BajaNomad

Retire on Social Security???

oldjack - 11-10-2008 at 09:54 AM

If you have actually retired with your Social Security benefit as your primary source of support... I would like to hear how you did it... where you retired.... and how has it been for you considering housing, food, medical expectations(lack of)... this inquiry is not meant to embarass or otherwise be critical of anybody's financial planning but is a serious request for information that could change life plans....

With the economy gone to He$$ and with many of us at the point of retirement this information would be valuable...

oldjack - 11-10-2008 at 10:01 AM

I am thinking this would be a good forum that could give tips and suggestions for those in the same circumstance. I am self-employed and have made two(so far) bad domestic choices ... I have invested a few bucks in a palapa and structures in Los Barriles and had thought that would be a great retirement spot... with prices/conditions changing so rapidly in looks like social security might pay the lease and food but not anything else... not quite a homeless person but not where I had hoped to be...

longlegsinlapaz - 11-10-2008 at 11:13 AM

There are several relatively recent threads touching on this...try doing a search for cost of living.

BajaGringo - 11-10-2008 at 11:45 AM

It is a very valid question in these times as many find themselves suddenly not feeling to sure about their nest egg. I have met several folks in Baja who have done it. The common denominators I have found among them is looking for low cost land away from the border, learn cost saving ideas from the locals, be creative and be flexible. I know of one who even is able to put a small amount away into savings each month although he receives a tiny amount in SS benefits.

Osprey - 11-10-2008 at 12:24 PM

Oldjack, Your question is a tough one. Perhaps it needs refinement:
1. retiree #1 gets $1,400 U.S. a month, came down with no house, no land, no funds, no bills or baggage

2. #2 bought and paid for his house/lot down here before retirement but we don't know what his cost of living is cause we don't know where he lives.

3. #3 gets $1,000 U.S. a month but needs a ton of meds and lives far from the border

4. #4, (me) (2 people) live on $2200 U.S. per mo, paid cash for house, have no bills except utilities -- we consider our guality of life and what we now eat/drink as far superior to when/where we had to work in the U.S. but that's just us.

You're likely to get as many answers as there are situations/locations.

wornout - 11-10-2008 at 01:15 PM

Quote:
Originally posted by oldjack
If you have actually retired with your Social Security benefit as your primary source of support... I would like to hear how you did it... where you retired.... and how has it been for you considering housing, food, medical expectations(lack of)... this inquiry is not meant to embarass or otherwise be critical of anybody's financial planning but is a serious request for information that could change life plans....

With the economy gone to He$$ and with many of us at the point of retirement this information would be valuable...


We are doing it. We sold out in California 10 years ago and had a house built here in San Felipe. We lived on investments and are now both on social security. The secret is to NOT have a house payment. We travel in the summer in our travel trailer and then come back down here 8 months a year.l It is not that hard once you cut your spending for things needed to work.

stanburn - 11-10-2008 at 01:32 PM

We are in a similar position to Osprey. Live in Santiago, Colima...paid cash for the house. 2 of us live on $2000 per month in retirements. Have a 1991 Dodge Caravan and no bills. We pay our medical expenses out of pocket and actually live on about $1000 a month, but use the remainder to play, and pay for house renovation expenses.

This is a real similar question to one in the boating world. How much money does it take to cruise? As much as you have!

You can live on very little money, but you may be scrimping on things you want.

oldjack - 11-10-2008 at 01:52 PM

Ooops! just noticed my book on retiring in Mexico on $10 a day is really really dated....

I am thinking that it may be possible to make it on Social Security... my place in Los Barriles is paid for... but the annual lease is $3300(usd) and could go up in a few years... I am guessing that a "reduced" lifestyle is in order... and I may have to not drink really good bourbon... and only an occasional beer..

It is the natural course of life that costs go up... but it seems that to commit to retiring outside of one's comfort zone takes a certain amount of chance and good luck... my original plan was to work at Yellowstone Park during the season and spend the rest of the year in Los Barriles... I just get these nightmares about my car breaking down and I am stuck in some place like Austin,NV .... halfway to?????

how do you SS retirees handle banking( I know how the rest of you do it) do you keep a permanent address stateside??? and do you have to return to the states in any certain timeframe? Now that Los Barriles has a working ATM I think I can survive....

Cypress - 11-10-2008 at 02:18 PM

It's hard to retire on social security benefits most anywhere. Unexpected costs will take a nibble here and there, a big bite now and then. :( Banking is easy, direct deposit, bank of your choice. :yes: ATM's are everywhere. Guess it's just a matter of how much you've got in the piggy bank.:)

Pescador - 11-10-2008 at 03:51 PM

The other issue we hit, head on, is the issue of medical services. If you retire to baja, there may come a point where the medical services you need are not available and you find yourself needing to return to the US.
My folks started out at San Carlos, Sonora, quite a few years ago and we would see this constant pattern where people would retire, buy a travel trailer, move to Mexico (because in those days it really was cheaper to live there) and then come back to the states during the summer. Almost all that we knew really well, ended up moving back to the States when their health forced them into it, and then they had to sell a trailer which had depreciated to almost nothing and rent or try to buy a house that was closer to medical services.

