Accidental Retiree
Thinks s/he gets paid by the post
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From Walnut Creek to Malaysia. Wow! What a change, and what an adventure. Good luck to you. I hope it all works out well for you.
Heading to Southeast Asia for ER in 2018 (hopefully)
- Thread starter rodiy2k
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rodiy2k
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apologies on the typo. I was referring to FACTA - the Foreign Tax Compliance Act
UserRequested
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Sound very rewarding. The men of the forest deserve all the help they can get. The Malaysia and Indonesian governments are allowing the rainforests to be cut down and replaced with oil palm. The wild life are running out of space.
Anyways "Selamat Datang". Hope all goes well.
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Is the FACTA assault the reporting requirements or the paying of taxes? I thought it was always the rule that an American citizen must pay taxes no matter where they live (although there are countries with which we have treaties to avoid double taxation).
rodiy2k
Recycles dryer sheets
Thank you very much. It is still about five years away but time goes by fast and this forum is an excellent resource to help with the planning advice. There are a lot of logistics to leaving the US when all your income will be uS source income. For one you have to keep a legal street address since they can't send annuity payments to foreign banks nor can you direct 401k withdrawals directly to a foreign bank. Money laundering rules designed to thwart terrorist funds from leaving the US make it enormously ridiculous for those just trying to get US source income And you have to deposit 50k into a local Malaysian bank account and keep it on deposit while on the visa program. Which in itself is hard because you can't travel with more that 10k without an IRS hassle
UserRequested
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Have you looked at a banks that allow you to hold USD accounts in Malaysia as well a the US. Not spruiking any banks, but I have an HSBC premier account and part of the premier service is that they will open accounts for you in another country without you having to leave the US. Being in business in the US mean that they will have to comply with the anti money laundering legals.
You should also be able to transfer and/or withdraw cash from your US or MYR account without incurring exorbitant fees
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That was my thought as well. Barclays can probably do the same thing.
rodiy2k
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Got it covered. We will be opening our HSBC Premiere account a year before we go and doing exactly what you said. In fact it's the preferred bank for the amM2h. I just thought others would be interested in knowing about FACTA and all it's bad policies. Sadly it's not just being in business it's being American. Period. btw. If you've ever looked into the hilarity of renouncing your citizenship it's really finny. Sad funny. The IRS will tax you on their idea of your lifetime income at one time and then you are given dirty looks when trying to re-enter the country
UserRequested
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I know.It's hilarious. When I was an expat in Eurpoe I worked with quite a few Americans. A few gave up their citizenship so that they did not have to pay US taxes. Mind you if you are a non resident for US tax purposes, your tax free threshold was only around $90k at that time. Anything above that, and the taxman gets his share.
I stayed in Penang for a few days in 2007 -- after traveling by bus from Singapore to Melakka to KL to Penang and spending time in each place. An American co-worker was with me and we met the mom of one of his American friends in Penang. She was a Chinese immigrant and she had learned intermediate English but only beginning Malay. There is definitely some resentment against the Malay majority -- I heard that both from the Chinese and the Indians although it was not the nasty kind of resentment one might expect, more of a matter of fact and resigned resentment. But I can't be sure because I was just a tourist.
There were some real nice places on the island, and it seemed like one needed a car to get around. (or maybe a motorbike? I can't remember).
I loved the Indian-inspired food there and there was good Chinese food on tap, also. And I actually became addicted to Teh Tarik, so much that my companion was laughing at me.
If I were married instead of single, I would definitely consider Malaysia. The place is definitely much wealthier than Thailand. When I was in KL and attended a couchsurfing meeting, one of the friends I met there worked for the MM2H program. She said it was mostly Singaporeans and Japanese, if I recall.
After living in several countries, I will have to say that you really have to spend awhile in a place before you know if you will really like it. For me, that amount of time is (sadly) at least a year. You figure out if the locals are really accepting of you, what kind of expats you will be interacting with, whether your web of daily activities is fulfilling, how much your long term costs will be, etc.
