Retire at 55 abroad.

[ed0980]

Greetings everyone. My name is Ed I wAnt to retire next year at 55 and move to Nicaragua a place I'm very familiar with. I know I will need $2000 a month to live well over there. I have around 600k in a 403b from work that I plan to live off for 7 seven years either withdrawing straight from it or transfer it to an Ira and set up a 72t, I have a pension (1800) if I start at 62. Then social security (1500) if I start at 62. My question is if this plan sounds ok, or should I change something like waiting on social security a little longer or wait on pension until 65. Oh I'm single kids are grown. Thanks a lot.

 

[Sunset]

Good news is you don't have to decide right now about when to take SS or your pension.
Be sure to split your 403b into 2 IRAs and do the 72t on one of them, idea is you leave the other one with enough in it for emergency, since if you withdraw extra from the 72t one you will be hit with incredible fines/taxes.

Does Nicaragua require income proof ?

Why did you not pick Panama ? , have you lived in Nicaragua before ?

 

[ed0980]

Thanks for your input sunset. Nicaragua is cheaper just and as safe and beautiful and I lived there before. Income needs to be verified but it's minimal. That's that mean split my 403b in equally valued iras. So it'll be 300k and 300k or more like 500k and 100k.

 

[papadad111]

There is another thread on here about living abroad and retirement visas and some challenges as a USA citizen reference ACA coverage of you have to be back and forth ... Lots of knowledge here.

 

[rodi]

Have you run it through firecalc? (linked at bottom of page) Make sure you fill out all the tabs.
Is the pension COLA adjusted? If it is - you're sitting in a fairly good spot.
Does the $2k/month include taxes, healthcare, etc? Firecalc wants the "all in" number. I'm not familiar with the tax obligations in Nicaragua. And I'm assuming you'll follow the expat rules to lessen your US tax obligation. (Limits on days in US, filing FATCA, etc)

 

[dixonge]

Greetings everyone. My name is Ed I wAnt to retire next year at 55 and move to Nicaragua a place I'm very familiar with. I know I will need $2000 a month to live well over there. I have around 600k in a 403b from work that I plan to live off for 7 seven years either withdrawing straight from it or transfer it to an Ira and set up a 72t, I have a pension (1800) if I start at 62. Then social security (1500) if I start at 62. My question is if this plan sounds ok, or should I change something like waiting on social security a little longer or wait on pension until 65. Oh I'm single kids are grown. Thanks a lot.

What area? Leon? Managua? Granada? Matagalpa? Other?

 

[ed0980]

I'll try to run my numbers. Thanks

 

[ed0980]

Leon. It's hot but cheaper and nicer than I Granada or San Juan.

 

[ed0980]

Have you run it through firecalc? (linked at bottom of page) Make sure you fill out all the tabs.
Is the pension COLA adjusted? If it is - you're sitting in a fairly good spot.
Does the $2k/month include taxes, healthcare, etc? Firecalc wants the "all in" number. I'm not familiar with the tax obligations in Nicaragua. And I'm assuming you'll follow the expat rules to lessen your US tax obligation. (Limits on days in US, filing FATCA, etc)

What is COLA, I have to ask my employer. I was told by a friend that healthcare is fairly cheap I don't know how much though I only take a HBP pill, other than that I'm fairly healthy. And yes I'm following retiree rules.