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Making $ in the PH
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You are a 40 y.o expat living in the Philippines with a wife and two kids. Have $500k on deposit. Need an income of $50k p.a. What are your options?
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I assume the requirement is $50K p.a. of income. That’s a guaranteed 10% yield. That’s hard. I would put all of it in an S&P 500 dividend aristocrat ETF like SDY. So you have some diversification, and a more-or-less guaranteed (but tiny) dividend income. I doubt you would hit 10% yield though, and some years would be terrible. $50K p.a. before taxes in the Philippines isn’t that high. That is an upper middle class existence: $200K house or condo, one or two modest cars (Toyota Corolla, Honda CR-V type). Certainly compared to the vast majority of the people it is high, but compared to 40-year old professionals in Manila who are employed at multinationals? that’s just about average. Speaking from personal knowledge (I am 40.. and know a lot of people who work at places like Oracle, IBM, Microsoft, Accenture, etc. in the Philippines). So $50K is not unrealistically high, but it also is hard to get with a $500K principal. I would echo what another poster said. With prudent investment you can probably get a $25K yield out of that $500K. So get a job. The $25K passive income will suffice to meet your basic needs (so long as those basic needs don’t include a mansion and a BMW). So you are free to take on an interesting job, even if it doesn’t pay all that much.
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500K invested wisely is unlikely to bring in much more than 30k. If you need 50k to get by then you have 3 choices. 1)Get a job. 2)Get a job. 3)Get a job. But really, do you need 50k to live in the Philippines? Very few Filipino families would spend that much.