,000 is such a vast amount of money

 

Not hardly.  If you retire at age 55 (for example) with a pension of about $3,000 a month then that will have a cash value of about $500,000 and many just take the cash under the belief they can do better with cash than a pension.  Idiots we are.

[JJReyes]

If you have $200,000 in a near zero interest bank account, you can withdraw $1,000 a month for 200 months to pay for living expenses. The money will last a little over 16 years. The actuarial tables are Americans who are turning 65 will live, on average, nearly 18.8 years.

Realistically, you need to earn an investment income of between 4% to 5% to make the money last because of inflation.

[stevewool]

If you have $200,000 in a near zero interest bank account, you can withdraw $1,000 a month for 200 months to pay for living expenses. The money will last a little over 16 years. The actuarial tables are Americans who are turning 65 will live, on average, nearly 18.8 years.

Realistically, you need to earn an investment income of between 4% to 5% to make the money last because of inflation.

Yes it would be great to earn a income on any amount but what would happen if you loose that amount on your investment, i am still happy putting my cash in a very low ISA making very little, but its a saving account, this is for the just incase, the extra trip here and there and yes maybe a top up too,

[chico2663]

 

Dave ,

 

Sorry to hear about your trouble. If you are truly retired and plan on never working a day in your life. There should of been NO high risk investments.

 

You should have had a diversified portfolio, of maybe 30 percent stocks(mutual funds) 60 percent bonds/fixed income, and 10 percent cash. Even with your bad timing, if you were invested correctly, you would of been just fine. You probably would of lost 10 percent, maybe 15 percent of your overall portfolio in 2008-2009.  You still could make small draws, and you could of rode it out, and probably would of had a portfolio, still worth about 450k or so today, even with withdrawals.

 

 

 

 Unfortunately, I was one of the latter.

 

So how good is that figure of 200,00K in the title of this thread?  Here is my story on 2 1/2 times that amount:

 

Retiring with a $500,000 savings account.  Will it work for me?

 

I’m an idiot.  I know I am because most of my friends tell me that.  They wonder how I could retire with $500,000 in the bank and not have money now.  I am going to tell you about that so you can learn how not to be an idiot.

 

On May 1, 2008 I retired with 500K in my account and moved to the Philippines a happy man.  I planned to live on $2,000 a month so I kept the first year’s money in an easily accessible account and kept an additional 10K for moving expenses.  Then I put 10% (50K) in a high risk growth account and the remaining money I invested with my broker.  He is a well-respected broker who had been earning 8 to 10% consistently for the people I knew who gave me a referral.  His firm is highly ranked as a safe investment company.  I invested 416K with his firm.

 

Then came the world crisis of late 2008.  By early 2009 I had lost all my my high risk investments and 30% of my main portfolio.  I still needed to live so I withdrew 24K that year and that left a balance of 266K in my savings account.  Still not bad right?  This broker had been earning 10% per year for my friends so at 10% I could still live on 26K per year.

 

5 years go by.  My savings account never sees a 10% annual return, in fact it is only making about 1% per year.  That’s nothing.  With 5 x 24 = 120K coming out, my saving are now down to 146K.  Now I realize the chance of living off the interest is done for so I split the 146K into 10 and realize I can survive 10 years at $1,000 a month and still have a little left over.  It can be done, right?

 

And then the Canadian dollar falls to 33 pesos.  End of story.  Your mileage may vary.

 

 

EDIT:  To show the other side, I have a friend/neighbor who retired 1 year after me with 500K and a small pension.  He was NOT hit by the world crisis and he managed his own money in the stock market and got lucky.  He is doing extremely well with that amount.  Again, your mileage will vary.

 

 

whenever there is republican president;i invest my money in safe investments. Whenever democrat is president I go more risk. Last republican president that stock dod well was reagan. Just one man's opinion.

[jpbago]

 

$200,000 and $500,000 is such a vast amount of money

 

Not hardly.  If you retire at age 55 (for example) with a pension of about $3,000 a month then that will have a cash value of about $500,000 and many just take the cash under the belief they can do better with cash than a pension.  Idiots we are.

 

 

Many Filipinos take the lump sum instead of the monthly pensions. It is their way of thinking of today and not planning for the future. One nearby has built 2 small boarding houses on his property so he will do OK but others that we know have squandered it all in a few months and are relying on foreign money now. There is the difference between us and the locals in that nobody will help us when the money is gone.

[Jack Peterson]

others that we know have squandered it all in a few months and are relying  on foreign money

 

 

My Sister in Law, Got 1.4 Million peso on retirement, she went for the big Pot and left just enough for a meager monthly Payout.

18 months and it has all but Gone. She had not spoken to my Wife for those 18 months, Guess what, the texts are coming in,"Hello sweety how are you, long time no talk and See" yeah I said here we go. 

 

Tell here to 

 

JP :tiphat: