1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How do you save/invest money?

Discussion in 'The Teachers Lounge' started by Internationalteacher, 11 Jan 2017.

  1. DavidUSA

    DavidUSA την σκαφην σκαφην λεγοντας

    Joined:
    16 May 2014
    Messages:
    916
    Likes Received:
    409
    Saving or not being able to save depends on the person. A pal of mine has money in his wallet that has never seen the light of day. He refuses to spend money. He is very wealthy. Nothing like free food samples and discarded bread at a bakery. You could say that he saves money like a professional, but it is a vice... much like a disease. He makes over $1,000 a day. He has a good job in the Middle East as a contractor for Uncle Sam, doing God's work and helping make the world a better place (for me, it was always disturbing to walk across blood-soaked carpets.. the squish. And later it turns hard and is crunchy.) He cannot spend money without emotional distress. He cannot go on vacation, and it hurts his relationships because girls want stuff. He wears clothes that he finds at discount shops or what has been thrown away. He is an expert about saving money. No thanks.

    The way I save is that I tuck it away in a place I cannot get it. I can actually get it, but it would take several weeks, lots of paperwork and phone calls, a lot of trouble. And I have credit cards that I let rest in the US. In order to use them I would have to go back and get them first. I also pay into a life insurance plan that I can cash in at some point. I'll be 64, but it will still be nice to have. Thailand has similar plans; for example, Ocean Insurance offers them. I know because my wife used to work there.

    In the US one can start drawing Social Security at 62. They have a website on which you can track your expected payment. I started an internet account and I got a new Social Security Card before I left home. Prior planning prevents piss poor performance.

    It is important to do this stuff yourself. I know a British guy who has substantial wealth, and he lives in Thailand. He left it up to his accountant in Britain to take care of collecting his retirement payments while he was kicked back along the Mekong. That did not turn out well.

    The related topic of life insurance is also important. That is basically saving for your family. I have four policies: one trust (42K Baht per month for life), one for accidents, one investment, and one I just asked my school to buy for me. That is, in China (term; which I plan to keep). I even went so far as to find out how my wife will not have to pay taxes on the trust. In other words, your life can be a circus ride on two horses, but your death can be locked tight like a US nuclear submarine on a mission.

    As far as your retirement goes, there is no time like the present to get moving on it. Talk to Ocean Insurance in Thailand about investments and insurance. I know for a fact that they are honest about making payments. Not all Thai insurance companies are.
     
    Last edited: 14 Jan 2017
    Internationalteacher likes this.
  2. Internationalteacher

    Internationalteacher Thread Starter Well-Known Member

    Joined:
    28 Dec 2010
    Messages:
    901
    Likes Received:
    304
    ^Thanks for your post, David.
    In regards to retirement, some people will be working longer than others that's for sure.
     
  3. SageAdvice

    SageAdvice Well-Known Member

    Joined:
    18 Nov 2016
    Messages:
    341
    Likes Received:
    128
    Possibly, but I wouldn't...sounds more like OCD to me
    See above
    Suspiciously well-informed factoid:smiling
    Not so: all you need is your credit card account number, expiry date and the security code from the back of the card to complete all sorts of online transactions
    Usually, yes, but the best laid plans etc...
    Agree: financial self-education, while not a guarantee of success, at least helps you understand where you went wrong
    Frankly, and with due respect to your wife's previous employment, all Thai companies are subject, in one form or another, to influence from Pu Yai and Khun Ying: unsecured company loans to board members, adviser fees paid to politicians or high-ranking police officers, lax internal financial safeguards, etc. I prefer to entrust something as important as insurance to companies whose operations avoid Thainess as an operating principle.
     
    Last edited: 14 Jan 2017
  4. DavidUSA

    DavidUSA την σκαφην σκαφην λεγοντας

    Joined:
    16 May 2014
    Messages:
    916
    Likes Received:
    409
    That little expiry date is exactly what I avoid knowing. I thought you would say that there is no use in having a credit card without using it because one's credit rating can go down. If that is true, it has not happened yet.

    Well, that is not fair to the Thais. Moreover, Ocean Insurance is actually a Japanese subsidiary, which accounts for its attentive senior management. I worked for them once in a while when they needed help with a foreign client, and I saw that they really do a good job. They did a lot of talking about other insurance companies that play tricks. I own two Ocean Insurance policies.

    That point you made about "lax internal safeguards" may be right on target though. I did a little investigation into the company myself, and I did see something I thought fishy, but I am not an expert. Put it this way: barring a financial catastrophe in Thailand, Ocean is most likely a safe bet. The money involved is really not that much anyway.
     
  5. Davman

    Davman Member

    Joined:
    15 Sep 2014
    Messages:
    16
    Likes Received:
    5
    Don't work as a teacher in the UK.
     
  6. keeshou

    keeshou Laoshi

    Joined:
    2 Dec 2010
    Messages:
    76
    Likes Received:
    7
    S and P 500, is an indexed fund, so you don't pay managerial fees and the average rate of return is over 15% Annual returns.
     
  7. OxfordDon

    OxfordDon Well-Known Member

    Joined:
    8 Jan 2017
    Messages:
    82
    Likes Received:
    47
    If you take almost any type of investment since 1970 (as per the S&P link) you will see a substantial average annualised return, but in recent years the S&P:

    2000 lost 10 %
    2001 lost 13%
    2002 lost 23%
    2008 lost 38%
    2011 0 %
    2015 lost 1%.
     
  8. muppetminder

    muppetminder Active Member

    Joined:
    4 Dec 2016
    Messages:
    80
    Likes Received:
    33
    You might not be able to time the market, but if you dick around, not pay attention and try to squeeze the last satang out if the market you'll get severely burned.

    Market is just waiting for an excuse to lose 25%. Big guys, HFT will be long gone.

    It's the plan to steal the last bit of wealth from the middle class.
     
    stfranalum likes this.
  9. muppetminder

    muppetminder Active Member

    Joined:
    4 Dec 2016
    Messages:
    80
    Likes Received:
    33
    Stay away from ETFs. Pick thru precisely what they are invested in.

    Minefield/timebomb
     

Share This Page