Early retirement - am I dreaming? (pension, moving, inherit, retired)

[texdav]

The danger i many places is that inflation even within a cheap ecomomy can explode quickly when the economy changes. Loo at sone examples in south amreraca itself in recent years.Often americans make out only because of the relative strength of the Dollar to the local currency.Ubstable governamnt are poretty famous in many below the border countries.

[sugarsugar]

Originally Posted by fauve

Oh, I do agree. $300K of that is life insurance, so that should be okay. But $500K is all in mutual funds and I don't trust that at all - that's why I put $500-$750K tho it's about a total of $800K in today's value. Of course if/as the market does grow, we should be able to keep up with inflation with that portion.

That kind of thinking was helpful for us too - dh used to joke that in planning for this, he preferred estimating by doubling our expenses, considering only half of our funds, and if we could make it that way, we'd probably have a decent cushion

[fauve]

Originally Posted by texdav

The danger i many places is that inflation even within a cheap ecomomy can explode quickly when the economy changes. Loo at sone examples in south amreraca itself in recent years.Often americans make out only because of the relative strength of the Dollar to the local currency.Ubstable governamnt are poretty famous in many below the border countries.

This is kind of why Im leaning toward Costa Rica, although it's more expensive than the other countries. The government/country is extremely stable and has been since at least 1949. I also like their whole environmental and human rights stance. They have a 96% literacy rate, health care on par with the US that is considered a human right, and a mostly middle class population - so it's extremely safe. As we're growing older somewhere this will become of increasingly paramount concern. Perhaps we'll start off somewhere a little more adventurous (and cheaper) and wind up there eventually.

[fauve]

Originally Posted by sugarsugar

That kind of thinking was helpful for us too - dh used to joke that in planning for this, he preferred estimating by doubling our expenses, considering only half of our funds, and if we could make it that way, we'd probably have a decent cushion

Love this!

[texdav]

I sadi region for a reson. Lokig at the US ;I woud not feel as secure even with our long hoistroy living right o the mexican border for example. Often problem do not star within the country. Look tot eh north and suth and contiung problems ;which woud make nme hestitate and loo at the countries abity to provide security and what to invest that can be loss in a instant.Along with cheap prices often goes other riskbecuase we pay for security in a worlkd of ever growing changes unlike even the recent past.I say having a firend who owned a home in a coutnry that even still mnay vaction it. He said when he started seeig the polcie carry submchine guns he started to wander . He said he look and found that bascially thigns had changed as the region changed. The welathy americans became target more and mroe ;so he decided to sell.He says the porblem has gotten worse since and he always knew that he had to be very careful of laws because they are very strick and it was never the american justice sytem there.

[yellowsnow]

Like the others said, I think you have enough money.

However, I have lived in and enjoyed other countries but it's not for everyone. Before you jump in with both feet, I would strongly suggest you rent for a year or two and see if this is really for you. Just like you see your home here as possibly going down in value and being hard to sell, properties in CA can be easy to buy....and a nightmare to sell. I considered doing what you want to do and I can tell you some of the same properties are still on the market today just like they were 5 years ago.

Best of luck!

[Lakewooder]

Many retire on less than what you have...

I guess the safest thing to do would be rent out your FLA home and rent in Costa Rica or wherever, then come to a decision.

Personally, I would not live in those areas (but I have visited and know quite a bit of Spanish - being from Texas). Given the same situation I would find a small lake cabin in the south or in Texas - many times you can find those in the $50K range - same for some small towns not that far away from big cities. The health care thing is a wildcard, however.

[luzianne]

I'd be reluctant to do that after watching my parents retire early. They retired when one was 62 (and getting social security), the other 53, bought a farm and were self sustaining, for a while had a dairy farm and sold the milk, raised cattle, planted a garden, house and land paid for, plus their social security. Now they are 91 and 82, could no longer handle the farm several years ago so had to sell it, and are pretty much broke. Their house is paid for but they they are getting where they can't manage on their own anymore. They are going to end up having to sell their house and move into assisted living and will end up on Medicaid when the money from their house is gone. It's sad, and I see where they could have worked another 10 or 15 years and things would have probably been a lot better for them, financially, emotionally and physically.

Plus, they got bored. Once they retired it seems like they were a whole lot more dependent on their kids' attention because they didn't have that much going on anymore. They tell the same stories over and over, which I realize is partly their ages, but it's also partly because they have no new stories to tell because once they retired they didn't do much anymore. They are always talking about things that we/they did in the 70s and 80s. I don't like what I see, so I think unless I have enough money to travel or otherwise keep myself busy, I will continue to work.

[brightdoglover]

It sounds like the previous poster's parents wanted to retire to try the self-sustaining farming thing as an adventure? It would seem likely to do that when younger, not old-old, but to have a plan for when you can't keep up that physical effort.
I thought Medicaid didn't cover assisted living- am I misunderstanding?
It does seem dicey to retire so early- financially- unless you're really in high clover.

[MadManofBethesda]

Originally Posted by brightdoglover

I thought Medicaid didn't cover assisted living- am I misunderstanding?

Medicare doesn't cover assisted living.

Medicaid is a state-run program that covers the costs of indigent residents.