Asia or Europe for long-term financial stability

[tommypizza]

@psyguy

the question was Asia or Europe...no one asked about ME. Now I can see why you have so many problems with people on this forum.

[Ddd]

All of them are good schools with great savings potential.

[pds86]

Ok. Seemed like you didn't know what it was when you responded with a lot of irrelevant guff about commissions and management fees. Also I'm averaging 4% interest on my UK bank accounts (in response to your point about cash investments only yielding 1-2%). All easy access as well. But that's besides the point.

My main point is that you just need to get the right school regardless of region. Good school = good salary and therefore chance to save effectively. I suppose the difference between Asia and WE is that, generally, you have to have a bit more discipline in Asia because pension schemes are few and far between (EPF excepted). Then again, cost of living is obviously lower so your expenses will be lower, disposable income higher and therefore potentially there's the chance to save more.

[nikkor]

This is a great question that most career intl educators probably don't spend enough time thinking about. I don't know how all the European pensions work, so I can't comment on that.

In Asia, there are a number of couples saving about 100K and singles saving in the 40K range. To my knowledge, those numbers would reflect a small handful of tier one schools.

If I'm 36 and work for the next 27 years, that gives my partner and I the chance to put away 2.7 million usd. The avg return of the S&P 500 for the past 27 years has been 11.83% according to money chimp -
http://www.moneychimp.com/features/market_cagr.htm

If I had invested my money in an S&P 500 eft (SCHX) at an expense of .04% for the past 27 years, my partner and I would now have about 18.4 million usd. No one knows the future, and I'm not counting on returns that good, but I feel like that is a good plan.

[nikkor]

So what would be my financial outlook if I worked at a top school in Europe for the equivalent time?

[fine dude]

Thank you all. I should continue my work in Asia then.

[senator]

Yes, I would agree, stay in Asia.

The problem with any defined benefits pension, like here in the U.S.where I contribute then receive a set amount for life - I am assuming that Western Europe's is also defined benefits - is demographics. If the government puts in a certain percentage, the amount you receive may be a lot more than what you put in, depending on how long you live. And since life expectancy is rising and rising, there may not be enough money taken in by taxes due to fewer people working to maintain that retirement benefit and government may have to cut it. And won't the European government take care of its own citizens before expats? I don't know.

Even though I have a defined plan here in the U.S. I also contribute quite a bit to my own plan - Roth and taxable portfolios - just in case my government defined plan is cut - maybe BIG.

There are no guarantees, but you can live a lot more frugally in Asia - I saved a ton in China, Malaysia, and other Asian countries and had a great lifestyle.

So, to recap, use the low to zero taxes and low cost of living in Asia to save more and create your own retirement rather than take a chance that all of those taxes you will pay in Western Europe will not be completely recouped.

[PsyGuy]

@pds86

Fees arent irrelevant, whether the government office pays them or you do fees are life in finances, no one does anything for free. Someone is paying and their using your money to do it. The cash average ROI is 1%-2%.

Thats a great point, but its also an impractical one, only the top 5% of a regions schools are at best "good schools" in most locations its really only 1 or 2 schools, and everyone cant work there.

Cost of living has the potential of being lower but unless married to a local or being well established foreigners pay more than locals and the cost of living savings really isnt all that great. Sure if your a homebody and you lead a quite life or all you do is running and hiking sure, but very few ITs I know want to do that.

@nikkor

I know of none saving $100K in Asia.

Depends on the country and the tax rate, most EU pensions are about 1800€-2400€ depending on the country.

[lookingforlefty]

1800 euros after paying in for how long?

That's the trouble with pensions, you have to work a really long time, and then hope you don't die too soon.

[Overhere]

>
> psyguy
>
> I know of none saving $100K in Asia.
>
and now you do, because my wife and I are saving 100,000+ on top of paying a mortgage and a kid in university, so it can be done.

[nikkor]

PsyGuy wrote:

> @nikkor
>
> I know of none saving $100K in Asia.

Maybe it depends on your definition of "know." Overhere and I make two people on this thread alone. Personally, I know a good number of couples all over Asia saving 70+, and a handful of couples saving into the hundreds. My wife and I are near the middle of our school's pay scale. If we were at the top, we'd be saving approx 130-140K per year.

To answer the OP, I think Asia is best for preparing to retire.

[PsyGuy]

@lookingforlefty

It depends on the country, you could potentially retire in your early 40s in Italy and gotten a pension of around 1800€, for a couple thats 3600€ and you can still go to a private/independent school and continue working.

@nikkor

I know a few couples who claim they save about $70K, but they live very frugally. I still no one that are saving $100K.