Udo - 11-10-2008 at 04:24 PM

Oldjack!
Listen to Osprey's retiree #4. Right on the money!
I still have many more interviews to do, but I plan on writing a book on retiring in Baja, or anywhere in Mexico for that matter, and just use your SSI as income.
If you wish to talk to several people in person, stop by Baja Country Club at the south end of Ensenada and start with Ken at #337. Bajaguy will fill you with stories and get you drunk on the best margaritas!

pacificobob - 11-10-2008 at 05:04 PM

if i were in that position i would consider retiring in thailand or viet nam. , or laos.

lhauker4 - 11-10-2008 at 06:38 PM

So it sounds like if you are a renter and social security is all you have that the Baja might not be the place for you. My wife just went through a serious sickness that wiped out all our savings so the US is probably a real bleak possibility since we both love golf and the only way you can afford for both to play is find an affordable membership. We were really hoping the Baja was the answer.

Hook - 11-10-2008 at 06:46 PM

Oldjack, tell us what your recreational interests are.

What does your lease say, with regards to increases? What is its term? What have you put on the property that you cant take with you, if you left?

My sense is that the East Cape area is NOT the place to be on a minimal fixed income. At least not starting out there now.

[Edited on 11-11-2008 by Hook]

bajabound2005 - 11-10-2008 at 07:25 PM

we actually need for bajadock to weigh in on this one; he is here (in baja) is retired but not even ELIGIBLE for SS. I'll ask him, to make a post.

[Edited on 11-11-2008 by bajabound2005]

bajadock - 11-10-2008 at 08:02 PM

Welcome back from San Felipe. BB05 knows very well that I am very frugal, as I have a healthy fear of my investments supporting me for another 30+ years.

I think Osprey's examples and numbers are solid. But, a forum discussion can't cover all of the subjective and objective items needed for retirement. So, I'll put out the welcome mat to any who visit the Ensenada area for a discussion over a beverage or 6. Have a real discussion with as many retirees as possible.

Summary from what I have learned is that if you are needy in terms of entertainment thrills, first class travel and 5 star dining, do not retire. EVER! Most of us gringos are so spoiled that we have no idea what simple living is.

If you can live more like a mexican, retire as early as possible. My entertainment comes from some new friends here, the ocean and the endless hills for hiking and sightseeing. A few Pacificos, a simple dinner at home(black bean/nopalito/chicken stew tonight) and a $5 bottle of wine and I can howl at tonight's moon like I'm living in paradise.


bajabound2005 - 11-10-2008 at 08:27 PM

yup, that bajadock knows how to live! is that really tonight's moon? Must take a peek outofdoors!

Nope! The moon is WAY too high for that reflection! Full moon coming up on Thursday!

[Edited on 11-11-2008 by bajabound2005]

Bob H - 11-10-2008 at 08:48 PM

OK, I have a question. If you want to live in Mexico, either full or part time, you need an FM3 visa, right? And, one of the requirements is that you have to prove at least $1,000/month income, per dependent, right?

http://www.mexonline.com/business/visa2.htm

Bob H

bajabound2005 - 11-10-2008 at 08:57 PM

our last FM3 renewal (in July) was $1100 USD and $500 USD per dependent per rmonth (and yes, that is a great deal more than the average family income in our parts!) Depending on WHERE you do your FM3, the immigration folk can understand your portfolio docs....yes we have that minimum income via Bajamigo's SS, but the balance in our portfolio speaks volumns more. Sometimes they just trash the bank statements and want the Morgan Stanley statements, other years, vice versa.

They are looking for a stable balance in your bank account more than anything....

[Edited on 11-11-2008 by bajabound2005]

stanburn - 11-10-2008 at 09:27 PM

If you own property in a Fideocomiso then the income requirements are halved.

bajaguy - 11-10-2008 at 09:51 PM

Quote:
Originally posted by udowinkler
Oldjack!
.............
If you wish to talk to several people in person, stop by Baja Country Club at the south end of Ensenada and start with Ken at #337. Bajaguy will fill you with stories and get you drunk on the best margaritas!
.......................




I don't know who Ken is, or why he is at my house, but I'll be glad to talk to you..............

Terry......(bajaguy)

LOSARIPES - 11-11-2008 at 03:02 AM

Q: I understand one can start receiving S$ benefits at 62, but if you wait till 65 you get more. What about 63?, 64? is it prorated?

Hook - 11-11-2008 at 06:33 AM

Yes, I believe it's pro-rated, but you should go to the SS website. Pretty informative, including a means of predicting your income at each age of retirement. It helps to have your statement that SS mails to you in front of you.

CaboRon - 11-11-2008 at 07:29 AM

I have been reading this thread with interest as I recently retired on social security and a small pension from Disney Entertainment Productions .... The total is around $1200- per month.

Those who seem to be succesful have their house paid for. I am a renter and it is not working out.

The cost of food is higher than in the US , where you can shop with double coupon days , etc.

And there are things I really miss, such as the theatre, symphony, and the great infrastructure such as roads that do not beat your car to death, and sidewalks that are not a threat to your well being.

In about eighteen months I will be starting on Medicare and I would like to take advantage of it. As a side note , my pityful spanish does not allow for a technical discussion with the doctors (I want to continue to be a part of my healing process, and that requires a dialogue with my healing partners)

And the number one reason is the weather .... this last summer literally made me sick with the humidity and I decided I will never spend another summer here again.

As the cost of moveing back and forth each year are probably beyone my financial abilities I will probably not return.

So, I am going to spend this beautiful winter here and have given notice to vacate on April 30.

And there is also a very dark side to this land which seems to be based on corruption and possible danger to Americans.

