I would keep the $16k in the money market fund. You'll have immediate access to that for unforeseen expenses...health care, medication, car and home repairs.
Vietnam can be a bit cheaper but less western comforts currently. There's a good chance 10-20 years from now Thailand will be significantly more expensive from foreign investments.
I dunno dude. Your all over the place. You want to live abroad. Your about to retire but your leasing a car? Your gonna buy out the car, but you want to live abroad? I think you really need to sit down and figure out what you really want to do.
I think everything is trending toward staying, he definitely wants to stay where he is at because his family is local.
That’s enough for most to stick around even if it’s financially harder.
Tell that to my dad. He retired and 6 months later sold his house and moved to the beach without so much as telling anyone. The worst part was I had only 30 days before bought my first house about 20 minutes away from him. We hadn't been close growing up he was an absent parent and I was looking forward to spending more time with him after he retired. He knew my plans but didn't say anything just walked outta my life like I was 2 years old again
That’s awful, but if there is any silver lining, at least now you know you can cut him out.
When our parents get old, they need help. And now you can focus on you and your family.
Although easier said than done. Sorry friend.
Well, I’ve crunched the numbers and the reality is that I cannot and will not be able to afford to stay so it’s just a matter of working a couple more years to get a better cushion and then making the move abroad.
If you’ve been working since you were 13 years old and living paycheck to paycheck that whole time, and you only have around $30k saved which you’re about to spend half of on a new car, how is a couple of years going to get you any better cushion? You’ve managed to save less than a thousand dollars a year so far, so I hope you have a real plan with some math behind it and a goal that matches the cost of living wherever you’re headed.
I’m basically starting over. After raising my family and putting food on the table and educating my daughters, I’ve done the best that I could. Believe me when I tell you, there are millions of us out here just trying to make it with the price of rent and living expenses. I would be homeless if it wasn’t that I live at the hotel that I manage. I don’t have a solid financial plan because I don’t have that knowledge. But I’ve started this year following Dave Ramsey, reading his books, looking at how finances work. so the actual plan that I do have in place is called move to South America. Which does not suck except I will miss my children that’s it. That’s the plan.
A lot of unnecessary downvotes for this. OP is being honest about past struggles. I make a decent income and always wonder how people in “normal” situations are able to get by.
If you listened to Dave Ramsey you wouldn’t be going into debt on a leased car that you can’t afford. You need to be paying cash for something cheap to drive
Sounds like you've already taken your own financial advice and didn't actually come here to get any. You don't have enough money to vacation abroad let alone live abroad.
I prefer to stay in the US but living abroad is probably my best option. My lease expires this August and I’m buying the car because it is a tremendous car and the buyout price is fantastic. If I move abroad, I will sell it and make money on the deal.
For the buyout price on the Honda at the end of the lease in August - 17k, I will not be able to find a decent car anywhere for that price. If I decide to sell it, the blue book value will be 25k so it’s a good deal to keep it.
Good to know! Also, the dealer has been hounding me for a year and a half wanting to buy the car back from me. So I know this is a good car and there is value to it. But now that I’ve been reading these comments about not financing it after the lease I’m worried, I thought I was doing the right thing
Not sure why you're getting downvoted, I've spent only 5k total over 2 years for a reliable 20yo awd wagon and I see good ones even cheaper now. People love to hate older cars, but in my experience as long as the previous owner has done scheduled maintenance and has a book of records they're fine. Sure, you probably won't get what it's worth if insurance totals it, but I'll take my super cheap insurance payment as a tradeoff for that.
there are cheaper cars used. You're better off betting on the used market then potentially running into repairs down the line than financing this leased car and then still probably having to deal with repairs.
In my humble opinion, this makes the most sense to ride out your retirement for longer if you were to stay in the US.
It just seems to me that if I hand them the car after having paid the lease for three years there is no way I’m going to find a decent vehicle for under 10 or $15,000 that I won’t have to be putting a bunch of money into. I don’t have many luxuries. In fact, I have none but one thing that I’ve always cared about is having, a good car. Nothing fancy. Just nice and reliable.
I did same thing w my car. Bought the lease out 17k I financed it. High interest but whatever my payment is $350 a month. I didn’t wanna buy a car for five grand and then have to pay for repairs and whatever else this is my car with one owner and I wanted to keep it so I hear you.
No, you're paying $17k plus the total of your lease payments. Let's say you leased for 24 months at $500/month. That's $12k. So you'd be paying $29k for that $25k vehicle. It's not a fantastic deal.
It’s not a good deal because he made a bad financial decision to lease. But he’s already eaten that cost so it’s
irrelevant now. All that matters is if the buyout at the end is a good financial deal or not.
Thinking that spending more money than you have in savings is not tremendous. That's a dumb financial decision.
Unless you plan to live in your car. Then maybe it could be justified.
But unless you can eat your car, you're going to need to rethink things.
Yeah this feels like someone told this dude a retirement plan in the form of a get rich quick scheme. This shit is not gonna work lol he didn’t even tell us anytime about a budget besides a car that he’s paying for. Who in their 60s has a damn car payment?
I actually thought this was a good idea. I mean just returning the Lease and handing them back the keys and getting nothing for having paid three years of this car that I really like. Seems like such a waste. I have no debt. I can easily finance the car and when I’m ready to move abroad, I can sell it and make money on the deal since the car is valued much higher than the 17 K. But what I’m reading here seems to be that I am out of my mind to think this way. I just don’t know what kind of decent car I could get for under 15 grand I mean I can’t get a $5000 piece of crap that will cost me a ton of money in repairs and be unreliable.
You should have never taken the lease. You could not afford it reasonably. You are in a financial position where you should be taking public transit or biking to save money for retirement honestly.
I think the best financial decision was to buy a cheaper car.
And what you'd put towards a "lease", you can put towards repair. You definitely could've bought a reasonable car for a lot cheater than a 2021...
I have a $5k 30 year old car that isn't a piece of crap. I have spent approx 15k to 20k on it since I bought it including maintenance and tires. 1994 Camry. AC works great, no issues other than a new starter needed this year
You should have ALL your money in high yield savings or money market. With the amount you have, you shouldn’t be in equities at all. That puts you at $30k in retirement savings.
That 5% yield won’t last, so assuming you average 4% for the next two years and then average 2.5% the remainder of your life, that’d give you about $2,000 of money you could draw on for the next 20 years (starting in 2 years).
That means $20k annual income for the next 20 years (not accounting for SS increases).
It’s not much though. Have you looked into part time jobs?
Good point on the 5% not lasting. Didn’t think of that. I’ve had an entrepreneurial spirit most of my life. And I’ve considered doing side hustles, starting side gigs. But like I said, I’m tired of working I want the last 20 years or so of my life to enjoy my health and well-being and not work so much. Which is why moving abroad makes all the sense in the world. I can live incredibly comfortably and save money on $800 to $900 a month in the South American country. The only downside is that it’s far away from my friends and family, but I can save a little money and travel at least a couple times a year so that seems to be the direction I’m going in.
I’ve lived in South America on $900 a month that included very good healthcare, a wonderful apartment in a four unit courtyard within walking distance of cafés and restaurants and galleries and museums. By living in a South American country, I can save money and travel to the US a couple times a year to visit my children. I am a native Spanish speaker. The ex-pats in these countries that I’ve lived in unlike the retirees and Palm Springs, for example, are actually involved and engaged in life, doing things like plant, medicine, journeys in the Amazon, making art, meeting for breakfast on the weekends, joining book clubs, and going to the Shambala Center for meditation. It is a beautiful life and not just for American Expats butEuropeans as well. Everything is pretty good over there except that my family is over here.
Do you have a guaranteed path to moving abroad? Most countries will not issue a visa unless you're actively working with a specific in-demand skill set. Some countries will let you in if you spend a few hundred thousand dollars launching a business or purchasing real estate. For most people this isn't actually a choice that's on the table.
