Author Topic: Gal retires even earlier by moving to Guatemala  (Read 9396 times)

Simply827

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Gal retires even earlier by moving to Guatemala
« on: March 31, 2016, 08:37:29 AM »
She originally planned to retire at 40, but realized she could do it earlier by relocating.

http://www.businessinsider.com/i-retired-abroad-at-age-29-for-less-money-than-i-ever-thought-id-need-2016-3

forummm

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Re: Gal retires even earlier by moving to Guatemala
« Reply #1 on: March 31, 2016, 09:39:44 AM »
Sounds nice! I think I'm set on staying in the US. But the lower cost is tempting. However, we already do about $1k/mo per person domestically (ignoring the mortgage). We'd need extra for big-ticket items or travel.

Warlord1986

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Re: Gal retires even earlier by moving to Guatemala
« Reply #2 on: March 31, 2016, 01:28:25 PM »
That was a great article, and good for her for going after her dream and taking the risk!

I've thought about retiring overseas, but I'd need a larger pile of green employees, and I'd need to figure out where I'd retire too. I speak a teensy bit of Spanish so the new world would be less intimidating, but I'd love to see Thailand.

Decisions, decisions. This sounds like it belongs in the mustachian people's problems thread.

Cassie

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Re: Gal retires even earlier by moving to Guatemala
« Reply #3 on: April 01, 2016, 11:41:16 AM »
We know someone that did this but not my thing.  After living in 5 different states for job moves I am happy to be settled in one place, have some family, really good friends, close, etc. It would not be worth it to me.

arebelspy

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Re: Gal retires even earlier by moving to Guatemala
« Reply #4 on: April 03, 2016, 12:58:11 PM »
We also liked the concept of ERing overseas, in a cheaper COL country, but having seen people do this and get "stuck" when they don't want to live there anymore, but don't have enough to live back at home, we decided to wait to ER until we could support the lifestyle where we wanted to live in the States.

Once we hit that, we started traveling full time, and may settle in a low COL area, but we won't ever be "stuck" there if we decide we don't like it.

(It does come with the tradeoff of having to work longer--had we wanted to ER on a budget like she was talking, we could have done it at least 5 years sooner, I'm sure, but we enjoyed our jobs at the time.)

Love to see Networthify getting a shoutout!

I do like that there's something out there for everyone.

As Cassie points out, this is not for her.  As I pointed out, it may or may not be for us, but we're keeping our options open. But the author of the piece seems to enjoy it, so more power to her.  I love that it's possible in the world we're in today!
« Last Edit: April 03, 2016, 01:03:17 PM by arebelspy »
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

arebelspy

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Re: Gal retires even earlier by moving to Guatemala
« Reply #5 on: April 03, 2016, 01:13:41 PM »
The author has a blog here: http://reachfinancialindependence.com/

I enjoyed a number of articles on it.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

Cassie

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Re: Gal retires even earlier by moving to Guatemala
« Reply #6 on: April 03, 2016, 01:57:34 PM »
I know someone that got stuck in Thailand as Arebelspy noted and at age 64 she was miserable. I think it is smarter to have enough $ to return to the states and be able to afford to live where you want. No one knows when they will change their minds about things.

Well Respected Man

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Re: Gal retires even earlier by moving to Guatemala
« Reply #7 on: April 03, 2016, 03:46:07 PM »
The biggest thing that makes this a non-option for us is health care. DW has a chronic condition that all too often requires access to good health care, so it would have to be a first world country for us.

Cassie

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Re: Gal retires even earlier by moving to Guatemala
« Reply #8 on: April 05, 2016, 02:49:33 PM »
I was watching HGTV and they showed a couple moving to Guatemala and buying a house so they could retire. They got a beautiful home for 160K with ocean views. I am sure they could have gotten a nice home for a fraction if they didn't want to be on the ocean.

FIRE Artist

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Re: Gal retires even earlier by moving to Guatemala
« Reply #9 on: April 06, 2016, 10:15:26 AM »
A hybrid model might suit some early retirees really well.  Planning to spend say the first 10-20 years of early retirement in a low cost country, where your withdrawal rate may be 2-3%, allowing for more capital to stay invested to later fund retirement back in your home country.  This could scratch the itch of living abroad while young and fit, but planning for comfortable aging at home, all while pulling forward your FIRE date.

