MONEY, MONEY, MONEY - Let's Talk About Finances

Nobody wants to talk about money - I found that out in other blogs.  I was hoping I'd get some words of wisdom from others who are living outside the USA regarding banking, i.e., money transfers, deposits, earning a living, etc., but although there are some who vaguely talks about finances, I don't find any of them helpful.  So here is my two cents regarding the subject. I hope you'll find this article helpful in some way.  I do, however, strongly suggest that you talk to your financial adviser in earnest.

A month ago my husband and I met up with our Financial Adviser to get his opinion and guidance on what to do with 401K, retirement account, investment portfolios, international banking, etc...I will not go through everything we discussed here as it is rather a personal matter of opinion.  Remember we all have different needs and goals.

From that meeting he was able to set us up with a checking account with Edward Jones Financial Services where we can write a check once we get to the Philippines to initially make a deposit to a Philippine bank of our choosing.  The only drawback is that it will take about 6 weeks for the money to be available.  Not a problem.  We won't need the cash right away anyway as it will probably take several months before we decide on where we will settle down.

The other thing we talked about is a no-brainer, really.  We all know this, but just in case, you need a reminder.....If you are leaving your job and you have contributed to a retirement account (401K) with your employer, be sure to roll it over to an IRA to avoid steep penalties.  It's easy to have your financial adviser request the transfer himself.  He will give you a form to fill out and he'll take care of the rest.  If you don't do this, your company's benefits coordinator (or whatever they're called at your place of work) will end up cutting you a check for the amount of your retirement account and you are then responsible for rolling it over to another retirement account.  You have 60 days to roll it over, otherwise, you will be penalized.  Talk about 30%-40% penalty - ouch.  I don't know about you but that is a LOT of money down the gutter.

We also talked about converting a traditional IRA to a Roth IRA.  In traditional IRA you are not taxed until you withdraw at retirement age, whereas with the Roth IRA you pay taxes now but withdraw tax-free at retirement age.  You can opt to have your financial adviser convert your traditional IRA into a Roth IRA in increments, say for the next 3 or 4 years instead of in one lump sum to avoid being placed into a higher income tax bracket come April.

We came away with helpful insights in regards to our retirement options with that meeting. and I will not share all of them here.  When we reach our retirement age hopefully we get our hard earned money back plus earnings.  Oh and before we parted with our financial adviser, he asked if he could pray for us.  So, right there in his office we held hands and bowed our heads committing our plans and goals to the Lord Almighty.  How cool is that?

I've read several blogs from other people who, like us, decided we have enough of this crazy, rat-race lifestyle.  I try to glean some insights from these fellow bloggers who are living outside the USA at the present time and are managing well even without a full time job.  We have learned that my husband will not be allowed to work in the Philippines - period.  Did that deter us from wanting to go back? NOT!  With what savings we have to bring over there, we have decided that WE WILL NOT LIVE LIKE THE WESTERNERS DO.  I believe it helps if we keep reminding ourselves that.  "Materialism" and too much "Commercialism" never really bring anyone joy and peace.  Anyone who have visited the Philippines can attest to that.  We might not have everything but everyone you meet there have a relaxed, happy disposition.  Now doesn't that tell you something?  Joy from within doesn't come from material wealth. 

Some of the bloggers I've read suggest renting a place instead of buying or building a house.  That is true if you plan to move a lot and that's what you're comfortable with.  But if you married a Filipina and know that you will stay there indefinitely, here's my take on this:  Why not buy/build instead of rent?  To me renting in the Philippines is total waste of money.  That's how I feel about renting here in the US as well.  One of the goals in moving back there is to not have a mortgage, or a monthly rent.  We will only have to worry about electricity, water, phone and food expenses.

On my next blog, I will share with you what we found out about medical health insurance, starting a small family enterprise so there is a stream of income coming in.  Likewise, I will share with you how our meeting with an international tax lady went.  Yes, Virginia, there is still tax issues to be dealt with even if you move back to the Philippines.  The annoying thing though, and I will just have to rant about it here, is that when I immigrated to the US, the Philippine government didn't require me to continue filing for tax return there.  Now that my husband and I are immigrating to the Philippines, you would think the US government will not require us to file tax return, right?  WRONG! Government over-reach? YES!  I'd better stop here before I "boil over."

Until my next blog.  Blessings to you!

Mid-life Wanderings: MAJOR PURGING - Getting Rid of These and Getting R...

Mid-life Wanderings: MAJOR PURGING - Getting Rid of These and Getting R...: Hi all.  Whew!  It's been almost a month now since I last blogged and I apologize.  My husband and I have been really busy getting rid o...

MAJOR PURGING - Getting Rid of These and Getting Rid of Those

Hi all.  Whew!  It's been almost a month now since I last blogged and I apologize.  My husband and I have been really busy getting rid of almost everything we have accumulated.  What with the sale of the house, fixing things that need fixing per inspection report, sorting, scanning documents, boxing, shipping....and the list goes on.  Will I ever see the end of it, I wonder?

We had our second garage sale (which I called "garage sale marathon") for 4 days, can you believe it?  We were trying to get rid of as much stuff as we can and have extra money for the move.  The last day of our garage sale, my father-in-law was wheeling and dealing it was amusing just  watching him - I love you, Dad!  The next week God's Storehouse came with their truck to pick up the leftover bigger items and Dad and I hauled the boxed items to the Rescue Mission Donation Center.  A U-Haul pulled in to take the piano to its new home.  Very early one morning Atlas Shipping came and picked up the Balikbayan boxes for shipment to the Philippines.  Now the house looks empty with nothing but the leather couch and recliner.  Presently, we eat in the LR and sleep on air mattress.  The house looks bare and sounds hollow.

My husband took pictures of our garage sale marathon:

Three weeks ago we hauled the John Deere tractor to its new home and my husband asked me to take picture of it one last time to which I complied.  I think his heart ached for it as it had been in the family since 1964.

But of course before he loaded it on the truck he and our 6 year old took it around the neighborhood one last time.  I thought I share it here:

So there, all our "stuff" are gone.  After three weeks of sorting, pricing, boxing, loading and talk about stress, they are all disposed of.  Whew!

Thank you all for your patience and thank you for following us as we journey towards a simple, laid back living.