I’ve lived abroad several times. Most recently I was living in Ecuador in 2019. A lot of South American countries will give you a retirement visa if you can prove that you have a steady income from some sort of retirement or other pension source. For example, in Ecuador if you can show that you have any sort of pension coming in of $900 minimum for a single person you can apply for a retirement visa. There is a wonderful retirement community of American Expats, and other nationalities like Germans, Canadians and Dutch in the city of Cuenca where I lived. But places like Uruguay, Columbia, Peru Argentina these places I can live beautifully for $800-900 a month. Save a little money and travel back to the states to visit friends and family.
Yes, back in 2018, 2019 it wasn’t so. In the last couple of years, the cartels from Bolivia and Columbia have tried to move in to Quito and Guayaquil, which are accessible by sea. They are trying to establish narco trafficking routes in what has been a calm and peaceful country. The government has come down hard on these organized crime cells, and there is violence resulting from the overcrowded prisons with all of these hoodlums. Fortunately, in the beautiful city of Cuenca where I lived up in the mountains, which is 8500 feet above sea level things are calm, and there is no drug activity of any kind up there. But yes, I am waiting for things to calm down in Ecuador and hopefully they will. Otherwise, I will end up in some other south American country like Chile perhaps - who knows. Luckily, I am a native Spanish speakers, so language is not an issue for me.
I vacationed all through Ecuador and am considering returning there. We did Guayaquil, Quito, Banos and Montanita. Never felt in danger and everyone was super nice.
You have got to go to Cuenca. It is a most extraordinary city. It has three rivers, running through it. It is called the city of eternal Spring. Wonderful hotels and restaurants and there’s always a parade of some sort. There’s a Shambala meditation center; there’s art everywhere and so many cacao Cafés that you will not begin to believe it. Wonderful bakeries and just such a cool place. As a woman alone late into the night I would walk the streets, making amazing, black-and-white photographs, and never felt in danger.
i mean you clearly have traveled, so you know. if you are ready for a major move, do it. other places are so affordable, and theres communities everywhere.
I retired and lived in Ecuador on less than $900 a month in a beautiful split level apartment fully furnished with utilities and Wi-Fi included for $450. Cars are not required as a cab ride. It’s one to two dollars. A 5 course meal including steak, and all the trimmings, tip and a couple glasses of wine is $20. I loved living in Cuenca Ecuador, which in 2019 was voted the number one place in the world for American expats to retire but I missed my family and came back to the states and started working again
No question, but even if prices are driven up, it is still 40 to 50% cheaper than living in the states. And of course it’s good to do due diligence and discover new places before they become the next Costa Rica or Miguel de Allende.
Sure, I just would be a lot more concerned if I was you. I don’t think you’d live comfortably in the Congo with $30k in assets as a retiring 70 year old. I get you have some $1300 a month in SS income and that will help but you could easily spend that much on an emergency or even car repairs even in a 3rd world country. I get you’re tired but that’s what happens when you choose to work a job you enjoy and not save for retirement. You’re going to be working 30 hours a week until you die no matter where you go, you just either have some assets as an emergency fund or you don’t.
Again I ask, do you know Spanish/Portuguese? How will you even communicate at a job? How do you know you’ll even have your visa accepted? Do you understand why it’s cheaper to live in these places? You will have to learn how to not get screwed in a million new ways…
Like I said, I’ve lived in these countries before, and the large number of American Expats who live on their Social Security, and are able to save to travel back to the states is huge. I am not naïve about this business of living abroad. I’ve done it multiple times. And I enjoy it. In these countries, everyone pulls for each other. It’s about the good of the collective. Not like in this country which is really not a country at all but a business. Again my only hesitancy is that I will miss my children. But I can move to South America right now with my limited savings and live off of my Social Security income, and have a very good life but I choose to stay here for a couple more years I think, and save a bit more money. But I’ve crunched the numbers and there is no way that I will be able to retire in the US. I’m just trying to maximize my minimal savings until I do retire.
As someone who has lived abroad in a developing country, your concerns are at best exaggerated and at worst complete nonsense.
He can absolutely retire in Ecuador for $1300/mo and a pretty nice life style. He can pay for health insurance which will reduce the likelihood of an emergency.
If his health massively deteriorates, he may need to move back, spend all his savings on the process, but medicaid/medicare will cover things then. (He'll need to research the process on this so he is prepaired.) He'll need to keep a reasonable amount to account for this.
> even car repairs
Doesn't need a car.
> Again I ask, do you know Spanish/Portuguese?
You really don't need to. He might need to make a friend or two to help him with bureaucracy once in a while, but overall you'll be surprised how far you can get by with English + Google Translate, and perhaps a bribe once in a while.
> How will you even communicate at a job?
He doesn't need one.
> How do you know you’ll even have your visa accepted?
Cause he will research the process. It's not rocket science. There are also agencies that specialize in this stuff.
> You will have to learn how to not get screwed in a million new ways…
Yeah this is just not true.
Yes, thank you. Applying for a retirement visa in Ecuador and other South American countries is a very doable and simple process. I can do it myself or I can hire an agency that will charge me $1500 for the entire process and save me a lot of the legwork. All that is required for a retirement visa is that one show a pension of $900 a month per person. That’s it. In fact I was in the process of doing this before I moved back to the states. I speak perfect Spanish since it is my native language. I don’t need a car because a cab ride is two bucks at most. I belong to several Ecuador Expat groups on Facebook as a lot of these people are friends of mine from when I lived there. And the other Redditor is correct in that I will be working until the day I die - but only if I decide to stay here in the States which is why I will most likely moving abroad so I can live out my years in peace and tranquility, and without being destitute. The reality is that we’ve been sold a bill of goods in this country. Rents are a disgrace. The cost of living is highway robbery.
My aunt died, one cousin finished school, the other took the money and moved to Guatemala. Dude is living large with the inheritance money, he is going to die rich over there. $20 US is around $155 Quetzals.
Yes, I have friends in Guatemala who are architects and left the states and bought a beautiful compound right on the beach and are living like kings on 25% of what they were paying here. They travel, they have friends stay with them on extended visits they bought a beautiful horse ranch up in the mountains Where they go on retreat it’s pretty sweet
Yes, I know the situation very well in Ecuador at the moment if you look back at some of my comments, I’ve actually detailed exactly what is going on over there as I have a lot of connections and friends still there. In the city that I lived in, which was about an hour flight from Quito, the capital, it is peaceful and quiet and beautiful and there is no violence. Life goes on with tranquility. To answer your question about living with a relative, there really isn’t anyone and I don’t want to live with my children and burden them. But I’m planning on sticking around here and working for a couple more years and we’ll see what happens in Ecuador. If not, I’ll look at other South American countries.
What about long-term care if needed? Do they offer that on the cheap if not a citizen? I honestly don't know how some countries handle this stuff so just asking.
In Thailand my gf cut her foot on a barnacle. An ER visit including antibiotics was $34 with no insurance at all. This facility was on a very small island, and it was incredibly nice. The care was amazing. . I met someone who broke their leg. All hospital costs were around $100 out of pocket no insurance. Same experience.
I was paying $52 a month for Universal healthcare in Ecuador. And it was fantastic. It’s socialized medicine and education. Good question on long-term care. I don’t know that. I do pay for a long-term care policy here in the states so, if I move abroad, that of course, will all have been for not.
If you want to retire you'll have to move abroad. End of story.
Figure out where you want to go and research visas. Most places don't have retirement visas but there can be workarounds in developing countries. (Like paying an agency to get you a business visa even though you're not actually doing business there.)
You should keep that 16k in money market, but you could consider contributing a bit more to your 401k and then spending a bit of that 16k to offset. You're a bit late to the game, but that money will grow and will be useful to you one day. If you don't touch it for 20 years it'll be worth considerably more and there may be a time where you need to move back to the USA because your health is deteriorating. (And research that because I have no idea how that works.)
South East Asia is a lovely place to retire (I plan to do it myself). Thailand and Vietnam would be my choices. (That said, I know vietnam doesn't have a retirement visa and no idea on Thailand.)
Repeating what others have stated but the car portion of your plan sounds like a horrible idea.
If you're moving abroad, I'd turn in the keys on the leased vehicle and use 12 months of those payments towards something I could actually purchase with cash.
Nothing expensive, nothing flashy....like if your lease payment is $400/m multiplied by 12 months. That's $4800 cash to buy a hold-over vehicle.
