Is there anything stoping me from taking my 401k when I retire and moving off to some third world country so I can live like a king?
If not what would be a good contry to move to? In particular one with a tropical climate all year around.
I couldn’t decide which forum to put this in; mods you can move this if you see fit.
I have heard that Guatemala and Honduras would fit the bill. Of course, you would be exploiting and exacerbating an already woeful disparity between rich and poor. I’d like to think that this knowledge might make you rething the whole “live like a king” idea.
Chrome
In recent years, Mexico has actually become a major destination for American retirees. There are even communities of grey-haired Yanks down there, where your dollar will fare well against the peso (though it won’t go as far as it would in, say, India or Guatemala). My guess is political stability would be a consideration, unless you want to spend your dotage sleeping with a .357 Magnum under your orthapedic pillow. In which case, if you want to stay in this hemisphere I’d also suggest Costa Rica (“Politically Stable Since the 1950s!”)
On the other side of the Pacific, there’s a big American and other retiree community in the Philippines. Arrange an income of $20K a year and you’ll be pretty comfortable. $50K and you will deifinitely live like the proverbial king.
Basically, any 3rd world country will fit the bill. You’ve just got to remember that the cheaper a place is, the less civilized it’s likely to be. You can insulate yourself against that to some extent (living in a gated community, etc).
I don’t agree with Chrome Spot that you should worry about “exacerbating an already woeful disparity between rich and poor”. Yes, strictly speaking you might slightly worsen the host country’s gini coefficient (the best measure of income inequality), but by buying local goods and services, renting a local property, hiring a local domestic servant to clean your toes, etc etc, you will be putting money into the economy. That’s why these places have visa programs aimed at rich retirees.
The rich/poor disparity would be a worry. Your money could contribute to pushing up prices. However, one could also argue that you’d be bringing money into a third-world country that would otherwise remain in the US (the money, not the third-world country).
Thailand would be a good bet (good transport, nice people, great weather and scenery), though it’s getting more expensive these days.
I once met a Belgian in Hanoi who was having a whale of a time there.
I knew an English guy who owned a house on the beach in Goa, India, and lived pretty well there for 17 years.
Another Englishman I knew bought a large amount of beachside property on an island in the northern Phillippines for a low price, had a wooden house built on it, and tried to live like a king. Problem was, he didn’t have that much money to start with, so he went to Hong Kong to work for six months, and when he returned, all his furniture had been stolen. This happened to him twice. In the end he gave up on it.
This is going to be your problem in whichever third world country you consider living.
But if you can get your security beefed up enough, I’d second Costa Rica. It’s got year round climate that’s neither too hor nor too cold and beaches.
South Africa
The exchange rate is 10 Rand to $1 and even then things are ultra cheap. A luxury beachfront apartment here in Cape Town will cost you next to nothing in dollars.
As an example of the cheapness: Last night I went out for dinner at a nice Italian cafe type restaurant in one of the swankier shopping centres in Cape Town (Cavendish Square for those of you who know it). There were 3 of us and we had drinks and a main meal which came to R110 total for the evening (that’s $10). Afterwards we saw A Beautiful Mind for R81 for 3 tickets (that’s $2.30 about a ticket).
Also by the well McDonalds Index, in Nov 2001 (which compares countries by how much a Big Mac costs) we were the cheapest country in the world.
Whoops sorry make that R71 for 3 tickets (And on Tuesday nights cinema’s are half price!).
Attrayant already thought of this.
Here you go - Malaysia’s Silver Haired Visa Program. Malaysia’s pretty civilized in most ways, English spoken, and great food.
Big shout out to Skip, good to see other Cape Townians on the list.
I must also echo what the dude has said about SA. With dollars you can retire here! Now crime in SA is a prob but not so much in Cape Town provided to take certain precautions.
Also bear in mind that we are a 3rd world/1st world country which means that while our currency has been fucked by speculators and the supposed magical ‘crossing over’ of the crisis in Zimbabwe all of our services, telecommunications etc are world class.
