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EDIT: New Info How Much To Retire at 30?
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PRagic



Joined: 24 Feb 2006

PostPosted: Mon Jun 06, 2016 8:30 pm    Post subject: Reply with quote

A million invested at 5-6% might work in SE Asia if you also had a property in which to live. 1.5 million would allow a decent quality of life if you were paying rent along the way. And, hey, with all the serious over building going on in Thailand, Bali, Cambodia, etc, why buy? If the apartment goes to crap, and they do, just move!

Two million invested gets you a cushy (expat) life just about anywhere save the big, expensive, first tier cities in N. America and Europe. That goes a lot further should you also have a place to live all bought and paid for.

Don't forget to figure in med insurance and dental for you, your wife, and your kid. One of the biggest mistakes many retirees make is not figuring in dental, which can start to run you. Also, consider longer term care for when you need it. What would happen if you or yours were hospitalized over a long period with the associated expenses?

Then there's the little stuff...phone, internet, car (fuel and insurance, too). All this is why I agree that you'd burn through 50K in no time flat. Actually, 200K won't even last you all too long, especially if you're looking to retire early. Simply not enough. You'd be back in the bread lines by the time you'd be in your 50s.

Why retire if you can't enjoy it? Get a university gig and do the beach thing over your paid vacations. Enjoy your time off during the week and the semesters fly by. Take that lump sum and invest it, adding to it as much as you can over the next ten or fifteen years. Retire early at 50, and enjoy, but leave your wife and kid with some financial peace of mind.
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J Rock



Joined: 17 Jan 2009
Location: The center of the Earth, Suji

PostPosted: Tue Jun 07, 2016 6:50 am    Post subject: Re: How Much To Retire at 30? Reply with quote

Zyzyfer wrote:
Fallacy wrote:
J Rock wrote:
I cant believe its been 4 years since I originally made this post. Most things have not changed about me, I'm still the laziest man in the world, still married, still wank using the laptop after my wife has gone to sleep.

What has changed and why I'm bringing this thread back up is my father passed away about 2 months ago. I went home for the funeral, stayed with my brother and his wife for a week. He mentioned there would be an inheritance but he still had to sell our dads house and see how much money he had in his bank account before we would know how much we would be receiving.

Well he emailed 2 nights ago, he sold my dads house, car, some silver and gold coins in a safety deposit box (which neither of us knew about), and some cash in his checking and savings account, and what he had in his 401K.

It surprised both of us that we will both will be receiving a little over $200K. To some that's peanuts, but to me that's a hell of a lot of money. I understand that my previous number of $50K wouldn't last long enough for me to retire on the beach but could $200K plus whatever I could scrape together be enough?

What would you do with the money? My mind is spinning right now....
Enough? Not likely. What would I do? Buy a sailboat and live on it. 200k invested at 10% annual return is still only 20k. Monthly income of about $1650 would be nice, but just barely. Just sitting still and not burning calories to contain costs might be meditative, but in reality, the retired life will be really boring, as others have discussed. Stick with the work, the wife and kids, the wanking, enjoy life, and expire early like your forebears.


savage /topropeelbowdrop

What I want to know is, what does wife feel about all of this? Plans for kid's future? I find the idea of working just to sit around and not be a burdensome old person just as tedious as the next fellow, but they have to accompany you on your little Kon-Tiki expedition, J-Rock.


This is part of my anxiety about my life, my wife is not a spender, except when it comes to our child. I KNOW she wants to pay for university, an apt., hell she'd probably offer to buy him a car when we don't even have one. If we have $100 to our name she would want to spend it on him, if we had a Million dollars to our names she would find a way to spend that on him. Point is no matter how little or much I make or inherit, I'm still screwed.

I'm all for helping my child out but not to the point where I have to live broke, with nothing to my name when I'm 80 years old, all so my child live a life of luxury.

She doesn't know how much inheritance I'm getting and I'm half temped for my brother to wire over $50K and say here you go, that's all I got do what you want with it. Keeping the rest in the U.S. for him to invest for me.

