Can I retire in a low COL country with $500K?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
|
Not exactly an urgent concern here, but I’m a pessimistic millennial who unfortunately just looked at the 401k balance. Of course, I’m going to keep plugging away, but I’m pessimistic about my ability to actually retire comfortably by 2055.
Does anyone have experience with retiring in low-income, low-cost countries that are welcoming to Americans? Like Costa Rica or Georgia as long as it’s not annexed by Russia by then. What are your experiences with taxes, owning property, etc? Many countries require some kind of proof of finances and offer you permanent residency but that amount isn’t always that much. |
Anonymous
| Much can and will change over the next 33 years. |
Anonymous
Costa Rica isn't low cost by a long shot. |
Anonymous
Yep, I’d suggest plan on staying in the states. You will be in a large cohort of people in a similar situation, social programs will adapt. But between now and then, try and get as far ahead as your fellow American as you can! It’s the American way. |
Anonymous
| Portugal? Very beautiful. Affordable. No wars. |
Anonymous
| Spain, Belize, Mexico, etc. So yes. |
Anonymous
Yup. |
Anonymous
+1 Currently there are countries where you could live on social security plus returns on a 500k portfolio. There will likely be places in the US and other countries where you can do so also in 2055 because there are a whole lot of millennials in the same or far less fortunate boat. But too many things will change between now and then to try and nail it down more specifically than that. Climate change and migration from areas no longer liveable due to drought/heat/floods are some of the most likely disruptive factors. Just continue to try to save and accept that you can't control the future. |
Anonymous
|
You have every opportunity to improve your position by the time you retire, now that you're aware of your trajectory. Reduce your expenses and/or increase your income and you'll be fine. Time is on your side. If you keep doing what you're doing and just wring your hands, nothing will change in your forecast. Start by spending less, and improve your forecast.
Taking affirmative steps now to plan for a successful retirement in the U.S., perhaps in a low-cost part of the country, is probably a better strategy than hoping to find a welcoming suitable foreign destination in the distant future when geopolitical and economic developments are so unpredictable. |
Anonymous
|
A lot of cheaper countries are cracking down on expat/retirees or requiring a lot more money.
But there are many countries where you can easily live on $1000 a month. Philippines, Columbia, Brazil, etc. $2-$3k a month can make you a king. But you will discover that there are often fewer thing to do than in a developed country, good medical care might require coming back to the states, lots of poverty and cultural issues for you to deal with. Scammers and crime targeting expats. Lots of expats/retirees give up and come back. |
Anonymous
|
Check out the leanfire and expatfire subs on reddit. $500k would be extremely lean, but if you let it compound for a few more years, it's possible.
|
Anonymous
Possible, maybe. A good idea? Probably not. Living one unexpected expense away from bankruptcy hardly seems like a recipe for a rewarding and comfortable retirement. Spend less, save more. |
Anonymous
What if I’d rather live large in a third world country than live frugally in America? |
Anonymous
The Baltics are not third world. Living on countryside is extremely cheap. |
Anonymous
| Georgia the country will be fine if it doesn’t start being hostile to Russians. It just needs to be neutral. You will be fine there - buy a small place and pay peanuts in utilities and enjoy great food and hospitality |