The 25% formula for Pattaya retirement
Continuing last week's topic of 'How much do you need?' to retire in Pattaya, I used $1500USD a month.
And for most of us, this is an excellent 'income' goal as it provides an ACHIEVABLE, comfortable lifestyle in Pattaya.
But, you're asking, HOW do I get it?
A few thoughts:
Most Westerners will be eligible for a private or public pension starting around age 60.
There's many variables but you can probably count on $1,000USD a month, ADJUSTED for inflation.
So, we're still $500 short but YOU do have some savings...?
How about a house that's skyrocketed in value the past few years that can be sold?
What about selling some of that 'junk' in your closet?
Here's a simple formula to ensure you'll ALWAYS have AT LEAST the $1500 I mentioned--
Take your 'GOAL', in this case the $500 shortfall from your pension, multiply by 12 months, then by 25.
Example--$500x12=6000 then $6000x25=$150,000--VOILA!
So you NEED $150,000 to SAFELY generate the $500USD MONTHLY INCOME stream, adjusted annually for inflation.
Albeit this is NOT a HIGH rate of return (4%) on your money, but this is SAFE, adjusts for inflation, AND will last your lifetime.
Bottom line--A $1000 monthly pension plus your nest egg of $150,000, and you've got it! A GUARANTEED comfortable lifestyle in Pattaya!
Now, how about if you don't have much in savings? Or, are seeking to retire at a 'young' age?
I suggest developing MULTIPLE streams of income. First, take your savings--apply the formula above.
Next, THINK about a PORTABLE BUSINESS you could operate in Pattaya (See my Jobs page on the web site for ideas).
Lastly, consider 'partially' retiring. Spend six to nine months in your country earning the BIG money,
and the remaining months overseas.
Last suggestion for ANY retiree--Establish a SEPARATE account from your daily expenses to fund an annual
trip back your country. Inevitably you'll probably need to fly back for various reasons.The 25% formula for Pattaya