@@laptopseniors I showed my wife your recent video comparing Argentina, Panana and Uruguay and asked her how old you were, she said: 60. We are both very jealous! Well done.
Very interesting video. We’re currently driving through the Americas (Alaska - Argentina) and have found that almost any country we’ve visited in Latin America has a place or two where we could see our selves retiring someday. We’re on Colombia now (also spent a couple months in Ecuador) so we’ll see how things go in Peru, Chile, Argentina, etc. But I guess my point is… that before this trip we looked at Latin America as a monolith and couldn’t have been more wrong. The media (plus friends and relatives) really impacted our views and before leaving we couldn’t see ourselves living outside of the US / Europe / part of Asia where I’ve spent time. Traveling has really opened my eyes and I think the southern hemisphere has a lot more to offer than we’re lead to believe.
Fantastic information, I was told years ago get out as soon as you can, take the social security and run from the USA… you have made that even more clear….Thanks
My company gave us 15 percent profit sharing every year. It’s a privately owned garbage company. Every time I see the owners (family) I’m like thank you so much. I’m a dummy, you changed my life
I appreciate your videos. I am right on your described path. I always thought I'd work until 70, then I started asking myself why? I'm 62, just retired and we just sold our CA home. My wife retired from the airlines. We aren't rich and had normal jobs. Where we were living the SF Bay Area, every month is hand-to-mouth. We drive a 12 year old car and cannot afford to eat out. We cannot retire in our home, will have to move somewhere else. However, outside the US could make it not only possible but higher quality. We are currenly applying for our Panama Pensionado visa. We have family in Italy who we can spend several months a year living with them.
im 62 and my wife we are both quitting on same day in FEB next year..we were going to wait till 67 or 70 but no one knows when i will die..wont take that chance....we have 400k in a roth ira combined..and NO DEBT thats the key..we will survive and travel some have a budget too the thing we have to stick with it we account for travel ..gifts etc
Nice video. For a married couple, Social Security is even better. Because you get 50% more of the higher earner’s benefits at full retirement age. That's a big additional chunk of money. Many people don't understand how that works. It's hard to beat, however, assuming you are in good health and don't need the money to survive, waiting as long as you can (age 70) to take social security. Every year you can wait is about 8% more per year. For the rest of your life. And the rest of your spouse’s life. It's longevity insurance. Social Security is the best very secure cost-of-living adjusted annuity there is. I agree with your assessment that there would be a revolution in the US if they try to significantly cut it or take it away. I think it's highly unlikely. But not impossible. But I think it will be trimmed and cut. Overseas, the general rule is that two people can live at the cost of about 50% to 65% more than one person. That seems to have worked out for us. Also, one other thing I've noticed. Because the salaries of the middle-class people in these countries is so low, the government has stepped in and provided good transportation. Trains. Buses. Things like that. So if you pick the right place to live, you don't need a car anymore. Right there you save around $8000 on average annually. And generally medical care is good. The US isn't anywhere close to what it was. And many times healthcare in foreign countries is better in addition to being far cheaper.
The other key to taking social security early is that one can use this income to qualify for retirement permanent residencies in countries. I took mine at 62 due to the insecurity of social security system. Some people do work online as well to supplement income.
Yes.... a govt pension for life is almost a given to have for applying for residences. You can do it without but qualifying with the pension makes it SO much easier.
LOL I went through the very same math yesterday (obviously before seeing your video) and even my wife isn't ready to retire, we know that we can live in South America comfortably because of my SS and taking the equity from the sale of our house -- the numbers can be even better if one takes the equity income and pours it into an S&P fund that averages 10 to 13 percent annually (as ours has). Yes, bonds are safer -- most people choose splitting the investments. Thanks for confirming all that I am working towards.
I would not forecast future returns on exceptional, recent returns largely attributed to inflated valuations in the US. But something this video does not address is the effect of inflation.
@@antigroundhogday Inflation is such a wild card that I didn't add it in. The main point was that living out of N. America is cheaper, and a person probably can generate enough income to live decently elsewhere rather than in N. America given rates now. Plus, depending on the country you're going to, inflation is actually running less than in the US or Canada.