The number one reason , besides the summer weather, are the work restrictions placed by Immigration. I need to be able to suppliment income by an occasional small project, not enough to justify the BS required to have a business here. The labor laws here seem to be based on protecting the sub-standard and dangerious practices of the workers.

You don't appreciate what a great country the USA is until you leave it. And at this time it is not cheaper to live in mexico when you consider the resources available to seniors in the US.

So, I am getting out while the getting is still an option for me.

CaboRon




[Edited on 11-11-2008 by CaboRon]

Osprey - 11-11-2008 at 07:58 AM

Ron, the shame of it all is that you had, very close at hand, before you moved down here all the information that now is chasing you from the place. I'm able to communicate fully with professional medical people here because they strain mightily to make themselves clear, given we are not fluent and because I listen, I take advantage of language resources like dictionaries and Mexican friends who are bi-lingual. It's a rough place. Just for you, here I reprise a little piece I wrote about that.

Warning Label





When I saw it, when I realized what had got me, what was causing me such incredible pain, I could not believe my eyes. The plant, called mala mujer, Bad Woman, luxuriant, lovely looking thing, would look at home in the garden or on the patio. My calf barely brushed it as I walked through the desert near my home. Mala mujer. Perhaps this whole place should carry such a warning label and a new name to match. Maybe this part of Mexico could be called mujer mysteriosa, Mysterious Woman; a thing that has indescribable beauty while sometimes meting out profound pain and heartbreak.

I have a sense of the place that embraces not just the spiky land but both seas, the sky above, the immeasurable history. A cruel place indeed for early travelers – their boats dashed and ruined on the rocky shoals, their feet cut and bleeding from the crippling scrapes and gouges of dagger plants and nettles. No Cibola here – they would gladly have settled for a wet tinaja, a tiny waterhole.

The early ones might have seen her as a woman. Her moods, her give and take, are not subtle. Modern day visitors need time to learn her moods. They are lulled into false security, feel less threatened than the adventurers, the settlers and explorers. Yesterday a rogue wave snatched a family of these new tenderfoots from the beach, a few yards from the sybarite’s pleasure palace on the shore at land’s end. Killed them all.

She is often rough and dismissive with fawning, moonstruck pilgrims – they run north before the chafing winds of misadventure with empty purses and infected bowels. Many suitors will not be put off. Broken axles and bleeding hearts lie in the dust as testimony to their unrequited fidelity. She killed all the Indians, the ones with the darkest skin. They found the place full of food they could not gather. Once they were isolated the end came quickly for these early tourists.

La Mujer still holds the power to embrace, to heal. She mellows with age. Now she lets the dark skinned ones live but she makes them work like dogs. She allows me some latitude; I know many of her secrets and I can avoid her nags and nettles because I am no longer fooled by her deceptive hues and shapes and textures. I just have to remind myself that in Baja California nothing is what it appears to be.

When they talk about my end, how she took me down, I hope they’ll say, by whatever name they may give her, that she let me go quietly into the night; full of her beauty and passion, sated, at peace, knowing I had wooed her, held her if only for a very short while. They may say of me that my fate was sealed when she let me feel that irresistible sweet spot between serenity and danger.

[Edited on 11-11-2008 by Osprey]

TMW - 11-11-2008 at 08:32 AM

Quote:
Originally posted by LOSARIPES
Q: I understand one can start receiving S$ benefits at 62, but if you wait till 65 you get more. What about 63?, 64? is it prorated?


If you retire early, before 66 for most of us. your SS is reduced by approx .5% per month. For example if full retirement is 66 and you retire at 64 and 6 months thats 18 months early and your SS will be reduced by 9% from what it would be at 66.

bajalou - 11-11-2008 at 08:39 AM

It was said several years ago when full retirement benefits were available at 65, that if you took reduced pension at 62, you would be ahead for 14 years, and from then on behind (in total monies received).

Iflyfish - 11-11-2008 at 08:40 AM

CaboRon and Osprey,

I have not read such tender dialogue in many years. I appreciate you amigos; both. We are enriched by your candor and eloquence.

There is a reason that so many hazard death to come to the Cold Country though She too can be a siren to her émigrés and some of the same fate await those who venture to her beckoning arms.

Having just lost a small fortune myself, at least fortune to me, son of a dry land farmer, I wished that I had listened better to those skinny old gray beards who talked to me of the Great Depression. I wish we all had remembered our history lessons and the stories of the Robber Barons, Gould, Fiske and the consequences of free boot Capitalism. Caveat Emptor is the law in the North and the South.

Iflyfish

Udo - 11-11-2008 at 08:48 AM

Quote:
Originally posted by bajaguy
Quote:
Originally posted by udowinkler
Oldjack!
.............
If you wish to talk to several people in person, stop by Baja Country Club at the south end of Ensenada and start with Ken at #337. Bajaguy will fill you with stories and get you drunk on the best margaritas!
.......................




I don't know who Ken is, or why he is at my house, but I'll be glad to talk to you..............

Terry......(bajaguy)

My apologies, Terry! I had been communicating with so many Nomads that I got my names mixed up! I guarantee it won't happen again...
Udo

Udo - 11-11-2008 at 08:58 AM

Quote:
Originally posted by Osprey
Ron, the shame of it all is that you had, very close at hand, before you moved down here all the information that now is chasing you from the place. I'm able to communicate fully with professional medical people here because they strain mightily to make themselves clear, given we are not fluent and because I listen, I take advantage of language resources like dictionaries and Mexican friends who are bi-lingual. It's a rough place. Just for you, here I reprise a little piece I wrote about that.

