How are you preparing for retirement financially?

[marieh]

I largely follow the advice given by gzmike. My savings are invested in a two-fund ETF portfolio (domestic total stock and international total stock). When I get a bit older, I will expand this to include a bond fund as well. My average annual return for the past 5 years has been something like 12%, which I am happy with.

[Psychometrika]

In addition to the bogleheads I recommend checking out the Money Mustache community. Both are non-expat specific (although expats do participate in both), but offer some great advice for saving and investing.

As for myself, I have a modest social security pension and 401K from my work back home. I also have a condo back home I am currently renting out, but am only really breaking even on. That's not going to cut it, so I am putting about $2K per month into a taxable account at Schwab. I used to be with Vanguard, but they are not expat friendly, and Schwab has expats as an area of focus. Since the funds are nearly identical between the two the switch made sense to me.

Right now I'm putting it all into a broad market ETF (SCHB), but am considering putting 10% into a bond ETF as well. In general, I think passive investment strategies are a great way to invest for the average person, and particularly for expats who are often detached from the day to day reality back home.

[applebutter]

I have a brokerage account with Ameritrade, and I own some stocks but I have not gotten into seriously yet. Is Ameritrade the best platform/online brokerage account? What are your recommendations?

[PsyGuy]

@Psychometrika

$2K is a LOT for most ITs. The average global IE salary is USD$30K/yr, thats USD$2500/mth, dedicating $2K/mth is 80% of salary, thats a huge bite even at double the average salary at USD$60K (net) moving ITs into the top of the scale USD$2K/mth is still a 40% bite of net salary. I find it a major sell getting ITs to do anything more than 10%.

@applebutter

Which ever brokerage house gives you the lowest fees, for the help, assistance, guidance, convenience, benefits, you need to meet your scenario. Its more a preference issue than anything. Some ITs ant better online tools and availability of research, some ITs want someone they click with that they can talk too, some ITs want more tax help, etc. The market controls the success of the investments, not the broker, and while there are some very niche products that are not carried by some houses (such as bitcoin ETF), the difference in ETFs is negligible, what differs is the expertise of the brokers and the CSRs and the experience you get.

[Psychometrika]

@PsyGuy

I make $48K net in a low cost of living country and am a single guy. Living on $24K where I am is quite comfortable when you don't have to pay rent. I could probably even push it to saving $30K per year, but I like eating out regularly, having a maid, and taking the occasional trip.

One key difference between me and some of my colleagues is that I don't go on luxurious trips to fantasy destinations with every chance I get. I do about 2 international trips a year mixed with some local travel and that's about it. I am budget conscious even on those trips too though.

When I was younger I used to fritter everything away, but now that I am in my mid-40's I have been serious about saving for the past few years. The main goal is to be financially independent by my early sixties. The international job market can be pretty rough past 60 and I want to be financially squared away by then. I'm ok with scaling back on travel to make that happen.

[PsyGuy]

The other key differences is your making well above the IE average at USD$48K and your single. Change that to the USD$30K average and change the single to a family of 4.

[Overhere]

Part of the plan is to find a school you are comfortable with and stick with it. Moving from school to school and correspondingly up and down the pay scale hurts your savings. Even moving hurts your savings, my spouse and I are always shocked at how much it costs to move and set up a household in a new country.

[OF2018]

My previous profession still serves me as I have my CFA license in it. For many years (before edu), I was in a leadership position in private wealth management (finance) for two of the biggest world banks where I was stationed in New York and then, Hong Kong. I have a diverse portfolio with high-risk investments that deal from major sectors such as infrastructure, sustainability sciences, technology and medical science. I have three brokers who work with my investments in the Chinese, New York and London markets. I also have a broker that works with the emergent market economies because when they crash, that's when I do the daring swoop to buy, sell / trade. With the advent of digital financing, I jumped into it early in the 2000s. I invest a lot (and play) in cryptocurrencies but mostly focus on blockchain infrastructure which yields most money bags. I deal with two of my properties in two different continents in high-holidaying places as Airbnb properties. I do not rely too much on real estate as fluid / transient assets are much more high-yielding (despite high risk - so you do have to have a good knowledge of financial structures that deal with global patterns before delving into this type of portfolio that I have). In 3 years, I made the HNWI status with these types of aggressive, high-risk investments.

