Advertise here from only 40 baht per week
cashING in
CHA-AM AND HUA HIN
Retirement Planning - Education Fee Planning
Regular Savings - Tax Saving
Lump Sum Investments
The Financial Benefits
of Being an Expat.
Every week in this article Helen Couldrey, a financial
consultant with the deVere
Group, and also a qualified
English lawyer, will give you
tips and ideas of how to take
advantage financially of being
an expat. Helen has clients in
Bangkok, Hua Hin and ChaAm who she helps to maximise
the financial benefits of living
overseas.
Helen Couldrey, BA (Hons), L.L.B, CISI
Contact Helen for a finance review
086 088 2127
[email protected]
passive income in retirement
Upon retirement, many expats choose to retire in
Thailand. It can be one of the most interesting and
cost effective countries to live in, with the bonus of
beautiful weather thrown in. During that time many
retirees will already have an adequate retirement fund
on which they can live. However, needing, or wanting,
to supplement that retirement fund through passive
income is not uncommon.
So what is passive income? In brief, passive income is
an income received on a regular basis with little effort
required to maintain it… sounds good hey. With that
in mind, here are a few types of income that are often
described as passive:
•
OWN A BUSINESS. Whether it’s renting out
transport, setting up a restaurant or selling
artwork. If there’s something you feel passionate
about then one option could be to set up your
own business… and then let others run it on your
behalf. This allows you to take a step back from
the operations, allowing the income to roll in
passively. However, owning a business can still
involve a lot of work, regardless of how ‘hands off’
you intend to be. There’s also the legal hurdle of
visa/work restrictions, so in reality this may be a
less likely option.
•
RENTAL INCOME. Many people are able to
supplement their retirement by renting out
properties. Obviously the capital expenditure
involved in such a plan is high as property doesn’t
come cheap. If you have property in your home
country then one obvious option is to rent that
property out either yourself or through an agent.
•
forward. The good thing is that you don’t need
substantial capital to go down this route. The
dividends can be a useful source of cash in
retirement and if you need access to the capital
they can be sold with relative ease.
•
QUARTERLY INCOME NOTES. If you are of the
opinion that markets may fall rather than rise,
Quarterly Income Notes are a great option. They
can pay an income every quarter and are linked to
market indexes. Unless the chosen market indices
go down by a pre-agreed percentage (normally
around 20% or 30%) a fixed return is paid to you per
quarter, normally providing returns of between 5
and 8% per annum.
Regarding the above options, I have ranked them from
1 to 4 for a reason; number 1 being the least passive
and number 4 being the most passive. As above,
business ownership can still be time consuming
whereas monitoring a Quarterly Income Note would
be as simple as checking a few market indices every
3 months.
Of course these are just a few options when it comes
to passive income. You can think outside of the box
as much as possible, however please keep in mind
any legal and visa restrictions. For this reason many
expats opt for passive income generation through
instruments such as dividends or Quarterly Income
Notes. Regardless of which options you pick though,
passive Income can be a great way to supplement
a retirement fund with very little work required,
allowing you time to focus on your more important
goal ... enjoying your retirement.
DIVIDENDS. If you are interested in investments
then buying stocks and shares could be the way
Join the AWOL forum
9