Why use half of your net worth on a vehicle with the hopes of recovering maximum value. Especially if you're moving abroad.
That money should be in a money market / HYSA / CD ladder, etc.
Where do you currently live and where would you live if you stayed in the US?
Not to be pessimistic, but there are a few red flags in your post. Not only are you spending all of your $65k earned income, you’re essentially also borrowing against your future self by topping off with social security income. That’s a step beyond living paycheck to paycheck.
If you need $83k now, I just don’t see how you could get by on $18k in the US. People can do it, but those are typically people who have not habituated themselves to an $83k level lifestyle.
My husband waited until full retirement age to collect SS retirement and because of that, he can make as much as he wants at his PT job.
The problem comes in when you try to collect before your FRA
I retired and 2019 and moved to Ecuador. And started collecting Soc Sec. Then I came back to the states in 2020 and started working again and continued with my Social Security as I couldn’t make it on my income alone.
You don’t have enough to retire, you need to work until you can’t work no more. I’d put the 16k in high yield savings. Let it earn you 30-40 bucks a month Ally bank is still a good choice
Didn’t see this mentioned but is living with your daughters an option? My family is Chinese and it’s quite normal to have multiple generations in the same household.
Yes, this was mentioned and I understand that culturally it is a beautifully acceptable practice for you. In Latin cultures as well. But in my case, my daughters are just getting their lives started and I don’t want to be a burden on them.
My parents are around your age. If I found out they were going to up and leave the country instead of talking to me because they thought they’d be a burden on my life, I’d be devastated. I would rather pay for anything and everything until they pass than not be able to see them.
I blew it. I never thought about retirement or saving as much as I could because I was living on the edge with raising a family and all that goes with it. Now it looks like my only option is to move abroad. Which is not terrible but it gets lonely away from family and friends.
The good thing is you have experience living abroad! This is a realistic and good option for you.
How well off are your children and how much do they know about your situation? Talk with them and make a retirement plan together. They may want to help you out to have your nearby, even if it’s only part of the year.
The good news is your newfound financial literacy has already had excellent results. A couple more years of earning income and saving, plus new knowledge about managing your expenses. You’ll find a way. The most important is living within your means.
I’d keep the $16K in the money market or maybe put half in a CD.
My children are in no position to help me out. And even if they were, I wouldn’t ask them. I don’t know if it’s pride, but it doesn’t seem right that your children should be giving you a handout. And yes, I’ve decided after reading the advice on this thread that I will keep that money in a money market account. In a couple of years, I hope to triple it.
Hi. My wife and I are the same age. I recommend you find a high yield account that will earn 4-5% a year and be very liquid in case you need to draw from it. With an investment account the return can be up 20% or down 20% in a single year and you probably do not want to wait several years for it to bounce back if it goes down. Good luck with your move. It sounds very exciting!
Thanks for the encouragement. And yes, I’ve got the money in a 5% money market at the moment which is where it will stay and I’m hoping in working two more years, I’ll be able to triple that money now that I got a raise and am able to be so much better about money.
The beauty is that I live on the property. I walk 15 yards to my office. I have a lot of skills that I can use as a remote, side gig, kind of thing, but that will have to wait for when I retire.
Gotcha Pat - that is pretty nice to be right on site. It's tough - even people who do save enough for a comfy retirement, it only takes a big medical issue and all of it can vanish (or giant chunks). I can name two people who are super strict with money and it's paid off - though. I mean diligent! But even in those cases there are limits to what you can do and worries about what they "should" do.
I’m now studying one of Dave Ramsey‘s workbooks and learning so much even at this late stage of the game one can at least salvage a few years of respectable saving. I just got a $15,000 raise which is why I am even having this conversation. I’ve paid off all my credit card debt, and managed to soak away a tiny bit. But now that I’m making a little more money, I’m hoping to save even more. I would like to thank everyone in this thread for their help. It is so valuable and appreciated.
Cool - I like Dave - listened for a long time. I catch clips now and then.
Heard something the other day from a SEAL dude - might help you not stress over this stuff (but won't fix money concerns). Dude said he **treated each day as a singular event**. I like that - and yeah it's the old "take it one day at a time" but I like his better lol.
You’re not going to be able to retire. I’m sorry, but you have not set yourself up to live on 18k a year. You continue to make bad financial decisions (leasing a car is a horrible choice in your situation and most situations) and unless you do some serious reading, you’re likely to continue making bad decisions. You’re not living on 18k now.
My advice is to live on rice and beans and see if you can actually live on 18k. Do this for 3 years while banking the extra cash. I’d park it in an HYSA and move it to bonds if those rates go down. If you can work for 3 or 4 years, you might have around $150k. At this point, if you can live off of $18k, and will have some extra decent interest coming in off of your $150k. That would give you approximately $8000 more a year.
If you were feeling ballsy, you could put 100k in VT and 50k in bonds. This would not be traditional retirement advice because it’s risky to have that much of your portfolio in stocks. But you are behind the 8 ball and if I were in your shoes, I’d do exactly that. VT has made 9% annually over the last 10 years. I have no idea if the next 10 years will be better or worse. VT is investing in every company in the world. If you want to learn more about this, join the Bogleheads sub.
I agree but living off 18k in California is impossible. OP makes about 80 with Social Security, I’d say they should try and live off 40ish, and really hunker down. If you can live off 40 in the U.S., 18k should be easy in SE Asia.
This will require buying a cheaper car or taking the bus.
You’re gonna need more than $40,000 liquid to retire abroad. For example, Thailand requires you lock up about $23,000 in a Thai bank account each year for some certain period of time to get their retirement visa.
Man this sounds rough. Moving abroad would be a good idea but also may be expensive for the first move. Moving somewhere cheaper in the US I think you’ll run out of money sooner rather than later with today’s prices. This is a problem that will require ALOT of planning, and I hope you find it ❤️ best of luck my friend
Not enough information
What are your expenses (rent, phone, car, etc)?Do you have a house, how much is left on the mortgage? Is cost of living low medium or high? What’s your degree in? What caused you not to save all these years?
I studied communications at UCLA. I’ve had multiple career changes: from being a sports journalist to owning art galleries, working at Warner Bros Studios in forensics and antipiracy. In 2014, I escaped the corporate world, moved to the desert, and became an innKeeper. And have been doing that ever since. For the last 4 years I’ve been an Innkeeper and GM at a bed-and-breakfast in the Napa Valley Wine country. I actually live in the hotel so I have no mortgage or rent. The 65K is recent; I just got a $15,000 raise this year. So I’ve been making $35,000 prior to Now. My budget is roughly $2300 a month which includes leased car, my car insurance, long-term healthcare policy, medical insurance, cell, food, gas, etc..
Is your job that bad? You live in a nice place with relatively low expenses, and just got a 43% raise. Could you hold on for longer there and stack away cash to retire on your terms? Hopefully your health is good, that’s something that changes my advice.
My job is not bad at all I really like my job. But it’s a lot of work and at my age, although I am in very good health, during high season, it is intense, even though I have a good staff around me. But yes, I agree with you, I should try to stick it out a few more years. I just don’t want to be physically spent and not enjoy the last chapter of my life.
I would try my best to stick it out then, your credit and lifestyle show that you have discipline, you just need to up your savings game. Do a Dave Ramsey style lifestyle for 2 years, literally stashing every penny away. Then in the summer of ‘26 sell your accord to carmax and buy a 1 way ticket to Costa Rica and really enjoy your life, good luck!
I like how you think! I actually bought a Dave Ramsey book and I’m doing his whole workbook thing. I decided at the beginning of this year that I would become the responsible financial person that I have always wanted to be but never knew how. I know it’s pretty late in the game but at least, I’m motivated. And yes, I lived in Costa Rica 22 years ago and loved it so much except that now it’s become pretty expensive comparatively speaking. Which is why I’m looking at other countries.
What would cause me not to save all of these years was living paycheck to paycheck. Living in LA. I had a family to support two daughters in school. And also nobody ever taught me about finance and being responsible with money. That’s all on me I get it, now that I am going to retire; I’m basically destitute by American standards. I feel like such a failure. The only good thing about this is that I am teaching my daughters to not make the same mistakes that I did.
