chiangmai
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Post by chiangmai on Apr 30, 2021 6:02:44 GMT 7
I try to check from time to time if there are better ways to provide for my wife's financial future, after I am gone and when she is growing older, this is one such time.
Currently my wife is enrolled in the state social security scheme and pays contributions of around 450 Baht monthly, that will provide a small income in old age but will also provide medical coverage which is an important factor.
My wife is also the beneficiary of my UK SIPP and will have the option to continue its operation or to take cash. Continuing to operate the UK SIPP is complex and unrealistic plus withdrawals are subject to UK tax which she cannot reclaim so the fund is likely to be taken in cash.
We hold a mid six figure CG-LTF in "either/or names which I consider to be emergency funds rather than an investment.
The house is in her name and worth around mid/high seven figures.
On my death she will receive cash in low eight figures.
She is not in the least familiar or comfortable with investing or finance but she is a careful if not sometimes gullible manager of her own finances.
She operates a successful baked goods business from home which is capable of producing between 20k and 100k per month, based on the month of the year and on the state of play regarding the economy and the virus.
There are no debts. She is aged under 40. There are no children.
Ideas, thoughts, products, tips.....all appreciated.
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GavinK
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Post by GavinK on Apr 30, 2021 7:52:52 GMT 7
I seem to recall Fletch posting something on this a few years back.
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chiangmai
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Post by chiangmai on Apr 30, 2021 8:05:48 GMT 7
Yes, I looked and didn't see it but will look again. I thought perhaps there might be new ideas or thinking out there.
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AyG
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Post by AyG on Apr 30, 2021 9:44:23 GMT 7
One thing I have done is buy a few baht of gold which can be sold to provide immediate cash if there are delays in getting access to my bank account and investments.
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chiangmai
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Post by chiangmai on Apr 30, 2021 9:54:44 GMT 7
My wife's bank account is linked to mine so I can see her balances and she can see mine, I have a minimum amount that is required for both accounts, typically two years plus of living expenses. That negates the need for us to buy gold but it's certainly one way to make sure there are funds on hand.
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me
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Post by me on Apr 30, 2021 18:43:37 GMT 7
My wife's bank account is linked to mine so I can see her balances and she can see mine, I have a minimum amount that is required for both accounts, typically two years plus of living expenses. That negates the need for us to buy gold but it's certainly one way to make sure there are funds on hand. Not good for immediate cash, Joint bank accounts here are apparently locked on the death of one party so cannot be accessed by the other until probate which can be a lengthy affair especially when a foreigner is involved as the Embassy buys in, |
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chiangmai
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Post by chiangmai on Apr 30, 2021 19:54:42 GMT 7
My wife's bank account is linked to mine so I can see her balances and she can see mine, I have a minimum amount that is required for both accounts, typically two years plus of living expenses. That negates the need for us to buy gold but it's certainly one way to make sure there are funds on hand. Not good for immediate cash, Joint bank accounts here are apparently locked on the death of one party so cannot be accessed by the other until probate which can be a lengthy affair especially when a foreigner is involved as the Embassy buys in, They are not joint accounts, they are just linked. She piggybacks off my account in order to get some freebies from the bank that she otherwise wouldn't be eligible for, that means we can see each others account details yet they remain separate accounts. |
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Post by rgs2001uk on Apr 30, 2021 20:32:11 GMT 7
My wife's bank account is linked to mine so I can see her balances and she can see mine, I have a minimum amount that is required for both accounts, typically two years plus of living expenses. That negates the need for us to buy gold but it's certainly one way to make sure there are funds on hand. Not good for immediate cash, Joint bank accounts here are apparently locked on the death of one party so cannot be accessed by the other until probate which can be a lengthy affair especially when a foreigner is involved as the Embassy buys in, How would the bank know I am dead? As for access, the mrs has access to the atm and knows the pin number. |
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Post by rgs2001uk on Apr 30, 2021 21:14:53 GMT 7
CM, I dont want to come across as crude crass or disrespectful, but there are times when you have to take things to the lowest common denominator, in this case, your wife.
I am in the same boat, the mrs will be well taken care of by company pensions, paperwork already in the house, and already filled in, eg employee number etc etc.
the house as far as i am concerned is dead money, the mrs wont sell it, she has nowhere to go back to, the prakhanong of her youth no longer exists, all high rise condos these days.
The mrs is paranoid when dealing with finance, she has heard and witnessed too may stories of Thai families ripping each other off, heck when we are in situations like banks trying to flog her worthless insurance etc etc, she walks away and tells the staff, talk to my husband.
