Not the usual retirement situation?

The $200,000 from selling your house in Texas should not cost you any taxes.  You can live on that money for a few years, and after you turn 59.5 you can take money out of your IRA/401k without penalty, but it does become taxable.  Under the law just passed you and your wife could take $24,000/year ouf and pay no federal income tax if you have no other income..  so you could spend about $20,000/year for your first 5 years and then start taking the money out of your retirement accounts.  Would assume you both will be eligible for Social Security at age 62, might be best to wait until age 67 to start. You will still have about $100,000 from your house and $100,000 in retirement accounts 10 years into retirement, not a lot by USA standards, but you will be quite rich by Filipino standards, should have no problem living on SSA benefits.

AnotherPassword wrote:

Hi, new to the forum. Not really sure to start on this, but here is my situation:
51, married to Pinay 20 years. Along with her 2 brothers, she (I under her name basically) bought out her parent's 4 bedroom house in Pangasinan. It's on the main street close to town and it sits back on the lot. Her mother had a small sari-sari store built out front facing the road and the store has small kitchen and some seating too. I am thinking that after oldest gets in college (4 yrs), I can sell house and pocket at least $200k. I also will have about $200k in IRA/401k. I have been to the how 2 times for a couple of weeks. Nice place, has a few rooms with aircon etc.

Thinking about retiring at 55-56 there, am I nuts?

Wow must be a nice house!

So let me start by making some assumptions has you have left a lot of detail out.

Assumptions:
1: you bought the house in equal shares with your wife's brothers.
2: Appreciation rate of the property will be 12%

What you have hoping for:  $200,000 USD profit after four years.

Taking in the above assumptions, you and the brother must have paid around 72,000,000 (1.5 million USD) for the house.  So that in 4 years based on a 12% yearly return on the house it will be worth around 100,00,000PHP or $2.1 million USD, then divided by three between your self and the brothers (you said that you are hoping to pocket $200,000) after 4 years.

I have not even calculated in the cost of maintenance, rates and buying and selling cost of the property.

Did you live here that whole time or in the USA?  As you said you have been married for 20 years.

You (and your wife's brothers) must have done very well in life to be able to put up $500,000 USD as your share of the house and the Filipino brothers also $500,000USD each.  Also of course you need to have cash to live on until you are 55-56 years old.

To clean all this up if you could give us more details: how much you paid for the house?  What share did the brothers put into it?  This will help.

Well done mate, you have done very well in live and married into a very, very rich Filipino family.



I guess the biggest question I have for you is why did the mother run a Sari Store?

pej1111 wrote:

AnotherPassword wrote:

Hi, new to the forum. Not really sure to start on this, but here is my situation:
51, married to Pinay 20 years. Along with her 2 brothers, she (I under her name basically) bought out her parent's 4 bedroom house in Pangasinan. It's on the main street close to town and it sits back on the lot. Her mother had a small sari-sari store built out front facing the road and the store has small kitchen and some seating too. I am thinking that after oldest gets in college (4 yrs), I can sell house and pocket at least $200k. I also will have about $200k in IRA/401k. I have been to the how 2 times for a couple of weeks. Nice place, has a few rooms with aircon etc.

Thinking about retiring at 55-56 there, am I nuts?

Wow must be a nice house!

So let me start by making some assumptions has you have left a lot of detail out.

Assumptions:
1: you bought the house in equal shares with your wife's brothers.
2: Appreciation rate of the property will be 12%

What you have hoping for:  $200,000 USD profit after four years.

Taking in the above assumptions, you and the brother must have paid around 72,000,000 (1.5 million USD) for the house.  So that in 4 years based on a 12% yearly return on the house it will be worth around 100,00,000PHP or $2.1 million USD, then divided by three between your self and the brothers (you said that you are hoping to pocket $200,000) after 4 years.

I have not even calculated in the cost of maintenance, rates and buying and selling cost of the property.

Did you live here that whole time or in the USA?  As you said you have been married for 20 years.

You (and your wife's brothers) must have done very well in life to be able to put up $500,000 USD as your share of the house and the Filipino brothers also $500,000USD each.  Also of course you need to have cash to live on until you are 55-56 years old.

To clean all this up if you could give us more details: how much you paid for the house?  What share did the brothers put into it?  This will help.

Well done mate, you have done very well in live and married into a very, very rich Filipino family.



I guess the biggest question I have for you is why did the mother run a Sari Store?

I think he was talking about selling his current house in Texas, clearing $200k.
Yes, a sari store is more like a hobby than a true business, a pain for retirement.

Exactly mugtech. Thank you for taking the time to run the calcs, I had not done that yet. So a sari-sari store is kinda a PITA? I was wondering about that, seems like it would involve a lot of running around to find stuff to sell and not a lot of return.
Keep in mind this is a ways off, just floating ideas.
Since I like to cook, I had been floating the idea of making a large amount of some type of food that could be served with a scoop or 2 of rice, maybe selling it from a counter, Would trike drivers/passers by expect to have a place to sit and eat or just grab and go?
Also, wife brought up idea of tearing down store in front and making it a lot. Then rent out the 4 rooms and live in Manila.

mugtech wrote:

pej1111 wrote:

AnotherPassword wrote:

Hi, new to the forum. Not really sure to start on this, but here is my situation:
51, married to Pinay 20 years. Along with her 2 brothers, she (I under her name basically) bought out her parent's 4 bedroom house in Pangasinan. It's on the main street close to town and it sits back on the lot. Her mother had a small sari-sari store built out front facing the road and the store has small kitchen and some seating too. I am thinking that after oldest gets in college (4 yrs), I can sell house and pocket at least $200k. I also will have about $200k in IRA/401k. I have been to the how 2 times for a couple of weeks. Nice place, has a few rooms with aircon etc.

