I’m currently looking at this problem myself I have a daughter in the UK who i want to support even if I am living in the Philippines as well as my new family April and our daughter so how do you do it?
The way I have tried to look at things are what I “Really” need to survive in the Philippines and anything else is a bonus or comfort blanket if something goes wrong. Currently im coming in with a realistic figure of P 60,000 a month which is comfortable. My daughters allowance is P 12k a month, rent at present is P 5k but we will be building a house on the lot we already own. So the real costs are food,electric,gas,water. The biggest bill being food because many of the items in the Philippines are imported and inflated in price. But we are looking to plant our own sweet potatoes breed our own goats and already are fattening pigs in the future reducing our living costs. But ive based P 60k on non of the above so everything else is a bonus. So how do you make a retirement income of P 60k? Well you can look towards traditional investments and if you have the next 10 years of you life to wait then its the way forward for you. Otherwise you need to look at a mixed bag of incomes. Time deposits are a good money-maker if you have enough capital which currently is around P 250,000 and rising. The returns are 20% upwards. There are investments which are a bit more high risk which I have a contact with which can make a small investment of P 80,000 into over P 6million in less than 7 years if it’s reinvested after each maturity term. May not be for the faint hearted and playing the stock market might not be either. But im giving it all a chance to see what lays a golden egg. The dollar is collapsing badly right now and speculation is making it look worse than it really is. I traded in my last U.S. Dollars today and shoved them in a cupboard. I will wait for it to hit around P41 to the $ then re-buy dollars. Because like today after visiting a black market money changer not only did I get a good rate of exchange i seen that everyone is cashing in every dollar they had. When you see Filipinos cashing in thousands of dollars you know there is something seriously wrong and this sort of action will drag the dollar lower in time for me to be buying it back again and waiting for it to recover. The peso may collapse but currently i doubt it very much i know the Philippines is in debt up to its eyeballs and a recession may hit home in 2 – 3 years but currently its heavily supported by OFWs and the flood of Koreans and Chinese visitors and students. I doesn’t fit into a normal countries currency table. Because most of the industries here are dormant due to government corruption and its strangle hold on everything.
So how can i retire early? Well your sat in a house that probably has no mortgage (ok in the U.S. it’s a bad time to sell!) but in the U.K. you may be better off selling ahead of the collapse then buying a property of the same value back in the future as most properties are at least 30% over value if not more. Then invest the money. Other option is to rent it out you can’t lose people always need somewhere to live and rents are at a premium in the UK thanks to the EU allowing so many workers to travel to the country. Aswell as so many illegal immigrants. So get it while its high in value! if the housing market collapses there will be even more people available to take rent from. When your out buying look at what you’re buying. Is it really needed? Do you need a bread maker when you already have an oven? Maybe get some chickens and look at where you are spending too much money.. if your near retirement the car you have do you really need it or can you car share with a neighbour and save money as well as have a shopping buddy? Re-value your life and what you are spending.. look at where you can save and start saving. If you can make money on something do it. This is your life you life once and once its over that’s it.. no re-runs no rewind its finished so live your life to the full.