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Wonderer

Future retirement income for expats under age 50

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bret

For myself, I assume SSN will be out of money by the time I am 65 and have assumed such since I was 25.

 

I started saving in 401Ks and IRAs in the US since 1988, and have managed to lose most of it during the .COM Bomb (bad investments in the stock market). But, I have built the losses back up (and then some) since then so I am back in the saddle on the savings side.

 

However, I currently could not live off my retirement savings, since they would be taxed with a 10% penalty for early withdrawal if I were to take them out now. I do not plan to wait until I am 65 years old to retire from corporate life in order to start enjoying semi-retired life either.

 

I am 44 now and plan to retire from corporate life in the next 5 to 10 years. By then I would have sold my US properties, invested in properties and capital equipment required for a semi-retirement business in the Philippines. I plan to have a agricultural based income business operating on lands that are either on pre-paid 25 year leases or possibly a share crop basis with the owners. By the time those leases run out, if I am still alive, I won't be working any agri businesses anyways.

 

The house and land will be owned partly by me and mostly by my SO (as per Philippines law). When I die, she gets it all, including any equipment and machinery I own.

 

By the time I am 65, I won't have many bills, other than food, drink and fun (internet, shopping, trips, viagra, etc.) I suppose. I will keep a pile of cash for medical issues (self insurance). Any income business I have then, would be supplemented by my IRA income and possible SSN if it still exists.

 

Or, I could get hit by a bus, in which case all this is moot. :)

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GoneAsiatic

Bret, you probably already know that the early retirement penalty for retirement accounts ceases at age 59 1/2, and a few plans allow early retirement at age 55. Good luck.

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Tomas

Bret, you probably already know that the early retirement penalty for retirement accounts ceases at age 59 1/2, and a few plans allow early retirement at age 55. Good luck.

To amplify on that, you can start SEPP withdrawals at any age. There is no penalty for early withdrawal using this technique.

 

http://www.retireearlyhomepage.com/wdraw59.html

 

The problem with SEPP withdrawals is that you must continue to do them until you are age 59 1/2 (and also at least 5 years). So once you start, you cannot stop until those limits are surpassed.

 

Personally, I just saved up money in my taxable account and have decided not to touch my IRA money until I get older (hopefully age 60 or older). I decided to work hard in my career in America and save there, as I did not see an easy way to make money overseas. I dreamed about traveling earlier in my life, but put it off until I had finished saving enough in my American career. I thought I would want to work after I retired and I had been traveling for awhile, but I found that I am very busy without a job and easily integrate myself into a culture and make friends.

 

Tomas

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GoneAsiatic

To amplify on that, you can start SEPP withdrawals at any age. There is no penalty for early withdrawal using this technique.

 

http://www.retireearlyhomepage.com/wdraw59.html

 

The problem with SEPP withdrawals is that you must continue to do them until you are age 59 1/2 (and also at least 5 years). So once you start, you cannot stop until those limits are surpassed.

 

Personally, I just saved up money in my taxable account and have decided not to touch my IRA money until I get older (hopefully age 60 or older). I decided to work hard in my career in America and save there, as I did not see an easy way to make money overseas. I dreamed about traveling earlier in my life, but put it off until I had finished saving enough in my American career. I thought I would want to work after I retired and I had been traveling for awhile, but I found that I am very busy without a job and easily integrate myself into a culture and make friends.

 

Tomas

 

Tomas, that does appear to be an exception alright, but the person doing it should ensure their distributions exactly match the IRS guidelines indicated at: http://www.irs.gov/pub/irs-irbs/irb02-42.pdf

 

The IRS couldn't make anyting simple. Job security for those bureaucrats. :tongue_01:

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samatm

I came to Cebu, Philippines on 1st May 2001.

 

The Job I had as Engineering Manager, Asia Pacific, working for an American Company, Netrix International, had come to an end in 2000, when they closed their Hong Kong Office down to save costs when Share Price of Telecom related Stocks, dropped 90%! What they should have done is close some of their USA Offices and expand into China, but that is another story and they went bust, because they didn't. I did have another job, as my Boss got together with his ex-boss and they formed a start-up company. Anyway to cut it short, that new company had problems as the Telecom recession bit deeper and I was on half Salary for over 6 months, then given the chance to relocate, so I choose CEBU.

 

Was getting paid US$1,000pm 'retainer' to start with, plus expenses, and increased Sales Commission Bonus.

