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

[wingssail]

Originally Posted by a64pilot

The problem with the $3,000 a month SS check is nobody gets one, even if you are a Billionaire, its more than the max SS will pay, anyone.

However just for planning, the average SS check is a little over $1,400 a month, well shy of $3,000.

I’ve seen 5% tossed around, a little higher than I’m planning, but may well be a good, sustainable number, maybe.
Well your $200,000 at 5%, returns about $833 a month.
So your going to be chewing into the principle, which of course means the return is smaller so every year your going to be spending more and more of the principle etc. and we haven’t talked about inflation yet.

Now we're getting close! between my spouse and I we are getting $2600 SS.
The investments produce an average of $764/mo, and have done so for over 10 years. That means $3300/mo without touching the principal.

AND...we've gotten capital gains payouts almost every year which amounts to a year end bonus. (That's nice)

Aside from the idiot's comment above that says "who'd want to live in a third world country?" (to which I respond, what's so f**king special about living in the US? or his also inane comment that most people wouldn't/couldn't live on a boat), I think this just about sums up the whole conversation. Yeah! It's doable! I guess we can keep on keeping on.

[TheRailRoader]

Originally Posted by barnakiel

RED FLASHING NEON ::: RETIREMENT MONEY, RETIREMENT MONEY



You see this is exactly the challenge.


You are not a professional investor, while I hold both a stock exchange license and a CFA license. And I do not hold any 8% investments while you do. Is this not somewhat surprising?

~~I have my doubts you do, which country certified you and what license do you claim to have cause I'm unawares of anywhere issuing "stock exchange licenses"~~


1) you are NOT investing your RETIREMENT MONEY when you are 60, you should have done that when you were 25,

~~..... really? You have growth, income and hedging portions you are always "investing" while in the markets~~

2) you are not getting 5% return on your 200k RETIREMENT MONEY in cruise control mode,

~~you are joking right? This is an extremely ignorant statement. Many many hands off investment portfolios exist that exceed 5% on average over decades~~


this, but deduct inflation! :

https://www.investing.com/rates-bond...ear-bond-yield
https://tradingeconomics.com/united-.../inflation-cpi


2% minus 2% is 0% (give or take)

~~you are licensed or claim to be to use "stock exchanges" yet you automatically cite bonds, which traditionally under perform stocks to make your argument?~~

Also, what are the FX related charges in those retirement paradises? Well, if you are a US guy and retire in say Spain, you will be lighter by 6-8% of any EUR withdrawal from your USD account.

~~and if you are, you are an idiot~~

3) when you do get 5% the inflation will eat out 3%, management cost will eat the remaining 2%, etc.

~~again this is an ignorant statement, selfdirected investment portfolios, ETF portfolios, watermark portfolios etc will all usually have much lower realized management costs~~


4) 200k is a wee funky amount in investing world - you will be limited to over the counter mass packaged investments, your best bet could be e.g. a couple of small apartments next to a Uni, rented to students (because old red brick Unis, unlike T-shirt factories, tend NOT to move their production, and workers (=students) to China).

~~realty is considered risky to invest in, according to most advisers.. yet you think this is someones best bet? That is insane! Period. A diversified stock portfolio, with some bond exposure, would likely be best.~~

etc.


Long story short: 200k is a funky funny amount for a Westerner to retire on. Do read that other thread with small boat cruisers' budgets. Small boats are likely at the lower end of how little one needs to go on for obvious reasons.

~~you do not know many average "westerners" do you? Many are forced to retire with 200k or less~~

You are not going to get 5% return on 200k in of your RETIREMENT repeat RETIREMENT money. Return is related to risk and no regular retiree is going to go the risky way. Unless fooled by an 'investment advisor'.

~~wrong, look at couch potato portfolios, dividend portfolios.. if you have even more knowledge of the markets even look at portfolios that use options to hedge against losses, or trenching portfolios etc almost all will exceed 5%~~

People retire to slow down and have some easy life, not to sit on the edge of their death bed worrying about stock exchanges, investment funds or Bitcoins.

~~fair~~

I lived in some of the places mentioned in that unlucky article. I still do in one. And I am one of those marginal garbage can level cruisers too. I can't see retiring on 200k, even with my very low expectations and marginal lifestyle. And I am not a Westerner, I do not share that lifestyle. I feel rich with smaller things, that do not cost me any money.

~~then maybe you should not comment about westerners~~

Telling Westerners they can retire anywhere on 200k and feel rich? Maybe at heart. Silly and noxious summer gig by a social media 'journalist'. That's that.

~~I have family members who retired on less then that and are quite content, you have anything to back your claim up?~~


All due respect, just vastly different mileage.

~~vastly~~


Cheers,
barnakiel

~~RR~~

P.s please do not take this as rude mate, I am a straightforward kind of person. I do not mean to offend.

