As my husband Marc Perrotta and I approached retirement age, we realized that our savings might not be enough to sustain us in the US. So, we made a bold decision: we moved to Mexico and built our dream home. In this article, we’ll share our journey and why retiring abroad can be a game-changer for your financial security.
The Problem with Retirement Calculators
For years, my husband and I were obsessed with retirement calculators. We’d input our income, expenses, and investments, only to find that the numbers often didn’t add up. The older we got, the more we realized that unexpected setbacks could derail our plans at any moment.
The Solution: Retire Abroad
But there was a way to reset our financial future: retire abroad. After researching various countries, we chose Mexico due to its affordability, proximity to the US, and excellent medical care.
Why Mexico?
We were initially drawn to Mérida, the capital of Yucatán state, after visiting in 2018. The housing costs were significantly lower than what we’d find in New York City or other popular expat destinations. We could afford a beautiful house with a pool and several bedrooms for $250,000 to $300,000, compared to $600,000 for a small apartment in Brooklyn.
Our Dream Home
We found an abandoned house in Mérida’s historic center and bought it for $50,000. After renovations costing $220,000, our dream home was finally ready. We worked with a local contractor and spent the first six months in New York, communicating regularly through Zoom calls. The last six months were spent living in a rental in Mérida, allowing us to visit the site often.
A Lower Cost of Living
Our income may be lower in Mexico, but our cost of living is significantly reduced. Health insurance costs $2,221 for both of us per year, compared to $543 per month for me alone in NYC. Our taxes are also lower due to the Foreign Earned Income Exclusion.
The Future is Uncertain, But We Feel More Secure
We’re not without concerns, particularly regarding assisted-living facilities and navigating the challenges of aging in a foreign country. However, we’re keeping an eye on these issues and have a plan in place for when the time comes.
Conclusion
By retiring abroad, we’ve secured our financial future and feel more confident about our ability to enjoy our golden years. If you’re struggling with retirement calculators or worried about your nest egg, consider joining the growing community of expats who are finding financial freedom in Mexico and beyond. With careful planning and research, you too can create a secure and enjoyable retirement abroad.
Source: Business Insider