Actually, just recounting this has gotten me interested in visiting Malaysia again.
There were some real nice places on the island, and it seemed like one needed a car to get around. (or maybe a motorbike? I can't remember).
I loved the Indian-inspired food there and there was good Chinese food on tap, also. And I actually became addicted to Teh Tarik, so much that my companion was laughing at me.
If I were married instead of single, I would definitely consider Malaysia. The place is definitely much wealthier than Thailand. When I was in KL and attended a couchsurfing meeting, one of the friends I met there worked for the MM2H program. She said it was mostly Singaporeans and Japanese, if I recall.
After living in several countries, I will have to say that you really have to spend awhile in a place before you know if you will really like it. For me, that amount of time is (sadly) at least a year. You figure out if the locals are really accepting of you, what kind of expats you will be interacting with, whether your web of daily activities is fulfilling, how much your long term costs will be, etc.
Actually, just recounting this has gotten me interested in visiting Malaysia again.
UserRequested
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rodiy2k
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You guys are killing me since we can't even visit for two more years. Yes the food is considered the best in SE Asia. Even in Singapore we enjoyed it but nothing like Penang. Lower we flew to Borneo on Dragon Air from HK we were in are when they served us this delicious meal with nasi lemak. Love the things you get on international airlines like food. For free. That tastes good. Hawker food is the best ever and that's hard for me to say a s a Brooklyn boy that few up with dirty water dogs and new York street vendors You can live on hawker food for about six bucks a day. Hypothetically 50k a year in Penang makes you wealthier than the average high tech worker in Penang who makes about 45k and that is considered high. But that is the beauty. A mostly developed nation that remains cheap because their wages are at US in 1955 levels
melion
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Rodi,
Since you had shortlisted Malaysia (Penang) and Thailand as the top 2 choices, you will definitely need a trip to see them for yourself.
I have a few comments;
1. You are right about the food in Penang, they are great and cheap. You will need to watch the waist-line carefully when you live there.
2. Petrol in Malaysia is cheap as it is heavily subsidized by the govt. It is fixed-price of RM1.90 per litre for Ron95 petrol, regardless of crude prices. There have been several indications that this will cease as it is costing the govt quite a bit of money. However the political pressure, as expected is pushing this decision back.
3. Rental in Malaysia is cheap and IMHO it is better to rent than buying a place there. However in Penang island, it can get more expensive as there is limited space on the island. There are space on the mainland (Butterworth) and hence cheaper but I suspect that this is not where you will like to live.
4. Malaysians are generally peace loving and definitely not anti-American (a concern that you may have in other Muslim countries). However below the surface, certain crime rate in Malaysia are still very high. Break-in and snatch thief happen often. I know of many expat (and their family) being victims of such crimes. You will need to pay attention to this if you do not want to add on to the statistics.
5. Penang has a higher percentage of Chinese living there as compared to other states in Malaysia. It is now governed by the opposition party. From what I heard they are doing a great job. There is also a sizable Japanese expat community there due to investment in the electronics sector in previous years.
6. Personally I prefer KL to Penang. KL being the capital city has more things to do. KL city center can be very crowded but living on the fringe of KL city is fine. OTOH, Penang island is very crowded and it is hard to get away from the crowd/traffic. The local govt is now debating about adding onto the infrastructure but the downside is that it may destroy the charm of Penang if not properly done.
BTW, I had 2 postings to Malaysia and spent a total of 6 years there. My family and I loved our time there. Be it Penang or KL, I am sure you will have a nice time there too.
As for Chiang Mai, I been there twice and am now planning for another trip there in the near future. It is very nice for a few months of the year when it is cooler (Nov to Feb). It gets very hot just before the raining season which last till Oct. They also practised the slash-and-burn technique when clearing the land and it can lead to bad air pollution. I love to visit CM during the cooler months but unsure about living there during the hotter months.
I hope that this is not too much information and hopefully you will find them useful.
Since you had shortlisted Malaysia (Penang) and Thailand as the top 2 choices, you will definitely need a trip to see them for yourself.
