Retiring Overseas

Submitted by paulruff on 21 April, 2008 - 04:05.

Article in today's NYT concerning retirees overseas.

http://select.nytimes.com/mem/tnt.html?_r=1&emc=tnt&tntget=2008/04/21/bu...

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cost of flights is a concern . . .

Submitted by webtrainer on 21 April, 2008 - 14:28.

unless you are one who never plans on going back . . . but even if that is your idea, a situation may come up that demands your return.

Off-topic, but . . . I also wonder if it is a good idea to try tourism-based businesses given the high and ever higher cost of jet fuel? Will people be traveling via air so much?

Maybe a better idea is a business focusing on the needs of those that eventually will be fleeing the North . . . some sort of relocation services?

That's a 2010 and on business opportunity, IMO.

Doors of hope fly open when doors of promise shut. -Thomas D'Arcy McGee

NY Times

Submitted by 1st Capt. Ron on 21 April, 2008 - 05:33.

it appears the time web site wants me to become a member before it will let me see the link.

I would except for two things.

1. It is the NY Times and not the NY Post.

2. It is part of NYC.

Sorry, I have a BIG hang up about NYC.

1st Capt. Ron

NY Post

Submitted by paulruff on 21 April, 2008 - 17:00.

But you love Rupert

and

Submitted by FisherCigarMan on 21 April, 2008 - 17:26.

Cuban ran Prensa Latina :-)

FAP

Posting links

Submitted by fyl on 21 April, 2008 - 06:31.

If you are going to post a link to anything, give us a clue what is is about. A one sentence description such as "The article suggests you don't retire in Paraguay because of all the land the Bush family is buying" would do. And, if it is member-only, tell us that as well.

If there is something worth quoting, you can put it in a <blockquote> ... </blockquote> block and set the Input format to "Safe HTML" and it will "look pretty".

Since I have a user account

Submitted by StickMan on 21 April, 2008 - 07:31.
Since I have a user account with the NYT, I signed in and read the article linked to above. Here is some verbiage from that article. (Note, at the time I set up my NYT account, anyone could set one up for free - just like here - but that may be different now.) Phil, please edit/remove if this use violates copyright rules.:
THE dream of retiring to a Tuscan villa or a beachfront home in Costa Rica almost always hinges on how to pay for it, but rarely do graying expatriates plan well for another pocketbook issue: the value of the American dollar. Its decline has led American retirees living abroad to give up many luxuries that attracted them overseas in the first place. At the same time, baby boomers considering a move permanently offshore are having second thoughts, if not eliminating their top choices simply because of the exchange rate. ...Health care is one item that hits retirees abroad very hard. Generally, they must pay for such costs on their own. Medicare typically does not cover patients outside the United States, and American insurance carriers generally do not extend coverage overseas. ...If they settle in Panama, the dollar’s value will not make a difference because its currency, the balboa, has a fixed exchange rate, trading at par with the American dollar. That is the main reason Panama has become a top destination for American retirees, Mr. Prescher said. John McCann, 56, considered retiring to several other Latin American countries, including Costa Rica and Mexico, before settling on Panama four years ago. “If you’re not ready to spend years researching countries, you’re not ready to retire overseas,” said Mr. McCann, who is finishing construction on a new home there. When asked about his biggest cost now, he laughed. “Flights back to the U.S.” Copyright 2008 The New York Times Company

Worthy of a few comments

Submitted by fyl on 21 April, 2008 - 09:46.

First, this quote, in my book, falls under fair use.

Now, there is little in this quote that seems accurate other than the fact that the US$ is in the toilet. It just looks like another writer not doing their homework.

  1. Health care doesn't need to be an issue. Many countries, including Nicaragua, have free universal health care. If you want something better, it is cheaper than in the US. For example, I had the equivalent of a typical program (more or less, 80% for in-plan doctors, 70% for others but based on typical rates in Costa Rica) for about $40/mo. You could even get a plan with "world coverage" meaning paying going rates anywhere for $300/mo a few years ago.
  2. The Balboa doesn't exist anymore other than in the form of coins. A few years ago, Panama converted to using the US$ as its official currency.
  3. This "fixed exchange rate" statement is pretty bogus. The price of a BMW from Germany or a t-shirt from China is not based on US$ and you are pretty hard pressed to find anything actually made in the U.S. these days. So, the exchange rate of whatever your income comes from to the currency of the place that makes what you want is what matters.

I have a friend who has retired in Panama. Based on what he says, it is not necessarily a bad place. But, it is not likely to be less expensive than Nicaragua. It will, however, be much less expensive than being in the U.S. If you want to think about the reality of living somewhere, look at the costs of the following:

  • Housing—rent or purchase, property taxes, maintenance, ...
  • Energy—Two big pieces here are heating/cooling your house and transportation. My heating/cooling cost is zero. As for transportation, public is an inexpensive option. I have driven my pickup less than 5000 km in the last year and much of that has been related to the Geek Ranch project.
  • Food—Yes, Alaska salmon costs more here than in Alaska. But, look at the cost of a decent diet based on locally available foods.
  • Health Care—There is health insurance available in most countries but looking at health care costs is a bit more meaningful. While there are many free options, paid care is also pretty cheap. Typical prices are from $11 to 20 for a doctor visit.

Bottom line, this site is here so we can talk about exactly this sort of stuff. Many of us actually live here and that is going to be a lot more useful information than an article in the NYT.