We are all faced with lots of decisions when contemplating retirement!

Logically, and sensibly, your choices should be based primarily on your finances.

Do you want to do a lot of traveling? If you choose that lifestyle, then why would you start looking for a large home, with a lot of upkeep demanded?

You may decide to just stay put – perhaps near family – in the home you’ve been in for years. Or, have they already scattered so you are free to move where you can really make the most of your retirement years, and just enjoy their visits?

Some of our friends, retirees also, have felt they must have extra bedrooms and baths for the relatives who come to visit (usually once a year). Just contemplate… how much would it cost you to simply rent a motel room for them, compared to the upkeep and expense of having that extra space you’re going to pay for??

Think of the original cost of the extra room, the extra taxes, the heating and cooling, and just the upkeep! You can pay for a lot of overnighters in a motel for what you will pay for that extra room that isn’t even used 95% of the time. And it’s usually a wonderful break – for everyone – to part at the end of the day for some private time and recuperation time!

Do you plan to do a lot of entertaining – either family or friends? Again – why get a humongous home you’ll be constantly cleaning and keeping up, when friends are just as comfortable in a more intimate setting. Remember, you and your friends are getting older each year, and the wild parties of your 30’s and 40’s possibly are not the evenings you will be experiencing in retirement.

Keep your taxes low, keep your utility costs low, and enjoy a higher, more leisurely lifestyle like you can do if you move to Mexico.

We’ve fallen into the nicest concept…It’s called “pupu parties” … I guess it’s Hawaiian for hors d’oeuvres party. You just call a bunch of friends – they each bring nice snack, your supply the drinks, and it’s a wonderful, easy and casual get together. Not too much work for anyone, and a great reason to get together with friends!

If you have a lot of equity in your home, (I always stress that hopefully by the time you are contemplating retirement, your home and your autos are paid for) and you should decide to sell it, buy smaller, have less expenses.

And if you have a lot of equity in your home, if you sell it, buy smaller, and put the profit in an good investment fund… voila! … Interest to help with expenses, or to grow for a long desired item!

Don’t overlook renting – an apartment or a condo – everything is secure when you take those trips, and you won’t have to own a lawnmower or snow-blower anymore!  Retirement years are years to enjoy!!!

If you’re considering driving to Mexico from the States, I have some good news for you: Your American driver’s license is valid in Mexico!

This is just part of the process of entering Mainland Mexico…

At the border you will need to get a temporary car-importation permit. It’s relatively easy. All you need is a valid driver’s license, your current, original car registration registered in your name, a copy of the original car title, and a valid international major credit card.

If your vehicle is financed you will need to take a letter stating that you have permission from the lending institution to take the car out of the country.

If you have an FM3 (Non-immigrant visa – what we call a perpetual tourist visa), you can have a foreign car as long as your FM3 is valid.  (If you have an FM2 (Immigrant visa) you cannot bring in your American car.)

If you do bring your car into Mexico, you cannot let anyone drive it other than family members or it might be confiscated by Hacienda (the Internal Revenue).

Incidentally, you can also purchase a car in Mexico and get it legally registered no matter what type of visa you have.

Do remember, that for almost all American auto insurance companies, your coverage stops at the border, so get your Mexican insurance before you start your trip.  You can easily get it on the internet,  and I list one company in my book, Retire In Luxury,  on page 29, with a phone number and how much we paid.  Or you can just stop just before you cross the border at any of many places that offer that service, and buy your insurance.

It’s that easy!

I just have to share with you some wonderful information from my friends Herb and Margy Sutton. Herb tells a GREAT tale about their recent trip. Let’s hear what he has to say…..

Dear Barbie: Time flies when you are catching up!

It is a month since we got back from our trip down into Mexico. There is one highway, Mex 1, that goes all the way to Cabo San Lucas (Cape St. Luke), on the southern tip of the Baja peninsula. It’s almost entirely a narrow-two lane with no shoulders! You have very little space when a semi passes going the other way. The buses are even worse because they go very fast!

Five of the twelve rigs in our caravan had their side mirrors broken. Ours was one of the smaller rigs and we didn’t have that problem. At one point there is a 220-mile gap between gas stations. When we stopped for lunch we filled the gas tank from five-gallon cans that we had brought. We did fine.

At Guerro Negro we went out in a boat for whale watching. The whales calve in Scammons Lagoon and then go north to Alaska in summer. We saw a mother and baby swimming along side by side. On the way back to the dock there was a half-grown seal on the beach. A sea gull was trying to steal the fish that he had caught. Further along were some mooring buoys that were completely covered with adult seals. From there the road crosses the mountains to the east coast.

At Santa Rosalia we saw the iron church that was built by Gustave Eiffel who also built the famous tower. The town was once site of a French-owned mining/smelting operation. In the campground the electricity died, so we had to rough it a little. No big deal, we were prepared. The road south follows along the shore of the Sea of Cortez. It is fabulously scenic with mountains that come right down to the sea.

Loreto was our next stop, an old Mexican town with narrow streets and a cathedral facing the square. It had a paved shopping mall with trees meeting overhead. Beautiful!

Next was La Paz, state capital, and by far the largest city in the state of Baja California Sur. Everything that arrives into the lower Baja comes either by ferry from the mainland or down Mex 1. La Paz is the major port. In the campground the electricity was 145 volts and the water was just a trickle. Good thing we were prepared. Mexico is a 3rd world country, but we did have fun.

On the side of the road is a sign that says “tropic of cancer”, we had driven to the tropics. We continued south to Cabo San Lucas. We had stopped there on a cruise in the late 80’s when it was a little fishing village. Now it is a major resort area and growing like crazy. We went for a ride in a glass bottom boat and saw many tropical fish swimming around. We saw for the first time blowfish that were alive and not in a beach shop. We sailed out to the arch in the rock that marks the very tip of the Baja.

One evening we went for a sunset cruise except it was cloudy. We did see some whales that didn’t know that they were supposed to be up at Guerro Negro. We went to a glass works that had beautiful glasses, dishes etc. It was pleasant shorts and t-shirt weather in January!

Heading back north, we stopped in Los Barriles (the barrels) mostly just a quiet town. From there we went on to Ciudad Constitution where everything was good except there was a loud concert close to the area of the campground. They blared until after 2 a.m. The worthless roosters started at 3 a.m.

Continuing north, the road went back to the coast again. The same pretty scenery but going the other way. We camped on the beach at San Bonaventura, mountains on three sides and the water on the other. We picked up shells and played with the parrot in the bar/restaurant. We went to sleep to the sound of the waves at that campground. They were about 50 feet from our trailer.

Mulege (Mool-a-hay) was our next stop. It is a pretty little town next to a river. Along the river is a forest of palm trees. I have never seen so many in one place! The town got beaten up pretty bad last summer by a hurricane, so a lot of rebuilding was going on.

Our next stop was the picturesque little town of San Ignacio. All along the way we had given or tossed used tennis balls to the kids that we encountered. We were handing some to kids in the square in San Ignacio when an old lady came up and asked if she could have one for her grandchildren. We gave her a couple. The kids really appreciate the balls and the tennis buffs throw them in the trash after a few games. Our campground in San Ignacio was named “Rice & Beans”.

Northbound again, we stopped in Catavina. When I opened the trailer door our TV set was still fastened to it’s shelf but was shattered to pieces. I guess the bumpy roads got to it. It was a small set that we found in a garage sale just for the trailer.

The rest was an uneventful ride back home. We put 3052 miles on the car. Margy says it was fun but she is not in a hurry to do it again, as the curvy narrow mountain roads were pretty scary.