Warning Label





When I saw it, when I realized what had got me, what was causing me such incredible pain, I could not believe my eyes. The plant, called mala mujer, Bad Woman, luxuriant, lovely looking thing, would look at home in the garden or on the patio. My calf barely brushed it as I walked through the desert near my home. Mala mujer. Perhaps this whole place should carry such a warning label and a new name to match. Maybe this part of Mexico could be called mujer mysteriosa, Mysterious Woman; a thing that has indescribable beauty while sometimes meting out profound pain and heartbreak.

I have a sense of the place that embraces not just the spiky land but both seas, the sky above, the immeasurable history. A cruel place indeed for early travelers – their boats dashed and ruined on the rocky shoals, their feet cut and bleeding from the crippling scrapes and gouges of dagger plants and nettles. No Cibola here – they would gladly have settled for a wet tinaja, a tiny waterhole.

The early ones might have seen her as a woman. Her moods, her give and take, are not subtle. Modern day visitors need time to learn her moods. They are lulled into false security, feel less threatened than the adventurers, the settlers and explorers. Yesterday a rogue wave snatched a family of these new tenderfoots from the beach, a few yards from the sybarite’s pleasure palace on the shore at land’s end. Killed them all.

She is often rough and dismissive with fawning, moonstruck pilgrims – they run north before the chafing winds of misadventure with empty purses and infected bowels. Many suitors will not be put off. Broken axles and bleeding hearts lie in the dust as testimony to their unrequited fidelity. She killed all the Indians, the ones with the darkest skin. They found the place full of food they could not gather. Once they were isolated the end came quickly for these early tourists.

La Mujer still holds the power to embrace, to heal. She mellows with age. Now she lets the dark skinned ones live but she makes them work like dogs. She allows me some latitude; I know many of her secrets and I can avoid her nags and nettles because I am no longer fooled by her deceptive hues and shapes and textures. I just have to remind myself that in Baja California nothing is what it appears to be.

When they talk about my end, how she took me down, I hope they’ll say, by whatever name they may give her, that she let me go quietly into the night; full of her beauty and passion, sated, at peace, knowing I had wooed her, held her if only for a very short while. They may say of me that my fate was sealed when she let me feel that irresistible sweet spot between serenity and danger.

[Edited on 11-11-2008 by Osprey]


Only Osprey could write the above poetic nuance to living in Baja. He flows with optimism and he write with the feeling of a mom with a newborn baby. I am so proud to call you my friend

bajaguy - 11-11-2008 at 08:58 AM

My apologies, Terry! I had been communicating with so many Nomads that I got my names mixed up! I guarantee it won't happen again...
Udo..........................................

Too many of those margaritas!!!!!!!!:lol:

vandenberg - 11-11-2008 at 09:16 AM

Quote:




Having just lost a small fortune myself, at least fortune to me, son of a dry land farmer, I wished that I had listened better to those skinny old gray beards who talked to me of the Great Depression. I wish we all had remembered our history lessons and the stories of the Robber Barons, Gould, Fiske and the consequences of free boot Capitalism.

Iflyfish


Listen to Barry.
It's all on paper and if you just hang on it will all correct itself in due time.:P
However,the question is, will you live that long.:biggrin:
All

CaboRon - 11-11-2008 at 09:24 AM

Quote:
Originally posted by bajalou
It was said several years ago when full retirement benefits were available at 65, that if you took reduced pension at 62, you would be ahead for 14 years, and from then on behind (in total monies received).


This is true .... only I calculated it as 18 years to the catch up point .... use it while you can.

CaboRon

Udo - 11-11-2008 at 09:30 AM

I have to add another footnote to oldjack:
My research has shown that the break-even point is 74 as to collecting your SSI at 62, or wait until you are 66. And in my case, doing the math, assuming I live to be 80, the difference in money is almost $2,000.00 US, and in my wife's case it is less that $1,800.00. Not a big amount of money, HUH?
Also, one can collect at 62, and continue working, and if one works untill one is 66, the higher payment will then apply. The full text is readable at the SSI.gov website. You need to read it because part of your income is applied to your SSI contributions, even though collecting. Plus there are other minor ramifications.
The main key of living in Baja, or Mexico for that matter, is to come down with no baggage of bills, RV payments, or major medical problems. If one shops wisely for housing, a rent of less than $400.00 per month is possible, and living in an RV is less than that unless one choses to rent at a well-appointed RV park.
Hope this helps!

[Edited on 11-11-2008 by udowinkler]

vandenberg - 11-11-2008 at 09:37 AM

UDO,
Correct, it's 12 years. If you start collecting at 62 it takes till you're 74 before reaching the "even" point. From thereon you're getting behind. Would be neat to know when you're going to cash in, instead of having to rely on statistics.:P:P:biggrin:

oldjack - 11-11-2008 at 09:49 AM

I probably made a bad choice in "overduing" my palapa... my leased lot is only 60x60 and I have just about covered every sq. ft with something... have 32' trailer on one side and had a bedroom, bath, storage room built on the opposite side then and outside kitchen and bar on one end... I should have planned on having a garden to raise some food... I don't like to eat fish every day but I can walk 200 yds to the beach to fish and do that every day... I chose Los Barriles because it was only an hour from the airport at SJD and I could go back and forth on a monthly basis while still working... I would have been better served having a small house on a lot that could give me the chance to grow food.. I am 63 now and don't draw SS because of the offset I wouldn't get any of the benefit... I WAS trying to save up some extra cash to put away to augment SS... but the real estate market had other plans for me... I live well while working as a realtor(own brokerage) and own a Mortgage Brokerage business... but being self-employed that income stops when I leave... I may end up selling my Los Barriles spot and try to find something up in BCN to cut down on travel expenses or maybe just bite the bullet and go to the mainland.. I haven't found anybody in LB that has retired on SS... but would like to talk to them... medical cost could ruin any chance for a quiet retirement but I cannot dwell on that or I would never make a decision... I am thinking the seasonal job up North coupled with a few good months in Baja might be the compromise..