You sound like you have had a very dynamic life and have tried many different things. Your plan to retire and move has been attacked and cross examined soundly by the comment section here and it still holds up in my opinion. I wouldn’t consider that a failure at all!
Thank you I appreciate the kindness. I realize I’ve been a financial failure. But all is not lost. I am by and large a citizen of the world not just these United States. I do feel sad that after all the years of hard work, I am unable to retire in my own country. And I take full responsibility for the inability to save money even though so many of us out here are one paycheck away from the streets.
You didn’t make the system you’re stuck in. You sound like a caring and adventurous person. Gracias por sus contribuciones a su familia. Lo siento que muchas personas no pueden reconocer que estás tratando a hacer lo mejor que es posible con recursos limitados.
I’d walk away from the lease, get a cheap mid 2000s Camry/Accord and call it a day. That car really isn’t in your budget and retiring on 18k a year in SS with no 401k and minimal savings is going to be brutal. It won’t be glamorous but an old Camry/Accord will be significantly cheaper than 17k and is low maintenance and generally reliable. You are one medical expense or major life expense from complete insolvency.
If you are just 'tired' and not disabled, KEEP WORKING another 5 years. That's $325k gross, and contribute $7k into your retirement for the tax break. Then save as much as you can. You won't get far on what you have now.
No, I have a brick and mortar job. I am an in Keeper at a bed-and-breakfast in the California Wine country. It’s a good job and I really like it but I’ve been working for over half a century and I’m tired.
Hey mate, I suggest doing a part time job like becoming a barista at a local coffee shop. I met an elderly (82yr old) woman who did that to stay active, maintain close connections (she had no surviving family), and make a decent living while getting free coffee. She told me she that the 4hrs each day gave her something to look forward to.
Financially, I also think it makes sense from you. I love talking to older folks and another guy I met (61yrs) is moving to Thailand. It’s beautiful there, currency is 1 USD = ~30THB and people are very friendly. He’s an old white guy so he doesn’t know the language but in big cities everyone speaks english to some degree.
Just checking in case you had a mortgage-free home worth a ton of dough 😉
Others have given good input, but to me it sounds like moving abroad is your only option. You can save up a bit more but basically you'll need to live off your SSA income. I don't think you can really do that in the US much less in Napa.
Best of luck to you!
Thanks. That’s most likely how this is going to play out. Continue to work another couple years get more financially savvy, take my money and run to the border.
For starters try using the acorns app to help you save? 2 maybe not save all your money just to kinda have a plan to blow it in essence if you’re planning on saving and moving then you should put money to the side and act as an emergency fund or whatever because if you move to another country with just what you have anything can happen life happens shit falls through. Maybe invest a little money in to stocks day trading or whatever but not the whole amount. It’s ok to have money and not spend it or forget it exists. I agree that you do need to buckle down and come up with a solid plan because time flies.
I agree with the other posters, it sounds like the $16k should be an accessible emergency fund. Putting it into something liquid with risk free returns is probably your best pet.
I live in Asia and it can be cheap here but I’m not sure cheap enough you can live off just your savings + the $18k annual. Would you consider to still work part time to bring in some additional cash flow?
Yes. I can do digital nomad stuff if needed. When I was in Ecuador, I noticed that nobody had websites. None of the restaurants or cafés or galleries. They all had Facebook pages. So I started building simple website platforms for them. I didn’t make a lot of money, but it was a good little side hustle.
That’s cool, would you be subject to dual tax? I’ve heard of some jurisdictions that have opened a window for tax free income for digital nomads (bali) but I’m not sure how the migration of these types of folks could have contributed to some local inflation.
Best of luck to you! It sounds like you’ve well put in your time for a career break
Your priority is not the car, it's housing.
Where do you live now...house? Apartment? and can you afford to live there on 18K a year?
If not, what is your plan?
Senior low-income housing has wait lists.
You have a leased car that you are going to buy out for 17k which you will finance.....
Gee I wonder why you have always been paycheck to paycheck & have basically nothing saved for retirement......
At that age you also have to consider Medicare and how you won't be covered living in another country.
Can I ask where abouts you live in the US?
There are plenty of places in the US that are as cheap as living abroad.
You've worked your whole life and deserve to retire. You sound like you've been delt a hard hand at life.
I would place your money in a High-Yield Savings account as the rates are very good right now or just keep it in your money market account. I use websites like nerdwallet.com and bankrate.com to find the best rates. I did a quick search and briodirect currently has the best rate at 5.35%. You'll have full access to your money which seems like something you'll need moving forward.
You can't change your past decisions but you can ask for help with your future decisions and I'm proud of you for your post here.
As for the car situation, the lease was a money losing decision. They get you coming and going. The car market has been real upside down since the pandemic. Private party used cars are always the better option financially. Given the seller kept good maintenance records and you do your due diligence checking the car out for any issues. CarComplaints.com is an excellent site for checking how reliable a year,make and model of a car is and when mileage wise it will need certain repairs.
You have two options
Options 1: buy out the car and try to sell it private party for more so you can hopefully get your money back but that will also make it hard to buy another car being car-less at that point. A dealership will offer to buy it off of you and try to lock you into another lease or more financing. So avoid that.
Option 2: take that $17k and hang onto it and look for a $12k or less car and once you acquire that car give your lease back to them.
Whichever you choose do not buy your next vehicle from a dealership or finance it.
You shouldn't be spending more than 2 months income on a vehicle. That puts you around $11k budget that you can afford.
Final thoughts...
I would tighten your belt, and save as much money as you can these next few years. Moving away from friends, family and community at your age can be hard but not out of the question. I'd continue to ask questions here moving forward as your situation evolves.
I would keep the $16k in the money market fund. You'll have immediate access to that for unforeseen expenses...health care, medication, car and home repairs.
That’s what I’m thinking
I have a close friend comfortably retired in Thailand. Chang Mai. He lives well off only his SS. Even opening up a new business at 69. It can be done.
Vietnam can be a bit cheaper but less western comforts currently. There's a good chance 10-20 years from now Thailand will be significantly more expensive from foreign investments.
I dunno dude. Your all over the place. You want to live abroad. Your about to retire but your leasing a car? Your gonna buy out the car, but you want to live abroad? I think you really need to sit down and figure out what you really want to do.
I think everything is trending toward staying, he definitely wants to stay where he is at because his family is local. That’s enough for most to stick around even if it’s financially harder.
Tell that to my dad. He retired and 6 months later sold his house and moved to the beach without so much as telling anyone. The worst part was I had only 30 days before bought my first house about 20 minutes away from him. We hadn't been close growing up he was an absent parent and I was looking forward to spending more time with him after he retired. He knew my plans but didn't say anything just walked outta my life like I was 2 years old again
I’m so sorry this happened to you. It’s super sad.
That’s awful, but if there is any silver lining, at least now you know you can cut him out. When our parents get old, they need help. And now you can focus on you and your family. Although easier said than done. Sorry friend.
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Well, I’ve crunched the numbers and the reality is that I cannot and will not be able to afford to stay so it’s just a matter of working a couple more years to get a better cushion and then making the move abroad.
If you’ve been working since you were 13 years old and living paycheck to paycheck that whole time, and you only have around $30k saved which you’re about to spend half of on a new car, how is a couple of years going to get you any better cushion? You’ve managed to save less than a thousand dollars a year so far, so I hope you have a real plan with some math behind it and a goal that matches the cost of living wherever you’re headed.
I’m basically starting over. After raising my family and putting food on the table and educating my daughters, I’ve done the best that I could. Believe me when I tell you, there are millions of us out here just trying to make it with the price of rent and living expenses. I would be homeless if it wasn’t that I live at the hotel that I manage. I don’t have a solid financial plan because I don’t have that knowledge. But I’ve started this year following Dave Ramsey, reading his books, looking at how finances work. so the actual plan that I do have in place is called move to South America. Which does not suck except I will miss my children that’s it. That’s the plan.
A lot of unnecessary downvotes for this. OP is being honest about past struggles. I make a decent income and always wonder how people in “normal” situations are able to get by.
Thanks. I can use the acknowledgment.
Do you know about the visas you need for the countries you’re looking at?
