Leaving the comforts of the home and the city you have lived in for many years to move to a foreign country can be both scary and liberating at the same time. Why would a person move to a foreign country when they seem to have everything they need here in the United States? Someone who does this is called an “EXPAT”.
What is an “EXPAT”?
An EXPAT (short for expatriate) is simply “someone who lives outside their native country.”
So, why?
There are many reasons. Some folks pickup and move outside of the US seeking adventure, a change of pace, or perhaps, through marriage, they decide to move closer to family abroad. These are all good reasons, but the number one reason people move to a foreign country is financial.
There are countries around the world, especially in Central America, South America, and Southeast Asia, where a couple can live very well on $800-$2000 a month. People moving out of the US to live abroad is a growing trend because they can barely survive here on their social security check. But that same check can go much further and help them thrive in other countries.
Healthcare cost is a big reason people are moving out of the US. A large number of the popular expat destination countries offer healthcare plans at a fraction of the cost that we have here in the US. In fact, often medical and prescriptions costs can even be paid for out of pocket because of how inexpensive the prices are in those countries.
Now before you start saying “Why would I move out of the United States for healthcare? The US has the best health care in the world”, check out these stats that show where the US ranks in the world for healthcare. Would you be surprised to know that Colombia, South America ranks ahead of the US?
When I tell people that I plan to roam around the country in my RV for a few years and then move to Central or South America, they look at me like I’ve just lost my mind. Most people have been conditioned to follow the straight and narrow path of a traditional retirement, so when I talk about moving to Nicaragua or Colombia, people tend to get this very confused look on their face like they are missing something.
Most people are guilty of living their life in their comfort zone and there is nothing wrong with that. I did that for years and years. That’s how I know it so well. However, know that there are other options available. Instead of working 40-60 hours a week, having stress affect your health, know that you could be sitting in a tropical destination living your life the way you want to live it. Yes, it is possible.
Writing my book “Retire Early… What are you waiting for?” which is due out in September, I’ve done extensive research on what countries US expats are moving to and what the costs are.
When you think about moving outside the country, especially in areas like Central and South America, you might think you’ll have to make a lot of sacrifices in your life to do so. If you choose to live life in a thatch hut on the beach, you can find that. However, most Americans are moving to cities where they don’t have to sacrifice much of anything in modern lifestyle.
Take for instance, Medellin, Colombia. Medellin was once known as the world’s most dangerous city when Pablo Escobar was terrorizing it. Nowadays, it’s become a safe and popular destination for expats from all over the world due to its very mild climate, high quality but affordable medical facilities, and beautiful culture. Additionally, it has all of the modern conveniences that you would find anywhere in the US but those are at a fraction of the cost as well.
Numbeo is a great website that allows you to compare different countries on prices, safety, healthcare and quality of life. Here is a comparison of the prices where I live in Asheville NC versus the prices in Medellin.
As you can see, most of the prices are substantially less unless you’re buying milk, gas, or Levi jeans.
I challenge you to do this: Go watch some YouTube videos of folks living as expats in foreign countries and you’ll see most of them stress free and smiling. It’s obvious in their energy and the way they communicate – they are in a different mindset.
Living abroad is not for everyone but it is an option that you should consider if you’re looking to get out of the rat race, broaden your horizons while on a budget, or find an affordable new home for a while.
Three years ago, I would have never considered this an option but the more I researched it the more excited I got about doing it.
We went down to Tulum, Mexico in February (great time to go, eh?) on one of our “Retire Early 365 Scouting Missions”. The experience was great, and I provided a few blog reports that you can enjoy here.
Oh, and by the way, if I see you in Medellin, I’ll buy the first round.
Life free my friends
Are you still recommending moving to Nicaragua?
Clint,
This is kind of a two-part answer. Would I go to Nicaragua now? Yes. Would I recommend people go to Nicaragua now? Probably not until the political mess down there clears up. There are spots that are getting hit hard with protests and violence. There are other spots that aren’t effected. Hopefully, the protests will be resolved before too long.
FYI.. I was planning on going to Granada Nicaragua at the end of the year but we’ll probably switch to Medellin Colombia early next year. My girlfriend isn’t too comfortable with the protests in Granada. If it was just me, I’d still go.
Live free,
Eric Gaddy
I just turned 60, took an amazing trip to Italy to celebrate my birthday! I’m a masters prepared Informatics Nurse working in Corporate Healthcare, it’s killing me! I have no quality of life & I make a lot of money! I don’t care about the money, I want to enjoy the time I have left on this planet! What do you know about retiring in Europe? I’m going to Southern Spain in October to visit a British friend who lives there & plan to explore the opportunities of retiring in Spain! She said you can live like royalty on $2k/month, but I don’t know how to go about making this move with taxes, etc. Do I have to leave the country for a time every year? I’m afraid I may never want to come back to the US after I leave! Any advice is appreciated!
Thank you,
Lori Tintari
Lori,
Thank you for your comment. Retiring to Europe sounds wonderful. What I know is that in certain countries and cities in Europe, the cost of living can be much higher than here in the US. However, Spain is a country that is a lot more reasonable than most especially if you are living outside of the major cities.
You’ll want to do some research on the visa’s in Spain. You can stay in Spain for up to 90 days and then you’ll need to either get a tourist visa or apply for a permanent visa. The tourist visa will have you checking in every so often to apply for an extended stay.
Regarding taxes, I’d suggest checking with your CPA or accountant on this. It’s likely that they might not know the answers but perhaps they can refer you to someone who does. Most of my experience on expat taxation is with Central and South American countries. I do know just because you move to a foreign country, it doesn’t get rid of the IRS.
You are the third person who has emailed me in the last two days, in the nursing industry, who is completely done with it.
My advice would be to go and scout areas out. If Spain doesn’t check all of your boxes, then try other areas. Try to stay for a month or two before deciding to move there. I’d also suggest renting for at least a year before buying property in a foreign country. You want to be 100% sure that the location is where you want to be.
If you go and fall in love with the area, then I say do it. Playing it safe generally does not lead to excitement and adventure. You’ve worked hard so go reap the benefits of all those years of work.
Let me know how I can help.
Live free,
Eric Gaddy
Thank you for the information, Eric!
Working in Healthcare is really horrible right now and I work in the corporate office of a non-profit organization with Care Redesign of the Electronic Medical Record documentation. I’m grateful to be away from bedside nursing at this time, but corporate culture is so toxic, dog eat dog, the stress is not worth the money!
I have read that renting is better than buying, agree with that advice. I own a home now and prices are on the rise in Sacramento where I currently live because so many people are moving here from the Bay Area where homes are ridiculously expensive. I cannot afford to retire in Northern California! I did not plan well for my retirement and I have student loans also that will not ever go away, even after I retire.
I look forward to reading your book and will travel extensively over the next two years until I find my slice of heaven! I fell in love with Murano, Italy, but living in Italy is way beyond my budget, cost of living similar to Northern California.
My British friend in Spain, who I am visiting in October, has a lot of expat friends, I will be networking heavily with them while I am there.
Thank you again and I will take your advice & look forward to receiving and reading your book!
Lori,
Part of the fun is scouting different areas to move to until you find that one perfect spot and you’ll know it when you find it. Enjoy your trip to Spain in October and if you remember, come back here and update me on how the trip went.
Thank you again for supporting the book. Let me know if I can help.
Live free,
Eric Gaddy