Udo - 11-11-2008 at 10:20 AM

I'll bet this is going to be a very long thread, just like the one on one of the Yahoo groups...it went on for three weeks.

Udo - 11-11-2008 at 10:28 AM

Oldjack:
You could sell your place in Los Barriles for whatever the market will bear. There are some nice expat communities in Ensenada, Punta Banda and San felipe, if you wish to stay closer to the border. Look at the Punta Banda newsletter, I don't remember the name. and Baja Country Club is a secure and cute community just south of Ensenada.

Hook - 11-11-2008 at 10:43 AM

Quote:
Originally posted by soulpatch
Another interesting twist to SS is that since I have a defined benefit plan and all the quarters I worked were, according to the SSA too long ago, that they will not allow me to apply them to my SS retirement. Teach me to count on something I worked for being there when I retire.
Guatemala anyone?


What constituted "too long ago" in your case, according to SSI?

CaboRon - 11-11-2008 at 12:50 PM

Quote:
Originally posted by soulpatch
About 25 years. I had been getting correspondence from them for years that stated since I do have a defined benefit retirement that my SS would be diminished but never before had they stated that there was a time limit for me to access it.
Weak.


Sounds strange to me ... I have two different difined benefit plans, one from Disney Entertainment which I started collecting at age 61 and another from San Francisco Opera Company which will kick in at age 65 .... and neither of them has affected my Social Security in any way....

Are you sure you wern't working for the state or national gov't in some way ... I do know that those plans do knock you out of certain SS benefits: because those employers do not contribute to SS, only to their own pension plans.

CaboRon



[Edited on 11-11-2008 by CaboRon]

longlegsinlapaz - 11-11-2008 at 01:10 PM

Osprey eloquently touched the harshness of the land; I’d like to address what I feel is the next logical factor…the people factor. I liken the people who make a successful transition to life in Baja to the pioneers who crossed the plains to begin life anew in the West. It certainly isn’t for everyone, and IMHO, those who succeed are the ones who researched the hell out of all things they personally require to make their life successful & fulfilled; as well as many that aren’t required, but exist here & could have an adverse impact. Even with extensive research, it takes a certain personality to thrive here. Finances definitely play a role to a certain extent, but in my mind, the more important factor is an inherent ability to adapt to a new culture, different climate & a totally different life style. Individuals who have the ability to leave their USA lifestyle, standards & expectations at the border are more likely to succeed in making the huge transition & find happiness in their new surroundings. I believe it takes a certain breed of hardy pioneer genes flowing in our veins, the ability to not only accept, but to embrace the differences we find here; an inherent ability to hit the ground running, to deal with obstacles (real or perceived) on the fly, to roll with the punches.

Those who can’t or aren’t willing to adapt to the reality of Baja typically end up disillusioned, dissatisfied, unhappy & blame it on the land, the culture, the climate…when in fact more often than not, it’s their own fault. Lack of factual knowledge of what you’re going to encounter, having steadfastly stuck to your gringo standards & expectations, lack of truly knowing yourself & what you can or would be willing to change or forego in your life…in my experience are the greatest factors to success or failure.

Each individual person or couple are the only ones who know their needs, their likes & dislikes & have the ability to differentiate between genuine need versus want. Type of lifestyle, food differences, limitations or availability, medical requirements, comfort level with all things new & different. Social & lifestyle differences vary greatly between life in a quiet little fishing village versus being in or near a larger town. How important is having an airport located within what you consider reasonable distance to you? Do you plan on insuring your casa and/or vehicle? Language skills, or lack thereof. Weather…how well does your body deal with several months of 100+ temperatures, not to mention high humidity. IMO, all these things are are just as important to take into consideration as money.

Thorough research will help prepare you, but there’s still a high likelihood that you’ll be blindsided by something(s) that you hadn’t come across in your research. Reality is something that comes along when we least expect it & has the uncanny ability to skew the best-laid plans!:bounce:

I don’t feel there’s such a thing as “the typical Baja retiree”. I own my home, don’t have local health insurance, have no existing medical problems beyond occasional severe allergic reaction to wasp stings, take no medication other than infrequent OTC, have veterinary expenses for 2 dogs & a cat, I carry both homeowners & vehicle insurance, I eat well (mostly at home), rarely drink, not yet drawing SS & have lived here on fixed monthly income of $1,000 USD since 1999. I live in a nice home…I live well & don’t feel deprived. Planned or unplanned out of pocket medical/veterinary costs & annual insurance premiums are the most difficult things for me to budget for; electricity also can fall in there, despite my efforts to conserve.