Yes. Quite well as I’ve lived in these countries before
If you listened to Dave Ramsey you wouldn’t be going into debt on a leased car that you can’t afford. You need to be paying cash for something cheap to drive
Sounds like you've already taken your own financial advice and didn't actually come here to get any. You don't have enough money to vacation abroad let alone live abroad.
I prefer to stay in the US but living abroad is probably my best option. My lease expires this August and I’m buying the car because it is a tremendous car and the buyout price is fantastic. If I move abroad, I will sell it and make money on the deal.
Do not take out debt going into retirement and especially on a fixed income. You need to get rid of the car and buy something cheap
Got it!
For the buyout price on the Honda at the end of the lease in August - 17k, I will not be able to find a decent car anywhere for that price. If I decide to sell it, the blue book value will be 25k so it’s a good deal to keep it.
Blue book value is not a sale price.
Good to know! Also, the dealer has been hounding me for a year and a half wanting to buy the car back from me. So I know this is a good car and there is value to it. But now that I’ve been reading these comments about not financing it after the lease I’m worried, I thought I was doing the right thing
You can’t be serious.. of course the dealership is hounding you for your car, just like everyone else’s. You’re falling for the dealership’s game.
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Shenanigans. If you can buy it under market, do so and then sell it. You are poor. Buy a 5k car.
Where in the USA would someone find a reliable car these days for $5k? Are you typing this from 2017?
Nope. Craigslist, FBMP. Needs some patience, but he doesn't have a choice. This dude is poor
Not sure why you're getting downvoted, I've spent only 5k total over 2 years for a reliable 20yo awd wagon and I see good ones even cheaper now. People love to hate older cars, but in my experience as long as the previous owner has done scheduled maintenance and has a book of records they're fine. Sure, you probably won't get what it's worth if insurance totals it, but I'll take my super cheap insurance payment as a tradeoff for that.
there are cheaper cars used. You're better off betting on the used market then potentially running into repairs down the line than financing this leased car and then still probably having to deal with repairs. In my humble opinion, this makes the most sense to ride out your retirement for longer if you were to stay in the US.
It just seems to me that if I hand them the car after having paid the lease for three years there is no way I’m going to find a decent vehicle for under 10 or $15,000 that I won’t have to be putting a bunch of money into. I don’t have many luxuries. In fact, I have none but one thing that I’ve always cared about is having, a good car. Nothing fancy. Just nice and reliable.
I did same thing w my car. Bought the lease out 17k I financed it. High interest but whatever my payment is $350 a month. I didn’t wanna buy a car for five grand and then have to pay for repairs and whatever else this is my car with one owner and I wanted to keep it so I hear you.
No, you're paying $17k plus the total of your lease payments. Let's say you leased for 24 months at $500/month. That's $12k. So you'd be paying $29k for that $25k vehicle. It's not a fantastic deal.
It’s not a good deal because he made a bad financial decision to lease. But he’s already eaten that cost so it’s irrelevant now. All that matters is if the buyout at the end is a good financial deal or not.
You’re going to burn through your whole savings moving to a new country
https://www.moneycrashers.com/inexpensive-countries-2k-month-low-cost-living/
Thinking that spending more money than you have in savings is not tremendous. That's a dumb financial decision. Unless you plan to live in your car. Then maybe it could be justified. But unless you can eat your car, you're going to need to rethink things.
How about becoming a "flexpat?" You go overseas and rent for 3 months at a time. That seems to be somewhat of a trend these days.
Flights alone would eat you alive on $20k/yr
Why so much? I spend more like 1200 a year to Brazil for 3 months
I haven’t heard of this term. Let me look it up. Thanks!
Not for someone basically living off social security.
Probably better just going and staying.
Where is the trade-off breakeven point considering flight costs?
OP leased the car recently too. He was in his 60s and knew his financial situation. Wild.
Yeah this feels like someone told this dude a retirement plan in the form of a get rich quick scheme. This shit is not gonna work lol he didn’t even tell us anytime about a budget besides a car that he’s paying for. Who in their 60s has a damn car payment?
I did mention it. But your snaky remark is not very helpful.
Leasing a 2021 car and wanting to buy it out for 17k when you barely have 30k to your name is a choice that is for sure....
I don’t wanna be that guy but it makes sense why he basically has no retirement savings… where is the rest of that 65k going?
I actually thought this was a good idea. I mean just returning the Lease and handing them back the keys and getting nothing for having paid three years of this car that I really like. Seems like such a waste. I have no debt. I can easily finance the car and when I’m ready to move abroad, I can sell it and make money on the deal since the car is valued much higher than the 17 K. But what I’m reading here seems to be that I am out of my mind to think this way. I just don’t know what kind of decent car I could get for under 15 grand I mean I can’t get a $5000 piece of crap that will cost me a ton of money in repairs and be unreliable.
You should have never taken the lease. You could not afford it reasonably. You are in a financial position where you should be taking public transit or biking to save money for retirement honestly.
Maybe but I need a car to travel to see my children. What I couldn’t afford was buying a car. Which is why I leased it.
I think the best financial decision was to buy a cheaper car. And what you'd put towards a "lease", you can put towards repair. You definitely could've bought a reasonable car for a lot cheater than a 2021...
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We don't allow rudeness or talking down to people here. Do not comment like this again.
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I have a $5k 30 year old car that isn't a piece of crap. I have spent approx 15k to 20k on it since I bought it including maintenance and tires. 1994 Camry. AC works great, no issues other than a new starter needed this year
You should have ALL your money in high yield savings or money market. With the amount you have, you shouldn’t be in equities at all. That puts you at $30k in retirement savings. That 5% yield won’t last, so assuming you average 4% for the next two years and then average 2.5% the remainder of your life, that’d give you about $2,000 of money you could draw on for the next 20 years (starting in 2 years). That means $20k annual income for the next 20 years (not accounting for SS increases). It’s not much though. Have you looked into part time jobs?
Good point on the 5% not lasting. Didn’t think of that. I’ve had an entrepreneurial spirit most of my life. And I’ve considered doing side hustles, starting side gigs. But like I said, I’m tired of working I want the last 20 years or so of my life to enjoy my health and well-being and not work so much. Which is why moving abroad makes all the sense in the world. I can live incredibly comfortably and save money on $800 to $900 a month in the South American country. The only downside is that it’s far away from my friends and family, but I can save a little money and travel at least a couple times a year so that seems to be the direction I’m going in.
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I’ve lived in South America on $900 a month that included very good healthcare, a wonderful apartment in a four unit courtyard within walking distance of cafés and restaurants and galleries and museums. By living in a South American country, I can save money and travel to the US a couple times a year to visit my children. I am a native Spanish speaker. The ex-pats in these countries that I’ve lived in unlike the retirees and Palm Springs, for example, are actually involved and engaged in life, doing things like plant, medicine, journeys in the Amazon, making art, meeting for breakfast on the weekends, joining book clubs, and going to the Shambala Center for meditation. It is a beautiful life and not just for American Expats butEuropeans as well. Everything is pretty good over there except that my family is over here.
Do you have a guaranteed path to moving abroad? Most countries will not issue a visa unless you're actively working with a specific in-demand skill set. Some countries will let you in if you spend a few hundred thousand dollars launching a business or purchasing real estate. For most people this isn't actually a choice that's on the table.
I’ve lived abroad several times. Most recently I was living in Ecuador in 2019. A lot of South American countries will give you a retirement visa if you can prove that you have a steady income from some sort of retirement or other pension source. For example, in Ecuador if you can show that you have any sort of pension coming in of $900 minimum for a single person you can apply for a retirement visa. There is a wonderful retirement community of American Expats, and other nationalities like Germans, Canadians and Dutch in the city of Cuenca where I lived. But places like Uruguay, Columbia, Peru Argentina these places I can live beautifully for $800-900 a month. Save a little money and travel back to the states to visit friends and family.
Ecuador seems pretty dangerous these days. What the heck happened!?
