Retire to Paradise Within Your Budget

Let's say that you have been working your entire life. You contributed to your company sponsored 401k. You have a savings account, and even opened up an IRA. Yes you worked tirelessly for years in attempt to be able to retire some day. So after all your hard work you have saved close to 1 million dollars.

Lets face it 1 million dollars is not all that much these days, and will be worth even less in the future. How could you be expected to live the rest of your life on only 1 million dollars? Let's do some math. A CD or bond may pay you $100,000 per year in interest. Of course you have to take off about $30,000 in taxes, and say about another 35,000 in inflation. Now you are left with that is equivalent to $35,000. That's not going to go very far is it? Not if you are living in the United States .

There are though several countries where $35,000 per year will buy your luxury in paradise. Nicaragua and Argentina are at the top on my list.

If you are looking to "snowbird" and spend several months per year, and are looking for a safe, quiet, affordable, and safe place to relax, then it is hard to beat Nicaragua . The country has a retiree program that is actually pretty similar to the one that Costa Rica had in the 1980's. You would need to be over 45 years old and earn at least $400 per month. That's right I said $400. Also for each dependant that you would bring with you, you would need an additional $100 per month. One of my favorite things is that you do not have to pay any tax on income that was/will be earned from outside of Nicaragua .

Why Nicaragua ? Because you can live comfortably for a fraction of what you would pay in the US . You could actually higher a maid to cook, clean, and do your laundry for about $110 per month. You can visit a hospital for an exam and pay only $32. The doctor will even come to your home if you like. I just ran a search on real estate and found a 2700 square foot villa on the top of a mountain over looking a lake for about $26k

Another great thing that you will no doubt enjoy is the fact that you can bring up to $10,000 in household items duty free. Can also bring one car with you tariff free, and sell it after five years completely tax free. And if you really like your American automobiles, you can bring one new car to Nicaragua every five years.

When you are in the country as a part of the retiree plan, you cannot work in the country for local currency. That's ok thought because you are there to retire not to work! But if you did decide that you wanted to own a business, as long as it is for the "good of the country" you should have no problem getting permission to open it. Of course if you own a home that is worth at least 100k, and are deemed to be making profitable investments, then you are free to work for local currency.