Another reason why I wanna leave and "retire" is because I honestly don't think my wife would care if I left, we're not unhappy but we're sure not living a dream marriage. Now that I think of it I bet she would be fine if I gave her the $50K I'm going to wire over and whatever is in our bank accounts. She'd be like, "I packed your bags, they're by the door, can you take the garbage out when you leave?"

Maybe I just want out, but I feel like an A-hole for even thinking like that.
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Stain



Joined: 08 Jan 2014

PostPosted: Tue Jun 07, 2016 8:29 am    Post subject: Re: How Much To Retire at 30? Reply with quote

J Rock wrote:
Zyzyfer wrote:
Fallacy wrote:
J Rock wrote:
I cant believe its been 4 years since I originally made this post. Most things have not changed about me, I'm still the laziest man in the world, still married, still wank using the laptop after my wife has gone to sleep.

What has changed and why I'm bringing this thread back up is my father passed away about 2 months ago. I went home for the funeral, stayed with my brother and his wife for a week. He mentioned there would be an inheritance but he still had to sell our dads house and see how much money he had in his bank account before we would know how much we would be receiving.

Well he emailed 2 nights ago, he sold my dads house, car, some silver and gold coins in a safety deposit box (which neither of us knew about), and some cash in his checking and savings account, and what he had in his 401K.

It surprised both of us that we will both will be receiving a little over $200K. To some that's peanuts, but to me that's a hell of a lot of money. I understand that my previous number of $50K wouldn't last long enough for me to retire on the beach but could $200K plus whatever I could scrape together be enough?

What would you do with the money? My mind is spinning right now....
Enough? Not likely. What would I do? Buy a sailboat and live on it. 200k invested at 10% annual return is still only 20k. Monthly income of about $1650 would be nice, but just barely. Just sitting still and not burning calories to contain costs might be meditative, but in reality, the retired life will be really boring, as others have discussed. Stick with the work, the wife and kids, the wanking, enjoy life, and expire early like your forebears.


savage /topropeelbowdrop

What I want to know is, what does wife feel about all of this? Plans for kid's future? I find the idea of working just to sit around and not be a burdensome old person just as tedious as the next fellow, but they have to accompany you on your little Kon-Tiki expedition, J-Rock.


This is part of my anxiety about my life, my wife is not a spender, except when it comes to our child. I KNOW she wants to pay for university, an apt., hell she'd probably offer to buy him a car when we don't even have one. If we have $100 to our name she would want to spend it on him, if we had a Million dollars to our names she would find a way to spend that on him. Point is no matter how little or much I make or inherit, I'm still screwed.

I'm all for helping my child out but not to the point where I have to live broke, with nothing to my name when I'm 80 years old, all so my child live a life of luxury.

She doesn't know how much inheritance I'm getting and I'm half temped for my brother to wire over $50K and say here you go, that's all I got do what you want with it. Keeping the rest in the U.S. for him to invest for me.

Another reason why I wanna leave and "retire" is because I honestly don't think my wife would care if I left, we're not unhappy but we're sure not living a dream marriage. Now that I think of it I bet she would be fine if I gave her the $50K I'm going to wire over and whatever is in our bank accounts. She'd be like, "I packed your bags, they're by the door, can you take the garbage out when you leave?"

Maybe I just want out, but I feel like an A-hole for even thinking like that.


I'm sorry J Rock that you're in this position. It's a difficult one for sure. Don't feel like an A-hole for wanting to get out of it. You're human, aren't you? I don't know the specifics and I don't know you personally, so I can't really give you advice that means anything. But just as a random poster, I will say that I hope you figure things out, brother.
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Zyzyfer



Joined: 29 Jan 2003
Location: who, what, where, when, why, how?

PostPosted: Tue Jun 07, 2016 4:24 pm    Post subject: Reply with quote

Yeah I read that and was like, "Hell, I couldn't even willingly advise a close friend going through such a thing, I gots nothin' here." A couple of generalizations is about all I can muster.

