Best countries for early retiree US expat?

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Geographer
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Best countries for early retiree US expat?

Post by Geographer »

31 year old American citizen sitting at over $600k in invested assets. Currently divorced but would like to eventually be married again. What countries would be the easiest to move to for visa/residence purposes, tax-free for US-sourced income, easy to get by initially with English (I would try to learn the local language as quick as possible), with relatively first-world amenities?

I've been predominantly looking into Central American countries (Panama, Costa Rica, etc.) but would be curious about SE Asia (Malaysia) as well. Island nations would probably be a no-go, as I want to be able to easily travel by land to nearby places and countries. Urban living without a car would be ideal, where I can walk or take public transportation to most things I'd need to do.

Can this be done on a $600-650k net worth in places like this for a single person who's relatively frugal and minimalist? How about for supporting a couple if I partnered with someone else without significant assets? I wouldn't mind eventually finding a part-time remote job to supplement expenses and savings. Thanks in advance!
heyyou
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Re: Best countries for early retiree US expat?

Post by heyyou »

Boquete Panama is a good place for slower immersion but is now over-sold, so plan to eventually try the other side of the same mountain in the town of Volcan which is several years behind on popularity and costs, but will require more Spanish fluency. Look at Craigslist for prices on rental properties by current Boquete residents who are American expats. Look on Youtube for Panama Relocation Tour videos. Look at Puerto Armuelles Panama for seaside living in a run-down town, or Pedasi which is a very small town with full immersion to Panama language and customs.
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Watty
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Re: Best countries for early retiree US expat?

Post by Watty »

Geographer wrote: Thu Jul 29, 2021 10:26 am ...with relatively first-world amenities?

When doing your research be sure to also look at what it would cost to live in a very low cost of living area of the US.

The problem is that many of the very inexpensive countries that people talk about moving to are not all that inexpensive if you don't want to live like a local.

There are lots of small towns in the south and mid-west where you can still buy a passable house for less than $100K or a very nice home for $200K and have a very low cost of living.
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gwe67
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Re: Best countries for early retiree US expat?

Post by gwe67 »

You want to retire very young, with little or no social security, and no access to retirement funds for decades? And wherever you move, I doubt that they will provide you with free health care for the next 34 years. Your expectations of remote working seems like wishful thinking.
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TeamArgo
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Re: Best countries for early retiree US expat?

Post by TeamArgo »

You might want to investigate Ecuador as a possibility. English is not spoken widely, except in the bigger cities with ex-pat populations, but it ticks your other boxes. Take a look on YouTube at postings by JP and Amelia titled "Our Unconventional Life". They have lived in three different cities in Ecuador over the past three years, and make some pretty entertaining and informative postings to talk about their experiences. They are in Manta now, and it is my favorite.
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Keenobserver
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Re: Best countries for early retiree US expat?

Post by Keenobserver »

Portugal comes to mind. Relatively modern, safe, and relatively low cost of living. Easily accessible. There is an ameican couple with kids who retired there. They have a youtube channel. Dont ask me the name as I cant remember. Im sure you will find them if you type.in something like American couple in Portugal or Retiring early in Portugalm
augustwest73
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Re: Best countries for early retiree US expat?

Post by augustwest73 »

There are tons of FB groups titled "expats in 'pick a country" that you could join if you're on FB. They have a ton of info on there including retirement topics. If you're planning on connecting with a local romantic partner, you'll pick up the local language quickly. I've heard that is the best way to learn a language!
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JupiterJones
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Re: Best countries for early retiree US expat?

Post by JupiterJones »

I hear good things about Ajijic, Mexico. Apparently there's a large and supportive expat community there. Great weather most of the time. Close to Guadalajara for when you need to fly somewhere or shop at a big-box store, etc.

Assuming your $600K nest egg can generate 4%, that would give you $2K a month, which is plenty according to this article: https://www.accesslakechapala.com/guide/living-costs/
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gougou
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Re: Best countries for early retiree US expat?

Post by gougou »

I thought you could also retire in a LCOL city in the US? You could buy a house for <$300K with mortgage rate below 3%. You could get Obamacare basically free if you are low income. With $550K investment you can probably get around $2K/month and pay about $1k/month for housing cost and have another $1k/month for other expenses.

If you get a bit more creative to churn bank/credit card/brokerage bonuses like what other people are discussing in this forum I think you can do reasonably well and have some free travels a couple times a year. Or if you do some part-time/remote work you'll do much better.
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runner3081
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Re: Best countries for early retiree US expat?

Post by runner3081 »

gougou wrote: Thu Jul 29, 2021 1:42 pm I thought you could also retire in a LCOL city in the US?
Very valid points!

Really, just buy a house anywhere in the US and pay it off. Can make it inexpensive if you don't eat out, find cheap recreation, etc.

The compelling thing, to my wife and I, at least is to be able to afford to live closer to an ocean in a foreign country compared to what we could afford in the US. We would also both appreciate the experience of living in another culture.
coolasadog
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Re: Best countries for early retiree US expat?