Thinking about retiring at 55-56 there, am I nuts?

Wow must be a nice house!

So let me start by making some assumptions has you have left a lot of detail out.

Assumptions:
1: you bought the house in equal shares with your wife's brothers.
2: Appreciation rate of the property will be 12%

What you have hoping for:  $200,000 USD profit after four years.

Taking in the above assumptions, you and the brother must have paid around 72,000,000 (1.5 million USD) for the house.  So that in 4 years based on a 12% yearly return on the house it will be worth around 100,00,000PHP or $2.1 million USD, then divided by three between your self and the brothers (you said that you are hoping to pocket $200,000) after 4 years.

I have not even calculated in the cost of maintenance, rates and buying and selling cost of the property.

Did you live here that whole time or in the USA?  As you said you have been married for 20 years.

You (and your wife's brothers) must have done very well in life to be able to put up $500,000 USD as your share of the house and the Filipino brothers also $500,000USD each.  Also of course you need to have cash to live on until you are 55-56 years old.

To clean all this up if you could give us more details: how much you paid for the house?  What share did the brothers put into it?  This will help.

Well done mate, you have done very well in live and married into a very, very rich Filipino family.



I guess the biggest question I have for you is why did the mother run a Sari Store?

I think he was talking about selling his current house in Texas, clearing $200k.
Yes, a sari store is more like a hobby than a true business, a pain for retirement.

Hi, it is not the clearest post, so it is all a bit strange and I didn't see where he said he came from Texas.

AnotherPassword wrote:

Hi, new to the forum. Not really sure to start on this, but here is my situation:
51, married to Pinay 20 years. Along with her 2 brothers, she (I under her name basically) bought out her parent's 4 bedroom house in Pangasinan. It's on the main street close to town and it sits back on the lot. Her mother had a small sari-sari store built out front facing the road and the store has small kitchen and some seating too. I am thinking that after oldest gets in college (4 yrs), I can sell house and pocket at least $200k. I also will have about $200k in IRA/401k. I have been to the how 2 times for a couple of weeks. Nice place, has a few rooms with aircon etc.

Thinking about retiring at 55-56 there, am I nuts?

Just to clarify,

You have being married for 20 years or your wife is 20 years old?

Do you come from Texas?

pej1111 wrote:

mugtech wrote:

pej1111 wrote:

Wow must be a nice house!

So let me start by making some assumptions has you have left a lot of detail out.

Assumptions:
1: you bought the house in equal shares with your wife's brothers.
2: Appreciation rate of the property will be 12%

What you have hoping for:  $200,000 USD profit after four years.

Taking in the above assumptions, you and the brother must have paid around 72,000,000 (1.5 million USD) for the house.  So that in 4 years based on a 12% yearly return on the house it will be worth around 100,00,000PHP or $2.1 million USD, then divided by three between your self and the brothers (you said that you are hoping to pocket $200,000) after 4 years.

I have not even calculated in the cost of maintenance, rates and buying and selling cost of the property.

Did you live here that whole time or in the USA?  As you said you have been married for 20 years.

You (and your wife's brothers) must have done very well in life to be able to put up $500,000 USD as your share of the house and the Filipino brothers also $500,000USD each.  Also of course you need to have cash to live on until you are 55-56 years old.

To clean all this up if you could give us more details: how much you paid for the house?  What share did the brothers put into it?  This will help.

Well done mate, you have done very well in live and married into a very, very rich Filipino family.



I guess the biggest question I have for you is why did the mother run a Sari Store?

I think he was talking about selling his current house in Texas, clearing $200k.
Yes, a sari store is more like a hobby than a true business, a pain for retirement.

Hi, it is not the clearest post, so it is all a bit strange and I didn't see where he said he came from Texas.

He did not say, but I like to check out a person's info if I am going to reply to a post.  That's why I know you are an Australian.

AnotherPassword wrote:

Exactly mugtech. Thank you for taking the time to run the calcs, I had not done that yet. So a sari-sari store is kinda a PITA? I was wondering about that, seems like it would involve a lot of running around to find stuff to sell and not a lot of return.
Keep in mind this is a ways off, just floating ideas.
Since I like to cook, I had been floating the idea of making a large amount of some type of food that could be served with a scoop or 2 of rice, maybe selling it from a counter, Would trike drivers/passers by expect to have a place to sit and eat or just grab and go?
Also, wife brought up idea of tearing down store in front and making it a lot. Then rent out the 4 rooms and live in Manila.

Make sure whatever you do you do it because you like to do it, for you will make very few pesos with such a business, feel you must be open to properly serve your clientele.  As for living in Manila, I cannot imagine you would like that after having lived in the province.  The general rule of thumb is don't buy real estate anywhere until you have lived there for a year.  Many wind up being stuck with a condo they don't want to live in and can't sell.  You have 4 years, enjoy your brainstorming.