4 months left, do I have enough?

[Lost In Asia]

Hello, fellow Mustachians!

I'm a Kiwi guy, 52 years old, currently in Asia and have been working overseas for most of my life. Unfortunately, my current job role is being dissolved in 4 months. While I have the option to stay with the company in a similar job, it would mean less money and more work, which I'm not enthusiastic about. After enduring the challenges of the past few years due to COVID, I've had enough and now desire the freedom to pursue new directions in life. I've been stuck in the same job for 17 years, and the monotony is draining my spirit.

I must admit, I'm feeling a bit scared. I currently have around $1.1 million in US dollars, but I think I could benefit from a few more years as a buffer since I don't qualify for any government pension, social security, or super fund anywhere. However, I've decided to test drive the FIRE lifestyle for the next 5 years. If my budget doesn't work out or if I worry about my income and ability to live comfortably in my later years, I can always return to my home country, where I'll eventually qualify for a pension after 9 years as a domiciled tax resident. So i have a plan B if for some reason its not working out. Id still have enough to relocate to my home country and buy a house etc.

My plan is to move to the Philippines. I lived and worked there in the early 2000s for a few years, and have returned regularly, so I'm familiar with the culture and can adapt easily. I also have friends there, which will provide a decent social network. During my visit last month, I created a budget of around $2,000 US dollars per month. I can reassess this budget every few years. I don't smoke or drink, and I'm content with simple foods. This budget is less than 3% of my $1.1 million savings annually, so according to a 3% rule, I should be fine with no fails on the retirement calculators. However, many people keep advising me to hold on for a few more years.

In terms of healthcare, I plan to get the best health insurance available, which seems to be around $3.5K per year given my current age and health condition.

Currently, my funds are scattered across various investments and not in index funds or ETFs. As I transition into early retirement, I will need advice on how to manage my investments going forward, along with guidance on other aspects of my financial situation. For now, my funds are invested in time deposits and shares, providing a safe rate of return. I also have about 15% of my savings in cryptocurrencies (BTC and ETH) that I acquired some time ago.

While I'm open to picking up some work here and there, I will be on a tourist visa, which may limit my opportunities. I don't need to maintain a full Western lifestyle, as part of my motivation for living in Southeast Asia is to embrace the Mustachian way of life. I see it as a game where the less I spend and the happier I am, the greater my chances of long-term success. The COVID pandemic and geopolitical uncertainties have shown me that we never know how long we have, and tomorrow is never promised. With cautious optimism, I'm exploring an alternative to the daily grind, inspired by those who are already living fulfilling lives on less.

I welcome your comments, blind spots, criticisms, and advice. Please feel free to share your insights and wisdom.

[former player]

I'm sure you know that you are potentially OK and the only issue is that you don't have a safety net.

How long are you able to stay in the Phillipines on a tourist visa?  Breaking the terms of a visa is a bad idea.  Are there options for converting it to something else if need be?

You could look into doing some remote working to bring some money in - with low expenses it doesn't take much income to stretch the stash a lot further.

Good luck.

[Freedomin5]

We are expats who have been living and working in Asia for the past 13 years. Most of our working years have been in Asia. Our solution to not qualifying for a government pension and not being able to contribute to our home country’s registered retirement fund is to create multiple income streams. We have rental income, dividend income, and online income. None of the income streams individually are enough to cover our expenses, but added together, they are enough. This takes the pressure off of our stash.

We also have an additional buffer of owning property in our home country. This prevents us from being priced out of the market and gives us a landing place in the event that we have to return to our home country. In the meantime, we’ve rented out the place and our tenant paid off our mortgage and is covering all the expenses related to the condo.

If you’re living on $2000/month, and that’s less than 3% of your stash, I think you’ll be fine. And you can always pick up part-time work. I mean, you’re a native English speaker living in an Asian timezone. You can easily teach English online to kids in China (or elsewhere) and earn a bit of income to supplement your stash and ease the transition if you’re worried.

Though I suspect the worry is normal. Many people report feeling worried before they take the leap. There are a few threads of people sharing their experience transitioning to FIRE. Pretty much everyone reports ending up with more money than when they FIRE’d. Reading through those threads may ease your anxiety. These are some threads that have been active recently:

https://forum.mrmoneymustache.com/post-fire/a-confession/

https://forum.mrmoneymustache.com/post-fire/six-month-post-retirement-update-and-observations/

https://forum.mrmoneymustache.com/post-fire/do-you-really-spend-'your-number'-in-retirement/

Oh, and Congratulations! I think you’ll be absolutely fine! You’ve won the game!

[Lost In Asia]

I'm sure you know that you are potentially OK and the only issue is that you don't have a safety net.

How long are you able to stay in the Phillipines on a tourist visa?  Breaking the terms of a visa is a bad idea.  Are there options for converting it to something else if need be?

You could look into doing some remote working to bring some money in - with low expenses it doesn't take much income to stretch the stash a lot further.

Good luck.

Thanks for reply. I don't intend to flaunt any laws during my residency there. These days tourist visas can be extended easily every 3 months as I understand, with a requirement to leave the country every 3 years. There are various ways to attain residency, usually being of certain age and depositing an amount in a local bank or many westerners get married.

[lhamo]

One of the biggest risks for those planning a long-term expat lifestyle in a currently lower cost country is that the cost of living in such places can increase dramatically if/when their economy improves.  We saw this happen in China.  We were able to live a really nice lifestyle on a very low budget in a smaller city when we first moved there in 2002.  Things got MUCH more expensive when we moved to Beijing in 2007.  And a combination of local inflation/economic growth and changes to how exchange rates worked meant our USD incomes didn't go nearly as far as they once had by the time we repatriated in 2015-2016.

You always have choices and don't necessarily have to stay there permanently, but if your stash doesn't keep up with local economic growth it can be challenging.

That being said I think you are in a good position to try it out and see how it works for you, and adjust as necessary down the line.

Good luck!

[J.P. MoreGains]

I think you're in a great place with a lot of money. You could always go back to work after some time off. Living in Phillipines can be low cost so you have a big advantage there.


My plan is to save and go to Asia also... if I had that amount I'd feel good... but that's just me.