[a64pilot]

Originally Posted by redneckrob

I think folks are shorthanding their and their spouses as together, which on average gets you just shy of $3,000.

That makes sense, I think of just one as my Wife won’t get any, as the County she was a teacher for didn’t pay their SS.
Yes, that’s apparently legal and common for teachers, at least in Ga.

[bobfnbw]

Seriously don't understand the thought process here. Many people already do live on boats or RV's and spend 1-2K per month to live. They do it in other countries as the cost of living is less. They can and do move when the costs go up. They live within their means, meaning the costs go down when the income is lower, or there is unexpected expenses that month. Some claim to do it on 500 usd per month and some on a lot more. The old question of how much does it cost to live on a boat and the same answer applies, as much as you have.
My SS will start at 1850 per month. I worked hard over 45 years paying into it to get it. I could delay it till Full retirement at 66.8 years and get 2800 or more. I could get over 3K if I waited till 70. That is just for me. If my wife's retirement, which is a teachers retirement not SSI was factored in, it would be double that. So 3700 per month on 200K investments, will last longer than I am alive unless there are unforeseen circumstances. Even if it was just me, living on 1850 per month would cover all the basics and more. Then the return on the investments of the retirement savings. A 5% return on 200K will net 800 per month in usd. Sure you can get more, or less. But 5% is a good number at this time. That brings you to 2600 or more per month. Use the 800 for boat maintenance. It can be done. Or you could stay at home saying it can't be, and never knowing if it can. Some people do, some say they will, others are to afraid to. There are a lot of people out there that are doing it right now. So don't tell us its not possible. Only in your mind is it not.
taken from SV Delos site


Personal Expenses-

Our average over the years has been about $500.00 US per person per month.Sometimes more and sometimes less depending on if we’re in a cheap place (like SE Asia) or an expensive place (Australia). This covers food costs, a few tasty beverages (we have a still onboard), general fees and travel expenses, fuel for Delos, and other odds and ends. This does not include boat and maintenance costs because those vary so much depending on the age and type of boat you have. But this should give you a ballpark idea of the “people” expenses. This assumes you buy local foods, provision in bulk when possible, and eat the vast majority of your meals onboard.

Boat Insurance-

Our insurance has ranged from 1.5-2% of boat value per year, depending on where we are cruising. This is for liability, basic medical coverage for the crew, and hull, rig, and machinery coverage. Most remote locations often mean higher insurance, for example our insurance crossing the Indian Ocean was higher than in the Caribbean.

Boat Maintenance-

The costs for the repair and maintenance of boats can vary a lot depending on the size and complexity of the systems. For the past few years we’ve used the following rules and found it to be a pretty good baseline for Delos.

When I think about boat maintenance I like to break it down into two pieces. We set aside 1.5% of our boat value per year for general ongoing repairs and preventive maintenance. For example, if your sweet cruiser is worth about $100,000 US, then figure $1,500 per year for things like pumps, impellers, oil changes, sail repairs, and other routine items that may break along your voyage. Delos is a pretty complicated boat with lot’s of systems which means there are many things to service. We do 100% of the work ourselves, which means we are paying for parts and the odd expert opinion only. If you don’t plan on doing the majority of your own work I think this number will grow by quite a bit.

The second part of boat maintenance to consider is the longer term items such as changing your standing rigging, replacing your dodger, new dinghy engine, new sails, haul out and bottom paint, etc. These things don’t happen often, but when they do they are expensive. When we first started sailing this was another 1.5% of boat value per year, however now that Delos is a bit older and we’ve put some miles on her we’ve seen this in the 3% range the last few years. The more expensive the boat, generally the more complicated and therefore the more required to keep her ship-shape.

There are plenty of other examples out there. It can be done. So the question is more of can you do it?
Far as the poster that felt living in another country would not be ideal for him... I say ok. Stay at home. Most of the people I grew up with never left the old neighborhood. Good for them. I left and never looked back.
So on a 60K boat
500 per month basics
90 per month insurance
180 maint
180 longer term replacement
that is about 1K per month. Sure you will spend more. If you have it. And when your done, you will sell the boat and recoup some money. Not what you put in, but if your just renting somewhere, you get nothing back.
It can be done. It is done. The 200K should be in reserve or drawn down slowly as needed for emergencies. Of course if you smoke, drink a lot of alcohol, want to travel alot, the costs will go way up. If your the kind that thinks life is not worth living unless you can go to a high price bar and restaurant weekly or more, it won't be enough for you.
Its all in the details.
Bob

[Group9]

Originally Posted by a64pilot

That makes sense, I think of just one as my Wife won’t get any, as the County she was a teacher for didn’t pay their SS.
Yes, that’s apparently legal and common for teachers, at least in Ga.

Many police officers were exempted, too. I don’t think it’s allowed today.

[Group9]

Originally Posted by a64pilot

The problem with the $3,000 a month SS check is nobody gets one, even if you are a Billionaire, its more than the max SS will pay, anyone.

