Places Where You Can Retire on $200,000 and Feel Rich

[Checkswrecks]

Originally Posted by UFO

You should try driving in India

Spent a career traveling around the world and India wins as far as wildest driving. Look up the definition of the word "racing" and there will be a picture of two Indian taxi drivers leaving an airport.

Most here are using the internet with some type of computing device or phone so we are generally most comfortable with being part of the developed world. To me, the $200,000 premise is false to begin with because it completely misses any other sources of income. If a person tried to just live off of a $200,000 nest egg with nothing else, they would not last long in the developed world. All too soon, they would not have much control over where they could live, what they could eat, or what they could do. However, throw in some Social Security, Pension, and whatever else and suddenly they can feel quite in control of their life.

And isn't that what we all want?

[valhalla360]

Originally Posted by Woodland Hills

Are you talking about retiring on $200k a year or on a $200k total nest egg?

They assume you are a couple each collecting Social Security. With the average check being $1400...that means $2800/month before looking at savings. So really the headline is pretty much a blatant lie. Assuming 50yr old with an immediate annuity, $100k will generate around $375/month so to get $2800/month, you have to have around $750k to replace SS (of course, an immediate annuity may not be the best choice but it gives a quick and easy way to estimate what it would take to replace)

Without some other source of income, living on $200k for the rest of your life just about anywhere is really questionable.

Having spent 1-3 months in probably 20 countries over the last 10yrs, what we've found is the more you can live like a local, the cheaper it is. If you want to maintain the same lifestyle...it usually works out pretty close to the same as living in the USA (I'm guessing most Europeans would see a similar effect).

So move to another country because you love the local culture. Don't do it to save money.

PS: If you move to many rural American locations, you can live pretty cheap to if you live a 3rd world lifestyle.

[boatman61]

Sounds like me with my basic State pension with the back up of a couple of deliveries a year..
Allows for the comfort of toys, my m'bike for example.. my boat substitute till I find that 'deal'.. then it would have to go.
But trains and an electric scooter would work as an alternative..

[valhalla360]

Originally Posted by Emmalina

Why do you want to "feel rich" Mr OP ?

Beats the heck out of feeling poor.

[BigNut]

Originally Posted by Mike OReilly

Feeling rich is

I like all of what you said here, Mike.

[john61ct]

Not many countries are OK with granting foreigners secure legal title over their real estate.

Once you establish Residency, gets easier, but that may take a very long time, or simply not be allowed except for very rare circumstances.

Certainly harder for those legally classified as temporary visitors.

And even if RE ownership is allowed in theory, their Rule of Law is often not so trustworthy, marrying the daughter of someone with political juice cuts both ways (don't ask me how I know). Devil's in the details.

Cambodia for example requires a prospective groom to have an income over $2,500 USD per month, even if her whole family's living on $500.

And you must be under 50.

Personally, IME better to keep your assets outside your adopted low-costs country, and just look for cheap rentals.

[valhalla360]

Originally Posted by boatman61

Wealth is a state of mind, not a bank account..
There are many with little who consider themselves wealthy, and many with millions and its never enough.
Greed is what makes the difference.

Yes and no.

While your attitude does play into it...if you are wondering where your next meal will come from...you bank account does determine if you feel wealthy.

Studies have found that wealth does make people happy...Very strong correlation...up until they have enough to be comfortable and not have to worry about paying the bills (typically considered around the median income in the studies).

After that more wealth doesn't correlate strongly to more happiness. Probably less about greed vs becoming obsessive with needing more security.

[valhalla360]

Originally Posted by boatman61

Sounds like me with my basic State pension with the back up of a couple of deliveries a year..

But that's not living on $200k for the rest of your life.

That's $200k plus plus plus....

[GordMay]

Originally Posted by daletournier

Gord, I have no doubt this is true BUT really its irrelevant because you need to take into account your location.

In Australia you are paying a minimum of 20k-25kaud pa to rent a place, this is a basic house. When I was in the phillipines the average everyday middleclass (not the poor) household earnt annually approx $2,500 pa and lived on that. A family gets by on that there, in Australia a family is really struggling to pay the bills on 50k pa.

I love talking to taxi drivers while travelling, I always ask them these sorts of questions.

What's a "pa"?
1 U.S. Dollar = 52.2710 Philippine Peso
1 PHP (Philippine Peso) to USD = 0.0191324 US Dollars
2500 PHP = $47.83 USD

[Mr B]

Per annum, _ yearly,

Current exchange rate, $1-00 USD is 70 cents AUD,

Boats in OZ are twice the price of USA boats,

[daletournier]

Originally Posted by GordMay

What's a "pa"?
1 U.S. Dollar = 52.2710 Philippine Peso
1 PHP (Philippine Peso) to USD = 0.0191324 US Dollars
2500 PHP = $47.83 USD

Hi Gord,sorry there was no need to add the pa (per annum) as I'd already said annually. I was talking US dollars in regards to my Philippines example.

My point was ,a middle class Fillipino family lives of way less than a Australian middleclass family could possibly live off. Australian familys often are debt slaves that purely work to service those debts, so although they are techinically wealthier ,Im not sure they are.

[daletournier]

Originally Posted by Mr B

Per annum, _ yearly,

Current exchange rate, $1-00 USD is 70 cents AUD,

Boats in OZ are twice the price of USA boats,

69 cents and heading south ..grrrrr.

When i left Australia in 2011 on my last boat we were $1.10 to the usd, over the last 8 years ive lost 40% of my purchasing power.

I thought Id never buy a boat in Australia again but I actually flew home and purchased my current boat 2.5 years ago because this lack of purchasing power actually made it cheaper to buy at home. It saved me approx 50k, and was already imported.

[boatman61]

Originally Posted by valhalla360

But that's not living on $200k for the rest of your life.

That's $200k plus plus plus....

No.. Thats pennies in the bank and an odd job now and then.. without the $200K..
Stop with the mushroom tea already..

[Lake-Effect]

Money can't buy you happiness, but it can buy you a yacht big enough to pull up right alongside it.

the great philosopher David Lee Roth

[Mike OReilly]

Originally Posted by valhalla360

Yes and no.

While your attitude does play into it...if you are wondering where your next meal will come from...you bank account does determine if you feel wealthy.

Studies have found that wealth does make people happy...Very strong correlation...up until they have enough to be comfortable and not have to worry about paying the bills (typically considered around the median income in the studies).

After that more wealth doesn't correlate strongly to more happiness. Probably less about greed vs becoming obsessive with needing more security.

Agreed. Various studies show a range of result, but generally find that more money does indeed buy happiness for those who are below the local (community, city, region, country) necessity level. Once someone has enough to not worry about paying for the standards in their community, getting more money has little impact.

Interestingly the reverse is also true — losing money doesn’t have a lasting impact on happiness as long as one remains above that necessity threshold. It is true however that loss is always felt keener than gain, so there is a sharper short-term hit on happiness.

Not to get too far off on this, but this effect is why extreme wealth disparity is so pernicious and dangerous. Extreme wealth concentration raises the necessity level for everyone. It’s the old “keeping up with the Jones” phenomena that we are all susceptible to.