 

Because a Project by Broadband Philippines, for Wireless Broadband to a number of buildings in Makati Area, and internal High-Speed distribution throughout the building, never got awarded to any of the 11 'bidders' (8 of whom were using our clients solution, for in-building distribution of Broadband Internet), I was out of a Job in 2003 at age 48, and living in the Philippines.

 

 

It's 'Swings and Roundabouts' - you just hope you MAKE more on the SWINGS, than you LOST on the ROUNDABOUTS?

 

 

David.. thanks for sharing ..you are obviously very intelligent and creative. If only we could keep those Rondabouts at bay.

 

Hey I'm curios why you are not still in the networking business ..isn't that your field of expertise and isn't it still a growing and profitable industry?

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Rogersea

Well I am 51 but I will share my thoughts on this.

 

I am also Retired Navy, but I plan to do the following to supplement my meager retirement:

 

1. Teach Private SCUBA LESSONS as I am a current insured PADI MASTER Instructor with a lots of experience.

 

2. Take Private Underwater High Definition Videos for tourists/other divers.

 

3. Provide CPR/First Aid courses for FIL AM couples.

 

4. Do a little day trading.

 

5. Possibly have a small farming interest that will provide a modicum of self sufficiency.

 

Cheeers,

Roger

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bret

Bret, you probably already know that the early retirement penalty for retirement accounts ceases at age 59 1/2, and a few plans allow early retirement at age 55. Good luck.

 

Oh yeah....haven't really paid much attention to the fine print of my accounts. Guess I better review them, now that I am old. hehehe

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David_LivinginTalisay

David.. thanks for sharing ..you are obviously very intelligent and creative. If only we could keep those Rondabouts at bay.

 

Hey I'm curios why you are not still in the networking business ..isn't that your field of expertise and isn't it still a growing and profitable industry?

 

I got made 'redundant' in Hong Kong, because there was a 'recession' in the Telecom Market in 1999.This American company 'Netrix' made a bad business decision to close their Hong Kong Office, when they should have expanded into China, but that is another story!

 

All major -players as well as minor ones were affected as stock share prices crashed.

 

I had turned down a job with with 'Newbridge Networks Corporation' in the UK, to work for 'Netrix', but they got bought out by Alcatel in 2000! This 'start-up' company, I joined. Congruent International, had integrated Sonoma Systems, UK, European and Asian offices as well as USA, and seemed to have a bright future. However before we closed some interesting Sales developments, in Asia, including an IT Park, Alabang, Philippines, they got bought out by Nortel Corporation.

 

Basically I did not fancy going back to the UK to work. Having to rent accommodation, commute to work, pay 40% Tax, and put up with high cost of living!

 

Why do that, when I managed to live in Paradise without working. OK so the last 18 months have been tough, financially, but we are bouncing back, slowly.

 

If Sha-Sha's Mama had died when she had that heart attack and stroke back in February 2008, we would not have endured any financial hardship. If Celso G de los Angeles organisation had not been built like a deck of cards, that the Lehman Bros collapse, triggered his Banks and Pre-Need to fold, then we would be very much stronger.

 

The Banks were covered by PDIC, and they are paying out, albeit taking 3 months to announce Claims Acceptance (or longer), instead of 9 x working days (or less), and more than 6 months to pay claimants (instead of 'same day').

 

Had I stuck with my initial Php1M into 'V8' Motorcycles, and not re-invested in the hope of building increased capital quickly (to replace the PNBB2 Checks that had bounced from October 2008, and that I had planned on to pay off my HSBC Asset Link Loan), or Catherine L. Soronio had not told lies and cheated us, and actually paid off the amortization of my Loan with Oriental Bank, I would not have lost much at all in that Business investment.

 

But like I said its 'Swings v Roundabouts' - if you can get off the roundabouts at the correct time, and stay on the swings, you manage to get higher and higher!

 

I got on the wrong roundabout, and now starting slowly on new set of swings. Can only get higher on the swings, as the PDIC give me a 'financial push'.

 

In the meantime, my overdraft in the UK is slowly getting repaid with my annuity Pension, and we have enough on the 'swings' to live off, and pay all the Bills and Credit Cards, and the roundabout still seems to be going around also. As long as that does not stop, then we will be OK.

 

Why bother thinking about WORK, and spoiling early retirement in Paradise!

