Planning the move.. being realistic?

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Planning the move.. being realistic?


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Old 20th February 2018, 08:16 PM
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Default Planning the move.. being realistic?

Hello, I am a 31 year old. My wife and I are planning to move to the Philippines in the next 3 years. (She is from the Philippines but lives with me in USA). We are very simple. Food, electric, water and we are happy.

We own a house in Cavite Laguna and are building a small grocery store. Currently we have $130,000 saved.

We think we can live off of P18,500 per month. Which is 30 years plus the store will build income aswell. We are thinking the store will make in a range of P10,000-20,000 per month.

Is the provided information being realistic?

The one thing I am not sure of is health insurance. Philhealth?

Thanks!

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Old 20th February 2018, 09:43 PM
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As far as your budget goes it is possible to live off of about 20,000p/month or even less as most of the population does so. If you can eat like the locals then it is possible.

For me, I am not able to swallow all the local food types so I eat more like an american. This costs a lot more than you would think here. My grocery budget at the SM Hypermarket is probably 15k/mo for a family of 4 and that does not include another 5-10k spent at local markets for additional food. Even with that I still have meals that are made up of just vegetables some times.

I lost 15lbs (165 to 150lbs) when I first moved here and it has stabilized but I will never be able to eat like I did in the US to gain any weight back.

Meat (not intestines) cost as much here in the PI as they do in the USA, even more when you consider you can always find a sale going on in the US but nothing is ever on sale here.

As far as the Sari Sari store goes that income sounds a bit much but I do not have a store of my own so not sure. I can tell you that as soon as you open a store there will be 5 other families next to you opening a similar store. They do it all the time in my barangay. Then they all go out of business.

So have he wife cook you some local authentic cuisine and give it a try if you have not done so yet.
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Old 20th February 2018, 10:13 PM
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Thanks zep! yes, I've stayed in the Philippines a few times and only ate Filipino food. Fried Fish, veggies, soup and chicken adobo are my favorite.

Our store would be like a 7 eleven but with some extra stuff like propane for cooking... How long have you been in the Philippines?
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Old 20th February 2018, 10:15 PM
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Originally Posted by 562isme View Post
Currently we have $130,000 saved.

We think we can live off of P18,500 per month. Which is 30 years plus the store will build income as well. We are thinking the store will make in a range of P10,000-20,000 per month.

Is the provided information being realistic?
You failed to mention that you factored in the high annual inflation rate here during that 30 year period.

https://tradingeconomics.com/philippines/inflation-cpi

Peso fluctuation rate to your $130K ?????

Do you have your 40 Social Security Credits so you are eligible for SS later in life?
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Old 20th February 2018, 10:48 PM
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You are only 31 years old, so you could probably live another 60 years.
I don't think $130,000 savings is enough and I doubt that php18,500 will be enough.
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Old 20th February 2018, 11:05 PM
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18,500 seems low. You might be able to live on that budget in some months but not if you have any additional expenses (e.g. travel, christmas and other celebrations, medical bills).

Also for your house you will need a fridge, furniture, other appliances, and I guess the store will need a few fridges as well as all the other fittings.

Managing a store will take up a lot of time and you'll be lucky to break even imo. Most of the stores can make money to cover the day to running costs but less are able to pay off the capital expenditure - so you need to keep extra money to replace the fridges in 5 years etc etc.

Seems you are thinking about the move as I think you posted on here a while ago with plans to farm. My advice is same as before - dont invest any money here until you have lived here a year or two. But seems you have already sunk money into a house and business.

Also, you may be able to survive on 18500 but if you are planning to have kids then you will need to pay hospital bills for the birth, then milk and diapers for the next few years, the school fees, and then hope the kid gets a job so you are not supporting grandkids!!

Good luck!

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Old 20th February 2018, 11:52 PM
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Thanks for the info guys. This is my first thread.

The other thing I could do is invest the 130k in the US and make $720 monthly.

How do I find out how many credits I have for SSI? I read 4 points a year.

What do you guys recommend? staying in the US.Only visiting the Philippines every 2 years.

It's hard to give up what you really want and would like to live but if no choice...

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Old 21st February 2018, 12:48 AM
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Quote:
Originally Posted by 562isme View Post
Thanks for the info guys. This is my first thread.

The other thing I could do is invest the 130k in the US and make $720 monthly.

How do I find out how many credits I have for SSI? I read 4 points a year.

What do you guys recommend? staying in the US.Only visiting the Philippines every 2 years.

It's hard to give up what you really want and would like to live but if no choice...
You can find your number of credits immediately, here

https://www.ssa.gov/myaccount/

There is a very wise OFW who lives near me. He is buying land and constructing apartments. All are filled. Remember, the area above land is free so he builds high. A few more years he will quit his OFW job and use the apartments as revenue.

Perhaps you could consider the same instead of being a slave to a store for the rest of your life.
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Old 21st February 2018, 01:02 AM
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Originally Posted by Hey_Joe View Post
You can find your number of credits immediately, here

https://www.ssa.gov/myaccount/

There is a very wise OFW who lives near me. He is buying land and constructing apartments. All are filled. Remember, the area above land is free so he builds high. A few more years he will quit his OFW job and use the apartments as revenue.

Perhaps you could consider the same instead of being a slave to a store for the rest of your life.
Your friend is wise but he is also a Filipino, so he can own land. As a foreigner, it's not possible.

I have an expat friend who has done similar thing (student apartments) but he has been married many years to his Filipina wife, they have grown up children and are both retired/settled here.

If you invest in land or anything here, you would be very unlikely to ever be able to get that money out of the country again. And if things don't work out with your Filipina partner, you wouldn't have any legal recourse.

Personally I'd invest in the US and spend the money at leisure. Perhaps look at other Asian countries where you can live/work where your partner would find it easier to get a Visa.
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Old 21st February 2018, 01:13 AM
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Quote:
Originally Posted by 562isme View Post
Thanks for the info guys. This is my first thread.

The other thing I could do is invest the 130k in the US and make $720 monthly.

How do I find out how many credits I have for SSI? I read 4 points a year.

What do you guys recommend? staying in the US.Only visiting the Philippines every 2 years.

It's hard to give up what you really want and would like to live but if no choice...
I commend you for saving so much at a young age. You have more than many close to retirement.

You could live in PI but I don't think 20k is feasible. 30-40k minimum, imo. Like others mentioned, the store won't make much. Every Filipino dreams to have one but they eat the already slim profits. Competition on every corner, people can't pay today, etc..

Much better idea to keep that money invested in the US, earn more on it, and live on that. You cannot withdraw more than 5% per year safely on such a small principal over time That's $6500/yr, 540/mo.. 27K. Better, but still not enough really, especially for emergencies.

You have to have Social Security earnings when you're older, don't even think about going without that safety margin, especially if you're low income to begin with. You need at least 40 quarters (10 years) full time work to get that.

I would recommend working in the US longer and building up more principal before you move over, if you can. You seem good at it. Try to double that at least.
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Last edited by JRB__NW; 21st February 2018 at 01:24 AM.
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