Retiring soon: I need a budget

[FrankNYC]

I need some help from Philippine based Pexers. I've been working out of the country for a long time now and I'm planning my retirement. I've come up with some numbers, but I don't know how realistic they are. So, my question is this: How much money (in Pesos) do I need to live a really comfortable life in Manila?
By really comfortable I mean good housing, a car, maids, best private schools, gimmicks and family vacations

[toqpot]

For me, for you to live comfortably in the Philippines, you need at least 20M PhP.
With 20M PhP and 6% interest rate, you'll get 1.2M PhP per annum or 100K per month.

Just curious, how old are you? and what's the number do u hav in mind?

[FrankNYC]

Originally posted by toqpot
For me, for you to live comfortably in the Philippines, you need at least 20M PhP.
With 20M PhP and 6% interest rate, you'll get 1.2M PhP per annum or 100K per month.

Just curious, how old are you? and what's the number do u hav in mind?


I'm 35 and I plan to move back in as early as 3 years if the money is there but def. not later that 7 years (42) My budget would be 4-5 mill for a house or condo, approx. 1 mill for a business or franchise (total 120-130k USD) and $1500-2000 monthly from my pension/401k/deferrred comp. plan At first this would seem to be a lot, but once I have kids and inflation takes a bite out of my savings I'm wondering if it'll be enough, esp. in Manila

[wizard23]

hi. this is a bit off topic. I'm into insurance & real estate business (licensed).

Do you have a savings/retirement plan that has an insurance component? Would you be willing to invest in a property already? You might be interested in pre-selling projects while you're waiting. I believe you can address your concern by considering these.

If you're interested, please pm me. Thanks.

[KuyaDanny]

Originally posted by FrankNYC



I'm 35 and I plan to move back in as early as 3 years if the money is there but def. not later that 7 years (42) My budget would be 4-5 mill for a house or condo, approx. 1 mill for a business or franchise (total 120-130k USD) and $1500-2000 monthly from my pension/401k/deferrred comp. plan At first this would seem to be a lot, but once I have kids and inflation takes a bite out of my savings I'm wondering if it'll be enough, esp. in Manila

Reasonable. Comfortable, actually. I hope you are not planning on having 5 children, though.

[Hulk]

Daming questions to ask, let's start with some basic ones:

1. Do you have personal insurance? How much?

2. Do you have a medical plan? dental plan?

3. How many children do you have? How many do you plan to have?

4. Do you have educational plans for your children? What type? Inflation protected?

5. Do you have plans of creating trust funds for your children?

6.Does your spouse plan to work? How much is her projected income?

Basic concerns yung mentioned above.

But if you want a ballpark figure, I will have to say P50 MM or US$1MM. Eto yung personal estimate ko for myself.

P4 to 5MM para sa condo is small. Try P8MM for a family sized condo.


:frank:

[FrankNYC]

Originally posted by KuyaDanny


Reasonable. Comfortable, actually. I hope you are not planning on having 5 children, though.

Two kids should be enough.

[FrankNYC]

Originally posted by Hulk
Daming questions to ask, let's start with some basic ones:

1. Do you have personal insurance? How much?

2. Do you have a medical plan? dental plan?

3. How many children do you have? How many do you plan to have?

4. Do you have educational plans for your children? What type? Inflation protected?

5. Do you have plans of creating trust funds for your children?

6.Does your spouse plan to work? How much is her projected income?

Basic concerns yung mentioned above.

But if you want a ballpark figure, I will have to say P50 MM or US$1MM. Eto yung personal estimate ko for myself.

P4 to 5MM para sa condo is small. Try P8MM for a family sized condo.


:frank:

If I stay in the US long enough I'm sure I can save enough to buy that 8mil. peso condo. Thing is, That'll delay my plans further. I might just settle in here and never realize my dreams. I also want to be young enough to enjoy life and raise a family. To answer some of your questions:
I'll have medical/dental in the states, but I'll have to pay out of pocket in the Philippines
Ideally I'd like 2 kids
Lets say my spouse doesn't work
I'll buy the insurance and educational plan when the time comes. I'll have no other money aside from the 130usd lump sum (which has to be spread out for housing car and a business) and approx 2200usd a month minus 10% early withrawal and 15-28% federal tax. (lets say 75k pesos a month clear)

[KuyaDanny]

I hope you are assuming that the P1.0 million is all your business/franchise will need. Because if you will have to set aside some portion of your US$2200 a month for business requirements, you will have to make some lifestyle sacrifices.

[Hulk]

Ok. Let's breakdown your expenses:

Condo - P5MM + P1MM (furnishings)
You could start buying from condos who are currently pre-selling their units. It will be cheaper and it will give you time before you move here. Just be careful of the developer you're buying from.

Educational Plans (Elementary and HS) - P 500 k/child
I don't have the latest quote from my broker but this is my best estimate. This would probaly already qualify your children to Tier A schools. College is another matter.