If you want it bad enough, you'll find a way to make it happen!:yes:

Cypress - 11-11-2008 at 02:54 PM

longlegsinlapaz, Agree with you on all counts.:bounce: But, the year 'round fishing is something that factors into the equation. :) On the Sea of Cortez side the fishing is less than what it's cracked up to be. :) Hate to come across as being negative, but it cost me several $$$ to learn that. :) Would advise anyone with expectations of catching mucho fish not to buy into the PR promoting the fishing unless you're a real triggerfish fan and most of them are dinks.:spingrin:

comitan - 11-11-2008 at 03:30 PM

I guess its my time to chime in, Osprey, Legs, and Cypress have said it well.

vandenberg - 11-11-2008 at 05:05 PM

Stick to this and it won't take much to get by.:biggrin::biggrin:

unknown.jpg - 25kB

BajaGringo - 11-11-2008 at 05:10 PM

Cypress - I would never be confused with someone who really knows what they're talking about when it comes to fishing but is the SOC becoming fished out or are there other reasons behind the decline? I ask this because I have heard from several folks who do fish a lot on the Pacific side of Baja that this was a great year for fishing???

Iflyfish - 11-11-2008 at 05:14 PM

comitan

pithy amigo pithy...but i repeat myself. these are the guys that know it well and and know well how to say it

Iflyfish

Udo - 11-11-2008 at 05:42 PM

My book will just be an expanded version of what longlegsinlapaz has so eloquently written. So far I have 22 titled chapters but I may have to dedicate a couple of chapters just on what longlegs and Osprey have to say.

Pescador - 11-11-2008 at 05:45 PM

Quote:
Originally posted by Cypress
longlegsinlapaz, Agree with you on all counts.:bounce: But, the year 'round fishing is something that factors into the equation. :) On the Sea of Cortez side the fishing is less than what it's cracked up to be. :) Hate to come across as being negative, but it cost me several $$$ to learn that. :) Would advise anyone with expectations of catching mucho fish not to buy into the PR promoting the fishing unless you're a real triggerfish fan and most of them are dinks.:spingrin:


Well, I knew I should have taken Cypress fishing. While I think there is some serious decline in fish stocks, the fishing last year could only be described as epic in the Santa Rosalia to Loreto area. I will admit that there is a fairly sharp learnin curve and one must pay their dues either by hiring real professionals or going out with those in the know.
The Pacific side from Abreojos to Asuncion just finished one of the best years in anyones memory and was probably related to available baitfish in the area.
So while it did not work for Cypress, the main number one reason I retired where I did was the fishing. When that goes, there will be a nice house for sale in a sleepy little fishing village.

Cypress - 11-11-2008 at 06:07 PM

Pescador, You could probably catch a mess of fish out of a mud hole.:lol: I'm heading down towards the LA/MS marsh country this winter. No doubts at all about being able to catch plenty of specs, flounder and red fish. Won't need a guide to teach me how to catch 'em. Was raised down there with a rod and reel in my hand. The shrimp don't cost as much as in Baja and the Blue Crabs are abundant. Those San Lucas oysters are great, but the MS/LA oysters are choice, actually bigger and better. Can't comment on the Pacific side fishing, never had the pleasure, not likely to get over that way any time soon. Good luck with all your trials and tribulations.

longlegsinlapaz - 11-11-2008 at 06:50 PM

Udo, could ya hold off until Osprey & I can meet with an attorney regarding plagiarism laws? We'll get back to ya!:lol::lol:

Udo - 11-11-2008 at 07:06 PM

I already discussed it with OSPREY, you were next on my list!:o:o:o:o;D;D;D;D;D

Hook - 11-11-2008 at 09:13 PM

Soulpatch, I'm also a CalPers recipient. But, because I paid into SS my whole career, my CALPERS benefit is figured by taking the average of my 12 highest earning months and reducing the AVERAGE (not the benefit) by 133.00/month. This reduced average is then used to determine your monthly pension in conjunction with variables for length of service and age at retirement.

I have also not heard anything about a diminished SS payment due to belonging to a defined benefit plan. Except, of course, that you can have your SS benefit reduced, through taxes, if you earn too much, especially if you take early retirement.

This bears some researching............

LOSARIPES - 11-12-2008 at 03:03 AM

62 it'll be. Right now, I am not even sure I will get to 62, much less to 74... Thanks for the info...

Hook - 11-12-2008 at 05:15 AM

Quote:
Originally posted by LOSARIPES
62 it'll be. Right now, I am not even sure I will get to 62, much less to 74... Thanks for the info...


Yes, most all financial advisors have been recommending that you start taking benefits at age 62, although there was some speculation that advice might change if SS is diddled with (and it will have to be). However, Obama went on record during the campaign that he would NOT increase the ages for retirement and would NOT reduce the benefits. Apparently he will increase the maximum salary that pays into SS and probably increase payroll taxes on employers, too. But I seem to remember the CFSS (Commission on Fixing Social Security, MY ficticious acronym!) saying that alone would not fix SS.

[Edited on 11-12-2008 by Hook]

Hook - 11-12-2008 at 05:33 AM

Quote:
Originally posted by soulpatch
Yeah, I haven't paid into SS for a long time. That was the rationale stated in their letter


Probably what happened is that when figuring your potential SS payout, they look at what you paid IN over your highest 35 years of paying SS. Once they averaged those few years you were paying IN with all those ones you weren't and THEN figured your benefit, it was small. Probably less than 50.00/month.

