A letter for you. Photo courtesy of Sifah
(The other week, I emailed Filipinos working all over the world to find out how the US global financial crunch is affecting one of the major sources of the country’s liquidity—the so called OFWs. Some are regular readers of MoneySmarts, while some are friends of another blogger Reyna Elena. They were very kind and replied and a short version of their emails (in the interest of space) were included in a feature I wrote for the Philippine Daily Inquirer. I am publishing this week in installments the full version of their emails. I hope the series will help us understand how Filipinos all over the world are affected and are responding to the crisis.)
By Leo Obrero
My family and I live here in Norridge, Illinois since 1994. I migrated to the USA in 1978 and had worked for several companies from factory to office work like most of our kababayans before me. Then in 1984 I was hired by the United States Postal Service as a clerk inside its processing and distribution center here in Illinois. I started as a letter sorting machine (LSM) operator.
After eight years of stressful skirmishes with this LSM, I bid out. I moved to another section working in graveyard shifts for sixteen years facing the same pigeonholes every night. But thank God I had this job. I can proudly say that had it not been for the USPS, I would not be able to retire with financial stability.
I decided to retire effective the end of October on a voluntary early retirement basis because: I could not tolerate anymore the stress that’s beginning to take toll on my health. I would like to travel around the world with my wife while we are both not wearing diapers yet, and vigorous enough to enjoy and feast on our second honeymoon. I would like to pursue the career that I am passionate about, at least on a part time basis, as financial adviser either here or there in Manila. I am also FINRA (formerly SEC/NASD) registered with Series 7, 63 and 24 licenses since 1992. It’s another chapter in my life here in America that really opened my mind in regard to money matters and financial planning.
Almost three years ago, my wife and I decided to buy another house, not really as an investment but for my eldest son, whom we thought would make good of his promise to help us pay the mortgage. Things changed afterward when he moved to California to work as Nuclear Medicine Technologist at UCSD-MC. The housing bubble burst and we ended up with two mortgages. If we are sell now, we’ll be losing more or less twenty percent of the contracts’ price value plus taxes and mortgage payments made from the time we bought it. But no one is buying.
Here in my neighborhood, million dollars’ worth of newly constructed houses and old alike that had been in the market for as long I could remember are gathering spiders’ webs. Well, Halloween is coming anyway that saves the owners from buying artificial decor. So yes, my plan to retire in Batangas is held in abeyance until our youngest son, whom I am living with in this house, can afford to pay the mortgage. My wife still works as a nurse. She’ll be 61 come November. One more year and she can retire.
The big but is, we need health insurance. Medicare will not kick in for both of us until we’re 65. These are among the things we’re a bit concern about. The big chunk of my retirement money is still intact under the custody of the Postal Service’s accredited trustee. I was lucky enough to transfer it to government bond index fund from equity index fund before the market crashed, otherwise I wouldn’t have this time communicating with you. My pension from SSS and Postal Service will start soon. Should be enough to retire in Batangas comfortably for my wife and I, but for reasons mentioned earlier we have to delay it for a while.
But here’s the good news. As you know, President Bush signed the bailout legislation. As Warren Buffet said, “it’s not a panacea” but I hope it will restore Mr. Market’s confidence and normal mood swings. The world is watching. I hope for the best.
There’s still a burning desire in me to go back to Batangas. I hope before the sands in my glass-hour runs out, I am able to contribute something that will make a difference, even in a little way, to the lives of the younger generation.
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13 Feedbacks on "A US-Filipino retiree’s tale"
junebug
good luck to a good intention!
dinarman
hope you can retire peacefully in batangas sir. Good luck on your journey.
nick
just have a vacation in batangas for 3 months, n everything will be 2 normal, crisis is over n u will be able 2 start whatever u’r plan are,…
David B Katague
As a retiree spending half of our time in PI and US, your plan to retire in Batangas as soon as possible is indeed an excellent idea. May I suggest not to cut off your ties in Illinois, so you and wife can return to US anytime during your retirement years.
