# Where in the world can you retire young with a million? **URL:** \ **Category:** Factual Questions\ **Created:** [September 8, 2012, 1:34am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058 "2012-09-08T01:34:35Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [September 8, 2012, 1:34am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/1 "2012-09-08T01:34:35Z")
Say you inherit or win the lottery. I know that just up and moving to another country and expecting to work is a crazy American idea. But if you have a certain amount of money and therefore don’t need to work, where will that enable you to live in comfort through tetirement in a safe place? And can you do that? (Assume a couple in their 30s or so.) ---
**Author:** ![Linden\_Arden](https://avatars.discourse-cdn.com/v4/letter/l/53a042/32.png) [@Linden\_Arden](https://boards.straightdope.com/u/Linden_Arden)\ **Post date:** [September 8, 2012, 1:42am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/2 "2012-09-08T01:42:49Z")
About 90% of the world if you wish to live modestly. Exceptions - Hong Kong, London, Paris, New York City, San Fran - you get the picture. ---
**Author:** ![Rampant\_Coypu](https://avatars.discourse-cdn.com/v4/letter/r/439d5e/32.png) [@Rampant\_Coypu](https://boards.straightdope.com/u/Rampant_Coypu)\ **Post date:** [September 8, 2012, 1:48am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/3 "2012-09-08T01:48:00Z")
You can’t earn enough interest off of capital to retire off a million these days. There are no low risk investments that pay decent interest anymore. The US and most of the rest of the world has too much cash and not enough demand. Banks don’t want your money. But given 1997 interest rates, you could make enough money from low risk investments to live in style in Belize. If you were clearing 40 thou each year after taxes or avoided taxes through muni bond funds, a couple could live pretty well down there. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [September 8, 2012, 1:52am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/4 "2012-09-08T01:52:38Z")
> [@Rampant\_Coypu](#): > > You can’t earn enough interest off of capital to retire off a million these days. There are no low risk investments that pay decent interest anymore. The US and most of the rest of the world has too much cash and not enough demand. Banks don’t want your money. Sure, an annuity. Would pull in 2-3K a month, every month for the rest of your life. ---
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [September 8, 2012, 2:14am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/5 "2012-09-08T02:14:36Z")
> [@Linden\_Arden](#): > > About 90% of the world if you wish to live modestly. > > Exceptions - Hong Kong, London, Paris, New York City, San Fran - you get the picture. Well, one assumes there’s not a huge expat community in Sudan. ---
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [September 8, 2012, 2:24am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/6 "2012-09-08T02:24:15Z")
Thing is, before my evil half brother went in for the kill and really depleted my dad’s savings, this would have been an option for me in the long run. I’m curious as to whether he cost me the opportunity to never work again in a beautiful comfortable place or not. ---
**Author:** ![even\_sven](https://avatars.discourse-cdn.com/v4/letter/e/dfb087/32.png) [@even\_sven](https://boards.straightdope.com/u/even_sven)\ **Post date:** [September 8, 2012, 2:26am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/7 "2012-09-08T02:26:10Z")
I had a friend who retired to South-East Asia on around $600 a month. He watches his pennies and forgoes some creature comforts, but he has a pretty good life wandering around, staying here and there for a few months or so as he pleases. My Peace Corps living stipend was around $150 a month in both China and Cameroon, and it was more than enough to live reasonably well. You would have to add on some for medical care and any travel you might want to do, of course. ---
**Author:** ![obbn](https://avatars.discourse-cdn.com/v4/letter/o/d6d6ee/32.png) [@obbn](https://boards.straightdope.com/u/obbn)\ **Post date:** [September 8, 2012, 4:56am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/8 "2012-09-08T04:56:12Z")
I visited The Gambia in the nineties (very small West African country, former British colony). An income of 30k a year would have you living in the upper class quite easily, more than enough to afford servants, decent home etc. Getting a return of 30k a year on a million shouldn’t be tough. Advantages about The Gambia, everyone speaks English, the people are incredibly friendly and the beaches are beautiful. The bad: desperate poverty everywhere you look, corrupt government where bribes are a daily occurrence to get anything done, my Good is it hot, man eating sharks in the water and cobras in the bush. Screw it, keep your day job and live in the good old USA. ---
