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About a week ago a co-worker asked me if I was thinking about retirement, to which I replied, "Yes - constantly!" I'm 54 and have spent just over 30 years in the fast-changing world of IT, a high-stress profession in a high-stress part of the country. No wonder I spend so much time daydreaming about Baja!

My wife and I spent some time with our accountant going over our current income, expenses and savings, and while he felt I could retire at 60, he cautioned that I wouldn't be able to collect Social Security until 62, and wouldn't be covered by Medicare until 65. At issue is whether or not I can hold out another 11 years in a workplace in which most of my co-workers are young enough to be my children (or younger), and whether or not I can maintain a sufficiently relevant skillset to be of value to the company. As it is, our HR website lists my retirement date as my 62nd birthday, so I think I have at least a partial answer.

I guess I'm just curious as to what others may have done at this juncture in their lives? Thank you in advance...

I was 60 when I retired. There are basically two ways to go about it: (1) calculate how much money you think you need and plan not to retire until you have it, or (2) start with a date, then figure out how and where to retire with the money you have. I did it the second way, because the date pretty much chose me. My employer was relocating, so continuing at my job would have required either an unbearable commute or a move to a place where I didn't want to be. I wasn't about to go on the job market at that age, so I decided to cut loose. It was scary when the economy crashed, but I'm doing okay and have no regrets seven years later.

Good luck to you!

Take the information/data you received from your accountant to a Certified Financial Planner.

A CFP should be able to put together several plans for you to look at and study, and work with you to make the best choice possible for your specific circumstance.

Your employer may have a CFP to work with you on your employer sponsored retirement plan, , but I would also solicit names from friends who have either been through the process with a CFP or who have (recently) retired based on their CFP's assistance.

You will be surprised that a CFP will bring forth ideas and information that you never thought of.

PS: Based on one of the programs my/our CFP put together, I was able to retire at 56, start collecting SS at 62 and started Medicare last year.....we maintain two houses, one in Baja and one in Nevada, travel often and live financially comfortable.

I also think that CPA's and financial planners can create endless models showing that the longer you put off retirement vs how much more money you will have to enjoy - a trap my own father fell into and ended up spending all but just a few months of his retirement in doctors offices, chemotherapy and hospitals until he passed away at 67.

It was a very strong message to me that life is to be lived while you are healthy enough to enjoy it...

Originally Posted by BajaGringo

I also think that CPA's and financial planners can create endless models showing that the longer you put off retirement vs how much more money you will have to enjoy - a trap my own father fell into and ended up spending all but just a few months of his retirement in doctors offices, chemotherapy and hospitals until he passed away at 67.

It was a very strong message to me that life is to be lived while you are healthy enough to enjoy it...

You just told my Mom and Dads Story. MOM went at 58 and Dad at 69. I tried to get him to spend time at the marina on my Boat and he would Reply You dont need that thing you should have waited untill you retire to get it.

My parents retired in their early 60s and are still kicking around - albeit somewhat more slowly - over 20 years later. My accountant basically said that I could get away with retiring at 59 as long as I remain employed (and aggressively saving money) until then. My wife and I are fortunate enough to be in good health, but I do know that we're all racing against time to a large degree. That's why we don't wait until we visit Baja to enjoy a margarita.

I love this...

Reason #1 Not To Retire Overseas: "I can't afford it."

In fact, you can't afford not to. I mean that both literally and figuratively.

You could launch a more comfortable, more interesting, safe, pleasant, even adventure-filled life in a number of places around the world on a budget of as little as $1,200 per month or less. In some parts of Panama, Colombia, Thailand, Nicaragua, Malaysia, and Ecuador, for example, you could live comfortably on a budget of less than $1,000 per month. I'd be surprised if you can't afford that.

But here's the real point: You owe it to yourself to go find out for yourself just how affordable and, more important, just how fun and adventure-filled a new life in a new country can be. I say again that, cost of living aside, you can't afford not to do this.

Reason #2 Not To Retire Overseas: "It's not the right time."

There is no right time.

Sure, it'd be easier to stay put and do nothing. But where would that leave you at the end of your days? What stories would you have to tell? What adventures to remember?

Years ago, I met a gentleman from Tennessee who explained that he had been researching the idea of retiring to the Dominican Republic for two years. "I'm convinced the DR is a place I want to be," he told me, "but I'm just not sure the timing is right..."

"Have you considered other options?" I asked.

"Well, before I started looking closely at the Dominican Republic, I researched Costa Rica for four years."

"What did you end up doing there?"

"Oh, I never did anything. After four years of looking, prices had risen so high that I figured it no longer made sense."

Ready, fire, aim, I say. You can plan to reinvent your life in retirement overseas... or you can launch a new life overseas and then make some plans.

Reason #3 Not To Retire Overseas: "I don't want to leave my home and family for good."

