Retirement In The LOS
A good few readers have posted about that in the recent past, and with varying viewpoints.
Let's take a case that you are about 50 and have worked hard all your life and have put away a good bit (you think) of dosh.
You imagine that you will want to retire to LOS or some other destination with an ample supply of age blind muff.
First you need to define your destination.
1) Where would be good to find nearly age blind muff?
2) Next you want to think about safety. When you get older and you are less able to defend yourself in the street where will be safest for foreigner?
Phil (by far more dangerous)
Next you want to think about what is going to happen to your living expenses (going up inexorably but by how much?)
3) First you need to think of you base currency e.g. that where you have your piggybank and eventual pension supply
my take on the various base currencies against a basket of Asian ones:
USA your currency will devalue by about 50% in the next 10 years
Euro perhaps down 20%
Canada perhaps down 10%
The reason for this prognosis is that the US and UK are in terminal decline vs. Asia and the Euro will decline due to the EC letting in of more terribly poor countries like Serbia, Turkey, Macedonia etc. The EURO already has some out of control deadbeat countries in the snake (Spain, Portugal, Eire, Greece,). However the fantastic German engine will continue to drive the currency along.
So you need to deflate your savings by the appropriate amount to cover these devaluations.
4) Next you have to take into account inflation. In your base country and your future resident country.
In Europe it will go to about 4% due to economic loosening of funds.
In UK and USA they are so desperate to restart the consumption I think it will go to about 7% or more (remember the 70s?)
Thanks to the central banks so called quantitative easing (jargon for printing funny money) – by the way they can do it as they wish – but if you decide to print your own in the USA you will get life!
So you need to delete again your income by this inflation amount.
5) Next you have to think about your income stream.
– Pension ? probably will be less than 1000 USD or euro/ month, and that is if your country can still afford to pay it!
well taken into account the above you will need at least 600,000 EUR on a good saving account in a low tax country (where the withholding tax is almost nil)
same for bonds which give about 5 to 6 pct brutto
here you may just beat the inflation if you get in at the right time (just after a crash like 2 years ago) and if you invest on growing markets e.g. bric (Brazil / Russia / India / China)
– Owning property in your original country
here you will be taxed on your rental income, and you will have to keep fixing it up, and in the future you will be faced with more and more deadbeat renters who cant pay and have occupation protection 9 can be thrown out) only the lawyers win.
– Having a local business in your new residence
this can be a godsend for income if you are smart and know how to make money and it also keeps you afloat in visas
if you are fit and don't take risk you will probably get to about 80 so you have 30 years to run
the last 5 will be the most expensive due to medical bills, foresee health insurance
you may want to foresee a way of ending it all (the Swiss are masters at this) if things become too difficult
7) Living costs (if you live like a local)
8) Fun- men's amusement
(Laos not allowed by law)
9) Quality of food
Phil (fried chicken)
so you must overlay all the above to come to your decision
Me; I'm off the indo at 65 with short breaks to other places for amusement
have fun and play safe
Indonesia is like this sleeping giant as far as Western expat migration goes, I reckon…