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There are many countries in the world where you could live very well with 2000 usd/month (eastern europe, turkey, baltic countries etc) but it depends.
The life style in the country of destination might not be at all what you are used to. Not everybody is cut for this. It is difficult. I plan to do this when I retire, but I am from there. I know what I'm getting into.
I suggest you to take trips in the countries you consider or even better try to live there for a while and see how you like it.
Otherwise you'd be in for a cultural shock and might regret it dearly. And, no matter where you end up, please learn the language. The locals don't like it if you are not able to speak their language.
We figure we can liquidate all our assets by selling our home and lots of our possessions and come out with enough money that we can live on $2000 a month between us by taking an annual 5% distribution. It is not much money but maybe we can do it in a small town or maybe overseas.
I don't get that your DESIRE is to retire or live overseas, that you've always wanted to do it and it's a dream of yours. It seems this would be a financial decision, with quality of life as a factor.
As others have said, you can find what you're looking for right here in the U.S. -- and NOT have culture, language, and societal differences to deal with.
Personally, my primary concerns about retiring to a developing country -- wherever it is, Asia or South America -- would be crime, acceptance of Americans, and healthcare.
-- Unless you live in an enclave would the town you live in be safe?
-- Would Americans be targets? Are we resented? Plenty of locals might be glad to earn your money -- that doesn't mean they don't also slightly resent you, also.
-- Health care. I'm not super jingoistic about too much. But there's no place in Asia or S.A. I'd want to need serious medical treatment. Brazil may be known for plastic surgery....but I wouldn't go there for that either. AND will your health insurance cover you there, to the same amounts here?
I've lived in Europe -- and I'm not even thrilled about hospital care there.
So, personally, I'd do extended stays abroad, but for permanent residency -- I'd find a nice inexpensive are right here in the good old U.S. of A. There are many lovely, beautiful cities, towns, and villages -- where crime is not an issue and COL is low. There are PLENTY -- PLENTY -- of inexpensive areas.....and some aren't that far at all from some big cities.
After being laid off my job of over 25 years and getting the bad news that the job market for professional people is lousy if you are pushing 60, my desire for a new career type job is slowly going away.
My wife and I just may retire on shoe string until we can collect Social Security in a few years.
We figure we can liquidate all our assets by selling our home and lots of our possessions and come out with enough money that we can live on $2000 a month between us by taking an annual 5% distribution. It is not much money but maybe we can do it in a small town or maybe overseas.
How about Costa Rica or Ecuador? Can we live well in places like that for $2000 a month? Or could we have a similar standard of living in a place like Ocala FL or other low cost of living southern town? Please advise.
So, if you sell the house, you might have $500k on which to draw until SS kicks in??? That's a lot of money, if properly invested.
You may not appreciate what you have and what $500k cash can do.
Worst case - if neither of you can find some fill-in work until SS - is keep $125k in cash for future living expenses, and invest the remaining $375k.
That $375k will be the goose that lays the golden eggs. There are many decent, conservative mutual funds earning 7-8%/year. If mkt crashes, the best funds rebound in two years. If you have enough cash set aside, downturns don't matter. Here's one:
And, of course, you should consider delaying collection of SS benefits for as long as possible - or use the file/suspend strategies discussed at length on this board as appropriate.
Proper income from the nestegg should allow you to do that - and you won't be living on $24k/year until SS - more like $40-$50k - if you do things right. If you can hang on one way or another until FRA for SS, you'll be sitting pretty.
I'd say your glass is half full - not half empty.
Quote:
Originally Posted by seasick
An IRA or any other retirement plan is a crock compared to a pension.
Oh, indeed.
Quote:
Originally Posted by Curmudgeon
Gravy train my ass. And in case it's escaped you, most of us worked real hard to achieve what we have now.
My impression of the govt workers posting on C-D - is that they're very intelligent, well-educated - and under-appreciated. I'm tired of reading the slams about public sector employees. They've earned their money.
I think many are bitter because there is no pension for them, no matter how hard they work or how little they work for, etc. Pensions are a thing of the past for most, except select government workers. The lower-level workers now for government are often "contract" workers. Just a way to cheat people. You'll see the U.S. standard of living tank for the elderly who don't have pensions. An IRA or any other retirement plan is a crock compared to a pension.
Ha, a lot of assumptions there pilgrim. If you had my IRA your name would be seacruise not seasick.
I think many are bitter because there is no pension for them, no matter how hard they work or how little they work for, etc. Pensions are a thing of the past for most, except select government workers. The lower-level workers now for government are often "contract" workers. Just a way to cheat people. You'll see the U.S. standard of living tank for the elderly who don't have pensions. An IRA or any other retirement plan is a crock compared to a pension.
Companies can modify a pension. Companies can freeze a pension.
Companies can go bankrupt and the PBGC takes over your pension.
But the IRA and the 401K are your money that no one can change on you.
If you are willing to live like a local there are lots of places you can live well on 2K per month. Most of them are not in the US.
Can you do it? You will have to look inside yourself for the answer. Have you lived overseas before? Do you enjoy other cultures/ways of life? Are you flexible and willing to adapt? Are you willing to learn? Will it bother you that it could take a long time to get some services or that you have to pay some bills in person every month? Do you speak other languages? Why don't you try it before you buy it. Take 6 months and live like a local and see for yourself.
I have done it before and could do it again. I opted to stay in the US because if I had to, I could work. Plus the thought of being possibly demented and alone scares me. Probably ridiculous because it also scares me to be demented and alone here...
Keep in mind should you choose to live in a foreign country you do not have the same rights as you do in the US.
That's worth repeating.
Now, two things.
A couple, friends of a friend of mine, bought a house in Costa Rica, for which they paid $375k. Went to Europe on a three week vacation. Returned to find squatters in their house. Local authorities refused to help. The property records had "mysteriously" disappeared. They lost everything except what they had with them.
Much the same thing happened with some people my friend knew, only in Mexico. They couldn't even retrieve their belongings.
If this happens in the U.S., you call the police. And to be fair, it does happen here occasionally, with low-lifes trying to run the "adverse possession" scam. But you get your property back.
yeah we all know how hard federal and state workers work. give me a break.
You know that assumption on your part is typical based on somewhat limited POV. Law enforcement, Firefighters, Teachers, Chemist, lawyers, FBI investigators, accountants, hospital workers etc etc etc are just plain lazy on federal, state or county level across the board in the entire country. You give me a break
For the Op several things, as most have stated, what will be the cheapest if you do go overseas is living like the locals otherwise it is wiser to stay in a low COL area within the United States.
We researched living overseas because I speak Spanish and Hubby can speak and knows about 30 percent Spanish. We considered Panama, Edcudor, Chile, Argentina. We also have looked into middle of Florida and that is also an option for us. We live in Miami right now and culture shock won't be a problem for us but Miami is a very expensive city so staying here might not be in the cards for us.
Costa Rica is crazy expensive so I would not even consider that. What becomes expensive in these locations are foods that are comfort food for Your typical US fair like, pizza for example and brand named products that you are used to. Eating out is a dirt cheap BUT it is the area's cuisine. Also in regards to healthcare, a lot of that is WAY cheaper then US but that might Not be in your comfort zone.
If you don't live in a expat community that 2k a month will go very far as long as you adjust to how the locals live and I am talking about the middle and working class locals. That means in Costa Rica beans are what's for breakfast.
Last edited by Cubanchic; 04-29-2015 at 04:05 PM..
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