So don't. The real beauty of reinventing your life in a new country today is that it is an infinitely customizable idea. Keep your home in the States if you want and spend part of your time, as your comfort level allows, somewhere exotic and sunny. Establish a second base somewhere foreign... or try out a different overseas locale each year. Come and go as you like, as often as you like, knowing that you've always got a safety net "back home." There is no right or wrong strategy for how to retire overseas.

Reason #4 Not To Retire Overseas: "I need to earn extra income."

In today's world, with a little imagination and self-confidence, you can earn a little income anywhere. In fact, it can be easier today for an American to earn an independent living in a foreign country than in the United States, because you have knowledge, experience, skills, and connections that the locals don't.

Reason #5 Not To Retire Overseas: "I don't have enough capital to make an international move like this."

You need precious little. Take my word for it: If you want to do this, you can pull together the capital you need to make it happen... because, seriously, you don't need a lot. The capital requirements can amount to a plane ticket and your rental deposit.

Reason #6 Not To Retire Overseas: "I don't speak the language."

I get it; I'm not a linguist either. And the older we get the harder it can seem to be to learn a language. That's why you're lucky. You speak English, and English is the world's language. Across much of this planet, anyone who is anyone (that is, anyone you might want to communicate or do business with), as well as any school kid, speaks English.

That said, it's worth noting that learning a new language is one of the best ways to keep your brain limber as you age.

Reason #7 Not To Retire Overseas: "I'm too old."

Are you dead? If not, then you're not too old.

Yes, it's easier and might seem more sensible to take a seat on the front porch and await the arrival of the Grim Reaper. Or maybe your life is already so exciting and wonderful that you can't handle a little change?

If that's not the case, then I'd recommend that you take a cue from my friend Jules, who, at the age of 88 made a plan and then made a move from Florida to Belize. Even after a lifetime of adventure, traveling the world with the U.S. Navy, Jules was up for another change and a new start.

Reason #8 Not To Retire Overseas: "I'm too young."

As I said, in today's world, if you've got a laptop and an Internet connection, you can earn an income anywhere... and concern over making a living is the only objection I can imagine someone younger than retirement age could possibly suggest for why he (or she) isn't jumping at a the idea of launching a new life in some sunny, sexy foreign locale.

I promise you that, no matter how old you are right now, if you make this move, you won't regret a day that follows. If you don't, eventually, you'll grow to regret every day of adventure that you've missed.

Reason #9 Not To Retire Overseas: "I've got to wait for my children to finish their schooling."

Why?

Speaking as a mom who has spent the last 16 years raising two children (the second, my son, born in Ireland) across four countries, I can tell you with confidence that a life abroad is one of the greatest gifts you can give your kids. They might object at first (my daughter, born in Baltimore, cried her way through our entire first year living overseas, in Waterford, Ireland), but, in time, they'll grow to love the life and to appreciate the effort you've made providing it for them.

Stay put "for the sake of the kids," and, when they're grown and discover what they missed out on, they won't forgive you.


9 Reasons Not To Retire Overseas (And Why They Don't Matter) | Kathleen Peddicord

A good Certified Financial Planner will offer several options based on your desires /plans/goals......it is up to you, not them to select what works for you......too many people chase the pot of gold at the end of the rainbow and end up without the pot or the gold.

We were selective, had a plan and now have our cake and can eat it also.

Originally Posted by BajaGringo

I also think that CPA's and financial planners can create endless models showing that the longer you put off retirement vs how much more money you will have to enjoy - a trap my own father fell into and ended up spending all but just a few months of his retirement in doctors offices, chemotherapy and hospitals until he passed away at 67.

It was a very strong message to me that life is to be lived while you are healthy enough to enjoy it...

Originally Posted by Teniente

A good Certified Financial Planner will offer several options based on your desires /plans/goals......it is up to you, not them to select what works for you......too many people chase the pot of gold at the end of the rainbow and end up without the pot or the gold.

We were selective, had a plan and now have our cake and can eat it also.

You are smart amigo and I agree that too many people focus on trying to accumulate the maximum amount to pay for all their grandiose dreams only to end up with their kids fighting over it.

I can't think of a single person I have met who said that they retired too soon...

Originally Posted by BajaGringo

I can't think of a single person I have met who said that they retired too soon...

I'm watching an icicle six feet long and one foot wide dripping from the roof of my work building onto the parking lot below, where it will freeze momentarily into a pool of black ice.

Originally Posted by pauldavidmena

I'm watching an icicle six feet long and one foot wide dripping from the roof of my work building onto the parking lot below, where it will freeze momentarily into a pool of black ice.

It has been a long, cold winter for most of the country. It has been quite nice, mild winter down here overall. Sorry, not wanting to sound like I'm piling on...

What Baja Gringo/Kathleen Peddicord said!!!