But I hear you. If you're paying in ANYTHING, why not get something back?

I have never understood the criteria that allows a non-working (i.e., non-contributing to SS) spouses/dependents to collect SS after the death of the contributor. THAT has to be a huge drain on SS.

[Edited on 11-12-2008 by Hook]

CaboRon - 11-12-2008 at 07:02 AM

Quote:
Originally posted by Hook
Except, of course, that you can have your SS benefit reduced, through taxes, if you earn too much, especially if you take early retirement.

This bears some researching............


I retired at 62 and for the next several years there is an earnings limit of approx $13,000-- after which my benefits witll be reduced.

CaboRon

Hook - 11-12-2008 at 07:04 AM

Ron, let's say you exceed 13k for the next two years and then drop below that in the next year. Does the SS reduction remain in place or is it adjusted for the following year?

k-rico - 11-12-2008 at 07:47 AM

For those retirees that can't afford housing in the US, Mexico is a good bet from the financial point of view. Medicare is a problem tho. Perhaps the answer is to live in Mexico close to the border.

To that end, I have a real nice 3bdrm, 2 bath condo for rent in charming, quaint Tijuana, only $6,500 pesos! It's in a better TJ neighborhood and since it's on the second floor, it's secure (compared to those on the first floor).

Only the front windows are exposed to gunfire in the streets and the cops have gotten real good at quickly removing bullet riddled cars and corpses from the street, so that's not much of a problem.

And as the peso continues to devalue, less and less of your social security check will go towards rent - what could be better?

It's a quick, one block dash to the grocery store, so your exposure to the violence while food shopping is minimized and there is a hospital close by in case you get caught in the crossfire.

U2U me if interested.

If desired, I'll install bullet proof windows. Cable TV too!

[Edited on 11-12-2008 by k-rico]

shari - 11-12-2008 at 08:22 AM

I have been thinking about this alot over the last few days. What is interesting is that there are very few families in our area who make what many of you collect in SS a month and they support their families OK.

As many have said...downsizing, living frugally, ridding yourself of any payments on debts and lifestyle changes are the key to living in baja on SS. I am amazed at the difference in rents, leases etc. between developed areas and small villages. It would be easy to live on SS if you buy/rent a little place that ISNT on the beach. Rents are very cheap here for example and you can buy a small fixer upper for 10-20 grand in smaller villages...and there are still lots of places you can live in your camper/RV for free if you dont need "fancy".
BAJA IS NOT FOR THE FAINT OF HEART....but it is entirely doable if you live like a mexicano...and you will certainly learn many new things and new values.

CaboRon - 11-12-2008 at 09:06 AM

Quote:
Originally posted by Hook
Ron, let's say you exceed 13k for the next two years and then drop below that in the next year. Does the SS reduction remain in place or is it adjusted for the following year?


Don't quote me on this, however I believe the adjustment happens once per year, and the benefit level can be restored, and might even be a little higher when the SS contribution for your earned income is figured in.

I do know that each year around November you are sent a questioneer (sic) that asks your projected earned income for that year.

CaboRon

oldjack - 11-12-2008 at 09:39 AM

Those of you who have retired, either on SS or some other minimal plan, do you work part-time in the states to make life a bit more comfortable?? I am aware of how the income offsets work... but after the qualifying age you have no negative effect... I want to enjoy some good weather and hopefully good fishing in SOC... Los Barriles is a great little town IF you have enough money... I have seven years left on my lease($3300/yr) but no control on what happens after that... the increases in the past have been about 10%... if I were to sell out and buy a "fixer" that Shari suggests I might be ahead and have space to grow some food... it seems that the most affordable small towns/villages are on the remote Pacific side.... maybe have to look in that direction...

Iflyfish - 11-12-2008 at 09:46 AM

SS has a once per year cost of living increase, 6.3% I believe this year.

Iflyfish

comitan - 11-12-2008 at 10:04 AM

5.8%

http://www.ssa.gov/pressoffice/pr/2009cola-pr.htm

Santiago - 11-12-2008 at 11:40 AM

I have a friend who retired from US Gov service at age 50 after putting in almost 30 years. He is now 60. Every year he gets a small cost of living raise that is then wiped out by the increase is cost of his health insurance. Some years the increase is health premiums is greater that the COL raise. Most years, his net increase is in the $25 to $50/month range. While he's glad he retired at 50, it just gets harder and harder for him to make it.

comitan - 11-12-2008 at 11:59 AM

Nobody can give you the answer to this question, because everyone's circumstance is different, it all comes down how bad you want to and if your willing to live within your means.

toneart - 11-12-2008 at 12:06 PM

Old Jack,

It sounds to me like you may be able to pull it off living like the locals in a small village. A couple of Nomads live in the village of San Lucas, which is not far from Santa Rosalia, between Santa Rosalia and Mulege. The west side of HWY 1 looks clean and modest. It is moments from the SOC where some of the best fishing takes place around San Marcos Island.

A problem I see for you would be how to unload your Las Barriles home. There is not much of a real estate market anywhere in Baja due to the economic turndown in the U.S. and also news of all the border violence.

If you were to entertain moving to a small village and live like a local, could you adjust culturally? If San Lucas were it,there is always Mulege to visit and get a hit of gringo comradere, only about 30 minutes away.

Iflyfish - 11-12-2008 at 12:44 PM

Comitan right 5.8%, wishful thinking on my part. Sorry if I got hopes up.