Also ‘Rastahomie’ you will be pleased to know that while dope is not, strictly speaking, legal in RSA the cops generally don’t give a damn unless you are a big time dealer. If you are caught with a bankie you will get a night in jail and a slap on the wrist, max. Also a bankie that’s (for the sake of argument) the size of a big mac will cost you about R70. Do the math.
So come to Cape Town, South Africa. THe water is clean, the mountain is beautiful, the weed is plentiful and the women are hot! (and the economy is fucked) 
Don’t believe me? go to: http://cybercapetown.com/
cheers
Costa Rica would indeed be perfect although I wouldn’t exactly call it a third world country. It is more stable and has a much better infastructure and medical care than any self respecting third world country should have. Also, most people speak English because Americn tourism is a major industry. The people are friendly, the country is fairly clean and neat, and prostitution is legal (just kidding, although that may be a plus for you). I am told that a typical Costa Rican style house costs about $20,000 - $30,000. A three course meal in a restaurant (their food is pretty good and healthy) runs $2 - $3.
To improve the lot of the people in these countries, what do they need most? Money from people in rich countries. What is one way to get such money? Have the rich people come live in their county. Many of these countries have laws expressly designed to attract retirees. Costa Rica is one of those countries.
Here are two lists I found on the internet
[ul]
[li]Ecuador…Argentina[/li][li]Mexico…Belize[/li][li]Honduras…Canada[/li][li]Canada…Costa Rica[/li][li]Nicaragua…Czech Republic[/li][li]Malta…Ecuador[/li][li]Panama…France[/li][li]Belize…Great Britain[/li][li]Hungary…Greece[/li][li]Ireland…Ireland[/li][li]…Italy[/li][li]…Mexico[/li][li]…Portugal[/li][li]…Spain[/li][li]…Thailand[/ul][/li]
Crazy thing is that Canada comes out best if both lists are considered. Another amazing fact is that Cuba is predicted to be the hot place to retire within the next 10 years.
Is Castro not feeling well? 
Not only that, but you’d have to build a stone wall around your house, hire armed guards and cover the top of the wall with bits of broken glass and barbed wire. (According to my professor, Dr. Brett, that’s how all of the wealthy live, because they’re so afraid of the guerillas and thugs).
Don’t carry backpacks around-people have been known to cut the straps off.
Carry a gun and hire a body guard at all times. Don’t piss off the local military.
Live in fear.
Oh, and another thing-be prepared to give up things like freedom of speech-like criticizing the government, and freedom of assembly, political views, etc.
Well, last trip to Honduras I stayed in one of the company houses- it’s occupied full time by another employee, but has extra room as well.
There is a wall around the house and garden, and there was definitely razor wire on top of the wall. I don’t know about the broken glass, because I couldn’t see the top of the wall, and I wasn’t going to test it. There is also a 24 hour armed guard for just that house. Not for the neighborhood, but for the house. And this isn’t one of the biggest houses around.
Expect to have bottled water delivered, and to learn the local brands that are comparable to US brands. While you can find some US brands, the prices are astronomical.
If I had the opportunity, I’d spend a year there. But I don’t want to live there any longer than that. The disparity between the haves and the have nots is just too great. You won’t be able to be soft hearted at all and live in these places. Otherwise the sight of kids (little ones) digging in the trash for food will tear you up.
Ecuador would be a good place. And Belize.
Most of this is correct, but I wouldn’t go so far as to say that “most” people in Costa Rica speak English; a lot of them do, however. Also, I remember the meals being slightly higher than three dollars, although I eat a lot. As far as prostitution, I don’t know, but a lot of the girls will give it up for free if you say you’re from the United States.
It is a beautiful country, though, except for, in some places, the open sewers. And all those freaking cows. And that weird mix of mayonaise (sp?) and ketchup they insisted on smearing my hamburgers with.
The jungle is very cool, and the people know how to party. I would love to go back.
New Zealand could be OK - it gets a little bit cold, but the locals can generally some form of English.