大咖福利影院

Bob604 wrote:

It might be best for you to talk with some fee based financial advisers at home.聽 聽You could simply invest the US $1,000,000 at a reasonable safe return of around 5%, which would聽 give you $50,000 per year to live on.聽 Simply rent here in the Philippines and keep the principle intact in the US.聽 聽 If things do not work out in the Philippines, you still have your $1,000,000 !聽 聽
You will live very well here if you avoid the scams and keep a lock on your wallet聽 聽 聽

Yes

If it''s a quiet, hassle free life you're after, that pretty much works and you have the security of knowing your cash is safe as houses.

However, buying houses in foreign lands commonly isn't as safe as houses as buyers end up spending a lot of cash and tend to lose out on deals as those offering "Great investments" tend to be on the make and don't give a flying rat's arse about their victims.

I'm with Bob on this one - check out your options on high interest accounts and live a hassle free life.
There is a downside to this in that the lack of stress means you're likely to live longer so have to plan for a few years longer than you would if you 'invest' in property.

Some will disagree, but they tend be be the ones selling investments.

PhotoSmurf wrote:

Hi Folks,

If I sold my home, rental property, private business shares, and some collectibles, I would have about U$1,000,000 after fees and taxes.

Would this be enough to retire comfortably in the Philippines? Assuming 30 year retirement with no significant income (aside from any income generated from U$1,000,000) and living an upper-middle class lifestyle (say U$40,000 per year).

Should I seriously consider purchasing or investing in a local income-generating business?

Whimsical scenario asked purely out of curiosity. I've visited the Philippines twice and love the Filipino culture, food, and people!

Nice scenario but as others mentioned don't forget taxation and never forget inflation,,,,, that's not tax deductible against your returns. You need to crunch the numbers, seriously. If you want to keep your capital say 1 million bucks then you need to inject your countries CPI/inflation rate back into the principal, say 20 to 25K given the US inflation rate, not sure of your tax regime but in reality you only have 20 to 25K to live on based on a 5% gross return.
If you don't mind blowing your money over 20 or 30 years then yes you will live very well.

OMO.

Cheers, Steve.

pnwcyclist wrote:

Or go back to work.

Please note, swearing is not allowed on the open forums

More seriously, retirement, in my humble opinion, should be exactly that, and used as fully as possible to explore whatever takes your fancy to explore - but relax whilst doing it.
Messing around with investments, property, business, or whatever other stress creating activities is a mess waiting to happen and a guaranteed way of ruining your fun.
I'm exploring my options at the moment, and I've come down to sticking the lot into high interest (real banks, not dodgy fly by night jobs or internet get rich schemes) and live off what comes in.
My calculations are a bit rough at the moment as I have no idea how long it will be before I scrap the idea of doing paid work, but it looks a lot like I'll be somewhere in the upper middle class range, so good enough to live happily but no damned stress (Except for the wives nagging).

pnwcyclist wrote:

Or go back to work.

That's like getting back together with your crazy ex years after the divorce.聽

Bob604 wrote:

It might be best for you to talk with some fee based financial advisers at home.聽 聽You could simply invest the US $1,000,000 at a reasonable safe return of around 5%, which would聽 give you $50,000 per year to live on.聽 Simply rent here in the Philippines and keep the principle intact in the US.聽 聽 If things do not work out in the Philippines, you still have your $1,000,000 !聽 聽
You will live very well here if you avoid the scams and keep a lock on your wallet聽 聽 聽

Bob is spot on, the only other consideration inflation, as such a return of 5% is only a true return of 2% based on a 3% inflation here in the Philippines.聽 (Inflation is currently 5.7% this quarter and it is forecast to be just over 5% next year, hopefully after that it drops back to 3%)

PhotoSmurf wrote:

A hearty "thank you" for your detailed and thoughtful feedback!

Ironically enough, I work at a major bank and my specialization is wealth management for very high net worth individuals and estates. I have multiple financial and investment designations including Certified Financial Planner (CFP).

Some impressions from my thought experiment:
- keeping the U$1,000,000 principal in the U.S. and living off the generated income seems most reliable and prudent.
- taxation and inflation effects should be factored into any retirement calculations.
- I earn about 6.5% per year for my long-term clients so I used an after-tax rate of 4% in my calculations.聽 [ my performance numbers... worst loss of -17% in 2008, best gain of +22% in 2013, average return of 6.5% over 16 years ]
- U.S. interest rates are a paltry 1% so some combination of high yield U.S. bonds and dividend generating U.S. stocks might be recommended.
- buying and operating an income-generating property or business in the Philippines seems rather problematic.

Seem like you asked a rhetorical question.聽 While wasting peoples time trying to help you.

Yet you did not even grasp exchange rate risk.聽 Hope that you don't advise people and that you get some one to check your figures.

Perhaps you are punting for business here.

pej1111 wrote:

Seem like you asked a rhetorical question.

A rhetorical question is defined as "making a statement in the guise of asking a question".

What statement do you think I was making in my original post?

pej1111 wrote:

While wasting peoples time trying to help you.

No, just your time. Everyone else was enjoying a friendly, light-hearted conversation.

pej1111 wrote:

Yet you did not even grasp exchange rate risk.

I also did not account for geopolitical risk. Or environmental risk. Or encountering a random Internet troll.

pej1111 wrote:

Hope that you don't advise people...

Senior manager/advisor with 16 years industry experience.

pej1111 wrote:

Perhaps you are punting for business here.

Are you asking a rhetorical question?

pej1111 wrote:

PhotoSmurf wrote:

A hearty "thank you" for your detailed and thoughtful feedback!

Ironically enough, I work at a major bank and my specialization is wealth management for very high net worth individuals and estates. I have multiple financial and investment designations including Certified Financial Planner (CFP).

Some impressions from my thought experiment:
- keeping the U$1,000,000 principal in the U.S. and living off the generated income seems most reliable and prudent.
- taxation and inflation effects should be factored into any retirement calculations.
- I earn about 6.5% per year for my long-term clients so I used an after-tax rate of 4% in my calculations.聽 [ my performance numbers... worst loss of -17% in 2008, best gain of +22% in 2013, average return of 6.5% over 16 years ]
- U.S. interest rates are a paltry 1% so some combination of high yield U.S. bonds and dividend generating U.S. stocks might be recommended.
- buying and operating an income-generating property or business in the Philippines seems rather problematic.

Seem like you asked a rhetorical question.聽 While wasting peoples time trying to help you.

Yet you did not even grasp exchange rate risk.聽 Hope that you don't advise people and that you get some one to check your figures.

Perhaps you are punting for business here.

Last December it was down to 50 pesos/US$,聽 recently up to 55 pesos/US$.聽 Obviously a factor in any long term investment in US$ earnings being converted to pesos every year.