@@laptopseniors I agree with your general sentiment that often it is cheaper to live outside the US/Canada and people may have that ability now even though they don't realize it. But I would have used something like the 4% rule on investments that accounts for inflation over time, rather than a straight bond, so purchasing power is not eroded over time. Thanks for the content, I realize making YT videos takes time and effort. I'm too lazy to create content ( 😋 ). Instead, my wife and I just returned from Brazil and are currently in Chile. 🤙
Another absolutely fabulous video explaining reality. In Canada of course, we have the CPP and OAS that can be collected while living outside the country, but the GIS is not available for anyone that leaves. There is, of course, the healthcare issue where retirees either need to live back in Canada for 5-6 months depending on their Province or pay twice for healthcare, via their taxes that Canada continues to take away and spend very poorly, and again via the private option they will have to pay for like the rest of the world, when they join the rest of the world.
Very insightful way to look at retirement. My wife and I have always said if we won the lottery we would travel the world. 🌎 Little did we know that after 2020 and it's ripples, it has become more economically feasible to slow travel the world than live in most parts of the USA. Add the additional earning potential of social media and we are now able to raise our standards of living to extremely comfortable levels. Thanks for providing content like this with us, that is thought provoking. 👍🤔💡
Slow travel can be amazing. After retirement we did that for 4 straight years. And still do it for chunks of each year. A month here, a month there. It's so weird. It's cheaper to live in Paris than most big cities in the US or Canada.
Oh what a great video I just experienced a paradigm shift. Thank you very very much. One of the lucky few that has federal pension plus Social Security your video is a real game changer. And other thing to factor in for those who have children under 18 but are planning to retire and collect Social Security. It is my understanding that if you collect Social Security and have a minor that minor is entitled to Social Security payments equal to one half of your full retirement amount. the amount you would collect at 67
Thank you very much for the great information, totally a different way to find financial freedom for someone that started a bit late, the view you provided and how to tackle the solution to be able to retire early, you are right many of us will be looking to wait to get full social security as we waste our short remaining years of life in the process, you put it in perspective let's go and enjoy some of our life the laptop seniors way, thank you for taking the time to do all the math the visual is very important to me, I can see that by being a retire individual you can really let us know exactly what to expect as we look forward to our own retirement, currently 57 can't wait to get to 62, now I will definitely take early social security and I think I will explore Panama to move to, could you please do a video targeting, well explaining how to buy or invest in the kind of bonds that you tell us in the current video or any other way you think or know about being able to retire early I wish I could go now and enjoy the way you and your wife seem to be enjoying your retirement, any advice is appreciated, gracias and have a buen día
Response stopped The maximum Social Security benefit you can receive in 2024 varies based on the age at which you retire. Here are the maximum benefit amounts for different retirement ages: At age 62: $2,710 per month. At age 65: $3,426 per month. At age 66: $3,652 per month. At age 67: $3,911 per month. At age 70: $4,873 per month1.
Bro, I'm new to Channel, I love your videos. I'm 56 and trying to squeeze 4 more months from a job I dislike and I'm done! I already started getting my feet wet 3 years ago. I have visited Honduras many times and I love it, El Salvador a couple of times, but don't like that they use American currency and don't care for Mexico. I'm looking for a country that is VERY inexpensive with good health care. I'm visiting Colombia and Nicaragua sometime this year. What is LESS expensive Colombia or Argentina?
Two comments, some people, like me, enjoy their job, and they don't want to retire. Early retirement is the main cause of depression. US has spent 100 billion annually for two decades in Afghanistan. Current annual US social security deficit is .4 trillion mostly because of baby bombers, but we have enough resources to fund the social security system forever. It is just a matter of allocating resources a bit differently.
This was one of the best retire-abroad videos I have ever seen. Encore! I am 62, and plan on working full time to 65. have been sorting all this out in a spreadsheet and the one thing this made me realize was that perhaps we should take this period of high interest and move some of our retirement savings into actually buying a 10 year bond vs investing in bond funds... Just discovered you guys today. I will be watching all your videos :-).
Wow, thank you!!! I’ve been researching countries for 2-3 years. Ruled out the EU and narrowed it down to Mexico & Costa Rica. Then just this past week I thought if I sell my house how much can I make off of the equity? It’s like you read my mind. Thank You for putting all this together! Perfect timing!
