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01-12-2015, 01:55 PM
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#1
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 233
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Crazy Expat Plan
Hi all, I am 32 years old and I work in food service in Las Vegas. I am burnt out and have always wanted to live abroad. My net worth is $300k. With a 4% withdrawal rate I would have $12k a year to live on which goes pretty far in some countries. I'm considering Puerto Rico, SE Asia (Thailand to Vietnam), Latin and South America (Panama, Nicaragua).
I am open to working part-time. I could treat this like a sabbatical and if things don't work out financially I can always come back to the US and work.
I also would like to hear from expats and what their expenses are.
Any and all thoughts are appreciated.
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01-12-2015, 07:06 PM
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#2
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 193
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It's not a crazy idea -- I think a lot of us have looked into it. What I found though was cost of living can be more expensive if you expect a somewhat similar quality of life as in the U.S.. Food is typically cheaper, but western-style housing, rent, utilities, cars, energy costs, and price of western goods especially are usually more expensive and often simply not available.
There's also the visa issue -- a lot of developing countries don't want young workers coming in from other countries (even if you say you're "retired") and heavily restrict visas unless you're over a certain age with a guaranteed pension. See the thread at http://www.early-retirement.org/foru...sas-23742.html .
I think it's certainly possible to live a good retirement life in those countries. Just be sure to adjust your expectations.
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01-12-2015, 07:28 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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Unless you're going to write a book, forget it.
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
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01-12-2015, 08:31 PM
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#4
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Full time employment: Posting here.
Join Date: May 2014
Posts: 986
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It may be a better idea for you to find a place to teach English. Then you do not worry about the visa and can get some money (good in the local sense).
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01-12-2015, 08:46 PM
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#5
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Recycles dryer sheets
Join Date: Feb 2008
Posts: 63
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Asia budget
I did an informal survey of expats living in the Philippine provinces(Northern Mindoro). The lowest budget was about 1300USD/month. The highest was 4500USD/month. In Manila my base is 2500USD/month + travel/diving.
__________________
Nothing I say should be considered medical,psychiatric,legal,financial,electrical,or plumbing advice. I know nothing about anything.
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01-12-2015, 09:07 PM
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#6
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Recycles dryer sheets
Join Date: Jun 2014
Posts: 67
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No need to do an expat plan in my opinion. Just quit your current job, travel backpack for a year or two, then find another job in the US if things don't work out overseas. At your age, you should have no problem finding jobs here.
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01-12-2015, 09:30 PM
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#7
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Recycles dryer sheets
Join Date: Apr 2005
Posts: 415
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Check this site out:
HoboTraveler.com Live Abroad in Tropical Paradise
Andy shows how to travel/live for way less than $1000 per month.
__________________
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Whatever you do will be insignificant, but it is very important that you do it.
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01-12-2015, 09:31 PM
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#8
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Recycles dryer sheets
Join Date: Jan 2014
Location: San Jose
Posts: 80
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Sorry to put a damper on things, but the 4% safe withdrawal rate with inflation adjustments guideline is for a maximum duration of 30 years. It assumes there will be a draw down of principal. After 30 years, when you are 62, your nest egg would likely be depleted. And assuming you do go expat and not w*rk anymore in the U.S., do not count on much from Social Security at that point. The number of years where you paid FICA will be quite a bit less than the 35 years that SS looks at.
__________________
"Always do right. This will gratify some people, and astonish the rest." --Mark Twain
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01-13-2015, 12:53 AM
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#9
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gone traveling
Join Date: Oct 2007
Posts: 1,135
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Go teach english in Japan for a couple years ... You can really Bank some more cash ... Maybe 40-50k usd per year , and then try some warm island climates for a year or so to see how it goes. Bounce around every few months based on visa rules.
Hard to do much anywhere on 1k per month. Even in thailand or philippines or lowest cost South American nations.
As others have said you are probably not old or wealthy enough to secure retiree visa so doing this while working may be best way to go.
