With Chiang Mai’s beautiful but very short “winter” now behind us, it means temperatures begin climbing, skies get hazy due to inversion layers that occur during the hot and dry season and many expats begin their annual bitchfest known as “The Burning Season” all over social media. For us it means the end of day tripping and a short break before a one week beach vacation at a moderately priced Koh Lantaresort. After that we return home for a week and then hit the road for four weeks for a month-long escape from the bad air. Given Thailand’s low-cost of living, we’re running about $3,500 under our annual fiscal year budget so it’s affordable to overlap monthly rent if we stay away from the more popular Andaman Sea beach destinations where everyone else goes. Searching for a more low-key area still far enough south to escape the haze, we found a three bedroom house for rent on Airbnb at a ridiculously low rate of about $21 USD per day in a sleepy beach community half way between Hua HIn and the gateway town of Chumphon. Planning on driving, we’ll be able to cart more stuff than flying and see a bit of the country as well.
So for now, let’s talk finances. Depending on your situation, some of you may have noticed the one and only positive aspect of the Trump Disaster is a rather fast rise of the stock market. Simply put, Wall Street loves billionaires and while very few of his moron supporters will ever see one penny since they’re mostly financially ignorant, underemployed and too stupid to understand why trickle down economics always fails miserably, those of us in the “sweet spot” (invested properly but not wealthy) are doing well. Finally seeing an enormous albeit very short correction that brought the markets down to earth last week, I thought I’d post a follow-up to my recent financial comments.
Having received an unexpected amount of positive feedback when I briefly touched onasset allocation and diversification, let’s get the disclaimers out-of-the-way. Most importantly, I am not a licensed professional and nothing I say should be taken as a solicitation or endorsement of any financial products. But I did spend 32 years working in various administrative and support roles for some very well-respected financial institutions in New York City and San Francisco. Not intending to make this an economics lesson or online college class, I’ll keep the teaching down and include an educational link when I use financial terminology. With lots of great blogs focusing on how to retire early, not that many focus on what to do once you’re there so I’ll give it a shot. While never wanting to manage anyone else’s money, I’ve been a “self-directed investor” for over 20 years and that’s enough time to analyze all the graphs and after almost three years of early retirement, I can say we’re ahead of the curve so if you don’t mind some boring graphs to make my points, read on. Please also note that since we’re both American citizens, some strategies I discuss only apply to U.S. residents but the concepts are universal and can be applied from almost anywhere.
Fundamentally, every story has a beginning, a middle and an end. Except when you live in Malaysia where situations get stuck in limbo until you force an ending. About a year ago, Diane and I visited the offices of JPJ, an acronym for the Malaysian Road Transport Division which is their equivalent of The Department of Motor Vehicles. Hoping to take advantage of a benefit given to MM2H holders, we wanted to get Malaysian drivers’ licenses despite the fact that we’ve had no vehicle since arriving almost two years ago. Being an ASEANmember state, residents can drive legally in Thailand with a Malaysian license and since we thought an eventual move was in the cards, it seemed like a reasonable thing to do. Instead, it turned into one of those developing nation bureaucratic nightmares you hear about and try to avoid at all costs. Mostly skirting any instances of endless hours in government offices (which we’ll quickly make up for when we move to Thailand), our streak ended and proved that the chances of successfully convincing a Malaysian to bend any rules even when t’s their mistake are zero to none.
Recapping the story, Malaysia allows “automatic conversions” of foreign drivers licenses to certain countries including the U.K. and Hong Kong. Not long after we arrived, our neighbors, who are fellow MM2H holders and ex residents of Hong Kong, brought their current foreign license to the local office, paid a fee and were in and out in about an hour. Unfortunately, The United States and Canada fall into a different class deemed “non automatic” conversions that need applications and approvals from the head office in Putrajaya, the government’s administrative district. While only a minor extra step for expats living in Kuala Lumpur or the surrounding Kluang Valley, expats that choose quieter environments like Penang need to either spend time and money making multiple trips to the capital or apply at a local state office. Complicating things, there’s a special requirement for American citizens that involves a trip to the U.S. Embassy in KL. Requiring “verification” of your foreign driver’s license, they’ve decided that a local JPJofficer can certify a Canadian or Bangladeshi license, but only an affidavit with a pretty stamp and seal from suffices for Americans. Nowhere to be found on their website, we knew about this rule because our agent at Joy-Stay(Malaysia’s best MM2H agent) told us before we left North America so when we visited KL in July 2015 to complete our MM2H paperwork, we also made a trip to the Embassy. Charging $50 for a citizen notary service, they have a standard form created for this but in theory it’s stupid because a U.S Federal agency can’t legally verify any document issued by a state.