Cars - P1.5 MM (2 cars)

Personal Expenses - P 150k
For you to have a comfortable lifestyle for 4, P150k is my best estimate. That would include food, insurance, medical, and other leisure expenses. Since you have P75k a month already, you have to raise P75k more. Let's say your business gives you P40k/month. At 10% interest, you need about P3.0MM in savings to provide you with the balance.

Business - P2.5MM

Totals:
Condo - 6
Educational Plan - 1
Cars - 1.5
Business - 2.5
Savings - 3.0

That's about P 14MM. Hey you're halfway there. Just make your wife work for additional disposable income.


:frank:

[FrankNYC]

Originally posted by KuyaDanny
I hope you are assuming that the P1.0 million is all your business/franchise will need. Because if you will have to set aside some portion of your US$2200 a month for business requirements, you will have to make some lifestyle sacrifices.
Yup, 1million is my limit. I just need something to occupy my time. Ideally I would like a business partner or 2. Maybe I could put up a bar or coffee shop. I've already checked out www.franlinkasia.com for ideas.

[FrankNYC]

Originally posted by Hulk
Ok. Let's breakdown your expenses:

Condo - P5MM + P1MM (furnishings)
You could start buying from condos who are currently pre-selling their units. It will be cheaper and it will give you time before you move here. Just be careful of the developer you're buying from.

Educational Plans (Elementary and HS) - P 500 k/child
I don't have the latest quote from my broker but this is my best estimate. This would probaly already qualify your children to Tier A schools. College is another matter.

Cars - P1.5 MM (2 cars)

Personal Expenses - P 150k
For you to have a comfortable lifestyle for 4, P150k is my best estimate. That would include food, insurance, medical, and other leisure expenses. Since you have P75k a month already, you have to raise P75k more. Let's say your business gives you P40k/month. At 10% interest, you need about P3.0MM in savings to provide you with the balance.

Business - P2.5MM

Totals:
Condo - 6
Educational Plan - 1
Cars - 1.5
Business - 2.5
Savings - 3.0

That's about P 14MM. Hey you're halfway there. Just make your wife work for additional disposable income.


:frank:
Mmm, it'll be rough I guess. Right now I don't think I'll be able to squeeze out an extra 75k a month. Hopefully business is good. The thing is, I wouldn't want to move back to the Philippines if I'm going to have a miserable life. I'm kinda envisioning a life of comfort where I have a small business to occupy my time, golf, scuba gimmick. I'm still single so that 75k will be just for me, but once I get married and have kids it'll have to be enough for 4. Wishfull thinking I guess. So lets see where I stand realisticly once I have a family:
House/condo paid
Car paid
75k household budget for 4. What do you think? lower middle class, middle class, upper middle? What kind of lifestyle do you think I'll have?

[SnakePlissken]

Originally posted by Hulk
Ok. Let's breakdown your expenses:

Condo - P5MM + P1MM (furnishings)
You could start buying from condos who are currently pre-selling their units. It will be cheaper and it will give you time before you move here. Just be careful of the developer you're buying from.

Educational Plans (Elementary and HS) - P 500 k/child
I don't have the latest quote from my broker but this is my best estimate. This would probaly already qualify your children to Tier A schools. College is another matter.

Cars - P1.5 MM (2 cars)

Personal Expenses - P 150k
For you to have a comfortable lifestyle for 4, P150k is my best estimate. That would include food, insurance, medical, and other leisure expenses. Since you have P75k a month already, you have to raise P75k more. Let's say your business gives you P40k/month. At 10% interest, you need about P3.0MM in savings to provide you with the balance.

Business - P2.5MM

Totals:
Condo - 6
Educational Plan - 1
Cars - 1.5
Business - 2.5
Savings - 3.0

That's about P 14MM. Hey you're halfway there. Just make your wife work for additional disposable income.


:frank:

Wow! I could retire tomorrow. But I'm shooting for 100M (just to cover inflation). :lol:

[ulicqeldroma]

75K is rather small for monthly expenses. take my case for example:

electricity - P18k average (my house has a FA of 190sqm)
water - P1,200 average (big lawn and garden kasi)
food budget - P30K(conservative, for a family of 4 plus 4 helps and the occassional visitors)
maids (3) - P9K
driver - P6k
grocery budget - P20K
kids allowances - P4K
gasoline/diesel (4 cars) - P8K
repair & maintenance budget - P10k
entertainment budget (movies, lunch/dinner, and timezone only) - P15K

that's around P120grand a month. wala pa d'yan village dues, pest control, pet food (we have 12 dogs), gardening needs, etc.

we actually budget P150k a month. that's a working budget/figure you may consider :)

[Hulk]

P 75k for 4? About middle-middle. It won't be really comfortable. Ang budgeted expenses ko for myself is around P 40k.

:frank: