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Osprey
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[*] posted on 1-24-2007 at 11:11 AM
retirement


But I already bought a Hammock!


Sometimes we have small meetings like these in the atrium but it was late July of 2006 in Phoenix, a scortcher, so they just set up a desk and made a little cubicle in the lunchroom. Introdyne Technologies is a software company with 240 employees. I’m a programmer/analyst. My name is Joe Cummings and I’ve been with Intro for about six years. I’m 30 years old, married, my wife Angie is 31, is a legal secretary for a large law firm in Scottsdale. No kids yet.

This whole week a guy from our pension plan, Earl Winger, was meeting with employees one-on-one for a few minutes each to help us decide how we wanted to invest our current pension funds – only three choices of risk/reward: Low, Medium, High, pick one. I was planning on staying with Low or Medium. The pension guy was friendly, about my age, easy going. He must have gotten ahead of schedule because he took some time with me and I’m sure as hell glad he did.

“Joe, you’re doing quite nicely in Low Risk funds. At the end of last earnings quarter you have accumulated, at today’s rates, the amount of $18,241. Pretty good for a 6 year tech II. You just turned 30 but have you given any thought to retirement at all?”

“Have I? I think about it all the time. Angie and I daydream about Baja every day almost.”

Earl said “Baja? Mexico? That’s where you want live when you retire?”

“Yeah. My family took me there to vacation and fish for as long as I can remember. I love the place, the people, the fishing, the weather, everything about it. Angie was a little afraid of the place at first but now, after the last two or three trips down there, she loves it too. We both look forward to getting away from big city living. Maybe find a little fishing village right on the shore.”

The pension guy was listening but all the time I was talking his fingers were flying all over the keyboard on his fancy laptop.

Earl injected “Any particular little places stand out? You remember any names?”

“Yeah, lots. San Ignacio, Santa Rosalia. Loreto is beautiful, so is Mulege. La Ventana, Los Barriles, Todos Santos. Have you been to Baja?”

Now his fingers were a blur “No. No I haven’t. Do you think you’ll be able to retire at about ago 60 or so, say about 2036?”

“I hope so. I hope I can.”


“I’m gonna print out some 30 year stat sheets for you. We have a huge data base and I do this stuff a lot. You understand anything can happen to change all this – oil is the big thing, oil, the middle-east, wars, famine, who knows. Just factor in that I used reasonable expectations in making these extrapolations and predictions – I raised your salary, taxes, inflation, etc. while using Strippling graphs for Western Mexico for increases in tourism, development, infrastructure and a host of other factors.”

“I wouldn’t set my heart on some of these dream places if you think you’re gonna have to wait until you’re 60. For example Loreto is pegged for 1,300,000 people if the fresh water takes it that far or they find some miracle cure for desal brine problems. Todos Santos will spread south to Cabo San Lucas with 750,000. San Ignacio is not in the base. Mulege, is that how you say that? Mulege and Conception City will be all one municipality and could reach 650,000. That’s not the bad news. It’s gonna cost you almost $2,000,000 for a nice condo, a livable house in those areas, even a small one. The mortgage market all over Mexico will be very aggressive and competitive but to pay down 2mil, to live comfortably, you may have to hope for much bigger salaries or you’ll have to wait until age 74. Compared to your reasonable pension expectations, Social Security, if it still exists, whatever it might be, will be chump change, might pay your condo maintenance fees.”

“Joe, it’s all a matter of priorities. I don’t have to tell you that. I see you’re married. Does your wife work? You have any kids? You own a home here in Phoenix?”

“My wife’s a legal secretary. No kids yet. We’re still renting.”

Earl went on “If your wife has a similar pension fund her sheets might match yours. That changes the whole picture but that could all change if she has kids, decides to give up a career to raise a family. Then again, unless Mexico makes drastic and unprecedented changes in environmental policy the fish will all be gone in 30 years and a lot of people will sell out, move along to leave a little room for those who don’t care about fish or fishing.”

“Joe, if I were you I would try to keep an open mind about this. Aruba is pretty nice, parts of Indonesia are moving slowly, Belize is looking good, still plenty of open spaces in Argentina. I just don’t want you to be disappointed. Well, good luck. Here’s the stat sheets. There’s a line out there. I’d better get back to work.”
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Paulina
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[*] posted on 1-24-2007 at 11:42 AM


Jorge,

We just sat through a meeting very similar to what you've written. Our retirement goal age is not the same as the one our "investment planner" has in mind, but she'll get over it.

"How much money do you think you'll need a month to live in Baja?" she asked. That was a tricky one. We knew what it cost when we were living there 3 years ago, but drinking habits can change as well as not having to pay for collegio, but it evens out.

Our count down to really living is on.

2197 days to go!!!!

Our daughter hated that 'dumb count down' in the beginning until we told her she could come with us, so she's on board now too. I'll let you know how thats working out in 2200 days from today.

Saludos!
Paulina<*)))><




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Cypress
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[*] posted on 1-24-2007 at 11:54 AM


Retirement is the beginning of another chapter in the story of your life, better yet, a whole new book!:bounce::bounce:
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vandenberg
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[*] posted on 1-24-2007 at 12:01 PM


Quote:
Originally posted by Cypress
Retirement is the beginning of another chapter in the story of your life, better yet, a whole new book!:bounce::bounce:


Disagree, it's just a continuation.

Holland, Canada, California and now Baja. Just followed my nose.:P:P:P
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Cypress
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[*] posted on 1-24-2007 at 12:17 PM


vandenberg!:bounce:
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bajarich
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[*] posted on 1-24-2007 at 12:28 PM


All of my life I have run into older people who have told me to live life to the fullest while I young. There are a lot of things you might not be able to do when you get older. My dad died 9 days after reaching retirement. You never know what will happen, so think about doing things now that you might not ever get to do in 30 years. I'm 60 now and I'm glad I did the things I did when I was younger because I have great memories of them, and I can't physically do them anymore. I wish I could have back all of the overtime hours I ever put in that kept me from doing more.

LIFE IS WHAT HAPPENS WHILE YOUR MAKING PLANS!
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Cypress
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[*] posted on 1-24-2007 at 12:35 PM


bajarich! Well said and good luck!:bounce: Me to!:bounce:
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bajadock
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[*] posted on 1-24-2007 at 01:36 PM


Thanks, as this one is timely for me. Just returned home to Ensenada, after 3 week visit with ailing parents in Florida. They are ok.

I escaped corporate america 2 years ago at age 51. Most asked what my next career would be. I will likely pursue some part-time professional activity in a while, but don't really care about a third car, five star hotels and $50 bottles of wine anymore. Ok, if you buy, that third item is still yummy!

Living here is so much simpler and easier for those who can "let go". That's a very Buddhist thought for a Catholic country, yes?

ALLTHEBEST
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Skeet/Loreto
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[*] posted on 1-24-2007 at 01:41 PM


Well Girls and Boys, I am 75 years Young and still have not '"Retarted"!!

I started out Poor,worked for other People until I was 40 years old, then decided to go out on my own, made enough money in 10 years to Retire to Loreto, Baja- Lived on about $800 a Month in Loreto for 17 years. Made all the Money i need after retiring from Loreto, moving back to Texas.
The information given about the future of Loreto is discouraging, but Alas! Texas has lots of Wide open spaces with no People, lots of Horses and Wildlife.

My advice if you are 40 or younger, Invest in RealEstate, make some of that money that is going to be Spent where all those People are Going, then find a place without many People and then Retire. Adventure while you are Young and Old- Do Not stop Dreaming.

Keep the Faith, Control your Desires and Keep your Passions within Due Bounds!!

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capitolkat
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[*] posted on 1-24-2007 at 02:03 PM


19 months 2 days and a wakeup-- I went to a three day retirement planning seminar last October and it's a real challenge both financially and emotionally. of the 50 or so people in the seminar when asked to fill in a circle representing a typical 24 hour period in retirement with what they would do with their time most couldn't use more than 5 or 6 hours after you gave them 8 hours to sleep. Most had no time for meals, did no physical exercise, had no social time for those types of activities, and nobody but me fished???

We'll start our house in La Paz this fall and have bimonthly trips to monitor progress, have architects hired to supervise construction, and are just now finalizing plans--

My advice-- put every $ you can in tax deferred accounts, IRAS, 401(k), Roth IRA as they grow tax free and don't rely exclusively upon company pension plans, or company stock programs as they sometime s fail with disasterous consequences. Read " Your Money or Your Life" and figure out how to manage income by assiduously counting outgo for an extended period- you'll be shocked where you spend your money. We were. And if you can in any way buy that little piece of paradise now-- do so- just like your advisor said- it won't be getting any cheaper. good Luck!!!!




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Hook
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[*] posted on 1-24-2007 at 02:26 PM


Quote:
Originally posted by capitolkat
19 months 2 days and a wakeup-- I went to a three day retirement planning seminar last October and it's a real challenge both financially and emotionally. of the 50 or so people in the seminar when asked to fill in a circle representing a typical 24 hour period in retirement with what they would do with their time most couldn't use more than 5 or 6 hours after you gave them 8 hours to sleep. Most had no time for meals, did no physical exercise, had no social time for those types of activities, and nobody but me fished???

We'll start our house in La Paz this fall and have bimonthly trips to monitor progress, have architects hired to supervise construction, and are just now finalizing plans--

My advice-- put every $ you can in tax deferred accounts, IRAS, 401(k), Roth IRA as they grow tax free and don't rely exclusively upon company pension plans, or company stock programs as they sometime s fail with disasterous consequences. Read " Your Money or Your Life" and figure out how to manage income by assiduously counting outgo for an extended period- you'll be shocked where you spend your money. We were. And if you can in any way buy that little piece of paradise now-- do so- just like your advisor said- it won't be getting any cheaper. good Luck!!!!


Agree with all you say, kat. There is no substitute for the tax-deferred savings plans.

One area of real disagreement between retirement planners is this question of just how much you need in retirement. The conventional wisdom was always about 80% of your working salary. But many discover that they actually spend MUCH less than that in retirement. Certainly, that is the case for many retiring in most Latin American countries; that was the general idea moving there in the first place.

Of course it's easy to conclude that if you set yourself up for the 80% figure, then there's lots of gravy built in if you end up spending much less. Problem is, how many years longer must you work to achieve this 80% figure? If it means taking me into my mid-60s.....no thanks.

Naturally, your health and the cost of health care are wild cards that can be tough to figure.




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[*] posted on 1-24-2007 at 02:34 PM
Well done, Osprey !






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[*] posted on 1-24-2007 at 02:52 PM


WELL DONE TO ALL:!::!: I left corporate life at 57 (2yrs ago) because after 25 yrs it just drained the hell out of me. When 4 of the 6 triggers popped on my retirement spreadsheet - in went the resignation letter to the CEO. He called me and asked if I was crazy or had too much to drink. MAN - I'm so happy I quit that life. Retirement is fun - cheap (depending on what you want to do) and exciting.
Will be in Bahia De Los Angeles for a month starting 2/5. Can't wait.
Bought myself a f250 diesel, a 30' classic airstream trailer, internet satellite, hdtv, solar system to power everything and VUALA !!! Instant fun.

Retirement seminars are good if you've got a goal in mind or at least they give you a mind set to begin an investment spreadsheet to keep track of your stuff ----:rolleyes::rolleyes::saint: :rolleyes::rolleyes::rolleyes: -- but most important is the spreadsheet which shows your withdrawls later on and how you plan on spending your savings. This puts a whole new face on the subject !!
Guys and Dolls - keep living life to the fullest and enjoy that 2 buck bottle of wine. It tastes great on the beach with lobster you just bought from a fisherman !




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[*] posted on 1-24-2007 at 04:14 PM


A very large percentage of the money I made when I was working was put into savings and extra payments on my house, so when I retired my life didn't change all that much. I always have tried to live within my means, but that doesn't mean I haven't had fun. I have always been active outdoors and my tastes are relatively simple. I look at other people who make a whole lot more money than me and wonder "Why don't they just retire?" It's because they built their lifestyle up to where they can't afford to, and aren't willing to give up anything.
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[*] posted on 1-24-2007 at 06:01 PM


we had initially planned to retire to ensenada in 2006 (after buying our house here in 2000) but the crazy property hikes in central california in 2004 created a situation that made it better economically to sell (at an incredible profit) and move than for me to continue working. hubby telecommutes (works for a large corporation from home via internet) and the arrival of dsl happened at just the right moment. although i no longer work outside the home, i have found myself constantly doing "stuff" and thoroughly enjoying being out of the rat race.:lol:

salud :cool:to my fellow retirees, and keep your eye on the prize for those of you not quite here yet:tumble:




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[*] posted on 1-26-2007 at 03:33 AM


Rather general question to those who have "made the move".

Would it be possible to give those who are aspiring to retire to the Baja an idea as to the cost of living/amount required to live there. I know this is a very broad and totally subjective question but I'm trying to get an idea as to when to say "enough is enough".

Specifically looking for how much you budget to yearly living expenses if housing is not included (retiring in Ensenada, the house will be paid off). Modest lifestyle (occasional shrimp taco (of course :tumble:; dinner out once/week.......no wine but stick to beer; good supply of Pacifico in the fridge, etc).

I know this will very significantly.....just looking for all experiences/opinions to form some ideas.
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[*] posted on 1-26-2007 at 07:04 AM


dune-- you have the answers to your question. How much will you(do you) spend on insurance, health and property, how much do you spend on food, clothing,travel, entertainment, car expenses, taxes, how much do you have in reserves, how much can you expect in retirement or income from Soc Sec, company retirements plans, savings income.

if you do the budget you'll know how much you have and what are your current expenses-- Like I said above there is no shortcut to figuring out your outgo -- my wife and I counted every expenditure over $.50 for 6 months-from ------" Your Money or Your Life" and created a strict budget including everythig we found we spent- including -- wine, dry cleaning, church, charity, you name it- we live well, but we know how much we have for anything and have comitted to retiring in 19 months- so that's part of "Your Life" we chose.

It's clear our expnses will be less in Mexico but we have a monthly budget for all the things we know we spend money on--e.g nothing for drying cleaning as my suits will be left in the US and I won't have a shirt with any starch etc., but we'll still have satellite TV , phone, and internet expenses, food, travel but clothing will be much less, but boat and gas expenses will be higher.

if you don't do this kind of analysis- anything else is just a WAG--(wild a**ed guess).




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bajaguy
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[*] posted on 1-26-2007 at 07:16 AM


Dune......you can stretch your beer budget by drinking your neighbors Pacifico
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Paulina
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[*] posted on 1-26-2007 at 07:55 AM


Quote:
Originally posted by bajaguy
Dune......you can stretch your beer budget by drinking your neighbors Pacifico


:lol:This is very true. If it turns out that you're the neighbor that is so hospitable, be sure to get your deposits back!




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Cypress
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[*] posted on 1-26-2007 at 08:03 AM


:spingrin:One more week to go.:tumble:Retirement will be reality rather than dream.:spingrin:
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