@@TsavoTouring CR waives all pre existing health conditions which is important for me to have. Basically looking for a 2nd residency. I’ve spent a lot time in Mexico and have done an extensive tour of CR. Just wrapped up a deep dive into CR and focusing on Mexico currently.
@@tjamieson7238 ah interesting… that’s definitely a huge positive. We were in CR for about a month on our drive south and weren’t personally huge fans… but Mexico is one of our favorite places. I’ve heard the healthcare is incredible there. We’ve been super happy with the healthcare in Colombia and will probably spend some time getting some tests and such when we get to Argentina. The fears people have about healthcare in Latin America definitely seems a little silly. I’m sure there are some negatives but we’ve been very happy with the care, equipment, and prescription costs in Colombia (and briefly in Ecuador). Best of luck in your search. 🍻
Really enjoyed this video, and will keep its content in mind for future reference. One question, though. I’m thinking about retiring in SE Asia - especially Malaysia, Thailand, or possibly Singapore though that’s much pricier. Possibly Vietnam. I wonder about your figures for Thailand, though. It doesn’t seem to me that it would require 3x as much as it would in Vietnam to have a “middle class income.” Are you sure the Thailand figure is accurate? Thanks.
Thank you for helping me to think out of the box. I was very depressed that I was thinking my retirement would be many years from my current age of 64. Now I am thinking of possibilites. Thank you!
Great information! I’ve had financial advisers throw out that 1 million dollar for retirement as well. That just absurd. I agree- plan, save , invest - then retire and move abroad!
Its not what your SS is its your cost of living. All income is almost irrelevant vs your basic net costs. The difference between a small town in missouri and a major USA city is massive double to triple for same physical space and same vehicles etc..and maintenance in total. To be noted. There is no civil rights at all when you leave the US, you need money to buffer and possibly defend yourself outside USA Family had land and house stolen from them in mexico by locals and police and courts corrupt- they lost everything- had to return to USA
That was the point of the video....cost of living. For most people, moving out of N. America leaves them more after expenses. The rule of law can be an issue as you point out. But, that's one of the things you really need to carefully check out. Mexico would not be on my list to buy a home there. Just too iffy on everything you pointed out. But other countries are very much into rule of law. Uruguay is well known for that and Panama is pretty strong too. Rule of law is funny. Right now there are thousands of squatters all over the US and the law is protecting them, not the owners. It's a big issue. So even at home the law can be no help.
If you retire before your full retirement age which is 66 years and 10 months for me, you get discounted if you work and earn more than a small amount.
Those numbers go out the window if you have any income after 62 because your SS will be cut. Also they UNLIKELY won't change the numbers for older citizens just for the youngsters paying in.
I've just discovered your channel. Great videos! I'm getting ready to retire myself, though I'd like to work a couple more years to build up my budget. I have one concern about this video. You're comparing one's potential retirement income to that of average person living in countries you list. Makes perfect sense. But we need to account for quality of life. Maybe in some of these countries people with these incomes can't afford to have AC - something that might make average American uncomfortable. Maybe they only can afford to go to restaurant couple of times a year. Or maybe they only can afford to eat steak on a special occasion - something that is not a big deal in States. It may be difficult to come up with such numbers which would show cost of living in given country at a level acceptable to average American but I think that would be a much truer number to go by. I totally get it that were the same person to stay in US, they would be able to afford even less than in one of these countries. Some downgrade in level of living is to be accepted. But we still need to stay at a level that makes it comfortable enough.
just discovered your channel and am enjoying your content. One factor not considered in your early retirement math- annual cola increases. Your math straight lines social security benefits without factoring in annual cola adjustments. In general I understand the bigger point you are making but mathematically waiting longer than 62 will substantially increase the benefit received. A 3% increase on full retirement benefit compounds substantially versus a 30% reduced benefit taken at age 62 (retiree receives same cola but benefit of colas will be dramatically lower if the benefit is 30% less than full retirement age. Just another factor to evaluate.
