Retire in Style South of the Border

I've written about how great it is to live in Nicaragua, Panama City, Cancun and Mexico in general. In each of these places, your money goes a lot farther than in the U.S. (if you don't believe me, check out the posts).

Well, here's another article -- one that talks again about the advantages of retiring in Mexico. The key points:

Last year, the Dallas Morning News reported that more than 1 million Americans now live in Mexico, at least part time, five times the number of 10 years ago. The U.S. State Department reported in October 2004 that 385,000 live there year round. That number is almost certainly higher today.

And, even though property prices in Mexico have increased, the costs of homes are still low. In addition, according to Greenberg, there are low property taxes averaging about $300 a year on property of $300,000 and low monthly costs.

What's more, creature comforts of American life are increasingly becoming available south of the border. Satellite and cable television bring news and entertainment right into ex-pat's living rooms, the Internet keeps them in touch with hometown newspapers, and American food brands are available at the supermarket.

Further south, another new development, Paraiso del Mar, sits right on the edge of the Cabo/La Paz corridor. It's on a spit, a ferry ride from La Paz. There'll be golf, tennis, water sports pools, and a marina. A 1,700 square foot, three bedroom condo, five minutes from the water costs $239,000 with big sea-side homes going for $1.1 million. Similar homes in California would cost three or four times as much.

I don't know about you, but I see this as a big trend in the future -- retirees moving to another country. Let's think of how/why this might occur:

• People aren't saving enough for retirement.
• Yet, they don't want to give up a "fun" retirement lifestyle.
• Their choices are to work longer or cut expenses dramatically.
• For those who don't want to work (or can't), moving to Central or South America provides the latter.

And by the way, the weather is WARM! What's not to love?

Of course, you can always retire in a different way and remain in the U.S. But if you want to do that, it's likely that you'll need to save more. You should check out these posts -- they should help you do just that:

• Financially Set or Seriously Rich?
• Key to Retirement: Sticking to It
• The Real Retirement Secret (How to Maximize Your Retirement Savings)
• Getting Rich is Simpler than You Think

Comments

[David Porter]

I have been doing a bit of homework on Panama for a second home. Here is a blogger from Panama:

http://primapanama.blogs.com/_panama_residential_devel/

[Gary Bourgeault]

It's interesting you mentioning this because not only is there a large expat bunch living south of the border, the ones I know that have talked about it love it there.

But you make a good point. With many Americans approaching their retirement years and they haven't invested much in it, this is a legitimate strategy to think on.

[Amanda]

Sounds good to me! As much as I love Chicago for the culture, I would be more interested in retiring somewhere with a decent climate!