Korean Job Discussion Forums

Homer · Guest

My situation is similar to taejonguy.

We also save about 30-35 million won per year.

jajdude · Joined: 18 Jan 2003

Congrats...........

How d'ya mange to save so much?

Ya must be making a bundle.

Zark · Posted: Mon Mar 14, 2005 3:01 am Post subject:

Well,

I won't brag about my net savings - because what is really important is what you do with it.

What you need to do is build an income base - read Rich Dad, Poor Dad to get a basic education in the issue. You should also be getting from Social Security an annual statement about what your income will be at retirement age - based on your earlier contributions. Just so you know what it is.

Then plan for income. Stock market is nice, but not an income stream.

Save and buy INCOME real estate. Different from just a house to live in - it is an investment in an income. Pay it off as quickly as you can - buy another one. Pay that one off as quickly as you can - use the income from those two - plus your savings and buy another one . . . Got it? It won't take you many years to easily exceed what Soc Sec would offer you. And, you won't have to worry about picking a crap stock or the ups and downs of the stock market. Or bubbles in the market or ?

This is the plan I have followed since '92 - and I am in good shape for retirement. Will use the income from paid off properties to buy more - to buy the house I will retire in - to build a nest egg and more. Don't spend that income! Let it build.

Only my personal opinion (and experience), but the most productive real estate is often NOT property you would want to drive your parents by and brag about. Use your non-emotional brain and make business decisions about investments and ROI (return on investment) - and your future. It is not impossible.

What is good - is that you are thinking about it.

If you are serious - and wish to pursue such a path - send me a PM and we can talk. People have helped me - and I like to help people. It's just pay back.

edit later: What I should add is that the income is important - as that will eventually be the income that you live on when you get old and retire. How much would you like to live on? It's up to you - plan for it, invest for it, and you have it.

Homer · Guest

Jajdude,

I make a good wage, my wife works and we budget.

Honestly however, it is not that hard to budget properly here and save a good proportion of your income. It is simply about priorities.

As for the comment on what to do with your savings (made by Zark) it was very relevant.

It is not just about saving money but about what to do with it. We invest in various places and that is important.

Tiger Beer · Joined: 07 Feb 2003

taejonguy · Joined: 14 Jan 2003 Location: Daejeon, Korea

Good advice Zark...I also suggest mutual funds as they tend to spread the risk out somewhat and they have a historical track record for you to use as an investment guide. The important thing is rolling over your investments. Don't take the equity out; re-invest it as that is how the nest egg grows.

As for me...my situation is like Homer's. I make a sound wage; we save well but still travel every 18 months or so. My wife is a grammar teacher that teaches private lesons. For any of you F-2 holders out there this is the way to go... She almost doubles my salary! Embarassed

desultude · Posted: Mon Mar 14, 2005 5:15 am Post subject:

kangnamdragon · Joined: 17 Jan 2003 Location: Kangnam, Seoul, Korea

Get married, have a Korean son, and he'll support you.

Zark · Posted: Mon Mar 14, 2005 9:40 am Post subject:

R_D said, " . . . add in interest and capital gains over 35 years, that will let you retire with over a million in the bank"

Problem is - in 35 years a million bucks won't be much - it isn't much now if you consider a safe 5% ROI (if you are 70-80 you need your bucks to be in a very safe place) is only $50,000 a year - minus taxes - 1/3 of it?

Work your whole life - just to be where you are now?

I have to explain my bias - I've only ever had mediocre luck with stocks and I find the dramatic ups and downs of the stock market too emotional. I just like the rents coming in month after month after year after year. The stock market can tank and drop 20-30% - and the rent still keeps coming in.

Also, don't forget that depreciation allows most - if not all - of your rental income to be tax sheltered. I haven't paid any real taxes since about 1984.

rapier · Joined: 16 Feb 2003

whats the point of slaving the best years of your life, to have enough to simply survive when you are a wrinkly old bag of bones?
Just enjoy your youth: its hardly going to be great when your 70 anyway, may as well be dead..nobody wants to know an ugly old pensioner anyhow:
In our natural state we shouldn't live past 40/50..any extra is artificially induced, modern luxury.

drgoo · Joined: 10 Feb 2005 Location: Home, sweet home

Zark · Posted: Mon Mar 14, 2005 3:04 pm Post subject:

Rap said, "whats the point of slaving the best years of your life, to have enough to simply survive when you are a wrinkly old bag of bones?"

Though I know Rap is just kidding . . .

Nothing wrong with living and enjoying life now - and feeling secure that you have planned carefully for the long run. They are not incompatible. I've done both most of my life - though as you say - I am old enough now that I should probably just shoot myself . . . (shoot shot , geez, I get those two confused!)

Investing wisely can help you buy the nice home you want - free up your earnings (because you are saving your investment income - remember?) - and you may - some day have obligations - like assuring your spouse and or children are taken care of should something untoward happen to you. (such as the killing of everyone of over 50!)

Such investments can also facilitate working somewhere for lesser wages - as you already have income coming in from investments. I'll be full time back in Thailand - either in December this year - or in one more year. I won't be able to save a dime there - but no matter - my property will be saving money for my new house (and new investments) for me anyway – it��s literally on automatic now. Then I can spend and enjoy every penny I earn - and still have a secure and comfortable future. I now have the ability to chose a much higher quality of life than persisting in Korea.

BTW, I didn't start this until about '92-93 - so it doesn't take all that long.

Ultimately, it's all about quality of life. James Dean said, "Dream as if you will live forever, live as if you will die tomorrow." Not conflicting ideas as Rap suggests - but in fact complimentary - and quite doable.

Enjoy!