In a recent episode of the Live Richer podcast with host Jaime Catmull, she interviewed Edd and Cynthia Staton, recognized experts at retiring abroad.
The Statons moved abroad 14 years ago. But Edd said that the decision to retire abroad wasn’t something they decided. Instead, it was decided for them.
Edd explained that they were living in Las Vegas at the peak of their careers with a solid retirement plan in place and looking forward to retiring within a few years. Then, the Great Recession of 2008 occurred and put them in a tough financial situation. They lost their jobs and the industries they worked in. Their home also lost two-thirds of its value almost overnight and their investments and savings were in “freefall.”
After investigating their options, the Statons realized that they were too close to retirement to recoup their financial losses. So they made the decision to move somewhere abroad with a lower cost of living. That place ended up being Cunca, Ecuador.
Once the Statons decided that moving out of the country was the solution to their financial problems, Cynthia said that they made a wish list because a lower cost of living wasn’t the only factor they needed to consider.
They recommend making a wish list of your own if you’re considering retiring abroad. However, Edd cautioned that your wishes may be very different from theirs.
Climate
Edd said that in Ecuador, it’s springtime all year-round, and he and Cynthia enjoy the climate.
Cynthia said, “We live in the Southern Highlands of the Andes, so even though we’re close to the equator, the temperatures range from 50s to 70s all of the time.”
However, Edd pointed out that some people might want to live somewhere that experiences a change of seasons.
The Statons suggest visiting the place you are considering moving for as long as you can before actually doing it so you can experience what it’s really like to live there.
Cynthia said that even though neither she nor Edd had any health issues when they decided to become expats, they still wanted to move to somewhere that offered good healthcare.
All high-income countries, including the U.S., tend to spend more per person on healthcare than lower-income countries. Unfortunately, the U.S. leads the pack when it comes to healthcare spending, according to the Peterson Center on Healthcare. So Americans who move abroad to a lower-income country can potentially save money on their healthcare expenses.
Features You Want the City To Have
Cynthia said she and Edd were interested in a mid-size city that would be walkable. A city that allows for that could save you money on transportation.
Other features you might want to consider include: amenities for retirees, opportunities to socialize and good public transportation.
Location
The Statons have family on the East Coast. They didn’t have grandchildren at the time, but now they do. So they wanted to move somewhere that wouldn’t be too far away when they wanted to visit. Coincidentally, Ecuador is in the Eastern time zone, Cynthia said, so their choice worked out quite well for communication purposes in between visits.
What You Can Afford
Cynthia said that once you have your wish list for the place you want to retire, you need to determine what you will be able to afford in retirement. She said to consider how much you can spend for basic expenses, such as rent and groceries, each month. She said that knowing how much you can spend each month will help you narrow down the list of locations that match your wish list.
You might even be able to live the retirement of your dreams, like the Statons do.
Cynthia shared that they live on their Social Security budget.
“Within that budget, we’re able to enjoy an upscale lifestyle,” said Cynthia. “We live in a penthouse apartment. We go out to eat whenever we want. We do basically whatever we want, and we’re not spending every penny of that budget. We’re actually able to save money. That’s unheard of.”
Language Preference
Edd said when you move to a country that’s an established expat destination, knowing the foreign language is “almost optional” because so many people speak English. However, he said that there are other places you might consider moving where little English is spoken, and you’ll really need to work on becoming fluent.
Helpful Advice If You’re Moving To Another Country
Here’s a couple more pieces of valuable advice from the Statons about becoming an expat.
Ditch the Vacation Mentality
Edd said that when considering moving abroad, you need to ditch the vacation mentality, such as having thoughts like “Wouldn’t it be great to live here?” He explained that when you’re in that mental mode, it’s easy to overlook the “warts” of a place.
He gave an example of living on the coast and noted that the coast is great, but you have high maintenance costs due to the salty air and also high insurance costs in some areas. He said that even the sand, which could be kind of charming if you’re only in the location for a week or two, could get old if you’re tracking it in your house all of the time.
Don’t Be Afraid To Ask Other Expats for Help
Cynthia recommended that once you decide on a country to retire to, you should connect with the expat population that’s already living there. She said there are tons of expat Facebook groups that you can join to ask your questions. And you’ll likely have plenty of questions, such as how to get your visa, which Cynthia said is not a DIY project.
She also said not to be shy about getting help from people who are already living in the country you want to move to.
Edd said, “The reality is that these people that you reach out to in these Facebook groups, they were in your position at one time.” He explained that the people you’ll talk to online once reached out to expats to get the answers they needed and now, as expats, they are more than happy to give back.
And you can also pay any knowledge you receive forward.
“When you successfully expatriate, you may be in a position to help someone that’s now in your position,” said Edd.
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