Post by coolasadog »

I started to do a similar search last year and eliminated most countries very quickly. Since I speak reasonable Spanish, near the coast somewhere in Latin America is my target. Looking for less expensive but not too cheap as other issues come to the surface.

Chile made the cut for a place to visit and do more research. Similar geography from BC to Baja just in reverse.
halfnine
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Re: Best countries for early retiree US expat?

Post by halfnine »

Watty wrote: Thu Jul 29, 2021 12:32 pm ...The problem is that many of the very inexpensive countries that people talk about moving to are not all that inexpensive if you don't want to live like a local...
No, that isn't the problem. For the same monthly cost of living in an inexpensive place in the USA in many places one can live near the beach, have favorable weather, eat out nearly every meal, have a maid, etc.

The problems are more along the lines of not being able to own property, not having permanent residency and no guarantee of maintaining long term visa status, not being able to be part of the local culture, local inflationary pressure forcing you to eventually move to another country, country corruption and instability, etc.
hi_there
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Re: Best countries for early retiree US expat?

Post by hi_there »

Well, I don't know about the Latin American countries, but I can opine on the ones in Southeast Asia. For a Western foreigner, and not counting Singapore, you would probably be best off in Malaysia, and then the Philippines. Maybe Thailand after that. The first two countries have historical ties to UK and the US, which has resulted in widespread use of English and the adoption of cultural influences would make your life more comfortable.

I would have to say though, that $600k might not be enough to retire in either country. While this would afford you a lifestyle that is similar to an average local, I think you would be better off just staying in the US and working in that case. Nice accommodations alone can easily consume most of your budget, and you would have to forgo most Western goods. $1 million to $2 million is probably a better portfolio target if you ask me.

I wouldn't cancel out island nations in the region on the basis of ease of travel. The reason is that air travel in Southeast Asia is extremely cheap and convenient. $50 or $100 can get you an Air Asia ticket to neighboring countries, and security is easy without TSA insanity. Usually, you can even show up at the airport, buy a ticket at the service counter, and board a plane almost like you are boarding a bus.

Medical services in either country are cheap and quality is decent. You might have to take into account major medical events though; if I was having heart surgery or needed cancer treatment, I would rather be in the US, despite higher cost.

You're probably not going to see the beach much. While there are some beautiful islands in almost every Southeast Asian country, most expat people live in large cities and live urban lifestyles. That's not to say there isn't anything else to do.

Finally, Asia is really far away. So, if you move there, prepare to never see anyone in the US, other than at weddings and funerals.
SouthernInvestor
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Re: Best countries for early retiree US expat?

Post by SouthernInvestor »

There are a lot of great places to go but you are going to need to supplement your income.

I love big dreams but get your remote gig going BEFORE you go.

If you can earn 2k/month online-remote you’ll have a lot of great choices and your money can grow
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galeno
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Re: Best countries for early retiree US expat?

Post by galeno »

Start watching "Nomad Capitalist" on youtube.
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namajones
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Re: Best countries for early retiree US expat?

Post by namajones »

Geographer wrote: Thu Jul 29, 2021 10:26 am 31 year old American citizen sitting at over $600k in invested assets. Can this be done on a $600-650k net worth in places like this for a single person who's relatively frugal and minimalist?
No. You're too young, and you do not have enough money. Keep working.
GR8FUL-D
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Re: Best countries for early retiree US expat?

Post by GR8FUL-D »

SouthernInvestor wrote: Thu Jul 29, 2021 6:39 pm There are a lot of great places to go but you are going to need to supplement your income.

I love big dreams but get your remote gig going BEFORE you go.

If you can earn 2k/month online-remote you’ll have a lot of great choices and your money can grow
This. 100% THIS.

Plus, at 31 yrs old, if you move to established retirement-focused expat communities like Ajijic or San Miguel de Allende in Mexico or Cuenca in Ecuador, you're going to be half the age of most of the retired gringos around you. Whether that's good or bad is up to you, but in Bali, Thailand, or Costa Rica you'll likely find more digital nomads your age which would greatly expand the pool of potential future friends and finding a life-partner.

If you haven't been there recently, you'd probably be surprised at what a youthful, vibrant, and relatively safe place Mexico City is. I've traveled a lot, and Mexico City definitely checks a lot of your boxes. Medellin, Colombia, would be worth checking out, too.
Slacker
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Re: Best countries for early retiree US expat?

Post by Slacker »

Check out Portugal as remarked earlier.

Coimbra is a modest sized town where you can get a decent 1bdrm apt for about 600 euro a month, maybe 30-50 euro for utilities, probably 100 euro /month for your international insurance. Groceries and dining out are reportedly about 10-40% cheaper than the US, depending on which US area you are comparing it to. This is also a college town so there should be plenty of people close to your age there.

I think you can do fine in Coimbra without a car and it is on a river for water based activities. Portugal ranks very high for English proficiency.

Weather should be very moderate temperature wise, but a little wet.

Taxes are very low for the first 10yrs if you get NHR status (28% on capital gains is the bad part, but 0% on dividends, 0% on rental income from out of country, 10% on retirement accounts and pensions).
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