Retirement Primer

In my book, Retire In Luxury, I begin by saying that Dick’s and my retirement starts a little unexpectedly.

Oh, sure, we knew retirement was coming.  We had known that for years, but to choose a day when an actual paycheck would no longer be coming in… that was scary to say the least.

Through Dick’s work career, we had always matched the employer’s 401K contribution fully toward our eventual retirement.  We had managed to save a little money from the building and remodeling of houses that we had done for years — although back in those days, we congratulated ourselves when we walked away from a sale with $5,000 profit in our pockets.  And we did almost all of the physical work ourselves.  But we were young and strong, and now Yikes!  Well, we still feel young.  We are still fairly strong, and we were going to need that strength now.

Talking About Retirement

The whole process started with a lot of talk about retirement – I mean a lot of talk.  What did we want to do with the rest of our lives?  Where did we want to spend the rest of our lives?  How in the heck would we pay the bills?  And just how long might this “retirement” last?… Oh my gosh, that’s right… the rest of our lives… hopefully for many, many years!

Remember… this was a little over 10 years ago – so I grabbed pencil and paper – yes, I had computer, but I was still relying on the good old tablet and pencil for the first-round.  It took a bit of work, but I finally had a list of bills – debits, and the list of income – credits.  Darn, the debit list is a whole lot longer than the credit list.

On the debit list, there were utilities, there were insurance payments, there were credit card payments (luckily years ago we had learned to pay off that debt monthly), we had a very small payment for the maintenance fee where we lived in Louisiana, and every little bill I could think of was placed on the list -I wanted no surprises in our retirement.

Retirement …or Mortgages

I want to tell you now that if you are still making mortgage payments on your home or if you are still making payments on a vehicle, you may not find retirement very rewarding.  But, maybe you’re just one of those few souls who happen to absolutely love your work – then, keep it up – and enjoy – you’re not really retired – you’re just enjoying working.  Or then again, maybe you have a whole pocket full of money – if so - that’s good too!

However, if those big payments are still coming due, you will most likely be one of the many who take up a second career – or just continue your original.  So if it is at all possible, get those two bills paid off… you will be very glad you did – if you actually want a good and enjoyable retirement.

It’s strange, but once you have all this information down on paper, a lot of those spooky clouds and worries started to disappear.  We realized if we were careful – frugal — maybe downright tight, this retirement just might work out.

Even if you’ve already taken that big step and retired – go ahead and get those lists down on paper (or on the computer).  They’re not nearly so scary in black-and-white.

The “where” choosing portion of our retirement, I’ll delve into later.

Retirement article by Barbie.

Moving to Mexico?

You will be applying for certain Mexico Visas – FM3, etc. - you must prove you have a minimum monthly income.

That is a requirement to obtain certain visas – expecially for seniors. $1,150 a month for the first person in the family is approximate, due to the fluctuation in the exchange rate, and considering yearly increases set by the government’s Mexican Immigration Department’s Official Federal Requirement, but that’s a pretty close estimation.  If you own property in Mexico, you can cut that amount in half.  For the second person in the household, about half the amount of the first person is required.  This amount also varies as to which zone you want to reside in Mexico, A, B, or C, in 2010.   Read more in one of my newsletter reports:

http://www.retireinluxury.com/free/retire_in_luxury_july20.pdf page 3.

There are rental properties available almost anywhere in Mexico.

And you may be able to take advantage of them to check the area out that you are interested in.  I always tell my readers to go, not as a tourist, but as some one who is really looking for a new place to put down roots.  Hang out at the native shops and restaurants.  Staying only in a lovely resort, in the fabulous pools, is not going to give you the real taste of Mexico you need to make your big decision as to whether you’re going to move south of the border or not.   Take a few trips to check things out.

Mazatlan, because of having every convenience, was our choice, but, there are places nearer the border.

And, sure, you can own property in Mexico.  In the interior you’ll get a deed – much like the States.  In the “excluded zone”, you can still own property, but you will do so through a Trust. Do download all my free newsletters and read all my reports and articles – you’ll find oodles of information to help you in your decisions.

