Feeling like we’re perfecting the Experimental Overseas Early Retirement a little more each day, Diane and I are now holders of valid retirement visas in two Southeast Asian nations at the ripe old ages of 52 and 46. Despite the guy in Penang that literally followed every word I wrote to secure his MM2H Visa in Malaysia, I’m certainly no genius as shown by this blog which doesn’t even include hashtags, revenue generating advertising or commercialization of any kind. But I did read an article on Marketwatch.com this morning that discusses a new IRA rule allowing Americans with 401k plansto make penalty free early withdrawals at age 55 in cases of “job separation”. (No, you can’t quit at age 54 and then withdraw money the next year and if you roll your plan into an IRA as we did, the rule doesn’t apply). Intentionally designed to catch your eye with a headline, first they discourage this rather foolish act and then explain how most Americans can’t afford to retire at age 55 proving why you should probably get your financial ideas from those with no vested interest in watching others make mistakes.
Our first visitors came from China
Rarely talking about our personal finances because the boss in the relationship insists we keep the specifics private, I’ll share a few tidbits that illustrate how we’re doing after almost two and half years with no employment income. Planning a budget of 40-45K USD annually including rent and travel, Malaysia was an easy place to meet the goal because there’s nothing to do in Penang and we mostly cooked our own meals since we didn’t like the food other than duck rice and inexpensive noodle soups. Spending most of our cash travelling to places like Cambodia, Myanmar, Bali and Australia, we skimped on the non travel months and ate in almost every night. Relying heavily on our “no foreign transaction fee” U.S. dollar credit card, we also took advantage of a plummeting Malaysian Ringgit and saved thousands since almost every business other than food courts takes credit cards in Malaysia with no merchant fees.
Hoping we’d escape my worst nightmare, I guess I was kidding myself thinking we’d make it until the end of our lease before it began. Continuing Penang’s destruction of the last town without massive development, the pile driving began a few days ago. Like clockwork at 8:45 AM, the ugly space they destroyed right past the new high-rise towers next door comes alive with the most unfathomable and disturbing sound that grates on me like chalk on a blackboard. Proving both the property agents, condo managers and landlord were absolutely full of shit when they rented us this condo 20 months ago, their claim that there’s no further construction planned in the once quiet town of Batu Ferrenghiwas as accurate as a tweet from Donald Trump. While we’ve already decided to get out of here, I’m not sure how I can endure four more months of ear shattering noise for nine hours a day for six days a week.
But we did take the first step towards liberation from construction hell by taking a quick 48 hour jaunt to the U.S. Embassy in Kuala Lumpur. Recently visiting Jim, Penang’s resident expert on getting all kinds of visas from the local Thai Consulate, he told us we’d need an affidavit stating that our assets exceed 800,000 Thai Baht, the minimum requirement for a retirement visa. Unlike Malaysia’s one step long-term MM2H Visa, Thailand is a never ending revolving door of reporting, applications for extensions and sometime visa runs. Depending on who you are and what you’re in Thailand for, there’s more choices than the supermarket. Also totally opposite from Malaysia, there’s no government website properly explaining requirements and rules for Thai visas and they literally change constantly so we opted for a series of conversations with people who’ve lived there awhile or moved from Penang to help us understand the proper way to get out of our overdeveloped nightmare. Continue reading →