Iflyfish

Hook - 11-12-2008 at 03:25 PM

Quote:
Originally posted by oldjack
Those of you who have retired, either on SS or some other minimal plan, do you work part-time in the states to make life a bit more comfortable?? I am aware of how the income offsets work... but after the qualifying age you have no negative effect... I want to enjoy some good weather and hopefully good fishing in SOC... Los Barriles is a great little town IF you have enough money... I have seven years left on my lease($3300/yr) but no control on what happens after that... the increases in the past have been about 10%... if I were to sell out and buy a "fixer" that Shari suggests I might be ahead and have space to grow some food... it seems that the most affordable small towns/villages are on the remote Pacific side.... maybe have to look in that direction...


Oldjack, are you saying the lease has been going up about 10% per year while you have been there OR that when others around you have renewed after 10 years, THEIR lease went up about 10% over the previous lease amount or ??????

Counting utilities, it sounds like you're "rent" is around 300-350 month, which is not too bad AND you have use of your improvements.

As far as food goes, I've started some crops on the roof of a neighbor's house in pots. Some tomatoes, cilantro and basil to start; other veges later on. Less bugs UP there. Maybe you can approach a neighbor with a large concrete roof on a garage or something to let you "sharecrop" his, uh, north forty..........meters, that is. Or maybe you can go UP on your property.

For soil, some good old horse manure and well-draining desert soil can work just fine.

How about getting a couple chickens and constructing a chicken coup? Our landlord's are producing about 2 eggs a day and a large percentage of their diet is table scraps, as well as some chicken feed.

Vegetables are no bargain in the supers over here in Sonora but there are GREAT deals on local produce at the open air mercados, in town and out of town. GET AS CLOSE TO THE SOURCE AS YOU CAN, without spending a bundle on gas getting there. Ask the locals where they buy foodstuffs.

For medical, investigate joining the IMSS health plan in Mexico for the small stuff. I know a couple over here who are 65 and 51. They pay 350.00 and 250.00US/year, respectively. For anything catastrophic, many rely on REAL health insurance with a high deductible; like about 2500/per incident.

Do you have skills that you can barter with the locals? Maybe the local fishermen?

Just some ideas................your housing seems manageable. But I am not up on the cost of living on the East Cape except that it seemed expensive when I was last there 6 years ago.

oldjack - 11-12-2008 at 03:32 PM

Hook..

the cost of the lease has been going up 10% on the ten year renewal...

If I can sell my place.... I think I will look for a small house like Shari mentioned... may have to settle for fishing in the Pacific .... my spanish is getting better and maybe some senorita in one of these towns will take an "interest" in me ....

Hook - 11-12-2008 at 03:37 PM

Quote:
Originally posted by oldjack
Hook..

the cost of the lease has been going up 10% on the ten year renewal...

If I can sell my place.... I think I will look for a small house like Shari mentioned... may have to settle for fishing in the Pacific .... my spanish is getting better and maybe some senorita in one of these towns will take an "interest" in me ....


"Settle" for fishing over there??? It will be Hemingway all over, if you choose the right location.

You can count on the senorita action, language barrier or not.

Maybe the third time's, the charm...........but beware of dependents; both the kind you make and the kind you inherit.

dao45 - 11-12-2008 at 10:41 PM

Not to hijack the topic from Baja but is it any less expensive if at on the mainland side to live?

LOSARIPES - 11-13-2008 at 03:52 AM

dao45,
Mainland is less expensive, especially if you stay away from popular and nice "gringo spots" like Chapala, Puerto Vallarta, Santiago (Manzanillo), San Blas Nayarit, etc. you sort of have to find a spot close to those places to enjoy the benefits/facilities but not necessarily "in" the place so as to have to pay premium. The rewards on the other hand are that you may get a good chance to live and get involved with Mexicans and their culture.

stanburn - 11-13-2008 at 06:34 AM

I certainly wouldn't call Santiago a gringo location. I live in a Mexican neighborhood in a 1600 square foot home 5 blocks from the beach (though without a view) that I bought last year for $62k. I live on about 1k a month and spend whatever I have left each month travelling of renovating the house.

Hook - 11-13-2008 at 07:10 AM

Actually, even the most resorty town in Mexico will have it's barrios where the Mexicans who work the tourist area, shop.

I live in San Carlos, Sonora which would easily be included in a list of touristy towns in Mexico. But Sonora may have the most diverse economy of any province in Mexico. From seafood, to agriculture to ranching, light and heavy industry, bottling companies, good marine and vehicle repair outlets (including cheap haulout for boats) , etc. All of this is only 15-75 minutes from here in Guaymas and Hermosillo. More expensive versions of all this in San Carlos proper.

We're taking a trip down to Guasimas next week. A local told us about an area off the vast estero there, where the camaroneros on pangas sell grande shrimp for 40 pesos per kilo. We'll see.

My vote for the absolute best food deal in Mexico is the pollo places that do either pollo rostizado or pollo estilo Sinaloese. My wife and I get about 4 meals each from those for about 50-60 pesos.

rhintransit - 11-13-2008 at 07:43 AM

I'm looking forward to SS! I know I could live on it...as I've been living on savings for several years. without the expenses of maintaining my house in Phoenix my cost of living here in Baja (FAR more expensive than the mainland in my experience) would be less than my projected SS income. that includes high deductable USA medical insurance. the key, as many have said, is owning a home or low rent. the rest you can adjust up and down as needed.