Just heard a new one – at least for me – when life deals you a bunch of lemons – hey – make Margaritas :)

And, to end today, an email received from Marlene S.:   “Thanks for all the information on Mexico.  Your e-book was very helpful.  Thanks to it and a visit for the month of October, we are moving to Lake Chapala area at the end of February.  Less than one month!!!  In about two weeks I will have a different e-mail address. If you want it just let me know. And thanks again for the good tidbits, do’s and don’t's,  etc.  Our friends from British Columbia just moved as well.  He was having some chest pains before he left but the BC doctors gave him a clean bill of health. When he arrived in Mexico things got worse.  He ended up having triple bypass surgery in Gudalajara.  It went very smoothly.  They gave the BEST and quickest care they have ever seen.  In a new clean modern hospital.  He may not be alive if he was still living in BC.  So Medical care is superb in Mexico. All for now.  Marlene”

Do read all my free articles on Mexico on my sites, and enjoy.

The Affordable Side of Mexico

Hello Everyone – This is sort of an emergency article, brought on by a dear retiree living in Mexico, Jerry.

Jerry first wrote, and I shared with you all: “I have lived in Mexico for 11 yrs and I rent a two bedroom 4 yr old house (very pretty) in a nice neighborhood for $83.00 per month! How about that? And there are more! Jerry”

I responded:  Hi Jerry! Thanks for writing! Yep – it can be done! Way to go! Barbie

With that, and with many, many people replying to me, concerning his email, I asked Jerry if he would mind telling me where in Mexico he was located, he replied:

“I live 7 miles from Chapala on the north side of the lake in a small but nice village called Ixtlahucan de Los Membrillos. Email me at (deleted by Barbie). I lived in those areas (around the lake) but found them to be too expensive — so I figured – what are the people of Mexico are paying, so I did my homework and found this place and the home that I lived in before, for 5 yrs was $100 USD per month with two bedrooms too! They exist, you just have to look for them…Mexico Jerry”

And then, after I asked if he would mind if I shared where he’s located in Mexico, Jerry quickly replied:

“Barbie:  Sure, I live in a small village at the bottom of the mountain just before descending into Chapala. (that’s Lake Chapala.)  The village’s name is Ixtlahuacan de los Membreious in the housing area called Aguilillias (some call it Vista Del Lago!)  There’s one house next to me that the bank just took back over so it’s empty at the moment! Hope this helps! Jerry” (Barbie = I looked this up on the computer – tempting!)

In his next email, he continued:  “When I first moved to this area, I paid the usual $350/250 per month for rents but decided that the locals can’t pay that – so I looked around.  For 5 yrs I paid $100 per month and then found this house for $85.00 per month.  You can get around the costs here if you do as the Mexicans do.  Health insurance, you can cut that way down too!  Lots of fine clinics in Mexico, and low cost hospitals. You just learn to work the system as the locals do. Jerry” (Barbie = Exactly what I tell people – do your research – be well prepared, and then check things out in person – not as a tourist, but as someone looking for a new home in Mexico.)

Then, quickly from Jerry:  “Barbie:  Thank you!  I don’t mean to step on your toes, It’s just that I figured that Mexicans aren’t paying big amounts for rentals so why should I.  Your readers will need to get down here and look around and do a little legwork.”

To which I replied:  “And – no – my toes are just fine ;)  I’m going to get an article/notice out asap – and yes – love your email – you are so logical – that can be a rarity these days…  have a good one!  Barbie – do keep in touch!

And after a very brief pause, Jerry sent:  “Barbie, You are right. I went to laundry-mats and small grocery stores and anywhere to ask about rentals in the Mexico neighborhoods. Ask the locals – quite often they know of something or maybe a relative has a rental and would love to get a Gringo in there! It worked for me.”

I wrote:  “Hi Jerry – thanks so much for your reply – yes – I understand – but my one fear is the ugly American coming down to Mexico and ruining the “goose”.  I’m going to put up an article – try to tonight – hopefully explain – more – I say over and over that the average DAILY wage is $5 in Mexico…I keep trying :) Barbie”

(Lightly Edited for privacy)

Added by Barbie – please, dear readers, don’t think you can just go to Mexico and pick up rental prices like this easily – it’s going to take work – just like Jerry said.  Barbie

And, added Jerry wrote this to me :

“Should any of your readers think that even though I only pay $83 per month for my rent, that I am living is some sort of squalor, they couldn’t be more wrong!  I have high speed Internet telephones and Sky TV, a maid twice a week  and  (I think,) all the amenities.  I am retired from the University of Florida and while my pensions are small, I am able to travel, and even save money too just from my income.  I am planning a trip to Asia in October and have been saving for that. My point is that if someone has a pension of $1,100 US per month, they can live very well here in Mexico.  The best to you, Mexico Jerry”