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softail

I got made 'redundant' in Hong Kong, because there was a 'recession' in the Telecom Market in 1999.This American company 'Netrix' made a bad business decision to close their Hong Kong Office, when they should have expanded into China, but that is another story!

 

All major -players as well as minor ones were affected as stock share prices crashed.

 

I had turned down a job with with 'Newbridge Networks Corporation' in the UK, to work for 'Netrix', but they got bought out by Alcatel in 2000! This 'start-up' company, I joined. Congruent International, had integrated Sonoma Systems, UK, European and Asian offices as well as USA, and seemed to have a bright future. However before we closed some interesting Sales developments, in Asia, including an IT Park, Alabang, Philippines, they got bought out by Nortel Corporation.

 

Basically I did not fancy going back to the UK to work. Having to rent accommodation, commute to work, pay 40% Tax, and put up with high cost of living!

 

Why do that, when I managed to live in Paradise without working. OK so the last 18 months have been tough, financially, but we are bouncing back, slowly.

 

If Sha-Sha's Mama had died when she had that heart attack and stroke back in February 2008, we would not have endured any financial hardship. If Celso G de los Angeles organisation had not been built like a deck of cards, that the Lehman Bros collapse, triggered his Banks and Pre-Need to fold, then we would be very much stronger.

 

The Banks were covered by PDIC, and they are paying out, albeit taking 3 months to announce Claims Acceptance (or longer), instead of 9 x working days (or less), and more than 6 months to pay claimants (instead of 'same day').

 

Had I stuck with my initial Php1M into 'V8' Motorcycles, and not re-invested in the hope of building increased capital quickly (to replace the PNBB2 Checks that had bounced from October 2008, and that I had planned on to pay off my HSBC Asset Link Loan), or Catherine L. Soronio had not told lies and cheated us, and actually paid off the amortization of my Loan with Oriental Bank, I would not have lost much at all in that Business investment.

 

But like I said its 'Swings v Roundabouts' - if you can get off the roundabouts at the correct time, and stay on the swings, you manage to get higher and higher!

 

I got on the wrong roundabout, and now starting slowly on new set of swings. Can only get higher on the swings, as the PDIC give me a 'financial push'.

 

In the meantime, my overdraft in the UK is slowly getting repaid with my annuity Pension, and we have enough on the 'swings' to live off, and pay all the Bills and Credit Cards, and the roundabout still seems to be going around also. As long as that does not stop, then we will be OK.

 

Why bother thinking about WORK, and spoiling early retirement in Paradise!

 

Shoulda-Coulda-Woulda the marry-go-round of life. If I had just done this, if that hand'nt happened, got screwed cheated whatever. We have to accept life as it presents itself to us and go with the flow, make the best of it. Sounds like you are doing just that.

 

Doug and Sally

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JohnFromTexas

Like Bret, I have assumed since my 20s that Social Security won't be around for me, although I've already put in enough to get full retirement benefits. They're now saying social security is going to be broke within a couple of years. Hope you current retirees are planning for this because I can assure you they're going to cut benefits. I'm in the internet business camp, which means I can pretty much do it until I'm physically incapacitated or the market changes - but the market could change at any time before I'm retired. Part of the reason I'm moving to the philippines is to live simply and well within my means so that I can save a lot more money. It would be nice if the Philippines became a place where investment and tourism were more encouraged so that the whole society could improve and the expats could play a part in that, but that doesn't seem too likely given the way things work :welcome: If that were the case I would definitely look at developing some business in the Philippines, but I have no desire to do that the way things work there right now.... although I hear moneylending can be a good business there that I might look into at some point in the future.

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Rogersea

although I hear moneylending can be a good business there that I might look into at some point in the future.

 

 

Not sure if you are joking but I have been coming to the Philippines since 1979 when I was 21 years old and stationed at Clark Field, in all that time I have never known a westerner that was succesful as a money lender(long term), I have known several Pinoys who were succesful but never a westerner... Good Luck :welcome:

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PiRider

Not sure if you are joking but I have been coming to the Philippines since 1979 when I was 21 years old and stationed at Clark Field, in all that time I have never known a westerner that was succesful as a money lender(long term), I have known several Pinoys who were succesful but never a westerner... Good Luck :welcome:

 

+1, I have been coming to the PI since 86. Don't know one successful person.

Edited by PiRider

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