Hmmm, if I hadn't already done the expat thing, this might appeal to me. 

arebelspy

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Re: Gal retires even earlier by moving to Guatemala
« Reply #10 on: April 06, 2016, 10:32:55 AM »
A hybrid model might suit some early retirees really well.  Planning to spend say the first 10-20 years of early retirement in a low cost country, where your withdrawal rate may be 2-3%, allowing for more capital to stay invested to later fund retirement back in your home country.  This could scratch the itch of living abroad while young and fit, but planning for comfortable aging at home, all while pulling forward your FIRE date.

Hmmm, if I hadn't already done the expat thing, this might appeal to me.

That could be some fun things to explore on cFIREsim.

"If I want a 4% WR to equal $W, but am okay only taking $X for the first Y years, how much do I have to have saved to get there, at least Z% of the time?"

Less abstractly (using made up numbers so that sentence might make a little more sense): "If I want to have 40k at a 4% WR, but I'm fine taking 25k for 5 years, and 30k for 5 after that, how much capital do I have to save, to get to that 1MM after 10 years at least 80% of the time"?

That sort of question would be fun to investigate.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

RobFIRE

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Re: Gal retires even earlier by moving to Guatemala
« Reply #11 on: April 14, 2016, 09:43:13 AM »
Of course, the 4% SWR concept is the simplest way to explain FIRE (stay where you are only make conceptually minor changes to bring down expenses and you're FIRE at 25x annual expenses) but there are plenty of other possible ways. The idea of living abroad for some years at your choice at lower expenses to build up savings faster is a good option. Throw in the possibility of some part time work (teach English etc.) and you've even more options.

I would not want to be in a position where moving home would be problematic/not possible due to cost though. The whole idea of FIRE to me is to have real flexibility.

MVal

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Re: Gal retires even earlier by moving to Guatemala
« Reply #12 on: April 18, 2016, 09:32:42 AM »
I would love to be able to quit my current job and take a "breather" of a couple of years of living and working abroad to help making it to the finish line of FIRE a little more bearable. I've heard one can teach English in South Korea and save about $15K a year, but this is about half the savings rate I'm currently able to put away at my current job. I've got to do something though, because I can't see myself staying where I am for another 8 years without losing my mind.

MMMaybe

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Re: Gal retires even earlier by moving to Guatemala
« Reply #13 on: April 18, 2016, 09:47:52 AM »
Its hard living in developing countries, even when you are younger. If you want a vaguely Western style life, it can get expensive.

I definitely would not want to do it when I was older and more vulnerable.

She is 29. I bet she will leave some day.

CanuckExpat

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Re: Gal retires even earlier by moving to Guatemala
« Reply #14 on: April 23, 2016, 02:11:01 AM »
She is 29. I bet she will leave some day.

Say she wants to leave for her home country in ten years and it's more expensive, it's not the end of the world is it?
So she's a 39 year old who has to work for a living. Lots of 39 year olds do it I understand

Seppia

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Re: Gal retires even earlier by moving to Guatemala
« Reply #15 on: April 24, 2016, 05:22:15 AM »
Good luck getting a great job at 39 with a 10 year hole on your resume though.
As much as I would love to stop working today, I will not until I have enough to sustain a decent living in a first world country.
Then I will definitely try central and South America, but with the piece of mind of knowing I can go back whenever I want.
Additional thing that should be considered: if you move to an emerging market, it could experience a significantly higher inflation rate than your home country, so your investments might not be able to sustain you after a while.
Imagine one moved to Shanghai 20 years ago for example.

greaper007

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Re: Gal retires even earlier by moving to Guatemala
« Reply #16 on: April 24, 2016, 08:35:45 PM »
Good luck getting a great job at 39 with a 10 year hole on your resume though.

You can always start your own business, I have a giant 7 year hole on my resume and I don't really care.     I couldn't get a job flying a 787 tomorrow, but I could fly for a couple hundred hours in something small and get a regional job again in less than a year.    I'd imagine most people could do something similar in other fields.