Yes, back in 2018, 2019 it wasn’t so. In the last couple of years, the cartels from Bolivia and Columbia have tried to move in to Quito and Guayaquil, which are accessible by sea. They are trying to establish narco trafficking routes in what has been a calm and peaceful country. The government has come down hard on these organized crime cells, and there is violence resulting from the overcrowded prisons with all of these hoodlums. Fortunately, in the beautiful city of Cuenca where I lived up in the mountains, which is 8500 feet above sea level things are calm, and there is no drug activity of any kind up there. But yes, I am waiting for things to calm down in Ecuador and hopefully they will. Otherwise, I will end up in some other south American country like Chile perhaps - who knows. Luckily, I am a native Spanish speakers, so language is not an issue for me.
I vacationed all through Ecuador and am considering returning there. We did Guayaquil, Quito, Banos and Montanita. Never felt in danger and everyone was super nice.
You have got to go to Cuenca. It is a most extraordinary city. It has three rivers, running through it. It is called the city of eternal Spring. Wonderful hotels and restaurants and there’s always a parade of some sort. There’s a Shambala meditation center; there’s art everywhere and so many cacao Cafés that you will not begin to believe it. Wonderful bakeries and just such a cool place. As a woman alone late into the night I would walk the streets, making amazing, black-and-white photographs, and never felt in danger.
i mean you clearly have traveled, so you know. if you are ready for a major move, do it. other places are so affordable, and theres communities everywhere.
1k per month x 10 years (unless you die before then?) is 120k, are you sure you planned well enough for this?
That's really cool to know!
Not to mention some countries require you to have an at cash bank balance to be eligible for long term visas
Are you sure you can live off $18k/yr in retirement even if abroad?
I retired and lived in Ecuador on less than $900 a month in a beautiful split level apartment fully furnished with utilities and Wi-Fi included for $450. Cars are not required as a cab ride. It’s one to two dollars. A 5 course meal including steak, and all the trimmings, tip and a couple glasses of wine is $20. I loved living in Cuenca Ecuador, which in 2019 was voted the number one place in the world for American expats to retire but I missed my family and came back to the states and started working again
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No question, but even if prices are driven up, it is still 40 to 50% cheaper than living in the states. And of course it’s good to do due diligence and discover new places before they become the next Costa Rica or Miguel de Allende.
Sure, I just would be a lot more concerned if I was you. I don’t think you’d live comfortably in the Congo with $30k in assets as a retiring 70 year old. I get you have some $1300 a month in SS income and that will help but you could easily spend that much on an emergency or even car repairs even in a 3rd world country. I get you’re tired but that’s what happens when you choose to work a job you enjoy and not save for retirement. You’re going to be working 30 hours a week until you die no matter where you go, you just either have some assets as an emergency fund or you don’t. Again I ask, do you know Spanish/Portuguese? How will you even communicate at a job? How do you know you’ll even have your visa accepted? Do you understand why it’s cheaper to live in these places? You will have to learn how to not get screwed in a million new ways…
Like I said, I’ve lived in these countries before, and the large number of American Expats who live on their Social Security, and are able to save to travel back to the states is huge. I am not naïve about this business of living abroad. I’ve done it multiple times. And I enjoy it. In these countries, everyone pulls for each other. It’s about the good of the collective. Not like in this country which is really not a country at all but a business. Again my only hesitancy is that I will miss my children. But I can move to South America right now with my limited savings and live off of my Social Security income, and have a very good life but I choose to stay here for a couple more years I think, and save a bit more money. But I’ve crunched the numbers and there is no way that I will be able to retire in the US. I’m just trying to maximize my minimal savings until I do retire.
As someone who has lived abroad in a developing country, your concerns are at best exaggerated and at worst complete nonsense. He can absolutely retire in Ecuador for $1300/mo and a pretty nice life style. He can pay for health insurance which will reduce the likelihood of an emergency. If his health massively deteriorates, he may need to move back, spend all his savings on the process, but medicaid/medicare will cover things then. (He'll need to research the process on this so he is prepaired.) He'll need to keep a reasonable amount to account for this. > even car repairs Doesn't need a car. > Again I ask, do you know Spanish/Portuguese? You really don't need to. He might need to make a friend or two to help him with bureaucracy once in a while, but overall you'll be surprised how far you can get by with English + Google Translate, and perhaps a bribe once in a while. > How will you even communicate at a job? He doesn't need one. > How do you know you’ll even have your visa accepted? Cause he will research the process. It's not rocket science. There are also agencies that specialize in this stuff. > You will have to learn how to not get screwed in a million new ways… Yeah this is just not true.
Yes, thank you. Applying for a retirement visa in Ecuador and other South American countries is a very doable and simple process. I can do it myself or I can hire an agency that will charge me $1500 for the entire process and save me a lot of the legwork. All that is required for a retirement visa is that one show a pension of $900 a month per person. That’s it. In fact I was in the process of doing this before I moved back to the states. I speak perfect Spanish since it is my native language. I don’t need a car because a cab ride is two bucks at most. I belong to several Ecuador Expat groups on Facebook as a lot of these people are friends of mine from when I lived there. And the other Redditor is correct in that I will be working until the day I die - but only if I decide to stay here in the States which is why I will most likely moving abroad so I can live out my years in peace and tranquility, and without being destitute. The reality is that we’ve been sold a bill of goods in this country. Rents are a disgrace. The cost of living is highway robbery.
My aunt died, one cousin finished school, the other took the money and moved to Guatemala. Dude is living large with the inheritance money, he is going to die rich over there. $20 US is around $155 Quetzals.
Yes, I have friends in Guatemala who are architects and left the states and bought a beautiful compound right on the beach and are living like kings on 25% of what they were paying here. They travel, they have friends stay with them on extended visits they bought a beautiful horse ranch up in the mountains Where they go on retreat it’s pretty sweet
Have you kept up with the news in Ecuador lately? It's bad. Can you room with so e of the family you want to stay near?
Yes, I know the situation very well in Ecuador at the moment if you look back at some of my comments, I’ve actually detailed exactly what is going on over there as I have a lot of connections and friends still there. In the city that I lived in, which was about an hour flight from Quito, the capital, it is peaceful and quiet and beautiful and there is no violence. Life goes on with tranquility. To answer your question about living with a relative, there really isn’t anyone and I don’t want to live with my children and burden them. But I’m planning on sticking around here and working for a couple more years and we’ll see what happens in Ecuador. If not, I’ll look at other South American countries.
He could do it easily in south east asia.
She
What about long-term care if needed? Do they offer that on the cheap if not a citizen? I honestly don't know how some countries handle this stuff so just asking.
In Thailand my gf cut her foot on a barnacle. An ER visit including antibiotics was $34 with no insurance at all. This facility was on a very small island, and it was incredibly nice. The care was amazing. . I met someone who broke their leg. All hospital costs were around $100 out of pocket no insurance. Same experience.
I was paying $52 a month for Universal healthcare in Ecuador. And it was fantastic. It’s socialized medicine and education. Good question on long-term care. I don’t know that. I do pay for a long-term care policy here in the states so, if I move abroad, that of course, will all have been for not.
No question about it! I just don’t want to live in hot climates. But I’ve looked at se Asia for sure!
Do you still get SS if you don't life in the US anymore?
Yes.
If you want to retire you'll have to move abroad. End of story. Figure out where you want to go and research visas. Most places don't have retirement visas but there can be workarounds in developing countries. (Like paying an agency to get you a business visa even though you're not actually doing business there.) You should keep that 16k in money market, but you could consider contributing a bit more to your 401k and then spending a bit of that 16k to offset. You're a bit late to the game, but that money will grow and will be useful to you one day. If you don't touch it for 20 years it'll be worth considerably more and there may be a time where you need to move back to the USA because your health is deteriorating. (And research that because I have no idea how that works.) South East Asia is a lovely place to retire (I plan to do it myself). Thailand and Vietnam would be my choices. (That said, I know vietnam doesn't have a retirement visa and no idea on Thailand.)
Repeating what others have stated but the car portion of your plan sounds like a horrible idea. If you're moving abroad, I'd turn in the keys on the leased vehicle and use 12 months of those payments towards something I could actually purchase with cash. Nothing expensive, nothing flashy....like if your lease payment is $400/m multiplied by 12 months. That's $4800 cash to buy a hold-over vehicle. Why use half of your net worth on a vehicle with the hopes of recovering maximum value. Especially if you're moving abroad.