Interesting channel, and I've watched a couple of your videos now. Yes, I was actually marketed that video on Argentina Paraguay and Panama and that's how I found you. RU-vid send me that video and I was fascinated because I watch another podcaster who is an expat who lives in Paraguay. Anyways, I have been retired for about 3 years, and I live in Northern New hampshire. I happen to own my home and try to set it up to be as lower cost to live in situation. I'm a person that hasn't traveled much outside of work, although work has sent me around the world. I definitely have not been to South America, and even my trips to Mexico have only been with work in mind. Living in Northern New hampshire, we get a fair bit of snow, and one of the things I have been thinking about is becoming some kind of a snowbird. I might have to consider taking a trip to South America to check it out. I definitely have been fascinated by the political changes in Argentina... So maybe that would be my first stop just to check it out. I've subscribed to your channel, so I look forward to seeing more interesting videos.
Great video. I would not use the actual numbers, particularly the median alone, as a specific number to calculate the actual cost to live in any particular place. I would take the mean vs the median and compare it as a percentage against my current place of residence. If you look at the value for the place you currently reside you, most likely, will see the number is very low, so comparing the difference as a percentage vs an actual amount would be a safer estimate of cost of living. So compare what you think you need now and see how much cheaper, by percentage, various other locations may be.
True Tim, but that was too complicated to go into in this. The point of the video was that you don't need a million, and you're likely sitting on enough to retire if you move out of N. America. And, not to get in the weeds, it only doesn't keep up with inflation now. EX: If you grabbed a 5% 10 year bond today, and next year they drop the rates and inflation to 2% again (unlikely but....), all of a sudden you'd be ahead of inflation. I can remember people buying zero coupon-20 year-million dollar junk bonds for around 100k in the late 70's. They were ultimately paying around 18% annually. Crazy to buy them at the time. 5 years later it was genius because then and another 15 years until maturity that 18% was an insanely great rate.
I think you're wrong. In most of these countries there are requirements for a retiree visa. Without it you'll can stay for only short amount of time (3 or 6 months usually). For Spain, for example, "The current minimum annual income needed is around $28,400, with an extra $7,100 for each additional family member." This IS NOT money you obtain from selling your house. This must be permanent (and indexed) retirement income promised by your government (by a stamped letter) until your death. They don't accept your savings in bonds for this purpose.
You're correct. Some countries requirements are higher than what the median income of their citizens are. Like Spain or now Mexico. What the video was trying to point out was that there are so many choices other than N. America that are cheaper. Each have different criteria and one would have to check them. But in general, if you don't have much in N. America, you likely have enough in other countries.
US Social Security can always increase the deduction just like Canada did to maintain the payments to future retirees. I had trouble following your math on the catch up for taking Social Security early. You had 66 + 14.5 = 80.5. Then you had 62 + 10 = 80? Not sure how you worked out the numbers. Also you are asking us to move to low cost countries to live on lower incomes. What happens if everybody does that? Not everyone is willing to upend their lives and move to another, non-English speaking country.
Hi Tony. I divided the total amount of $$$ earned by going early by the difference between that big number and the yearly number of the age taking retirement. So...260160 divided by 25956= 10. 183456/12612 = 14.5. Those are the years making the big (retire at 70) payout it takes to catch up. And... I'm sure they'll do something to help. Just not sure if it'll be a good as its been. No idea. Something to consider in all this. Same for Canada too.
@@laptopseniors I am in a situation where I "know" I can retire comfortably. Paid off house, a very healthy portfolio, 63 y.o. BUT, I love what I do, work from home 2 to 3 days a week. There is pressure, but I can handle it. I think my biggest problem is, I am comfortable and I am a little resistant to change. Fortunately I make a very good income that allows us to do 3 to 4 vacations a year. I have set a maximum retirement age of 67 (in Canada).
@@tonys4296 There's no hard rule that you 'have' to retire Tony. Your life is your life. What makes you happy is what you should do. You're in good shape where you can just stay where you are, retire, and go out slow traveling and see the world. You're sort of already doing that. Just the time away will go from a week to a month. Great place to be in.
You know what Tony. I messed up that a bit. For those 14.5 years to catch up. I added those to 66. It should have been added on age 70. So the get even point would be almost age 85 for retiring at age 66. The age 62 numbers are correct. Thanks for questioning it.
These are great assumptions, however, you must not have children. My children live in North America, and I thought of moving away from them is not an option. I miss them too much. I can see the benefits of living in a low-cost country for a month and coming home doing something like that. This is an awesome thing to do but you really have to be willing to leave and for people who have family and value them, it would be too hard and I’m one of those people