Otherwise, my biggest fear of moving to a developing nation would be governmental stability.    You're just one coup from having to come home quickly.

jzb11

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Re: Gal retires even earlier by moving to Guatemala
« Reply #17 on: April 25, 2016, 06:13:07 AM »
Geo-Arbitrage sounds great in theory, but the reality is much more challenging than most people think.

I'm on a long term assignment in north-east Brazil (which is in many ways the beautiful tropical paradise that comes to mind when you hear the word Brazil). And while I am now in a position where I love and am enjoying my time here, my first two years were hell. The challenges I encountered:

  • You absolutely must speak Portuguese if you wish to build a social life outside of work
  • An immense amount of dificulty in meeting expats/english speakers in this part of the country. In fact they're almost non-existent
  • An illogical/ineffective/ineffecient bureaucracy that permeates through every business interaction. Things here simply don't work quickly, if they work at all
  • High cost of goods, more expensive than the USA in most cases (labor/food not so much)
  • Many cultural differences (people aren't as direct as they are in the USA), different social norms, etc
  • Day to day life is inconvenient, lack of availability/options
  • Safety is a concern, lots of petty theft/crime

Overall I spent my first two years feeling isolated and I had a hell of a time meeting singles to hang out with. Eventually I got a good grasp of the language, more knowledge of the city, and have a great group of singles I hang out with on a regular basis. At this point I can enjoy the country for what it has to offer, but I literally considered going back to the USA and calling it a day. I can't express how difficult it was, and I suspect that anyone who is attempting geo arbitrage may experience something similar. It is not a decision to be made lightly.

Moving to a new country/culture where you don't speak the language, and do not have a readily/easily accessible expat community is a bitch, and not something to be taken lightly.

CanuckExpat

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Re: Gal retires even earlier by moving to Guatemala
« Reply #18 on: April 25, 2016, 12:00:32 PM »
Geo-Arbitrage sounds great in theory, but the reality is much more challenging than most people think.
...
Overall I spent my first two years feeling isolated and I had a hell of a time meeting singles to hang out with. Eventually I got a good grasp of the language, more knowledge of the city, and have a great group of singles I hang out with on a regular basis
...
Moving to a new country/culture where you don't speak the language, and do not have a readily/easily accessible expat community is a bitch, and not something to be taken lightly.

Appreciate your sober input and warnings, but isn't all of that also part of the fun and appeal?

Of course, if those are problems, you can also leverage somewhat LCOL areas in the US, or also say like Canada, depending on currency exchange




jzb11

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Re: Gal retires even earlier by moving to Guatemala
« Reply #19 on: April 27, 2016, 09:20:44 AM »
It definitely is a part of the adventure and change. But I think it's easy for people to Romanticize living in another country and only think of the benefits (beach, food, beautiful people, low cost) and not consider the drawbacks/challanges.

A year into my assignment I wanted to get the hell out of here and never came back. Ultimately I am glad I stuck it out.

arebelspy

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Re: Gal retires even earlier by moving to Guatemala
« Reply #20 on: April 28, 2016, 07:14:53 AM »
It definitely is a part of the adventure and change. But I think it's easy for people to Romanticize living in another country and only think of the benefits (beach, food, beautiful people, low cost) and not consider the drawbacks/challanges.

A year into my assignment I wanted to get the hell out of here and never came back. Ultimately I am glad I stuck it out.

The drawbacks also vary depending on the person (what is a drawback for some might not be for others), and based on your choices. When you have complete freedom (ala FI), it's a lot easier to deal with things.  When you feel like you're stuck somewhere due to being "posted" there and needing the money, or due to moving there for the lower COL, and not being able to afford to go back home, it's tougher.

We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

dougules

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Re: Gal retires even earlier by moving to Guatemala
« Reply #21 on: April 29, 2016, 11:24:38 AM »
The biggest thing that makes this a non-option for us is health care. DW has a chronic condition that all too often requires access to good health care, so it would have to be a first world country for us.

That's actually more an argument for vs against moving.  A lot of "third world" countries have health care as good as the US for sane prices.