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Baja Bernie
`Normal` Nomad Correspondent
Posts: 2962
Registered: 8-31-2003
Location: Sunset Beach
Member Is Offline
Mood: Just dancing through life
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Osprey
I love you man! You make folks think and that is so good for the soul.
Love this comment by Long Legs. "I an a rather decisive person"...dud! (meant.............DUH!.........sorry).
Each and everyone of you has contributed very important information to assist those planning to retire in Baja.
I will submit that it is never as simple as you might imagine.
I say this based upon the fact that I got in on the first floor and built two homes in Baja and most of a third..............Had a ball and 'knew' I
was way ahead of the curve (still am--just not in Baja). The wife and I were sitting pretty, money in the bank, a steady income, rental property's in
the states and in Baja and then the only thing that I do not know how to protect against.........health problems...........and they forced us to sell
in Baja and re-balance ourselves in the States because of the access to advanced hospitals.
The worse thing I have ever done in this life was to sell our home in Baja...........why because I am not nearly as active as Baja almost requires
you to be and I so miss my Mexican friends.
If you think health problems are something to brush off.....well forget that............ I have had 10 of my very close friends in Baja, 8 gringos
and 2 Mexicans move on to more pleasant settings in the past four year.
If you are going to retire in Baja do it now and forget all of the formula's and live.............when you must then return to the
States............if you get to stay until they place a stone over your head....................then you have won.
[Edited on 1-28-2007 by Baja Bernie]
My smidgen of a claim to fame is that I have had so many really good friends. By Bernie Swaim December 2007
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Baja Bernie
`Normal` Nomad Correspondent
Posts: 2962
Registered: 8-31-2003
Location: Sunset Beach
Member Is Offline
Mood: Just dancing through life
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SD Ronnie
Is that where the pebbles make such wonderful music?
My smidgen of a claim to fame is that I have had so many really good friends. By Bernie Swaim December 2007
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longlegsinlapaz
Super Nomad
Posts: 1685
Registered: 11-18-2005
Location: La Paz
Member Is Offline
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| Quote: | Originally posted by Baja Bernie
Love this comment by Long Legs. "I an a rather decisive person"...dud! |
 Uhhhhhhhh....Bernie, did you just call me a "dud"? Even a "dude" would be
anatomically incorrect! Or did ya intend that to be "duh"?? Dedicating my first cup of coffee to your health this morning!
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Baja Bernie
`Normal` Nomad Correspondent
Posts: 2962
Registered: 8-31-2003
Location: Sunset Beach
Member Is Offline
Mood: Just dancing through life
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Long Legs
DUH! I just can't remember but of the choices this one seems to be the only one that could apply. Sometimes my fingers get all fangled, then my
brain works overtime to get them untangled.............................sadly, this is the usual result............................duh!
I do admire the strenght of your convictions.
I have edited my previous post to correct the fangle it contained.
Confused? DUH! Me too.
[Edited on 1-28-2007 by Baja Bernie]
[Edited on 1-28-2007 by Baja Bernie]
My smidgen of a claim to fame is that I have had so many really good friends. By Bernie Swaim December 2007
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longlegsinlapaz
Super Nomad
Posts: 1685
Registered: 11-18-2005
Location: La Paz
Member Is Offline
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On strong meds, are ya Bernie?
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SDRonni
Nomad
Posts: 481
Registered: 8-28-2006
Location: Serra Mesa/Rosarito
Member Is Offline
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Baja Bernie:
No, our place is right on a nice, wide sandy beach...no pebbles.....hopefully the "music" will be just as sweet!
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Hook
Elite Nomad
Posts: 9011
Registered: 3-13-2004
Location: Sonora
Member Is Offline
Mood: Inquisitive
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Well, Morgaine, you have certainly had a unusual and probably exciting life, as you approach retirement.
But on the renting vs. owing question, I think your timetable has been a little bit backwards than most of us who built equity while they were working
and can now convert the equity into either renting OR owning. Many of us have also taken advantage of the tax benefits of home ownership in the US, as
well as the capital-gains exemption on the first 500k of profit (for a couple). For many of us our housing expenses will certainly be going down in
retirement, rather than up. Mortgages will be paid off or converted into smaller living quarters; rented or owned.
I would never have considered simply renting during my working career; except until I got up to the point where I could afford to own. But now, with
the anchor of a set job being weighed and with many more years of mobility ahead (I'm only 53), low cost renting will give us the ability to see much
of the world. Why spend thousands on plane fare and only stay a short time? So many places are rented furnished in other countries so it will be nice
to not be moving lots of belongings around either. Will it involve personal sacrifice? Certainly. Just like camping in Baja does.
We've considered simply renting out our house for the positive cash flow it would generate but it simply cant compare to converting the equity to cash
and the resulting interest. So many fewer headaches, too.
Also considered doing the house exchange thing. Clearly, this could have some monetary benefits in other countries but, again, the headaches of
management and maintenance. And you are stuck with your mortgage that you cant defer by simply renting. I think this scenario might work better for
people still working who can get away for a few weeks here and there. Or, for people whose mortgage is paid off. Ours is not.
On the taxes, I think it's unusual that you might actually have MORE of a problem with taxes in retirement than while working unless your
tax-deferred investments are so large OR your working income was so low. Even though your tax-deferred income stream will come to you without Fed and
State "withholding", I'd rather put away that amount in MY savings instrument and earn the interest, rather than let my Uncle Sam do so.
Finally, I think the axiom about renting for a few months in any area you plan on investing serious cash is still a good one. It gives you the
opportunity to get a feel for the neighborhood and to determine growth patterns that you often cant find while cruising the web. And the real estate
agents arent necessarily going to be upfront about much of this. You gotta walk the streets and read the local news and talk to the people.
I think the "week here and a week there" while in your working career is a good way to narrow down potential areas of retirement. But nothing replaces
good ground research when making a major investment.
I should note that Mexico is certainly not the only country we are considering so our ground research will involve areas we have actually never been.
Gotta have more than a few weeks in each locaton for that kind of looking around.
Our long list of countries: Most anywhere in Central/So America, Spain, Portugal, Greece, Italy, Thailand, Australia, Canada and Alaska (at certain
times of the year). Maybe even the western Balkans along the Adriatic. Gotta have an ocean close by.
I'm certainly not saying that we wont be buying. But the investment will be considered against the cost of renting.
Life is all about the journey to us, not the destination. We all end up in the same place anyway.
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Cypress
Elite Nomad
Posts: 7641
Registered: 3-12-2006
Location: on the bayou
Member Is Offline
Mood: undecided
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Hook! Thinking along the same lines, maybe not as far flung, but in line with your ideas. 
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