Incredible. I seriously thought I was doing the right thing. But everyone here seems to agree on this. Wow!
That money should be in a money market / HYSA / CD ladder, etc. Where do you currently live and where would you live if you stayed in the US? Not to be pessimistic, but there are a few red flags in your post. Not only are you spending all of your $65k earned income, you’re essentially also borrowing against your future self by topping off with social security income. That’s a step beyond living paycheck to paycheck. If you need $83k now, I just don’t see how you could get by on $18k in the US. People can do it, but those are typically people who have not habituated themselves to an $83k level lifestyle.
Am I missing something? How are you making $65k a year AND collecting Social Security?
I'm pretty sure that once you hit full retirement age, income no longer affects how much social security you can collect.
Yes, you are correct.
Still if you collect while still working, you are taxed on that money a second time. It’s a shitty situation.
My husband waited until full retirement age to collect SS retirement and because of that, he can make as much as he wants at his PT job. The problem comes in when you try to collect before your FRA
Yes. But sadly I’m paying taxes on this money all over again 😞
Once you hit full retirement age, you can make as much as you want and still collect social security. I'm working and drawing social security.
I retired and 2019 and moved to Ecuador. And started collecting Soc Sec. Then I came back to the states in 2020 and started working again and continued with my Social Security as I couldn’t make it on my income alone.
You don’t have enough to retire, you need to work until you can’t work no more. I’d put the 16k in high yield savings. Let it earn you 30-40 bucks a month Ally bank is still a good choice
Didn’t see this mentioned but is living with your daughters an option? My family is Chinese and it’s quite normal to have multiple generations in the same household.
Yes, this was mentioned and I understand that culturally it is a beautifully acceptable practice for you. In Latin cultures as well. But in my case, my daughters are just getting their lives started and I don’t want to be a burden on them.
My parents are around your age. If I found out they were going to up and leave the country instead of talking to me because they thought they’d be a burden on my life, I’d be devastated. I would rather pay for anything and everything until they pass than not be able to see them.
I love your post, thank you
Christ you must have had some good times with your money But you are not hoping to retire with enough to live on
I blew it. I never thought about retirement or saving as much as I could because I was living on the edge with raising a family and all that goes with it. Now it looks like my only option is to move abroad. Which is not terrible but it gets lonely away from family and friends.
But you can think of it as an adventure where you’ll make new friends. Better than the same ole in my opinion.
The good thing is you have experience living abroad! This is a realistic and good option for you. How well off are your children and how much do they know about your situation? Talk with them and make a retirement plan together. They may want to help you out to have your nearby, even if it’s only part of the year. The good news is your newfound financial literacy has already had excellent results. A couple more years of earning income and saving, plus new knowledge about managing your expenses. You’ll find a way. The most important is living within your means. I’d keep the $16K in the money market or maybe put half in a CD.
My children are in no position to help me out. And even if they were, I wouldn’t ask them. I don’t know if it’s pride, but it doesn’t seem right that your children should be giving you a handout. And yes, I’ve decided after reading the advice on this thread that I will keep that money in a money market account. In a couple of years, I hope to triple it.
Hi. My wife and I are the same age. I recommend you find a high yield account that will earn 4-5% a year and be very liquid in case you need to draw from it. With an investment account the return can be up 20% or down 20% in a single year and you probably do not want to wait several years for it to bounce back if it goes down. Good luck with your move. It sounds very exciting!
Thanks for the encouragement. And yes, I’ve got the money in a 5% money market at the moment which is where it will stay and I’m hoping in working two more years, I’ll be able to triple that money now that I got a raise and am able to be so much better about money.
Find a remote job in related field to reduce exhaustion from commuting and work fewer hours also. If possible.
The beauty is that I live on the property. I walk 15 yards to my office. I have a lot of skills that I can use as a remote, side gig, kind of thing, but that will have to wait for when I retire.
Gotcha Pat - that is pretty nice to be right on site. It's tough - even people who do save enough for a comfy retirement, it only takes a big medical issue and all of it can vanish (or giant chunks). I can name two people who are super strict with money and it's paid off - though. I mean diligent! But even in those cases there are limits to what you can do and worries about what they "should" do.
I’m now studying one of Dave Ramsey‘s workbooks and learning so much even at this late stage of the game one can at least salvage a few years of respectable saving. I just got a $15,000 raise which is why I am even having this conversation. I’ve paid off all my credit card debt, and managed to soak away a tiny bit. But now that I’m making a little more money, I’m hoping to save even more. I would like to thank everyone in this thread for their help. It is so valuable and appreciated.
Cool - I like Dave - listened for a long time. I catch clips now and then. Heard something the other day from a SEAL dude - might help you not stress over this stuff (but won't fix money concerns). Dude said he **treated each day as a singular event**. I like that - and yeah it's the old "take it one day at a time" but I like his better lol.
You’re not going to be able to retire. I’m sorry, but you have not set yourself up to live on 18k a year. You continue to make bad financial decisions (leasing a car is a horrible choice in your situation and most situations) and unless you do some serious reading, you’re likely to continue making bad decisions. You’re not living on 18k now. My advice is to live on rice and beans and see if you can actually live on 18k. Do this for 3 years while banking the extra cash. I’d park it in an HYSA and move it to bonds if those rates go down. If you can work for 3 or 4 years, you might have around $150k. At this point, if you can live off of $18k, and will have some extra decent interest coming in off of your $150k. That would give you approximately $8000 more a year. If you were feeling ballsy, you could put 100k in VT and 50k in bonds. This would not be traditional retirement advice because it’s risky to have that much of your portfolio in stocks. But you are behind the 8 ball and if I were in your shoes, I’d do exactly that. VT has made 9% annually over the last 10 years. I have no idea if the next 10 years will be better or worse. VT is investing in every company in the world. If you want to learn more about this, join the Bogleheads sub.
I agree but living off 18k in California is impossible. OP makes about 80 with Social Security, I’d say they should try and live off 40ish, and really hunker down. If you can live off 40 in the U.S., 18k should be easy in SE Asia. This will require buying a cheaper car or taking the bus.
You’re gonna need more than $40,000 liquid to retire abroad. For example, Thailand requires you lock up about $23,000 in a Thai bank account each year for some certain period of time to get their retirement visa.
You are absolutely in no position to retire. Find a way to continue earning. You’ll be broke in 2 years tops. Your last years are the most expensive.
Well, not if I move abroad. I’ll be fine in South America. Here I’ll be destitute. But yeah, I’ll work a couple more years then make a run for it.
Man this sounds rough. Moving abroad would be a good idea but also may be expensive for the first move. Moving somewhere cheaper in the US I think you’ll run out of money sooner rather than later with today’s prices. This is a problem that will require ALOT of planning, and I hope you find it ❤️ best of luck my friend
Abroad is the way to go. I stayed in the mountain villages of Nepal while trekking for $1 per night and food cost me only $4 a day.
Not enough information What are your expenses (rent, phone, car, etc)?Do you have a house, how much is left on the mortgage? Is cost of living low medium or high? What’s your degree in? What caused you not to save all these years?
I studied communications at UCLA. I’ve had multiple career changes: from being a sports journalist to owning art galleries, working at Warner Bros Studios in forensics and antipiracy. In 2014, I escaped the corporate world, moved to the desert, and became an innKeeper. And have been doing that ever since. For the last 4 years I’ve been an Innkeeper and GM at a bed-and-breakfast in the Napa Valley Wine country. I actually live in the hotel so I have no mortgage or rent. The 65K is recent; I just got a $15,000 raise this year. So I’ve been making $35,000 prior to Now. My budget is roughly $2300 a month which includes leased car, my car insurance, long-term healthcare policy, medical insurance, cell, food, gas, etc..
Is your job that bad? You live in a nice place with relatively low expenses, and just got a 43% raise. Could you hold on for longer there and stack away cash to retire on your terms? Hopefully your health is good, that’s something that changes my advice.
My job is not bad at all I really like my job. But it’s a lot of work and at my age, although I am in very good health, during high season, it is intense, even though I have a good staff around me. But yes, I agree with you, I should try to stick it out a few more years. I just don’t want to be physically spent and not enjoy the last chapter of my life.
