I’m trying my best to keep up with this is social security going to be around in 30 years debate, and I’m sure there’s a great thread here that already covers that (anybody?), but what I am more interested in is a plan that more than a few people have suggested to me over the years:
Could I take my measly $50K and move to some country where the exchange rate gets me sixty billion clams (or whatever they use for money over there) and live like a king? This seems like such an easy way out, there must be a fundamental law of international economics I’m overlooking.
Help?
I’m no economist, but here’s a WAG:
Any country where $50K is worth 6 billion clams is probably some God-forsaken hole-in-the-ground like Outer Slombovia, where even the king lives in squalor.
The more your money’s worth over there, the less there is to actually buy- that’s my guess.
Arjuna34
Heck, you don’t need to move to some third-world country, the same analogy can be lived out entirely in one country. Here in Silicon Valley, it’s hard to get a house in a good neighborhood for under $500k. But wages are also substantially higher (ok, not for everybody, but that’s a different topic). There are people here who sock it away then plan on move to Montana (or other), where they can take the equity from their San Jose shack and buy a huge ranch.
Back to the original question, why don’t more people do this? Well, there are advantages to being here. If you enjoy the business in this town (as do I), there are only a few other towns that compare, and they’re also overpriced. There are lots of high quality entertainment industries that spring up in large (read expensive) metropolitans. Plus, your friends and families are where you’re at.
I work with a lot of Fillipinos(sp?) who say that they are saving here and going back to the Phillipines to retire as it is so cheap back there. I don’t know if it is true but I have know a lot of them to do that so there probably is something to it.
I also heard that Costa Rica is a good place to get more for your dollar.
But one thing don’t bet that you can move someplace cheaper if you get old. I moved to FL and got horrible allergies and they still needed to send me out of state to treat me as the hospitals in Miami and Tampa weren’t equipped. So a lot of unexpected expenses like that arise
Actually Mark, the Philipines is just what I had in mind when I started this topic. I had heard from a friend that he went there for a vacation and the little bit of $ he took with him went a loooooong way.
I guess I need to check with some citizens of that country if I want to get into it in more detail. I’m sure there are immigration issues I’ll have to deal with.
I remember one of the Kosovo Albanians, upset at losing his house, remarking that it cost him almost 9,000 Deutschmark (say $4,000) to build. With the reduced life expectancy there, you’d probably have a good shot (sorry) at the 50 k lasting your entire retirement.
So it is a double helix. Big deal.