Age 53.....liquidated home & most other assets & moved to La Paz & never looked back! Absolutely NO regrets. If I'd have listened to CFP's I wouldn't have retired until I was 65!

What a lot of people don't take into account is that your lifestyle & cost of living will both change for the better with some intelligent planning. Virtually 99% of the people I've talked with planned for a monthly expense base of what it's costing them where they live now. WRONG strategy!! Google is your friend.....there is a major amount of cost of living information by city or area on the internet & it's free.....USE IT!

What's your present monthly heating bill where you are? If you move to BCS, you can lop that off the monthly cost of living right off the bat! Ditto for any work-related expenses, eating out, etc.

I turned the proceeds from the sale of my NOB home into my first construction fund & living expenses for two years until I began drawing my retirement benefits from my former employer. Many employers are willing to negotiate early retirement packages if you have the time required and/or are fully vested in your retirement package.....mind did & I began drawing retirement at age 55. Social security at age 62. The benefits of getting a slightly smaller amount sooner from both those sources worked in my favor. I actually lived on under $850 a month for the first two years down here; supplemented only for medical emergencies from the construction fund when necessary.

In my opinion & based on my personal experiences, there is more immaterial too be gained from retiring sooner rather than later. Like Kate, I wanted it badly enough that I picked the date rather than potential monthly income amount & made it work! I discovered the fine line between being frugal & not feeling deprived. I have a more comfortable lifestyle now than when I was working to live.

Also, there have been professional studies done which prove out the younger you retire, the longer your average lifespan.

Naturally, there are caveats.....you need to research the hell outta places & pick the right place for you.....you need to leave your USA expectations & standards at the border & having hardy pioneer genes really helps!

I own my own home & don't have any credit cards. I'm single, so on the upside, I didn't have to take anyone else's thoughts/feelings into account.....on the downside I also couldn't take a second income/retirement into account.

Research the hell out of it & JUST GO FOR IT & it'll fall into place easier than you may think from your present vantage point!!

Just to hedge my bets, I've been casually looking for career opportunities that would permit me to work remotely. I wouldn't make the sort of salary that I do in Boston, but I wouldn't have to. If the right situation presented itself tomorrow, I'd be on the next plane to San Jose de Los Cabos.

Originally Posted by BajaGringo

I love this...

9 Reasons Not To Retire Overseas (And Why They Don't Matter) | Kathleen Peddicord

Me too - now at least. Thank you for sharing this!

Thanks everyone for a great discussion. Particularly relevent to me as I just decided over the weekend to retire to Mulege at the end of this month. Longlegsinlapaz sums up what happened: once you make up your mind where/when, the other details start to (more or less) fall into place.

Originally Posted by lenstewart

Thanks everyone for a great discussion. Particularly relevent to me as I just decided over the weekend to retire to Mulege at the end of this month. Longlegsinlapaz sums up what happened: once you make up your mind where/when, the other details start to (more or less) fall into place.

Congratulations amigo! Be sure to post some pics once you are down there!!!

Great thread and a big world.... especially for an IT guy. You just have to have good internet.

And, you don't have to find a permanent spot... a few years here, a few there....

Originally Posted by soulpatch

Great thread and a big world.... especially for an IT guy. You just have to have good internet.

And, you don't have to find a permanent spot... a few years here, a few there....

As you are now showing us all amigo...

After some medical/financial issues in 2008 I came to realize that stress plays an important part in your overall health / life satisfaction and started making some changes. I took a 40% pay cut to get away from a life in the rat race working 12 hours a day just to makes ends meet in what I thought was a "minimum requirement" lifestyle (for Southern California). I used my IT skills to get a job with a company that I trust (I had sold my business to the owner previously so had a working relationship at the top level - even though they were both micro businesses [so not like Bill Gates was having coffee with me ]) that allows me to telecommute. I then spent 4 years on the Big Island learning to pare down my "requirements" to the real fundamentals (vs. what society says you should have). Health is on track, finances are on track, and I have soooo much free time to explore things I find interesting.

I'll probably never retire, as I don't feel that work at this level is so all-encompassing, it's just a task you take care of before going out and doing stuff (like the dishes or laundry). I think the biggest hurdle is getting over the "I want to own things" to "I want to experience things". I realize it's not for everyone, but I look back to the days when I would sit behind a desk in a cubicle and day dream of that magical age when I could "retire" and do what I want to do and it just seems like a foreign concept now.

Anyways, I've been lurking your board as Mexico maybe the next stop in a year and the information on here is great. Thank you.

Great input from all.... I am 48 and the So Cal Rat Race is killing me, 12 hour days and a 3 hour commute on 10 lane freeways moving 5 miles per hour... Not the life I want to live!

I am planning my exit now... shooting for 55.. and Baja is the place, I go down quite often to explore.