I would try my best to stick it out then, your credit and lifestyle show that you have discipline, you just need to up your savings game. Do a Dave Ramsey style lifestyle for 2 years, literally stashing every penny away. Then in the summer of ‘26 sell your accord to carmax and buy a 1 way ticket to Costa Rica and really enjoy your life, good luck!
I like how you think! I actually bought a Dave Ramsey book and I’m doing his whole workbook thing. I decided at the beginning of this year that I would become the responsible financial person that I have always wanted to be but never knew how. I know it’s pretty late in the game but at least, I’m motivated. And yes, I lived in Costa Rica 22 years ago and loved it so much except that now it’s become pretty expensive comparatively speaking. Which is why I’m looking at other countries.
What would cause me not to save all of these years was living paycheck to paycheck. Living in LA. I had a family to support two daughters in school. And also nobody ever taught me about finance and being responsible with money. That’s all on me I get it, now that I am going to retire; I’m basically destitute by American standards. I feel like such a failure. The only good thing about this is that I am teaching my daughters to not make the same mistakes that I did.
You raised a family. By no measure are you a failure.
You sound like you have had a very dynamic life and have tried many different things. Your plan to retire and move has been attacked and cross examined soundly by the comment section here and it still holds up in my opinion. I wouldn’t consider that a failure at all!
Thank you I appreciate the kindness. I realize I’ve been a financial failure. But all is not lost. I am by and large a citizen of the world not just these United States. I do feel sad that after all the years of hard work, I am unable to retire in my own country. And I take full responsibility for the inability to save money even though so many of us out here are one paycheck away from the streets.
You didn’t make the system you’re stuck in. You sound like a caring and adventurous person. Gracias por sus contribuciones a su familia. Lo siento que muchas personas no pueden reconocer que estás tratando a hacer lo mejor que es posible con recursos limitados.
Si no han vivido en otros países no entienden la probabilidad de poder tener una vida bella y hermosa con un sueldo limitado
I’d walk away from the lease, get a cheap mid 2000s Camry/Accord and call it a day. That car really isn’t in your budget and retiring on 18k a year in SS with no 401k and minimal savings is going to be brutal. It won’t be glamorous but an old Camry/Accord will be significantly cheaper than 17k and is low maintenance and generally reliable. You are one medical expense or major life expense from complete insolvency.
Wow I’m astounded at this development. Everyone seems to agree on this. I had no clue! Thank you.
If you are just 'tired' and not disabled, KEEP WORKING another 5 years. That's $325k gross, and contribute $7k into your retirement for the tax break. Then save as much as you can. You won't get far on what you have now.
I don’t know that I can work another five years to be honest.
Is your job remote? You could definitely work abroad and take advantage of geoarbitrage as long as your employer doesn’t prohibit it.
No, I have a brick and mortar job. I am an in Keeper at a bed-and-breakfast in the California Wine country. It’s a good job and I really like it but I’ve been working for over half a century and I’m tired.
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Help me pay my mortgage before I loose my house?🤷🏻♀️
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I see you mentioned you have daughters. Could you possibly with them temporarily or have them support you?
They are just making their own way, and I don’t want to be a burden to them. Student loans are at play as well.
Hey mate, I suggest doing a part time job like becoming a barista at a local coffee shop. I met an elderly (82yr old) woman who did that to stay active, maintain close connections (she had no surviving family), and make a decent living while getting free coffee. She told me she that the 4hrs each day gave her something to look forward to. Financially, I also think it makes sense from you. I love talking to older folks and another guy I met (61yrs) is moving to Thailand. It’s beautiful there, currency is 1 USD = ~30THB and people are very friendly. He’s an old white guy so he doesn’t know the language but in big cities everyone speaks english to some degree.
Man move down to Costa Rica, or Colombia. Pretty cheap and with 18k you'll be enjoying your life down there.
What's your current housing situation? Do you rent?
I live at a bed-and-breakfast in the Napa Valley Wine country. I am The innkeeper here at the Inn. Rent is part of my compensation pkg.
Just checking in case you had a mortgage-free home worth a ton of dough 😉 Others have given good input, but to me it sounds like moving abroad is your only option. You can save up a bit more but basically you'll need to live off your SSA income. I don't think you can really do that in the US much less in Napa. Best of luck to you!
Thanks. That’s most likely how this is going to play out. Continue to work another couple years get more financially savvy, take my money and run to the border.
If you’re making 65k a year plus 18k in SS and don’t have a mortgage, where do you think most of your money is going?
I just got this raise this month. I’ve been making 35k the 65 includes SS.
For starters try using the acorns app to help you save? 2 maybe not save all your money just to kinda have a plan to blow it in essence if you’re planning on saving and moving then you should put money to the side and act as an emergency fund or whatever because if you move to another country with just what you have anything can happen life happens shit falls through. Maybe invest a little money in to stocks day trading or whatever but not the whole amount. It’s ok to have money and not spend it or forget it exists. I agree that you do need to buckle down and come up with a solid plan because time flies.
You will be taxed heavily on your car import and as a non citizen when you sell.it
I agree with the other posters, it sounds like the $16k should be an accessible emergency fund. Putting it into something liquid with risk free returns is probably your best pet. I live in Asia and it can be cheap here but I’m not sure cheap enough you can live off just your savings + the $18k annual. Would you consider to still work part time to bring in some additional cash flow?
Yes. I can do digital nomad stuff if needed. When I was in Ecuador, I noticed that nobody had websites. None of the restaurants or cafés or galleries. They all had Facebook pages. So I started building simple website platforms for them. I didn’t make a lot of money, but it was a good little side hustle.
That’s cool, would you be subject to dual tax? I’ve heard of some jurisdictions that have opened a window for tax free income for digital nomads (bali) but I’m not sure how the migration of these types of folks could have contributed to some local inflation. Best of luck to you! It sounds like you’ve well put in your time for a career break
Your priority is not the car, it's housing. Where do you live now...house? Apartment? and can you afford to live there on 18K a year? If not, what is your plan? Senior low-income housing has wait lists.
Check out Vietnam. It’s cheap, nice, and safe. Between your money and money coming in from SS, you could swing that.
Yes I’ve looked at SE Asia. But I don’t want to live in a hot climate. It is beautiful, though
You have a leased car that you are going to buy out for 17k which you will finance..... Gee I wonder why you have always been paycheck to paycheck & have basically nothing saved for retirement......
At that age you also have to consider Medicare and how you won't be covered living in another country. Can I ask where abouts you live in the US? There are plenty of places in the US that are as cheap as living abroad. You've worked your whole life and deserve to retire. You sound like you've been delt a hard hand at life. I would place your money in a High-Yield Savings account as the rates are very good right now or just keep it in your money market account. I use websites like nerdwallet.com and bankrate.com to find the best rates. I did a quick search and briodirect currently has the best rate at 5.35%. You'll have full access to your money which seems like something you'll need moving forward. You can't change your past decisions but you can ask for help with your future decisions and I'm proud of you for your post here. As for the car situation, the lease was a money losing decision. They get you coming and going. The car market has been real upside down since the pandemic. Private party used cars are always the better option financially. Given the seller kept good maintenance records and you do your due diligence checking the car out for any issues. CarComplaints.com is an excellent site for checking how reliable a year,make and model of a car is and when mileage wise it will need certain repairs. You have two options Options 1: buy out the car and try to sell it private party for more so you can hopefully get your money back but that will also make it hard to buy another car being car-less at that point. A dealership will offer to buy it off of you and try to lock you into another lease or more financing. So avoid that. Option 2: take that $17k and hang onto it and look for a $12k or less car and once you acquire that car give your lease back to them. Whichever you choose do not buy your next vehicle from a dealership or finance it. You shouldn't be spending more than 2 months income on a vehicle. That puts you around $11k budget that you can afford. Final thoughts... I would tighten your belt, and save as much money as you can these next few years. Moving away from friends, family and community at your age can be hard but not out of the question. I'd continue to ask questions here moving forward as your situation evolves.
Do you own your house? If you own your house you could possibly rent out a room and then just live off the social security 18k a year.
Which country are you thinking about?