Retiring in Thailand (part 2)

Having sorted out your accommodation, your health insurance your visa and your local bank account it's time to look at your life savings. What do you do with your lifetime's accumulated wealth?
The first of many considerations should be what sort of consumer protection there is in the jurisdiction where you intend to put your money? Did you know for instance that if you had your money in a British bank that went bankrupt you are only entitled to 90-% of the first STG 20,000. So if you had a million sterling invested you would only get back Stg 18,000. Please don't say it wouldn't happen- remember BCCI? Check out the bank guarantees in your home country and only ever leave the guaranteed amount in that bank.
Many retired people are not afraid to face up to the fact that they will eventually die and most do not wish to, if they can avoid it, to gift the taxman at home a load of money in inheritance tax and capital gains taxes. Neither do they wish their beneficiaries to pay some lawyers probate fees and admin costs which can decimate your lifetime savings quicker than a Wall St. crash. All of these fees can be avoided if your portfolio is carefully constructed and located in the proper offshore jurisdiction.
So to your money-Modern portfolio theory sets out reasons for, among other things, the wisdom of diversification. It shows that when multiple risky assets are pooled into a single portfolio, the variance of the portfolio is less than the variance of any single asset. The practical application of this can be seen in the explosion of mutual funds over the past decade. Investors around the world are more diversified than ever. Sometimes even the financially sophisticated disregard these principals of modern investment advise. But as a retiree wishing to play golf, swim, read a little and have a few beers with your new expat friends your main concerns are probably that your capital is safe and you're in a position to keep ahead of inflation.
We are not in the Hua Hin market here. One size does definitely not fit all. It is an impossible task to advise unknown individuals with a multitude of biases and risk attitudes about portfolio construction. Without a face to face meeting, I can only generalise and advise certain courses of action.
Take advice from a reputable offshore finance broker but don't be stupid enough to entrust them with any of your money. Try and avoid bank financial services. They are very restricted in what they can sell which means that your potential for gain is restricted. Before you transfer money to any financial institution make a phone call during working hours to those people and make sure they are the genuine article.
Ask your broker if they have a professional qualification and don't be afraid to ask to see it.. Whatever you are presented with make sure you fully understand the risk factors involved. Ask a few pertinent questions. Can you revoke the application and in what time period? What would it cost you to cash in your investment in the first year? What would be the tax position if I decided to return to my country of origin?
Believe me it is a lot easier to ask a broker a few embarrassing questions now than wave goodbye to your savings at a future date. Don't jump into anything. Think. Think. Think.
One other thing-be sensible and only invest in companies with at least 100 Billion Dollars under management and with a pedigree of 150 years.
If you adhere to these few simple rules you will cut the chances to be conned to zilch.
Have a happy worry free retirement in Thailand. It's all in your own hands. Treat the people here as well as I've advised you here to treat you money and happiness is assured.