**Author:** ![wheresmymind](https://avatars.discourse-cdn.com/v4/letter/w/91b2a8/32.png) [@wheresmymind](https://boards.straightdope.com/u/wheresmymind)\ **Post date:** [September 8, 2012, 5:04am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/9 "2012-09-08T05:04:01Z")
> [@Rampant\_Coypu](#): > > You can’t earn enough interest off of capital to retire off a million these days. There are no low risk investments that pay decent interest anymore. The US and most of the rest of the world has too much cash and not enough demand. Banks don’t want your money. > > But given 1997 interest rates, you could make enough money from low risk investments to live in style in Belize. If you were clearing 40 thou each year after taxes or avoided taxes through muni bond funds, a couple could live pretty well down there. Belize is near the top of my list of places to disappear to. I spent about a month there after college and had a blast. You could definitely live it up there for $40,000 per year (or even about half that). It’s also one of the more expensive countries in the area, so you could stretch your dollars out if you went somewhere else in Central America. You could also start up a business to earn a little money on the side. Taking tourists fishing, setting up a little ice cream shop, etc. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [September 8, 2012, 5:39am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/10 "2012-09-08T05:39:05Z")
Similar [thread](http://boards.straightdope.com/sdmb/showthread.php?t=663425) from last week (“How to live long-term on a million dollars”). ---
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [September 8, 2012, 12:15pm UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/11 "2012-09-08T12:15:19Z")
> [@wheresmymind](#): > > You could also start up a business to earn a little money on the side. Taking tourists fishing, setting up a little ice cream shop, etc. Could you, though? Legally? ---
**Author:** ![wheresmymind](https://avatars.discourse-cdn.com/v4/letter/w/91b2a8/32.png) [@wheresmymind](https://boards.straightdope.com/u/wheresmymind)\ **Post date:** [September 8, 2012, 4:44pm UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/12 "2012-09-08T16:44:48Z")
> [@Zsofia](#): > > Could you, though? Legally? I assume so. Whenever I’ve traveled in Mexico/Central America I’ve always seen quite a few businesses openly run by expats, often catering to tourists. Also, if you plan on living there for life you could always just become a citizen, which would presumably eliminate any trouble starting a business. ---
**Author:** ![Chickenwrangler](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chickenwrangler/32/91_2.png) [@Chickenwrangler](https://boards.straightdope.com/u/Chickenwrangler)\ **Post date:** [September 9, 2012, 5:52am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/13 "2012-09-09T05:52:07Z")
Thailand It’s got everything for a young lad with money. Though once you get into the swing of things the money may not last as long as you hoped! ---
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [September 9, 2012, 4:47pm UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/14 "2012-09-09T16:47:04Z")
So what’s the _smallest_ lump sum that would allow you to live in a place that’s very pleasant and safe for Americans without ever working again? With a house, and a nice TV, and most of the comforts we expect? ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [September 9, 2012, 4:58pm UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/15 "2012-09-09T16:58:56Z")
I saw on BondNet last week that some Munis were hitting 6-7% over 30 years. So a million would end up being about 60-70k. And half-mill would end up at about 3-k or so. That would be federally tax free (though your state of residence, if any, would still hit you for taxes). Costa Rica’s cost of living site says that a retirement in luxury with servants and such should cost about $3000 per month. That sounds achievable. [http://costarica.com/relocation/cost-of-living/](http://costarica.com/relocation/cost-of-living/) ---
**Author:** ![Hari\_Seldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hari_seldon/32/5173_2.png) [@Hari\_Seldon](https://boards.straightdope.com/u/Hari_Seldon)\ **Post date:** [September 10, 2012, 1:12am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/16 "2012-09-10T01:12:11Z")
Suppose that I stipulated that I wanted it English speaking. And with modern health care. I don’t mind paying local taxes towards that. Oh, and have a decent climate and good music. I would move to Barbados but for the health care and the music. Wonderful people there. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [September 10, 2012, 2:03am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/17 "2012-09-10T02:03:04Z")