I have a few comments;
1. You are right about the food in Penang, they are great and cheap. You will need to watch the waist-line carefully when you live there.
2. Petrol in Malaysia is cheap as it is heavily subsidized by the govt. It is fixed-price of RM1.90 per litre for Ron95 petrol, regardless of crude prices. There have been several indications that this will cease as it is costing the govt quite a bit of money. However the political pressure, as expected is pushing this decision back.
3. Rental in Malaysia is cheap and IMHO it is better to rent than buying a place there. However in Penang island, it can get more expensive as there is limited space on the island. There are space on the mainland (Butterworth) and hence cheaper but I suspect that this is not where you will like to live.
4. Malaysians are generally peace loving and definitely not anti-American (a concern that you may have in other Muslim countries). However below the surface, certain crime rate in Malaysia are still very high. Break-in and snatch thief happen often. I know of many expat (and their family) being victims of such crimes. You will need to pay attention to this if you do not want to add on to the statistics.
5. Penang has a higher percentage of Chinese living there as compared to other states in Malaysia. It is now governed by the opposition party. From what I heard they are doing a great job. There is also a sizable Japanese expat community there due to investment in the electronics sector in previous years.
6. Personally I prefer KL to Penang. KL being the capital city has more things to do. KL city center can be very crowded but living on the fringe of KL city is fine. OTOH, Penang island is very crowded and it is hard to get away from the crowd/traffic. The local govt is now debating about adding onto the infrastructure but the downside is that it may destroy the charm of Penang if not properly done.
BTW, I had 2 postings to Malaysia and spent a total of 6 years there. My family and I loved our time there. Be it Penang or KL, I am sure you will have a nice time there too.
As for Chiang Mai, I been there twice and am now planning for another trip there in the near future. It is very nice for a few months of the year when it is cooler (Nov to Feb). It gets very hot just before the raining season which last till Oct. They also practised the slash-and-burn technique when clearing the land and it can lead to bad air pollution. I love to visit CM during the cooler months but unsure about living there during the hotter months.
I hope that this is not too much information and hopefully you will find them useful.
timeasterday
Recycles dryer sheets
We spent 2 weeks vacation in Wyoming last year. Absolutely gorgeous place but I would not want to live there. We never had dry skin so bad. Asia is our destination too - warmer, more humidity, and everything we need within a short walk or scooter drive. And the infrastructure is so much better - great public transportation, various choices of trains, very fast Internet everywhere (talking about Taiwan here).
uc_brian
Dryer sheet wannabe
Rodi,
Read the entire thread and your thought process of places to live after ER is similar to mine. I too have lived in the Bay Area, Canada and Asia.
I'm considering Penang, Thailand (bk) and just scratched Bali off the list. There's no ideal place and it's all a matter of compromises.
On thing that you need to be careful of is the inflation figures of different currencies. Even the USD will run its' course if the national debt hits...maybe 21 trillion and the opec nations slowly unwind the petro dollar status into a basket of currencies. When the USD tanks (if it does) it will tank may other fiat currencies.
My difference is that I'm in my early 40's and have an infant child. My reasons for ER is more to spend time with my family and to do some more personal growth and exploration in Asia while I still have the energy to do so....and to do some volunteer work in a few select regions.
Financial resources are a bit of a concern as I would need to put my child thru a solid international school with the anticipation of them returning to North America to pursue College / University when they hit that stage in their life. I'm anticipating that the kid will run me 500-600k 2013 dollars until they are independent. In addition to the child cost, there are other cost and concerns as I will need to have enough funds for approx 40-50 years. Don't think 3M (not saying I have this) will suffice, due to any uncertainty that may occur over such a long period of time, but I think it's worth the risk as I will be get the 'best years of my life' to my own interest vs the rat race of urban north american culture. As a back up I plan to engage in a few small business ventures which I hope can net me 80-100k per year with 10-15 hours of work (long shot I know). However all new ventures typically have a 70-80 percent failure rate, so I have plans just in case things don't work out as planned. As a side note, I've started 7 businesses in the past, 4 failed, 1 was neutral and 2 were successful.