[sid]

So what are you doing faffing about here!
LOL

[OF2018]

@sid : Hahaha! Not everything is about money or banking or business. It's actually interesting to be in education and moving around. I can always go back now that business is more digitalised than ever, allowing capital to move around freely with one tap on my smartphone. But for now, this chapter of my life, IE is firing up the brain.

[vincentchase]

@OF2018, with your vast experience in private wealth management and qualifications as a CFA, your approach to wealth accumulation strikes me as curious. Firstly, why would you feel the need for so many brokers? Have you not read 'Where are the Customer's Yachts?'

I am also curious as to your valuation strategies. You appear more drawn toward speculative or at best start-up investments lacking intrinsic value. Of all the accountants I've met that are stock investors (some of them running their own funds), they invariably adopt a value-based methodology, steering well clear of anything speculative that can't be valued. I'm curious why you haven't played to your strengths and followed more a Graham/Munger/Buffet path?

You really are a rare breed. One might say even unbelievable. I eagerly anticipate your explanations.

[OF2018]

There is a huge difference between cryptocurrencies and cryptocurrency infrastructure - the latter being quite a specialised niche and if you can design it for companies in various fields, that's where you make the big bucks. I "play" with cryptocurrencies and that is the difference. I think you may be reading too many FB newsfeed on cryptocurrencies. Who said that I didn't follow a Buffet path in the previous years? The "curious breed" that I am may be the result of following the Buffet path for several years and seeing the explosive goldmine of a field of 21st century digital finance. I am also curious to know as to why you consider infrastructure, sustainability sciences, technology and medical science as speculative and "start-up"? Btw, start-ups actually work for major, traditional corporations, banks, hospitals and infrastructure. These little guys are contracted to innovate but you would never know bc the CTO, COO, CFO and the CEO all take the credit for it by announcing the annual strategic plan. This is the new intelligence economy that is behind the financial structure (and as to why big banks are failing bc they are "traditional" like good 'ol Warren). I think you still hold the more traditional valuation strategy and hence you find me "curious" and possibly, incomprehensible.

[vincentchase]

@OF2018, all very interesting. Your investment philosophy for an accountant continues to intrigue me.

Could you explain why you have so many individual brokers stationed around the globe working for you? Given your knowledge of "21st century digital finance", I am sure you'd be aware of the redundancy. Unless it's for your virtuous nature of feeding their hungry families?

I am also impressed that, as you state in another post, you are only 35 and have taught 13 years internationally. Does this mean you worked for the two global banks in Hong Kong and New York whilst doing your teaching degree straight out of high school? For the benefit of others wishing to follow your fast-track path to riches, please share your advice on how to impress the heads of global banks when 18, fresh faced, doing a teaching degree and with no banking experience.

https://internationalschoolsreview.com/ ... 421#p52421

I'm assuming you gained your CFA licence whilst doing your teaching degree and working for the global banks? Or was this more of a high school project? You know, whilst you were dabbling in digital finance in 2000, as a 17 year old?

If you have time, I'd like to hear why you spent only a maximum of 4 years (from 18-22) working in HK and NY for the global banks before switching to teaching? It seems a shame given such a rare and amazing opportunity.

Also, given your high net worth individual status as you say, I recommend you don't focus on the finances too much when it comes to teaching positions. I noticed in the link above you're seeking a new position "without sacrificing the salary too much". Surely the salary would be the least of your concerns nowadays with such financial security? My advice is take your foot off the pedal and relax. You've made it.

[PsyGuy]

I can see how it would work you dont need a teaching degree, the OP could have done a business degree while exploring and effectively working in investing (there are teens with legit companies), then done a skills based or assessment based pathway to get a credential in a matter of weeks. I can see how they would be successful in IE as well, while a number of major contributors have commented on leadership needs experience to be respected, I can easily see how business guys in ownership would want another business guy in their IS.

[sid]

It's also easy to see how some people like to inflate themselves.