FIRE in 4 months!

[Railgun]

Hi friends, Kiwi guy, 52, living overseas most of my life and my current job being dissolved in 4 months. I can stay on for less money and more work but after covid years have had enough and want to be free to pursue new directions in life.

I'm scared for sure, I have just over $ US 1 million and probably could use a few more years as a buffer, as I don't qualify for a government pension, social security, or super fund anywhere. But, I figure I can test drive FIRE and in the next 5 years if budget doesn't work or worried about income/ability to live okay in my dotage I can return to my country and will qualify for pension eventually. I need about 9 years to qualify.

Planning to move to Philippines, as I lived and worked there in the early 2000's for a few years and can fit in easily and live close to the bone if needed. Budget will be US$ 2000 a month. Can revisit this every few years. I don't smoke or drink and happy with simple foods.

Currently, my funds are all over the place, not in index funds/ETFs and I'll need advice on this going forward and I'm sure on many other things. It is invested and returning a safe rate in time deposits and shares for now, while I'm working. Have about 15% in crypto (BTC and ETH) that thankfully I got back in the day.

Look forward to engaging with y'all.

 

[CincyDave]

Welcome Railgun!

If your expenses really are $2000 a month (including things like health care, taxes and lumpy items) I would think you could make it. That seems really low for USA, but I have no idea about cost to live in Philippines.

Best of luck in your new stage in life!

 

[Surewhitey]

We lived on ~$2k/mo & were fine in Mexico. HC is different now stateside, but we were comfortable with the cost of HC in Mexico for most things. It's that 1 big thing that was the gamble.

Food inflation is a big deal in a small budget scenario, we found. Prices are dramatically higher than the old days. Then there is currency fluctuations. Since Covid, the $ to peso has gone down from 25 to 17...big drop & back to 10 years ago levels (inflation for foreigners).

$.02

 

[ireallystink]

$2000 is plenty if you are living in the provinces. Stay away from Manila, makati, BGC, etc. and you'll be good to go

 

[Railgun]

$2000 is plenty if you are living in the provinces. Stay away from Manila, makati, BGC, etc. and you'll be good to go

Cheers, I was just over there last month and did a budget in Cebu. Have a buddy on Panglao Island living on half that and happy with the simple life. According to the FIRE calculator I can go to 3K a month, but I'll stay underbudget for a few years and learn to manage, which should hold me in better steed for the future.

I haven't included health insurance yet but happy to just pay the lump sum. I figure 3K annually to start.

 

[TheWizard]

Seems like a low budget, but if you're happy just to stay in one place, then fine...

 

[JBTX]

Spent a few weeks in NZ. Never been to Philippines. Seems like the quality of life would be much better in NZ. I don’t think I would go live somewhere else not as nice just because it’s cheaper and I don’t have to work.

 

[RetiredHappy]

If it were me, I would go back to work in NZ for 9 years to qualify for pension. Living in a less developed country for cheap sounds like a miserable way to live and grow old.

 

[Closet_Gamer]

I would be very cautious about being able to live on $24k/year over the long haul.

Is there anyway you could work to support yourself in the Philippines or elsewhere and be $1m just compound and do its thing for the next 8-10 years?

 

[Railgun]

If it were me, I would go back to work in NZ for 9 years to qualify for pension. Living in a less developed country for cheap sounds like a miserable way to live and grow old.

Thanks for reply. I have time to test the FIRE waters so to speak. I plan to increase that amount once I'm settled. I can go to US 33K using the 3% rule which should last longer than me. I was in NZ last year for a month and its an expensive place to be and not my cup of tea. More rat race to keep head above water.

2 to 3k in Philippines is a very decent quality of life, nice condo, decent meals, but travelling would be a treat.

If i thought Id grow old poor and miserable I wouldn't pull the trigger.

 

[Railgun]

I would be very cautious about being able to live on $24k/year over the long haul.

Is there anyway you could work to support yourself in the Philippines or elsewhere and be $1m just compound and do its thing for the next 8-10 years?

Thanks for advice , please see my reply above. Initially this is a test run that am hoping would be permanent. Yes, I'll be keeping my eyes open for opportunities for a side hustle or taking on some work if it arises and spins my wheels. I have 5 full years before I'd need to move back and qualify for a pension, and would still have a good nest egg should that eventuate, so will reassess as that time comes. Or maybe I just wont enjoy living in a developing country again and will leave after a few years. I have lived there before so not jumping in at the deep end without a life jacket.

I'm single, never married no kids, so would like to have that opportunity and don't see it happening in the rat race. I've had relationships before and they generally tapered out due to work and time commitments. I am fit and healthy so would like to tackle life while I have the energy and resources.

The whole covid and geo politics palava showed me that we never know how long we have and tomorrow isn't promised. I'm cautiously exploring an alternative to the grind and do know people doing it on less and are happy.

 

[Surewhitey]

If it were me, I would go back to work in NZ for 9 years to qualify for pension. Living in a less developed country for cheap sounds like a miserable way to live and grow old.

I was just thinking this about friends moving to FL for lower taxes and cheaper housing (they rent). If you get too used to cheap living it may be hard to move "back up" in costs later.

 

[MarieIG]

Welcome to the forum Railgun.


Since it has been a number of years since you've lived full time in the Philippines, perhaps rent there for a year before buying a condo. That gives you some time to catch your breath, immerse yourself in the culture, and ensure that it's still where you want to be.

 

[Railgun]

Welcome to the forum Railgun.


Since it has been a number of years since you've lived full time in the Philippines, perhaps rent there for a year before buying a condo. That gives you some time to catch your breath, immerse yourself in the culture, and ensure that it's still where you want to be.

Thanks Maria

I have no intention to buy a condo as they are generally not well maintained and the workmanship sub par. I'll stay foot loose and fancy free. House and lots are better value but unable to be owned by foreigners (unless married).

Also I visit 2 or 3 x a year (I'm based nearby) due to having friends and god children there. Just during covid was a 4 year absence.

 

[MarieIG]

Thanks Maria

I have no intention to buy a condo as they are generally not well maintained and the workmanship sub par. I'll stay foot loose and fancy free. House and lots are better value but unable to be owned by foreigners (unless married).

Also I visit 2 or 3 x a year (I'm based nearby) due to having friends and god children there. Just during covid was a 4 year absence.

Glad to hear that you are very familiar with the local. That removes a lot of the risk, as does your plan to budget and periodically reassess. It sounds as if you're just going to have to enjoy your retirement adventure!