Student Loan Consolidation

In the aftermath of the global financial crisis, a growing number of US baby boomers are broadening their perspectives beyond US borders. In the face of spiraling health insurance costs, scrambled nest eggs and a rising cost of living, many are finding that their best option for a comfortable retirement is to head to a country where their dollars will stretch further. And that means heading further south than Florida.

Countries like Costa Rica, Belize, Panama and even Nicaragua are starting to look like promising alternatives. Real estate is affordable – see information compiled by RevealRealEstate on Nicaragua for example, the cost of living is far lower than in the US, health care is improving (although is still fairly limited away from the larger towns), internet connectivity is widespread, and it’s only a short direct flight from major US airport hubs to the capital cities of the region.

According to the Social Security Administration, the number of retired Americans receiving benefit payments overseas has risen by 32% since 2002. That percentage could rise further, especially as more counties roll out the welcome mat for US retirees. Panama, Nicaragua and Costa Rica for example have well developed retirement residency programs that provide tax benefits and incentives. Foreign citizens are typically not taxed on global incomes and can import households goods tax free into the country. Panama’s program goes one step further allowing discounts for retirees on a number of medical, entertainment and travel expenses.

But despite the attractions, there are still risks involved with a move abroad, particular when it comes to buying property. Retirees are often taken aback by the murkiness or lack of transparency of the real estate markets. For example, many expect to be able to a access a central database much like the US Multiple Listing Service, that tells them how long properties have been on the market and how prices have moved. But that kind of information is simply not available. Smart investing in many overseas markets means relying less on your real estate agent and doing more of the legwork yourself.

The most successful investors purchase in areas located “in the path of progress.” Locations where tourism is on the rise, infrastructure is improving and amenities are arriving. But it can be tough to get the timing just right. To reduce your investment risk it may be worth steering clear of off-plan investments and focus on completed property. In the current market, where buyers still remain firmly in the driving seat, there are great bargains to be had. US buyers who look hard enough should be able to purchase completed property at pre-construction pricing

A successful life abroad requires an adjustment process and an acceptance that things are done differently (and generally take longer) than back home. For many retirees, that’s a low price to pay for the financial benefits of a move abroad. They’ve done the math and found that its possible to have a luxurious retirement for under $1,500 a month. With those kind of numbers, the trickle of US retirees moving offshore may develop into a stream.