Crazy Expat Plan

[retirementguy1]

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.

 

[Kabekew]

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/forums/f29/list-of-countries-offering-retirement-visas-23742.html .

I think it's certainly possible to live a good retirement life in those countries. Just be sure to adjust your expectations.

 

[heeyy_joe]

Unless you're going to write a book, forget it.

 

[flyingaway]

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).

 

[FLD3C]

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.

 

[ER1970]

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.

 

[mickj]

Check this site out:

HoboTraveler.com Live Abroad in Tropical Paradise

Andy shows how to travel/live for way less than $1000 per month.

 

[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.

 

[papadad111]

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.

 

[Chuckanut]

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.

 

[Big_Hitter]

just don't pull a gary glitter

 

[MichaelB]

just don't pull a gary glitter

?

 

[Big_Hitter]

let's just say his expat plan didn't work out too well for him


Gary Glitter - Wikipedia, the free encyclopedia

 

[rodi]

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.

 

[Big_Hitter]

it was a joke, geez

 

[retirementguy1]

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.

 

[pb4uski]

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.

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

 

[cnocmmz]

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.

Need to be careful in the P.I. Terrorist cells are ramped, especially if you do not blend in.

 

[retirementguy1]

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.

Your own signature. A bit ironic, don't ya think.

 

[Aus_E_Expat]

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.

 

[retirementguy1]

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.

Thanks for the comment. I would love to be a long time tourist but I know I don't have enough money for that. I don't mind doing border runs every 90 days.

Also I remember commenting on your posts a few months back. You make a sh*t ton of money and have residences on two continents. I made $67k and lived on $20k in Las Vegas. No wife and no kids. I don't want to live in Hong Kong. Maybe Ho Chi Min or Phnom Penh. I'm not set on anything. I feel like my biggest strength is flexibility.

 

[heeyy_joe]

You will surely be successful. I hope you write a book about it. Feel better now?

 

[FLD3C]

Border runs/visas

Carefully investigate current visa rules.
The PI allows you to extend a tourist visa for 12 months.
Cambodia allows the purchase of a 12 month general visa.
Remember that rules can change with little/no notice

 

[retirementguy1]

You will surely be successful. I hope you write a book about it. Feel better now?

I appreciate and consider everyone's comments but if you offer an opinion, back it up with some evidence. I just haven't seen any from you. I'm not trying to start a fight, you just haven't offered any evidence.....Tell me why I'm on a fool's errand.

 

[dallas27]

This is a simple experiment. Budget for a year to try it out, go and see if you make. You at least cone back with a story and more wisdom.


Sent from my iPhone using Early Retirement Forum