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01-13-2015, 09:27 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,263
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Expat plans! I did not realize that New England Patriots fans were that desperate to get out of town before their team faces Seattle or Green Bay.
Seriously, the trick according to people I have talked to is to live more like a native. If you want to eat beef steak everyday, in a place were normal meals are made of veggies, noodles, and a small about of fish or pork, you are going to pay a lot more.
So go native. Buy native clothing, walk or ride your bike, learn to drink different kinds of tea, and enjoy the public spaces instead of a big house.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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01-13-2015, 10:40 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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just don't pull a gary glitter
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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01-13-2015, 10:43 AM
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#12
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
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Quote:
Originally Posted by Big_Hitter
just don't pull a gary glitter
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?
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01-13-2015, 10:47 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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let's just say his expat plan didn't work out too well for him
Gary Glitter - Wikipedia, the free encyclopedia
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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01-13-2015, 10:58 AM
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#14
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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In what way shape or form did the OP suggest he was anywhere like Gary Glitter? Wanting to live cheap overseas doesn't make you a sicko. Gary Glitter, apparently, was a sicko.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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01-13-2015, 11:00 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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it was a joke, geez
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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01-13-2015, 12:20 PM
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#16
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 233
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Thanks for all the comments and ideas so far. I really want to be immersed wherever I end up so I plan on living like the locals. I plan on getting a bicycle and maybe a scooter (if I have to) to get around.
One of the reasons Puerto Rico is high on the list is that I wouldn't need a visa and I could work legally. My chef even has a restaurant near San Juan that I could transfer to. I would only do that if they would allow me to work part time.
The downside to PR is that I would need to buy ACA insurance. Maybe $150 a month.
My original plan when I moved to Vegas was to retire at age 40 with a net worth of around $700k but the work is a grind and I've really come the loathe the city.
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01-13-2015, 01:18 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
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Quote:
Originally Posted by Tortoise
Sorry to put a damper on things, but the 4% safe withdrawal rate with inflation adjustments guideline is for a maximum duration of 30 years. It assumes there will be a draw down of principal. After 30 years, when you are 62, your nest egg would likely be depleted. And assuming you do go expat and not w*rk anymore in the U.S., do not count on much from Social Security at that point. The number of years where you paid FICA will be quite a bit less than the 35 years that SS looks at.
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Good points, though I would pick a nit that at a 4% WR the nestegg would "likely" be depleted after 30 years.
According to firecalc with defaults and a $300,000 starting value and 4% WR, after 30 years there is a 94.7% chance of not running out of money and the results range from -$120K to $1.7 million with an average of $545k. Change the 30 years to 65 years and there is a 81% chance of not running out of money and the results range from -$1.4 million to $7.5 million with an average of $2.1 million
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-13-2015, 01:34 PM
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#18
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Recycles dryer sheets
Join Date: Jan 2015
Location: Boerne
Posts: 421
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Quote:
Originally Posted by FLD3C
I did an informal survey of expats living in the Philippine provinces(Northern Mindoro). The lowest budget was about 1300USD/month. The highest was 4500USD/month. In Manila my base is 2500USD/month + travel/diving.
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Need to be careful in the P.I. Terrorist cells are ramped, especially if you do not blend in.
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01-13-2015, 05:21 PM
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#19
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 233
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Quote:
Originally Posted by heeyy_joe
Unless you're going to write a book, forget it.
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"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
Your own signature. A bit ironic, don't ya think.
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01-13-2015, 05:51 PM
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#20
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Recycles dryer sheets
Join Date: Apr 2014
Posts: 180
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I think you have underestimated the cost of living in SE Asia.
I would budget of US$4,000 per month.
You will probably also need a "job" in order to get a residence visa (unless you have money to invest in setting up a new business). Don't plan on getting a job teaching English unless you have qualifications (in Indonesia now, you need a master's degree in order to teach English - at least in theory).
If you are happy being a long term tourist and moving from time to time then go for it.
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