I am not sure you can do it easily on $1 million for someone in the 30’s safely anywhere in the world. That implies you would retire somewhere immediately and never work again for the next 40 years or maybe much more. You can stretch those dollars greatly if you have some income while you are there. However, versions of that can be done. I am in a similar situation with less severe constraints. I have tasked with moving me and several family members out of the country for similar reasons. My younger brother and I picked Costa Rica. I have been there and it still offers the best opportunity for an American style lifestyle with great health-care and plenty of Americans around. I am budgeting a lot more than $1 million a person however and it won’t happen until I at least 50 (11 years form now). That is for a luxury lifestyle with frequent travel back to the U.S. plus all U.S. quality goods and several large homes with swimming pools and servants. It can be done cheaper but Costa Rica is the most expensive Central American country for a reason although still much cheaper than the U.S. If you want truly cheap but still desirable and close to the U.S., look towards Belize or select parts of Honduras. Panama and Nicaragua are other possibilities. ---
**Author:** ![clairobscur](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clairobscur](https://boards.straightdope.com/u/clairobscur)\ **Post date:** [September 10, 2012, 2:21am UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/18 "2012-09-10T02:21:24Z")
If you’re 30, you can’t know what you’ll get for your money 30 more years down the road. Maybe you can have a great life in Costa Rica or gambia with 30 000/year at the moment, but when you'll be 60, maybe those 30 000 won’t get you very far there. And that won’t be the right moment to seek a job. Things change, you can’t take the current situation as granted. ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [September 10, 2012, 6:47pm UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/19 "2012-09-10T18:47:14Z")
I don’t see why a properly invested $1 million can’t let you retire right now, in the US. If I were debt free\*, not overly ambitious and living in a cheaper part of the country, I could absolutely be happy on $20-30,000 a year. A proper portfolio would give you a combination of equities and bonds to provide both capital appreciation and present income. Tax-free municipals would not be necessary for 2012, at least, because you’d be paying minimal income tax (0% on long-term capital gains and standard deductions and exemptions would wipe out the first $10k of taxable income). After 2012 (when the so-called Bush tax cuts expire), that might be a different story. - Debt free is an important factor in this. Most people don’t realize just how much of their money goes to paying off debts like mortgages and car payments. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [September 10, 2012, 6:53pm UTC](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058/20 "2012-09-10T18:53:38Z")
> [@dracoi](#): > > I don’t see why a properly invested $1 million can’t let you retire right now, in the US. If I were debt free\*, not overly ambitious and living in a cheaper part of the country, I could absolutely be happy on $20-30,000 a year. A proper portfolio would give you a combination of equities and bonds to provide both capital appreciation and present income. Tax-free municipals would not be necessary for 2012, at least, because you’d be paying minimal income tax (0% on long-term capital gains and standard deductions and exemptions would wipe out the first $10k of taxable income). After 2012 (when the so-called Bush tax cuts expire), that might be a different story. > > - Debt free is an important factor in this. Most people don’t realize just how much of their money goes to paying off debts like mortgages and car payments. The flaw in your plan is inflation. 20 or 30K right now for someone in their 30’s might be the equivalent of 5K a year when they are in their 70’s or older. That isn’t livable. You also have other severe factors working against you. Because you aren’t working during most of your adult years, you won’t be entitled to much Social Security when you are older. Assuming that $1 million is all you will ever have outside of safe investments, that is not nearly enough to try this anywhere in the U.S. for someone that young. It also isn’t easy to get even 2% or 3% safely today to provide that $20 or 30K. You may not have much of anything to live on from investment income for long periods especially in the beginning and all of those hits to your principal compound the issue negatively in the long-term. [Next page](https://boards.straightdope.com/t/where-in-the-world-can-you-retire-young-with-a-million/634058.md?page=2)