Hi, my name is Tom and my wife's name is Denise. I'm 56 and she is 57. I currently work for a defense contractor as an Engineer with a salary of $104k. My wife owns and runs a short term vacation rental that nets another $10k per year. We have no children.
Right now I have a 401k with my employer worth about $114k. I current contribute 9% of my pay (including employer match). We have a house here in Arizona worth about $600k with a mortgage of $432k owed on it. We own a rental house outright in Colorado worth about $90k, but the tenant moved out last month and we need to renovate it if we want to turn it into a vacation rental (produces more income than long term rentals). The vacation rental we do currently produce income with is worth about $139k with a $92k mortgage. We have no car payments. All are owned outright. We do have about $25k in credit debt total.
I have read how well so many members have done saving and I feel really bad that I did not save more by this age.
Over the last few months, my company has made me feel that I am growing too old for this business. I now find myself looking for ways to retire early. I guess age 62 if I can last that long, but I'd love to leave earlier. I find myself looking at places like Nicaragua, Ecuador, Columbia, and Mexico to retire to. The cost of living looks low. Yes, there is abject poverty there as well. Medicare will not work there. Private health insurance can be found and it's still less than some of the health plans my current employer offers me.
But to just liquidate and pack up everything is intimidating. I am doing my best to learn Spanish, so at least one of us could communicate. We are in good health (knock on wood), so medical does not worry me so much yet, and we can always return to the US for Medicare services. Many of these countries has pension programs that allow for lower taxes than I would pay in the states in retirement.
We are adventuresome and have traveled extensively, but getting the wife to leave the world of mega stores and paved roads is not an easy sell.
Is this a viable idea or is it just a pipe dream? Your input is appreciated. Thanks for reading.
Right now I have a 401k with my employer worth about $114k. I current contribute 9% of my pay (including employer match). We have a house here in Arizona worth about $600k with a mortgage of $432k owed on it. We own a rental house outright in Colorado worth about $90k, but the tenant moved out last month and we need to renovate it if we want to turn it into a vacation rental (produces more income than long term rentals). The vacation rental we do currently produce income with is worth about $139k with a $92k mortgage. We have no car payments. All are owned outright. We do have about $25k in credit debt total.
I have read how well so many members have done saving and I feel really bad that I did not save more by this age.
Over the last few months, my company has made me feel that I am growing too old for this business. I now find myself looking for ways to retire early. I guess age 62 if I can last that long, but I'd love to leave earlier. I find myself looking at places like Nicaragua, Ecuador, Columbia, and Mexico to retire to. The cost of living looks low. Yes, there is abject poverty there as well. Medicare will not work there. Private health insurance can be found and it's still less than some of the health plans my current employer offers me.
But to just liquidate and pack up everything is intimidating. I am doing my best to learn Spanish, so at least one of us could communicate. We are in good health (knock on wood), so medical does not worry me so much yet, and we can always return to the US for Medicare services. Many of these countries has pension programs that allow for lower taxes than I would pay in the states in retirement.
We are adventuresome and have traveled extensively, but getting the wife to leave the world of mega stores and paved roads is not an easy sell.
Is this a viable idea or is it just a pipe dream? Your input is appreciated. Thanks for reading.