Passive Income Brainstorming: Retiring in remote location

By: ispeculatornew
Date posted: 12.04.2012 (4:00 am) | Write a Comment  (8 Comments)

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Every month, I update my progress on becoming financially independent through my passive income updates. I’m still very far off from my goals, but do have many more years to go so I’m confident that I will be able to reach them at some point in the near future What happens when you either are not convinced you will make it? That’s one of the reasons why more and more people end up moving abroad to spend much of their retirement. Financial reasons are part of the reasons but there is also the desire for warmer weather, a better standard of live, to travel more easily, etc.

Is The Difference Significant?

The answer here is very easy. Yes! Depending on where you end up going, life can be 2 or 3 times cheaper, sometimes even less. That could mean that instead of eating in and avoiding trips, you could end up having a maid, a part-time chef and be able to travel around. It’s significant. And I’m not talking about going to a remote part of Africa.

Countries in central America such as Costa Rica or Ecuador offer incredible standards of living at a fraction of the cost. Ideally you can stick to places where English or any other language that you speak is well understood. You might also want to go to Europe where it might be a bit more expensive (similar to whatever you pay in the US or Canada) but where you are always one train or cheap plane ride away from discovering a new country.

Logistically

It’s actually much easier to do this move than you might think. In most cases, if you’re not looking to work, getting residency or a right to live in the country will mostly depend on you proving that you have the financial means to support yourself which should not be a problem. Once that is done, you are set to go. I don’t know if I’ll ever end up doing this but it’s certainly a very attractive possibility.

Benefits

Personally, the two main benefits that I see are:

being able to discover a new country, continent
being able to afford luxuries such as an amazing house, staff to help with cleaning or cooking, the ability to eat out at amazing restaurants for a fraction of the price, etc.

Downsides

There are some disadvantages of course:

being further away from friends and family: this would probably be #1 on my list, especially if I have young kids or close family
missing western elements: Costa Rica or Ecuador probably have everything that you need to go by. However, if you’re looking for some special American cereals, a chocolate bar or that American brand, you might not be able to get it.

Part time

I’m not sure if I’ll ever end up moving full time but one very interesting alternative would be to go for a few months every year to such a country. Buying a place or renting a few months at a time, especially in the first few years would help me determine if I could see myself moving there.

In The End, It’s Just One More Choice..

I do know that if at some point I feel like I want or need to retire but don’t have the financial means to do so, having the option to retire in a remote location is certainly a very attractive possibility! What are your thoughts on it? Would you ever consider retiring abroad?

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8 Comments

  1. Pingback by The Dividend Links | The Dividend Guy Blog — December 7, 2012 @ 4:00 am

    […] 4. Passive Income Brainstorming: Retiring in remote location @ IS. […]

  2. Comment by Michel — December 7, 2012 @ 4:24 am

    I am right now. We’re canadians liing in south Florida for the winter. We bought a condo seven years ago and have never regretted it.It is the Sunshine state!

  3. Comment by IS — December 7, 2012 @ 9:00 pm

    @Michel – that is great! Where in Florida?

  4. […] from Intelligent Speculator presents Passive Income Brainstorming: Retiring in remote location, and says, “What if you retired to a remote […]

  5. Comment by John — December 29, 2012 @ 6:27 pm

    Moving in retirement offers some great opportunities. So does moving before retirement (including maybe the most important which is figuring out if this appeals to you at all).

    I am in Malaysia now. http://malaysia.curiouscatnetwork.com/ SE Asia is another good location. Southern and eastern Europe can be another. Africa also is starting to look promising in a few locations – Ghana etc. For the real adventurous search for vagabonding – lots of people are essentially working as digital nomads. Working (using online connections) and traveling the globe.

    Living overseas takes extra effort. To some extent that can be reduced if you spend enough money but that doesn’t help if you are seeking to drastically reduce expenditures.

  6. Comment by IS — January 13, 2013 @ 7:35 pm

    @John – Wow, I had no idea, how did you end up going there? I certainly could see myself moving to Asia at some point, not exactly certain where.

  7. Comment by John Hunter — January 13, 2013 @ 11:29 pm

    My priorities were: good weather, somewhat cheap, can get by with English, workable visa situation (lots of countries don’t give long term visa without a job), very good internet and a preference for SE Asia (so I could travel all around SE Asia and nearby). Would have considered Central or South American or Mediterranean (and may try those later) but Malaysia worked out well on those counts now.

    If you have the personality for it (can deal with constant change, can except many petty annoyances new locations [and lots of travel] will bring, can travel very lightly) being a vagabond and working online is a very interesting option. One big help is it avoids the visa issues. There are some parts of the vagabond way that don’t appeal to me but I also am very attracted to it, I might do it.

  8. Comment by IS — January 15, 2013 @ 2:51 pm

    out of curiosity, what are the countries that you’ve visited since being there?

    and how long in advance did you start preparing yourself in terms of visa, housing, etc?

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