1) As parents, don't spoil your kid, especially beyond your means, it's doing more harm than good.
2) While there are thoughtful people posting on here, I would liken looking for relationship advice on ESLCafe to going to a strip club for dating advice.
3) Kids like having two parents in their life when possible, and while you didn't sign an iron-clad contract when you had the sprog, I'd suggest honoring that agreement as best as you can.
4) Why not take care of your health instead of assuming you will kick the bucket like your forefathers?
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PRagic



Joined: 24 Feb 2006

PostPosted: Tue Jun 07, 2016 4:27 pm    Post subject: Reply with quote

Don't have anyone in the US 'invest for you', even if it's your brother. Sit down with an investment manager, choose a few funds, and get your coin working for you in your own name.

If your wife is a Korean citizen, you won't want her name on your US accounts, because then she'll be taxable. It's only a matter of time before they'd then go after any accounts or income here in her name.

Your US taxes will get to be a bit more of a pain as you'll now have to pay taxes on your investment income, but the process isn't anything insurmountable. Just keep reinvesting your dividends. Hopefully you've been filing US taxes all along and have TINs for your wife and child.

Koreans do indeed feel compelled to sacrifice for their kids, and traditionally this was a form of retirement planning as the kids were then supposed to support the parents as they aged. Now? The expectations for everything are still there, but the payout isn't as forthcoming.

Unfortunately, monetary issues regarding your kid should have been discussed well in advance. Still, it's not too late to establish some ground rules. Pay for university? Sure, if the kid studies hard and really wants to go. And if they'll work their way through. No 4 year paid vacation while majoring in basket weaving. Marriage? Sure, throw for a nice ceremony. That's standard across your two cultures. Pay for the first apartment? First car? Uh, no freakin way.
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PRagic



Joined: 24 Feb 2006

PostPosted: Tue Jun 07, 2016 4:40 pm    Post subject: Reply with quote

As Zyzyfer suggested, this probably isn't the best place for relationship advice.

But, what the heck, I've been hitched 19 years. From the sounds of it, you and the better half simply aren't bringing things out in the open and talking them through. Does she know how you feel? That you feel she would pack your bags if you decided to split?

Most Koreans aren't as 'traditionally romantic' in the western sense, and what overt romance there is can wane after a child comes along. They are, though, at least in my experience, fiercely loyal, so just because she isn't lighting candles in langerie with wine on the table doesn't mean she doesn't love you.

And what does your wife contribute to the financial pie? Is she a stay-at-home mom? Has she ever worked?
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slothrop



Joined: 03 Feb 2003

PostPosted: Wed Jun 08, 2016 10:00 am    Post subject: Reply with quote

OP is having classic mid life crisis. while in this state one should NOT...

1. bring up the topic of divorce
2. buy an expensive sports car
3. give all your money to "expert" to invest in imaginary financial products
4. start drinking heavily

one should...

1. tell your wife you've hit a rough patch in the road, due to your father's death, unfullfillment with work and spending decades in korea
2. take a 3 month vacation to thailand by yourself to get your mind back. Do NOT drink exessively or go to prostitutes. DO something you've always wanted to do but haven't had the opportunity. maybe take a paddi course for scuba diving on koh tao, or yoga on koh pangyang, or if you are not into that, go to chiang mai and read books in coffee shops, maybe even write a first draft of a novel.
3. cut everything toxic out of your life...eg... porn, television, booze, ciggarettes, macdonalds... instead, read books, eat mostly vegetarian, replace shots of soju with wheat grass. you'll feel better about yourself.
4. delay any major life conversations/decisions until you are in a better frame of mind. and stop taking life so seriously and worrying about what you'll do when you are eighty. seriously, you'll be lucky to make it to seventy. you could get hit by a bus next week.

life is a bad deal for everybody. it's a can't win situation we're thrown into without being asked, and just when you think you've got this rigged game figured out, they pull the rug out from under you again.
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PRagic



Joined: 24 Feb 2006

PostPosted: Wed Jun 08, 2016 8:01 pm    Post subject: Reply with quote

Wiser words have seldom been written in the cafe.

The only caveat I'd add concerns investing. You CAN sit down with an advisor and you CAN get your money working for you now, especially if in the US.

Aside from a couple of historical burps, the market has performed quite well (over 8%) when a democrat takes office. Like her or not, Clinton may very well win this thing. And, heck, even if Trump takes it, history shows a 4.5% ballpark jump.