Babs
ppl in the phils thought once their loved ones are in the states/canada, everything’s well with them. they just don’t have an idea how much hard work and sacrifices they’re experiencing just to help their loved ones back in the phils, at the same time, save for their own retirement.
nobody will help you here except your own self. luckily, my family back home isn’t dependent on me (my siblings have their own family now while my parents have their pensions, though i give help when they need it most and when i have money to give).
yes, there’s pension plans and old age security here for retirees but if you don’t have savings you won’t be able to do much travelling or do whatever you may want in life. bottomline..save for the future but be happy and content for what you have today.
for leo, gluck to all your endeavors! God bless!
Yvon Thea
goodluck po…
Eterio
It justs shows the NINJA is affecting everyone, not only in America but the rest of the world, the only hope that can really fire up your wishes if Senator John Mccain wins the Presidential election, for that is his one of his political platform, helping the no income,no job,no assetts, not like Senator Osama or Obama, who will change everything that america stands for, he will change the koran bible, he will change the whitehouse into Blackhouse, he is just like in the movie face off.
Ghia
Sir Leo,
You are indeed fulfilling your purpose on this earth.
I am an expat here in Sydney, in my 30s, single. For now, I dont have plans of moving to Australia or anywhere permanently, coz I still want to retire comfortably in the Phils. My goal is to acquire as many investment properties and to build my assets for the next 30+ years (if I plan to retire at 65).
Your story is an inspiration to us all expats….
wala lang
Mr David Katingue-
Did you mention you are already retired in the phils ( travelling between manila and the US )? How are you liking it so far? Is it expensive to live in the Phils?
Ryan
Plan to have a retirement business…
We are into pawnshop and money changer business, franchising all over Visayas and Mindanao area:
Check out: http://istarjewelers.com
evelyn castanaga
Iam 49 and working as an Rn in the USA w/ the hope of retiring for good back and forth in the PI and USA when the time comes. So far we have 2 rental properties w/ the same size as the house we live we are always forced to borrow money for tax shelters as my husband is also an RN.We are investing 20 % of our income in tax deferred so the homes is one way of trying to save although the prices of the homes took a nose dive i am not too worried about it as serves its purpose.Perhaps as we get older and soon will be ready to retire at 62 as that is when the state of Nevada will not penalize me for leaving work early just keep my fingers crossed that real estate will be back up then.Goodluck sir, and it is very admirable that you buy your son a house w/c at this point most of the young generation are very carefree and take parent’s kindness for granted.I wish i was your child ! About these presidential candidates,i don’t like Obama as he will be creating more social programs w/ the middle classes financing.I am tired taking care of the lazy people who choose not to work and fights to be disabled.I care about the really disabled people who deserves it.My hopes and wishes sir that you will not be sick.Happy Days in PI w/ your hardworking Nurse wife ,I can’t imagine myself practicing as a nurse at 61.
teresita soliven
After 911, we closed all our mutual fund accounts (we lost money) and immersed ourselves in learning the stock market. Our financial adviser thought we were crazy. It was the best thing we have done! We still have yet to hit the gold mine… but we are in control of our money and we were not caught unaware and unprepared. Truly… to be educated is to be free.
US Postmaster's Master
Before President Clinton (Democrat) took office there was a budget deficit of $290 billion that he inherited from former President George Bush (Republican), and it was projected that year the budget deficit would be $455 billion. At the end of end of his presidency in 2001, there was a federal surplus of $127 billion.
The books are closed on fiscal 2008. The surplus of current President George W. Bush (Republican) inherited has turned into a record deficit: $455 billion. That is more than twice the 2007 deficit of $162 billion and beyond the previous record of $413 billion in 2004.
Here’s another fact:
The Outstanding Public Debt as of 18 Oct 2008 at 01:41:29 AM GMT is:
$ 10,335,115,768,478.27
The estimated population of the United States is 304,927,377
so each citizen’s share of this debt is $33,893.70.
The National Debt has continued to increase an average of
$3.45 billion per day since September 28, 2007!
Concerned?
Then, we could no longer afford for an ignorant character assassination. Focus with the real issue – the Economy!!!
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