Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
These are serious questions. They have been discussed in forums on living in Mexico from time to time.
People may have to return home to the Fatherland due to a health crisis that cannot be dealt with locally or family reasons.
The biggest problem seems to be re-entering the housing market once one has sold the house in the US. I am thinking that these are people who sold the house and moved south to live on SS and have little else. That may not be a big problem for several years.
If you do have private assets, a 3.5% withdrawal rate can result in a very large pot in later years, with good judgement, most of the time. Look at Firecalc's results. All those colored lines above the bottom locus represent the growth of the unspent balance of the pot.
I used Firecalc recently with updated assumptions. It looked good. Given the amount it said I could take with 100% success, subtracting the fixed income of SS and tiny pensions, the SWR came out to 3.5% of the invested pot (100% equities). Hardly a surprise.
Still, it is a gamble. We will have the same assets no matter where we live. Even if we live for a time in a cheaper country, we will have the opportunity to improve our situation by spending less and taking a smaller withdrawal rate or deferring withdrawal altogether for a while.
Since I am still working (in a 3rd-world country with delusions of grandeur--them, not me), we have not been forced to make a decision yet.
By the way, our internet was out again for a day. 3WC again.
People may have to return home to the Fatherland due to a health crisis that cannot be dealt with locally or family reasons.
The biggest problem seems to be re-entering the housing market once one has sold the house in the US. I am thinking that these are people who sold the house and moved south to live on SS and have little else. That may not be a big problem for several years.
If you do have private assets, a 3.5% withdrawal rate can result in a very large pot in later years, with good judgement, most of the time. Look at Firecalc's results. All those colored lines above the bottom locus represent the growth of the unspent balance of the pot.
I used Firecalc recently with updated assumptions. It looked good. Given the amount it said I could take with 100% success, subtracting the fixed income of SS and tiny pensions, the SWR came out to 3.5% of the invested pot (100% equities). Hardly a surprise.
Still, it is a gamble. We will have the same assets no matter where we live. Even if we live for a time in a cheaper country, we will have the opportunity to improve our situation by spending less and taking a smaller withdrawal rate or deferring withdrawal altogether for a while.
Since I am still working (in a 3rd-world country with delusions of grandeur--them, not me), we have not been forced to make a decision yet.
By the way, our internet was out again for a day. 3WC again.