How To Budget Your New Life In Paradise
March 30, 2009
Panama City, Panama
PLUS:
- In Ireland, The "Party's Definitely Over"...
AND:
- World's Top Choice For A Fabulous Lifestyle At A Fantastic Price?...
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Launch Your New Life
"What in the world is a nice retirement-aged couple from Vermont doing in
Granada, Nicaragua?"
Jay Snyder gets this question all the time.
Here's how he
responds...
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Dear Overseas Opportunity Letter Reader,
"I read your current issue on retiring to Languedoc,
France" writes an
Overseas Retirement Letter subscriber, "and I was struck by the
budget you put forward. We just returned after living in the Uzes area for
three years. Our monthly costs were less than in the U.S. but much more than
your Languedoc budget of US$1,394.
"We have a family of three, and we found that, to live comfortably and to
be able to do anything, our budget was 3,000 euro a month.
"Even if I allow for the fact that your budget is based on a couple, not a
family of three, that's a big difference.
"Our EDF bill, averaged out over 12 months, was 133 euro a month, not what
you indicate. Our phone bill was higher, too (granted, maybe you can reduce
this cost using Orange).
"Our car insurance was 900 euro a year, plus we had property taxes and
house insurance.
"Plus, this does not include any additional travel that one would want to
take from the area."
Contributing Editor Lucy Culpepper, who prepared the Languedoc retirement
report and who has herself settled in this southwest region of France,
replies:
"You're comparing apples and pears, dear reader.
"As you explain, you have a family of three, and the budget we've detailed
in our report is for a couple.
"Plus, as you know, there are so many variables to consider that you just
can't factor them all in. What we've done is to provide a kind of
starter-budget. It is accurate and current and includes all basic living
expenses. In fact, a couple could live in this region of France on about
US$1,500 a month, as our numbers indicate
"Or you could spend two times as much or more to live in the same place.
"Start with our budget and then add and subtract from it, according to
your lifestyle, your priorities, and your preferences.
"For example, our budget indicates US$100 once a week for entertainment,
or US$400 a month. Frankly, I don't think that, living in Languedoc, you'd
spend that much on entertainment. Depending what you like to do with your
leisure time, you could see a savings here.
"A couple in a small house/apartment probably wouldn't need home help. Our
budget includes US$120 a month for a maid, so that could be another savings.
"You can spend as much or as little as you want on food, especially in a
place like Languedoc, where there is such an abundance of very affordable
local produce, especially in summer, for example.
"One important expense that is not included in our budget is health care.
This is tricky to budget. Some people we know choose to go without health
insurance. That may sound crazy to you, but this can make sense, especially
in a place like France, where world-class health care is more affordable
than you'd imagine.
"Health care and health insurance are personal things that merit serious
consideration. We can't budget these for you. You've got to decide: Do you
want to arrange local health insurance? An international health insurance
policy?
"Or do you want to go without insurance at all and pay your medical
expenses as you go?
"Once you've made your decision, then, right, that's an additional cost to
add to your annual budget.
"To help you think this through, we provide current costs in every
Overseas Retirement Letter report for everything from
blood work to physiotherapy.
"Another big variable, as you suggest, is travel.
"Maybe this is a big part of an annual budget...or maybe not.
"Maybe you want to travel all over Europe and to and from the States
regularly.
"Or maybe you're content taking more low-key trips--by car to Barcelona,
Spain, for example (which costs about 150 euro in a gas-guzzling old car,
including fuel and tolls).
"I consider a good day out to be a walk through the vineyards with a
picnic and a local bottle of wine. In Languedoc, you can do that as often as
you like without breaking even a modest living budget.
"Our budget includes monthly rent. If you're paying this...you're not
paying property taxes (which are nearly negligible in France). On the other
hand, if you own your own home, you're not paying rent.
"Regarding phone expense: Frankly, if you paid more than we detail in our
report, you paid more than you needed to. Our figure of US$38 a month
includes TV, Internet, and local phone service, as well as free calls to
land-line numbers in the United States and elsewhere. It's a nearly
unbelievably good rate, but it's the real deal. And it's one of the benefits
of life in France--excellent infrastructure at super-bargain prices."
Kathleen Peddicord
P.S. You can read Lucy's full report on retirement in Languedoc, France,
in the current issue of the
Overseas Retirement Letter.
If you're not a subscriber,
become one here now.
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90 days from now, you could launch the new business that could pay for your
new life in Paradise.
Here's how to get started now.
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"Kathleen, why did you not include Ireland on your list of
the world's 20 top retirement havens?
"Would you provide an update on what's going on currently in Ireland in your
next letter?"
-- Eileen M., United States
As The Economist reported last week regarding Ireland's economy,
"The party is definitely over."
"Ireland is having a deeper recession than any other euro country. The
country's economy probably shrank by 2.5% in 2008 and may contract by
another 6.5% this year."
However, that's not why I didn't include the Emerald Isle on my list of the
world's top 20 retirement havens.
I stopped recommending Ireland as a place to think about living or retiring
six or seven years ago. By that time, both the cost of living and of real
estate had risen to the point where they didn't make sense for the would-be
retiree.
Plus, the face of Ireland has changed. The charming villages have become
surrounded by cardboard-cut-out housing developments (they call them
"estates"). The pubs are staffed these days by East European
opportunity-seekers. And every bad American idea, from 100%+ financing for
property purchase to fast-food dining, has been imported and embraced
countrywide.
We were living and doing business in Ireland from the tail end of the Celtic
Tiger (1998) until the pre-dawn hours of the day-after hangover that the
country is currently suffering through. We came to Ireland for affordable
English-speaking labor and a low cost of doing business. By the time we
left, these things no longer existed.
Fast forward five years, and Ireland today...post-party Ireland...just might
make sense again for the retiree looking for country living on the cheap. In
fact, the situation is so dramatically changed (and changing) that we've
decided to add Ireland to this year's editorial calendar for the
Overseas Retirement Letter.
As
Overseas Retirement Letter Editor-in-Chief Lynn Mulvihill, a
native of Waterford, Ireland, puts it, "Ireland is not somewhere you'd want
to come today looking for a job...or to invest in property. But for the
retiree, it still has its charms. And there are bargains to be had right now
from houses to cars to day-to-day groceries. I'm loving the slashed prices!"
Overseas Retirement Letter subscribers can look forward to Lynn's full
report later this year.
"I've just read
the letter from the British couple, and my question is this: Have they
considered South Africa?
"Lots of British people looking for the same things as this couple have
found that South Africa provides the lifestyle they are looking for at the
right price.
"I am British and have been living here for 20 years. We were in Malaysia
last year and found it to be more expensive than South Africa. In fact,
everywhere seems to be more expensive than here!
"Plus, of course, the climate is better here. We found Malaysia to be very
humid, and I guess Panama would be the same. South Africa is arguably one of
the most beautiful countries in the world. It has a fantastic climate, First
World infrastructure, incredible restaurants, wine estates, beaches, the
people are welcoming, and everyone speaks English.
"Lots of people are put off because of the publicity about crime and
violence; however, like many other places in the world, this all depends on
where you live. Our advice would be to avoid Johannesburg.
"We live on a golf estate near Cape Town, and more than half the residents
here are from Europe. Safety and security is not an issue at all. We go out
at night regularly, live with our doors and windows open, and, like
virtually everyone else we know, have never had a problem or felt threatened
in any way.
"If you are looking for a fabulous lifestyle at a fantastic price, this
country, in our view, offers the best option."
-- Jenny W., South Africa |
