No Two Retirement Lifestyles Are Created Equal
March 29, 2009
Panama City, Panama
PLUS: Panama Versus Costa Rica...Is Mexico Unsafe?...Ann And
Mike's Adventures In Belize Continue...Back-To-Basics Yields Play In
Argentina Timber...Plan B Retirement In The Next Nappa...
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They Pay You To Do What?
December 1988: I've got no job, no money, and seemingly no prospects.
July 2005: I've got the most glamorous job in the world, enough money to
give me a very comfortable lifestyle, and the prospect (no, the certainty)
of all-expenses-paid trips to China, Estonia, Barcelona, Malaysia, the Cape
Verde Islands...
How did I become a globetrotter who stays in luxury hotels, dines out on
gourmet meals, and knows how to order beer in at least 15 languages?
Easy.
And you can do it, too.
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Dear Overseas Opportunity Letter Reader,
Friday, we began revisiting the all-important
cost of living
question.
It's nearly impossible, I explained, to say how much it would cost you
to live in a place, because your cost of living anywhere depends on how you
want to live.
It's almost not possible, even, to tell you if a place is "cheap" or
"expensive," for those are relative ideas. What's affordable to me may be
costly right now to anyone living, say, in Detroit, where whole houses are
reported to be changing hands for US$7,000 or US$8,000. From that vantage
point, the entire rest of the world must appear over-priced.
This is perhaps the most asked-about issue we address in these dispatches.
"How much would it cost me to live in Belize?" readers write.
"I have a retirement budget of US$1,400 a month. Could I afford to retire to
Panama City?'
"My wife and I have US$2,500 a month in retirement income. Where will that
buy us a luxury lifestyle?"
The first big question you must address as you shop the world for the
retirement haven with your name on it is this one: What kind of lifestyle
will your retirement budget buy you where?
As you work to answer this question, understand one important thing:
No two retirement lifestyles are created equal.
I've reported that it's costing us nearly US$5,000 a month to live in Panama
City (US$4,765
is the figure I've quoted).
Would it cost you US$5,000 a month to live in this city? I doubt it.
Remember:
- We're a household of four...which means we're buying
groceries for four...
- We're renting (and air conditioning) a four-bedroom
place...we need all this space because our residence is
right now doubling as our place of business (though
we're outgrowing it and plan to move into separate
office space soon)...
- We're in a brand-new building in a nice
neighborhood, and we've got an ocean view...
- We're paying for a super-duper cable/Internet
package that costs nearly five times as much as a basic
package...
- We have a full-time maid...but maybe you need only
part-time help around the house...
- Etc.
We have friends living in Panama City, comfortably, on
US$1,500 a month and less.
Lief and I have been spending a lot of time out in
Veraguas Province lately, on the west coast of the
Azuero Peninsula, where Lief and a partner are developing land. What
would it cost you to live in that beautiful region of this country?
You could rent a house for US$300 a month or less...maybe
half that.
Groceries are cheaper than in Panama City by at least 10%.
And you can eat lunch or dinner out in the local road-side restaurants for
as little as US$2.50 a person.
You'd have to invest in a satellite dish if you wanted
your own Internet access. And your biggest expense by far would be a
vehicle.
I haven't tallied the costs carefully (I'm working on that
and will report back), but I'd say you (that is, you and a significant
other) could live comfortably in this Pacific coast paradise for less than
US$1,000 a month, maybe much less.
The real question, though, is: Would you be happy living
out here? You have to answer that one for yourself
Kathleen Peddicord
P.S. Tomorrow, Contributing Editor Lucy Culpepper responds
to one Overseas Retirement Letter reader who
challenges Lucy's monthly budget for living in the south of France.
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Picture yourself on an open terrace, glass of wine in
hand, as the cook serves up a thick, sizzling steak from the parrilla...
The moon is full, illuminating the acres of vines
surrounding you, heavy with grapes that are ripe and ready for tomorrow's
harvest...
As you take another sip of wine, you can hardly believe
that the deep, fruity Malbec that caresses your palate came from grapes
harvested right here in your very own vineyard...
Grapes that are helping you plan for your retirement with
a 12% annual yield...
This is one of the best Plan B Retirements you'll find
anywhere. Here
are full details on how to realize your most romantic retirement dreams...in
the Next Nappa...
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P.S. What else this week?
- Ann
and Mike continue their adventures in Belize...and build a
house!...
- Is Mexico unsafe? Mexico Correspondent and Retire Early
expert Akaisha Kaderli says, "Ignore the U.S. media hype.
Here's the truth about safety conditions in the Land of Mananas"...
- Panama first impressions..."You have to see this place,"
says this American in Panama for the first time.
"Everything you've been saying is true," he continues almost in awe...
- Right now, you want to be shopping for yields," writes resident
Global Real Estate Investing expert Lief Simon
"Typically, in the context of real estate, 'yields' means rental yields.
Yes, that's a good option in the current climate.
"But there's another long-term-yield strategy that you should be paying
attention to right now:
productive land.
"Specifically, here's an opportunity in Argentina. It comes
from a colleague I've worked with for almost 10 years.
"Steve Rosberg, through his company Ushay, has launched a new timber project
after having successfully funded and followed through on two previous such
undertakings. For this venture, Steve has secured 1,438 acres in the Province
of Corrientes that will be planted with eucalyptus (32%) and pine (68%). The
eucalyptus will be harvested and sent to nearby paper mills. The pine will be
harvested for lumber and manufacturing.
"Steve's projected annualized ROI for this project is 15.87% over its
20-year lifetime.
"In the current climate, this makes perhaps more sense than any other kind
of investment I can think of. You're locking in a strong yield return for two
decades...a yield that's based on a hard asset.
"Minimum buy is but US$50,000.
"Steve has sold more than 50% of the available investment units. He has
agreed to allow us to invite Live and Invest Overseas readers to participate.
My advice is to act now. This is one of the easiest and most accessible
wholesale real estate investment opportunities you're going to find and one of
the most sensible investments you could make right now, period. It won't last
long.
"If you're wondering what to do with your long-term investment cash in the
current climate, this kind of back-to-basics, yield-producing play is the
answer.
Get in touch here."
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