Retiring Overseas -- How much does it really cost?

[socca]

Originally Posted by GoodSense

...until we are at $800K. I also have a small pension (about $10K) starting when I turn 55.

Are there glaring holes in my plan that I am too blinded to see? I know it's cutting it pretty close.

Plan for the worst; hope for the best.

I think that if you re-run your numbers while planning for the worst, you'll discover that $800k for two people is grossly inadequate to begin your new ER lifestyle (if you want to live comfortably, whether in the U.S. or overseas).

However, saving aggressively today is GOOD. This will open up options for you down the road.

[megacorp-firee]

I don't want to burst your bubble ... when I was young I had some pretty aggressive dreams too.
$600k - $800k sounds like all the money in the world (or at least it WAS when I was 29), but if you try to live out the rest of your life from age 39, you could be in for a huge surprise ... and not the happy kind. You have MANY years ahead of you at that age. I would think you may want a larger buffer ... just in case.

If you have not lived overseas before (i.e. you have vacationed for a few weeks/months), then I would suggest you trial run it .. .maybe take a sabbatical (if this is possible) or a Leave of Absence for 6 months to a year and see if you can live day in, day out in a different culture.

We Americans have grown to become accustomed to hot and cold running water, indoor plumbing and bathrooms, garbage pickup, clean streets with sidewalks (in the big cities), ...etc. Running down to the grocery store for whatever we need. It's quaint to experience the lack of some of these in 3rd world countries when vacationing, it becomes tedious
when it is an everyday occurance.

Some of us are more adventerous than others, so you may be one of those who would take to being an expat just fine.

In any case, I would run some more spreadsheets and put maybe an extra percent into the inflation rate (or something like that) just in case.

Best of luck to you.

[GoodSense]

Thanks to all the posters for your responses! After looking at some international job postings online, I myself also feel that it would probably be better to work a little longer here in the US and build a decent nestegg.

[I think I may have been influenced by the book "Nickle and Dimed..." and thought I should put myself through some kind of international low-wage job experiment. ]

Maybe a more active approach is to find a job here in the US that's more exciting for me, so I don't daydream about ER everyday. In my current mental state, even 5 more years at my j*b seems too long.

Anyway, thanks again for all your insights and concerns. It has been really helpful.