Figure the OP is 35. If he retires at 55 and simply invests his 250K now, figuring a 6% return reinvested (about standard for many funds), that'll amount to ballpark 800K. Plus, throw in any additional savings and investment that takes place on top of that over the course of the next 20 years. Not hard to hit a million with some planning.
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slothrop



Joined: 03 Feb 2003

PostPosted: Wed Jun 08, 2016 10:08 pm    Post subject: Reply with quote

QE to infinity! too bad we can't take it with us. although, a friend of a friend whose financial advisor's brother in law golfs with a guy who works at goldman, said they're putting together this new "product" based on an equation that when run through an algorithm, based on block chain technology, allows you to access your funds in the afterlife. and rumor has it that enough super delegates have already commited to having a bush or a clinton on the throne not only on the next plain of existence, but the 4 that come after, as well. of course their commision will kill you, but that's OK, because you can only access it after you're dead.
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PRagic



Joined: 24 Feb 2006

PostPosted: Thu Jun 09, 2016 12:19 am    Post subject: Reply with quote

Not really that philosophic or complex, but that was pretty funny.

All you have to do is sit down with an advisor. Yes, depending on the type of fund you choose, you will pay fees up front or on the way out. You'll also pay taxes after you recieve dividends even thought they're reinvested. The great thing about working abroad, though, is that that income isn't really large enough in the US for many years to actually create much of a tax burden.

No, you can't take it with you, which is why you set a burn rate on your principle and try to work it so that you can live off of your returns for a time, and then start dipping into the principle as you age. If you're not particularly concerned about leaving anything for your spouse or kids, then you could optimistically die poor, well traveled, and happy.

People that try to play the market invariably do worse than those who invest steadily over the longer run.

Do what you will. Personally, I prefer having our money make money for us. We started investing in the US many moons ago and also have some land here in Korea. That's pretty much for the better half to cash out after I kick the bucket.

Some friends have chosen to go the real estate route instead. They've picked up a number of properties. The renters pay them off, and then as they get closer to retirement, they can sell one or two if they need a lump of coin and live off the rental income from the rest. Whatever works. Not in my wheelhouse, and seems like a lot of stress and paperwork.
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J Rock



Joined: 17 Jan 2009
Location: The center of the Earth, Suji

PostPosted: Wed Jul 06, 2016 4:46 am    Post subject: Reply with quote

PRagic wrote:


And what does your wife contribute to the financial pie? Is she a stay-at-home mom? Has she ever worked?


She works part time in a kindy hagwon, she doesn't make much 1.2 mil a month. She does however buy groceries with the money she makes so that helps.

She has no desire or ambition to get a better job to make more money, she's just not interested in money. She's happy just the way things are...
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PRagic



Joined: 24 Feb 2006

PostPosted: Wed Jul 06, 2016 8:24 pm    Post subject: Reply with quote

You originally wrote:
_______________________

This is part of my anxiety about my life, my wife is not a spender, except when it comes to our child. I KNOW she wants to pay for university, an apt., hell she'd probably offer to buy him a car when we don't even have one. If we have $100 to our name she would want to spend it on him, if we had a Million dollars to our names she would find a way to spend that on him. Point is no matter how little or much I make or inherit, I'm still screwed.

I'm all for helping my child out but not to the point where I have to live broke, with nothing to my name when I'm 80 years old, all so my child live a life of luxury.
________________________

Apparently, you need to have a serious sit down with the better half about the realities of your financial situation and your hopes for the future. It's not easy for a K woman to make much more than your wife these days unless they have a specific, high demand skill set and a big name degree to back it up, especially if they want to spend time with the rug rat.

So you two will need to create a realistic savings plan that takes into consideration the cost of university for the kid and, looking WAY down the road, even their wedding. Forget the car and the first abode. Put your foot down as you're not going to have the coin for that (assuming she continues to be in the dark about the inheritance).

Slothrop provided excellend advice, though I'm not that much of a tree hugger, wheat grass type. To each their own. I'd prefer aged scotch and a good stogie lol....
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T-J



Joined: 10 Oct 2008
Location: Seoul EunpyungGu Yeonsinnae

PostPosted: Fri Jul 15, 2016 5:23 am    Post subject: Reply with quote

Liking this thread
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