Job Discussion Forums

[Hsinchuguy]

As 40 starts to loom on the horizon for me, I'm considering my retirement and what to do about it, so I thought I'd put this out there and see what others think.

Are you planning to make English teaching your lifelong career?

Given that we don't get pensions in the countries in which we work, and given that we won't get pensions in our home countries because we haven't been working in them, what are you doing about your retirement?

Personally, I thoroughly enjoy doing this work, and I'm not bad at it if I do say so myself, but I'm scared, financially speaking, about the future.

Back home, people without pensions usually tie up their retirement savings in a home they own. For most of us, out here, that's not possible.

So what are you going to do?

[rusmeister]

What's retirement?
Work till I drop. What else ya gonna do?

[Glenski]

[shuize]

As Glenski points out, a number of nations have treaties allowing totalization of social security contributions. For example, U.S. citizens working in Japan may find the following information useful:

http://tokyo.usembassy.gov/e/acs/tacs-7126e.html#totalization

Of course, with the retirement of the baby boom generation approaching, the uncertainties surrounding the future of social security and the likelihood of delayed benefits, it would probably be wise not to rely on social security as one's main source of retirement income.

[sidjameson]

OP, save at least 10% of your salary for the next 25 years. Put it into a Tracker fund in the stock market in your home country. I would guess that that would allow for a reasonable retirement up to about 85. But of course depends on your salary and needs later on.
Do you have any assets coming your way through inheritance? This obviously greatly reduces the pressures on you.
Basically, if you have nothing now and nothing coming you really need to work in a higher paying country and expect to reitre to a lower paying one.

BUT it's important to know that it can be done. I will soon have spent 10 years in Japan which will set me up for 40 years retirement in SE Asia if I wanted.

[tedkarma]

Depending on your home country - you can still get your pension or social security payments. I have found that for my country (USA) that my payment will be relatively small as I haven't contributed since 1992.

However, I have been successful overseas since that time and made numerous investments (primarily rental property) that will provide me with income in my old age.

Rental income + social security paments - will equal a semi-decent income that will allow me to live well in the country of my retirement (Thailand).

It can be done - it is not difficult!

[Van Norden]

The Van Norden Method (VNM�)
1. Start off desperate. Desperate to get out of TEFL. Desperate to get out of the rat race. Desperate for freedom.
2. Bite the bullet and go to Saudi. Spend 5 misery-filled years there.
3. Save every halala. At least 95% of your salary.
4. Invest it all in high growth/risk assets. Ignore the fluctuations and warnings, just keep plowing it in. Teflers can�t afford to play it safe.
5. Walk as soon as the job�s done. Don�t look back.

[dmb]

Van Norden, do you work with Thrifty? It could be the start of a beautiful relationship.

[naturegirl321]

I made a private IRA fund in the USA, add a bit every year. And then in Peru, they take money out of all my pay cheques. As long as I don-t decide to retire to an expensive country, like the USA, I-ll be fine.

[billybuzz]

I'm good for at least another 10-15 years in this game , so I have plenty of time to save and I have 3 places I own two of which are renters .Turkey has an agreement with the U.K about pension payments and I have been contributing to the local system as well as the credits I had when I left home . In addition I started a saving plan 4 years ago so I reckon I should JUST be able to scrape by.Oh yeah I hope to win the national lottery some time soon .

[Hsinchuguy]

Good advice all. Now for the benefit of all, not just me. Does anyone know of a good investment firm that can be dealt with online from overseas? Someone who could deal with our particular needs? This is a niche market waiting to happen; expats who aren't employed by Citibank, Coca Cola or Mercedes Benz, but are trying to put some money away on an ESL teacher's salary.
Years ago in Taiwan, I bought mutual funds from Franklin Templeton through E.Sun bank (a large and reputable Taiwanese bank). The problem was that all the literature was in Chinese, for obvious reasons, and the young bank teller was surely not in a position to give sound investment advice. So I, and they, floundered.
What I was looking for then, and still now, was a reputable investment firm whom one could deal with online as I, we, are often on the move around the globe.
Ideally something like this; you give them X amount of money every month and they sort it out for you. Does anyone know of such a company? I know you can do this at home through RRSP's and so on.
For myself, I believe any sort of government pension is out of the question and as for an inheritance, maybe a bit in the tens of thousands, but that's it.
Naive and ignorant perhaps I am. But as a better man than myself once said;

"Damn it Jim! I'm an English teacher not a fund manager!"

[guangho]

[naturegirl321]

[MamaOaxaca]

[Justin Trullinger]