Worse case scenario is that I'll return to work full time when I'm about 60 for a few years while my child is in university to get that extra boost of $$$. My current field allows me to make a very good income, but this could always change with such a long time frame.
In my ER I anticipate that it will cost 50-60k 2013 dollars
I'm planning a financial rate of return of 5.5% over the long run as a conservative figure.
Do any members see any serious flaws. Any feedback is greatly appreciated!
(pls note that I will also start another thread of my own to get more feedback)
Read the entire thread and your thought process of places to live after ER is similar to mine. I too have lived in the Bay Area, Canada and Asia.
I'm considering Penang, Thailand (bk) and just scratched Bali off the list. There's no ideal place and it's all a matter of compromises.
On thing that you need to be careful of is the inflation figures of different currencies. Even the USD will run its' course if the national debt hits...maybe 21 trillion and the opec nations slowly unwind the petro dollar status into a basket of currencies. When the USD tanks (if it does) it will tank may other fiat currencies.
My difference is that I'm in my early 40's and have an infant child. My reasons for ER is more to spend time with my family and to do some more personal growth and exploration in Asia while I still have the energy to do so....and to do some volunteer work in a few select regions.
Financial resources are a bit of a concern as I would need to put my child thru a solid international school with the anticipation of them returning to North America to pursue College / University when they hit that stage in their life. I'm anticipating that the kid will run me 500-600k 2013 dollars until they are independent. In addition to the child cost, there are other cost and concerns as I will need to have enough funds for approx 40-50 years. Don't think 3M (not saying I have this) will suffice, due to any uncertainty that may occur over such a long period of time, but I think it's worth the risk as I will be get the 'best years of my life' to my own interest vs the rat race of urban north american culture. As a back up I plan to engage in a few small business ventures which I hope can net me 80-100k per year with 10-15 hours of work (long shot I know). However all new ventures typically have a 70-80 percent failure rate, so I have plans just in case things don't work out as planned
. As a side note, I've started 7 businesses in the past, 4 failed, 1 was neutral and 2 were successful.Worse case scenario is that I'll return to work full time when I'm about 60 for a few years while my child is in university to get that extra boost of $$$. My current field allows me to make a very good income, but this could always change with such a long time frame.
In my ER I anticipate that it will cost 50-60k 2013 dollars
I'm planning a financial rate of return of 5.5% over the long run as a conservative figure.
Do any members see any serious flaws. Any feedback is greatly appreciated!
(pls note that I will also start another thread of my own to get more feedback)
papadad111
Thinks s/he gets paid by the post
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The only flaw that I see is that you can not put a place definitively on your "plans" list til you have actually lived there -- a year is a reasonable test drive...3 or 4 weeks , or periodic vacation visits is not.
Being a life long expat, 24 years and 6 countries later - 20 of those in asia (4 countries) and counting .... i guarantee you will have rose colored glasses going in and then hit the 6 month wall at 100 mph...and eventually either crash and burn or pull out of the nose dive and be able to deal with the place.
Personally not a big Penang fan. Disliked getting woken up at 5 am by call to prayer.
Penang real estate rising fast -- up 25 to 30 percent in 4 years. Inflation will likely impact your plans in Asia more so than elsewhere. Best to hold a multi currency denominated portfolio and some local inflation hedges - real estate, etc.
Being a life long expat, 24 years and 6 countries later - 20 of those in asia (4 countries) and counting .... i guarantee you will have rose colored glasses going in and then hit the 6 month wall at 100 mph...and eventually either crash and burn or pull out of the nose dive and be able to deal with the place.
Personally not a big Penang fan. Disliked getting woken up at 5 am by call to prayer.
Penang real estate rising fast -- up 25 to 30 percent in 4 years. Inflation will likely impact your plans in Asia more so than elsewhere. Best to hold a multi currency denominated portfolio and some local inflation hedges - real estate, etc.
