Geographic arbitrage for early-ish retirement. Opinions?

[mkd]

been going off the deep end on youtube with all these retirement channels selling other locales as ideal places to live on the cheap. Some of these channels make over 10k in monthly ad revenue, so grain of salt.
 Top locations seem to be the climate diversity of Ecuador or Mexico regions, Portugal and Spain, and some Asian countries.
 One common theme is everything in the US is very expensive.

https://finance.yahoo.com/news/much-really-retire-fidelity-wants-140000364.html

keep banging along at a job until you hit the $1 million+ mark in your sixties, or go spend your 50s living a comfortable life outside the US for around >$2000/mo?

what say you?

[Del.]

MKD , I have no clue what you have been saying but I like it. 😝

[mkd]

MKD , I have no clue what you have been saying but I like it. 😝

thanks for the feedback. I guess that wasn't my best writing. I guess it came off a bit rambling.

Just trying to postulate the idea of bailing out to a cheap touristy area out of US.
 Do we really need to slog into our sixties? If we had half of what the financial wizards say we need to retire, currently lots of outfits saying 1.0 to 1.5 million 401k by retirement age, would you cruise through your 50s barely touching your nestegg. $177 rent thiland or $500 rent in Ecuador sure looks better than keeping up with US prices.

[Del.]

thanks for the feedback. I guess that wasn't my best writing. I guess it came off a bit rambling.

Just trying to postulate the idea of bailing out to a cheap touristy area out of US.
 Do we really need to slog into our sixties? If we had half of what the financial wizards say we need to retire, currently lots of outfits saying 1.0 to 1.5 million 401k by retirement age, would you cruise through your 50s barely touching your nestegg. $177 rent thiland or $500 rent in Ecuador sure looks better than keeping up with US prices.

I don't have any where near that amount but I can continue the same lifestyle I had when we both were working. That's based on the amount of debt and our SS and what we can make in interest to keep from touching our principal.

Now if you want a retirement filled with long trips and a better lifestyle, then you probably need the million. It all depends on what you want.

I will say this. Retire as early as you can or you might be too sick or unable to enjoy it

[mkd]

Not too many people are gonna hit that big number in savings that hits the finance websites, me included. Clickbait I guess.
 A couple on Social Security would be able to continuously invest by moving out of the country based on not traveling all over.
 

[Smit]

As you've mentioned, be wary of sites that claim you can live like a king for $1 or 2K a month. Do lots of research on different countries and look for people who will share the pros and cons of each different country. Make sure you understand the customs and laws of the culture you'll have to adapt to. Look for expat communities that you can join if you choose. They may help reduce the culture shock.

One thing everybody agrees on is spend enough time in a country you're considering to really understand how life will be when you make the move permanent. Go on a long vacation to find out what every day life will be like for a permanent resident. There are many stories of people who have great short vacations in places and when they move there they hate it within a month or 3 or a year or two.

Personally I've heard great things about Thailand, Laos, Viet Nam, and Equador.

I had a great time when I was in the Philippines for 3 weeks but the research I've done makes me think it's not a place I'd want to make home. But I'd really like to give it a good trial run for 3 or 6 months.

[Jeff]

Top locations seem to be the climate diversity of Ecuador

A buddy of mine owns a B&B in Ecuador right on the coast. He says the flight(s) there is a bit sketchy lol.

[mkd]

A buddy of mine owns a B&B in Ecuador right on the coast. He says the flight(s) there is a bit sketchy lol.

cool. Assuming he is living there as well, eh? Power outages are a frequent issue there. Would be 'interesting' living in a place where the gov't isn't fully in control if you hate 'big brother'.

[Jeff]

cool. Assuming he is living there as well, eh? Power outages are a frequent issue there. Would be 'interesting' living in a place where the gov't isn't fully in control if you hate 'big brother'.

He lives in Salt Lake City but flies there regularly because he gets so much vacation time being a flight/search and rescue nurse. I think he told me he gets like 3 months vacation a year or some unbelievable amount.

[mkd]

check out the cost of living comparo for being in an ex-pat area in Mexico with the 2nd best climate in the world.

[Jim at Gentex]

Funny but my wife and I never considered for one second living anywhere else when we retire.

Our 3 kids and 4 grandkids all live close by, 2 within 5 minutes, and the furthest one is only a 3-hour drive, and 2 of my 3 sisters and their families are also local.

We have always been a close family, celebrating the holidays, kids' birthdays, going camping, and just generally hanging out together quite a bit, and having barbecues and swimming in our pool every summer.

We are looking forward to spending even more time together with family after we retire, so the thought of moving has never even crossed our minds. 

[Dan_AKA_ROY23]

We are looking forward to spending even more time together with family after we retire, so the thought of moving has never even crossed our minds.

GOOD answer! Some things in life are more important than money and location.

I've been learning Spanish, so in 5 years I should be ready for (a Spanish speaking country). I would try to arrange living in both places (here and abroad). Maybe like 3 months out of the year? The other 9 in the States?

[Dan_AKA_ROY23]

Not too many people are gonna hit that big number in savings that hits the finance websites, me included. Clickbait I guess.
 A couple on Social Security would be able to continuously invest by moving out of the country based on not traveling all over.
 

I would use the 5% rule as a rough approximation. Not perfect but a good reference point. So a 1 million dollar net worth (I wouldn't count real estate) means you 'could' live on $50,000 a year. Throw in SS and that amount per year could work (it adds up to ~ 75K a year)

[Jim at Gentex]

I would use the 5% rule as a rough approximation. Not perfect but a good reference point. So a 1 million dollar net worth (I wouldn't count real estate) means you 'could' live on $50,000 a year. Throw in SS and that amount per year could work (it adds up to ~ 75K a year)

I have also been considering whether to rollover my 401k into an IRA when I retire.

I know it all depends on everyone's individual situation and needs, but I would like to hear some thoughts from you guys about that...

[Del.]

I have also been considering whether to rollover my 401k into an IRA when I retire.

I know it all depends on everyone's individual situation and needs, but I would like to hear some thoughts from you guys about that...

We are at the point I'm happy getting 5% and not worrying about the market.