However just for planning, the average SS check is a little over $1,400 a month, well shy of $3,000.

t.

If you wait long enough. I’m 61 and my numbers are 1850 at 62, 2600 at 66.7, and 3250 at 70.

I pretty much retired from full time work at 52. I still work part time between cruises, and probably won’t take mine until 70 so my wife can have it when I (most likely) die first. She’s on SS now and only gets 1550.

We live, and keep a house, in coastal Mississippi. I’ve lived all over the country and I would estimate the cost of living as half of some of the places I lived (Annapolis, Maryland, e.g.)

[a64pilot]

Deleted

[Saleen411]

Aside from the idiot's comment above that says "who'd want to live in a third world country?"

I never said that.....don't ascribe made up quotes wingssail. What I said was...

"If one is used to a first world lifestyle, living in a third world country can be eye opening and not something everybody would willingly do.."

As to your response about what's so great about living in the US? Personal choice mate. And when I mentioned first world, that includes A LOT of places that are NOT the US. You implied something I never said.

As to your idiot comment.....forum rules prevent me from replying in kind...not that I would stoop to your level.

[a64pilot]

Originally Posted by Group9

If you wait long enough. I’m 61 and my numbers are 1850 at 62, 2600 at 66.7, and 3250 at 70.

I pretty much retired from full time work at 52. I still work part time between cruises, and probably won’t take mine until 70 so my wife can have it when I (most likely) die first. She’s on SS now and only gets 1550.

We live, and keep a house, in coastal Mississippi. I’ve lived all over the country and I would estimate the cost of living as half of some of the places I lived (Annapolis, Maryland, e.g.)

I don’t really have a good handle on how any of that works to be honest, and tried to set up an account online, and after a few unsuccessful tries now receive a message that an account can’t be set up for my SS number.
So I guess one day I’ll have to go in and find out?

[letsgetsailing3]

Originally Posted by a64pilot

That makes sense, I think of just one as my Wife won’t get any, as the County she was a teacher for didn’t pay their SS.
Yes, that’s apparently legal and common for teachers, at least in Ga.

Just out of curiosity, does she get a pension?


I could see that being a reason, that they contribute to that instead of social security.

[sailorboy1]

you people make it sound sooooo hard and worrisome

Interesting how using the same amount of money some here are all positive and some all gloom and doom

[Lake-Effect]

Originally Posted by Saleen411

"If one is used to a first world lifestyle, living in a third world country can be eye opening and not something everybody would willingly do.."

As to your response about what's so great about living in the US? Personal choice mate. And when I mentioned first world, that includes A LOT of places that are NOT the US.

It is absolutely true that the majority of people (in "safe" circumstances) seldom choose to leave what they know to live elsewhere. Probably a useful thing, otherwise the oceans would be thick with world cruisers.

If anything, the value of this thread is to show that stepping a little bit away from one's comfort zone could provide some advantages to a limited budget. Specifically - that the funds & income that support only a modest retirement in the 1st world (eg secondary inland city, small apartment, limited travel, senior's special @ Applebees once a week) could support a bigger residence, better climate, less expensive food, more novel experiences... in another country. With the bonus stimulation of learning a different culture.

Of course not everyone wants that. Though much of that is simply fear of the new. That is why it's still of prime importance that you move somewhere because you want to, not simply because you think you can be "richer" by moving.

[redneckrob]

Originally Posted by a64pilot

That makes sense, I think of just one as my Wife won’t get any, as the County she was a teacher for didn’t pay their SS.
Yes, that’s apparently legal and common for teachers, at least in Ga.

All Federal employees hired before 1984 are in that same boat for their civil service time at least. If you lasted long enough to get retirement then FERS is a pretty good deal, it's what my dad is on. If not then you lost some years of SS contributions, but of course you didn't get it withheld either. Glad they never treated military pay that way. I got hit by Reagan's REDUX cut in retirement but luckily Clinton repealed it before it impacted me.

[a64pilot]

Originally Posted by letsgetsailing3

Just out of curiosity, does she get a pension?


I could see that being a reason, that they contribute to that instead of social security.

She does get a pension, however it’s smaller than SS, and she didn’t work long enough for it to fully mature, and if you don’t do the full thirty, it’s much smaller. Unlike SS of course it ends with the job and doesn’t carry over to the next one.

[KTP]

There are a lot of free things in the USA that I don't know if people appreciate. Once you get to retirement age, parks are half price, some licenses are free or half price, air conditioned libraries are free, the internet there is free, most city parks are free.

How much of this do you get in these other countries where $200,000 goes a long way? How available are air conditioned lounges with good bathrooms and free internet and how much do they cost compared to the libraries in the USA?

Yes it is expensive to retire in San Francisco, New York, Miami or Seattle, but there are at least 100 places around the USA on the coasts and in the middle that are far cheaper.