I used to invest in LTFs etc etc, way beyond my mrs, these days I still have a couple of basically cd account with uob, thats about the level of my wifes understanding.
Next problem, the farang knows nothing, she would rather believe the shit she is told by other Thais, dont keep your money in the bank, you will pay tax, keep it in cash in the safe in the house.
FFS, who tells you this crap, how will I lose money,the bank pays me 100 baht interest, deducts 15%, or 15 baht, so I am left with 85 baht profit, wtf do I know, its ingrained in them.
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chiangmai
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Post by chiangmai on May 1, 2021 6:12:31 GMT 7
Yes....but none of that prevents us from looking at different options from time to time and if we find suitable products, from buying into them. Our decision to invest in a either/or ltf at UOB was just that, a joint decision, we would invest in similar if they met the requirement for a safe longer term and cost effective investment such as a pension for my wife. I wrote that my wife doesn't have any financial acumen, that doesn't mean she's not very interested in establishing what I'm looking for presently. She would invest independently but she is quite rightly nervous of banks sales staff who keep trying to sell her useless shite, insurance policy based products for example. It's just that she finds the whole investment piece to be way beyond her training/upbringing etc because she's never had exposure to such things. I can relate to that, despite being university educated in the West and working in financial services for many years, I find investing to be a mine field. And I know there are others on this board who feel the same way (but wont admit it) and who are simply following a trend without realizing they are way out of their depth, because for the moment they are making money. Sooo, if educated westerners are reluctant to invest because they recognize it requires training, skill and discipline etc, Thai women certainly can.
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GavinK
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Post by GavinK on May 1, 2021 9:54:13 GMT 7
Keeping financial assets out of TH seems the best route to me, ideally with auto remittance of dividends to TH for any required income stream, or a disciplined Mrs that only remits as needed. Use of an offshore tust (eg. in UK) with Mrs and any kids as beneficiaries would be a way of protecting/deterring capital from being grabbed by banks and relatives in TH. Could be setup now with you as trustee, with assets (also offshore) bequeathed to it on your demise, via your (UK) will. Would require reliable trustees. Cost of setup and maintenance ?
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chiangmai
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Post by chiangmai on May 1, 2021 10:00:17 GMT 7
Keeping financial assets out of TH seems the best route to me, ideally with auto remittance of dividends to TH for any required income stream, or a disciplined Mrs that only remits as needed. Use of an offshore tust (eg. in UK) with Mrs and any kids as beneficiaries would be a way of protecting/deterring capital from being grabbed by banks and relatives in TH. Could be setup now with you as trustee, with assets (also offshore) bequeathed to it on your demise, via your (UK) will. Would require reliable trustees. Cost of setup and maintenance ? Thanks for that idea Gavin, that's worth me thinking about. There's no risk from relatives etc but overseas tax and foreign currency risk is likely to be a risk. I shall do some pondering! |
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Moobin
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Post by Moobin on May 5, 2021 21:08:07 GMT 7
When your wife retires and stops paying in to Thai social security, she may be entitled to a pension or a lump sum, depending on the number of years she has been paying in, unless she is a self payer (like my wife), in which case she will not be entitled to a pension but will have health care as long as she keeps paying in. As soon as she stops, health care stops too and she will have to rely on the GoldCard/30Baht scheme if she does not wish to go private. Luckily, in my case the company I work for has been paying in for me since the pension aspect kicked in and I will get one of the top pensions of just over Baht 5k per month. Better than a kick in this arse but nothing to shout home about. When I retire, healthcare under that scheme will also stop and I will take advantage of the 30 Baht scheme unless I need private care.
I have nowhere near the amounts of money you have, nor do I have a pension, but our house is without mortgage, which we will sell and move upcountry where we will build a new house. The cost of living is much lower there and she will be near family. We are not really big spenders and I have budgeted annual expenses at 75k x 12 post retirement to cover future inflation and if we can maintain that (I do not see any reason why we can't as we do not even spend that much now), we should be able to live off interest and she should have more than enough. Having said that, I still worry, as I am a worrier by nature when it comes to money. Luckily, my wife is very careful with money so I am not worried about her losing whatever I leave to her.
When I get closer to 75 or 80, I will probably just cash out all my savings and transfer them to her. In the meantime, I let her follow all my savings so that she fully understands where our money is and how it is performing for us. She has also started investing some of her own money, but she doesn't have much and is a housewife with no income.
I know that really wasn't very helpful, but maybe gives you an idea as to how others are dealing with similar situations.
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