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Early Retirement
| Early Retirement Hi, all. I got interested in running away to South America a couple years ago. I initially considered Argentina. I am from New York and I love Paris and I heard Buenos Aires was reminiscent of the two and a lot more affordable than either!Recently I've been turned on to the idea of Uruguay which seems to be more suited to me and more affordable than Argentina. I am only 31, but by the time I am 36 I will be eligible for almost $700/month in pension from my employer and I will have about $100, 000 from my 401k and personal savings from which to draw interest income. I have no family or car and live very simply. I love great architecture and urban conveniances (especially good restaurants that deliver!) and wondered if my $700 monthly pension plus $500 monthly interest income would afford me a comfortable life in an old, historic part of Montevideo. I also wouldn't mind living in a picturesque coastal town as long as they had decent eateries and high speed internet. I have no interest in owning real estate in either case. Also, I am not a U.S. citizen and am not sure how my pension and interest-income would be taxed by the U.S. were I to give up permanent residency. I know this is a long first post and I thank you for reading it. |
| That's great that you've built a good financial situation for yourself at 31! As you're planning your budget, don't forget to factor in the effect of future inflation. If you spend all of your pension and interest/investment income each month, your monthly income will be fixed but your expenses will very likely rise with inflation over the years. Also, withdrawals from a 401k will be taxed in the US as current income, plus normally a 10% penalty for withdrawing it before age 59 1/2. |
| Hello, I like your judge of view, you could live a good life in Uruguay with $1200/month. I've just started a Blog in order to gather information about the benefits of retiring in South America. Please check it out and share your thoughts. Thanks, |
| Decent restaurants is a non issue in Uruguay. Ask anyone. Uruguayans are very discerning when it comes to food. Bad restaurants dont last past a month. BTW, I've only eaten in one bad restaurant in the last 20 years and that was in the airport, which caters to tourists... All restaurants (and supermarkets) deliver to the door at no charge. From the lowest to the most expensive.. (well 98% do anyway). Even MacDonalds does home delivery here. Heck, if you're in the hospital, you can order Macdonalds to your bed. Not joking. High speed internet (by Uruguay standards... see www.anteldata.com.uy for bandwidth/prices) is available in most towns and the whole of Montevideo. Dedicado serves he boonies where ADSL isn't. It's pricey by US standards but it's reliable. There is no cable internet. Telco here has a monopolio.. inbred Uruguyan thing. If you live on the Internet, and you live in Montevideo, you can order from the supermarket on line at no extra charge. Did I hear someone say Uruguay was a 3rd world country? |
| Thanks to you all. I want to assure you that I would not consider this plan if I couldn't reinvest at least 10% of my interest income plus pension payment. There will be cost-of-living increases to the pension, but that won't match inflation over the next 30-40 years until my death. It would help, however. If I could find a 700 sf loft in an industrial building and a few places that deliver, I swear I would never even go outside (well, almost never). |
| What an odd coincidence. One of our friends was over for 'tea' today and talked about some 'lofts' being auctioned off nearby on 21 de Setiembre/Ellauri. One is 1000 sq ft.. the others are smaller. 21 and Ellauri is surrounded by places that deliver. IMHO, it's one of the most well known intersections in Pocitos. Until today, I'd never heard of lofts in Montevideo.. Maybe they've been calling them something else. Dunno. |
| i am looking to buy an apartment in Pocitos or Punta Carretas i live in California and need some prices and information thanks Ruben |
| Buscano Casa is a place to start... but you really need to come here, scour the newspapers AND the properties! |
| You can find decent apartments in the trendy area of "Ciudad Vieja" (Old City) in Montevideo, as well as in other parts, like Pocitos (though Pocitos is expensive because it's more upscale). In Ciudad Vieja you'd find many fine restaurants. Sure you can live a very decent life with 1.200 dollars per month. Anyhow, make sure to take into account the depreciation of the US dollar. Here, in Uruguay, you would have to cope with a falling dollar and rising prices in Uruguayan pesos. Is the Uruguayan inflation gonna stop soon? Nobody knows. The monetary policy (restrictive now) and the fiscal policy (expansive) are in direct contradiction, puttin a heavy rock on the monetary shoulders. And for the US dollar, in my modest opinion, I don't see anything but a steady downward trend. If you move, don't forget those aspects, please. |
| I'm a 22 year old women and I was wondering what the average age is to retire. |
| I think it is more based on a financial ability to support yourself without working than an age. At various ages usually in your 60's... government and private pension programs will tend to offer that support for you. Before that your entirely on your own. |
| Gee, you are only 22 and you are wondering when people retire? You know, you've got at least 40 years before you retire unless as the previous post noted, you have a substantial income source, but what are you going to do with your time? |
| The retirement age varies from country to country. Normally, this is subject to changes in law and is normally determined by the law making bodies. I do not think Sandra is considering retiring; all she is trying to ask is whether there is a required age. Many factors come into play in determining the said age and even though others opt to retire early, some people will go way past the ideal retirement age. |
| I think its great to hear so many young people taking a different perspective on life than the work yourself in to the ground until your 60, then retire and feel you are too old to do all the things you wanted to do when you were young. Take advantage of the now! Check out Tim Ferriss' concept of the 4-hour work week, it might inspire you :) |
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