The financial crisis of 2008 and 2009 hit my finances very hard. My partner lost his job, our investment properties went underwater and we found it increasingly hard to meet day-to-day living costs. We were particularly worried about being able to fund our retirement. That’s when we decided to get creative and consider alternative strategies. Things started to fall in place when we managed to broaden our horizons offshore and started to consider an overseas retirement.
After 2 visits to Nicaragua we decided that the country offers everything that we need. We plan to move there full-time in 2014 and are getting very excited about starting on our overseas retirement adventure. Here are some of the reasons why Nicaragua has ended up as our overseas retirement destination of choice:
- We will be able to live far more cheaply than back in the USA. In fact will be able to considerably elevate our living standards. We’ve done the math and have found that we can have a full-time maid (who would also do a bit of gardening work) for around $150 a month. With cinema tickets only $3, dinner for two and a glass of wine overlooking the sea for around $15 and a bottle of cold beer in a trendy bar costing around $1, you can see that we’re entering an economy where our dollar will go a long way. For more cost of living numbers in Nicaragua, check out this article on almostfrugal.com by someone else who has made the move.
- Although we haven’t purchased real estate yet in Nicaragua, it’s something that we can we plan to do. My partner loves golf but we realized long ago that we would never be able to afford a home on a golf course in the US. Not so in Nicaragua where these kinds of homes are available at a fraction of what it would cost back home. We know we have to tread carefully when purchasing real estate overseas and plan to follow some of the guidance set out in this article.
- Nicaragua is a beautiful country with a warm tropical climate year-round. My partner is a pretty good surfer (and I plan to learn) so I’m sure will be enjoying the warm waters and uncrowded waves. In fact there a couple spots in Nicaragua where the weights can be considered “world-class”. We’re told that it can get a bit humid before the rains so will probably plan a visit to the highlands around this time of year.
- Nicaragua is also a very tax friendly place to live and invest. As US citizens we won’t be taxed on our foreign income even if we bring the money to Nicaragua. They are no exchange rates controls or restrictions on moving currency in or out of the country. If we decide to become local residents we’ll also benefit from additional tax benefits and incentives. For example will be able to import household items and a vehicle without having to pay any import duties.
We know that there are others that may follow in our footsteps. According to data from the Center for Retirement Research, 51 percent of households are at risk of not having enough retirement income to maintain their pre-retirement standard of living. Our advice: Join us in Nicaragua and live your retirement dream.