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Fabian Martinez
- Despite earning decent salaries in NYC, my husband and I were not content with our retirement prospects.
- Exploring options abroad revealed that our finances could stretch much further.
- In 2020, we moved to Mexico into our ideal home, significantly enhancing our retirement security.
The thought of using retirement calculators used to fill me with dread. While it was possible to make the numbers work if my husband and I squinted at the figures a bit, remained optimistic about investment returns, and managed to save a little more each year, it often felt like wishful thinking.
However, any unexpected financial hurdle—something I’ve learned is almost inevitable as we age—could easily throw those calculations off balance. But there was an alternative: retiring abroad might just reset those daunting numbers.
Choosing Mexico as Our Retirement Destination
We began exploring various countries outside the United States by researching residency requirements, real estate prices, and healthcare availability. Ultimately, we chose Mexico—a long-standing favorite among American retirees—with approximately 1.6 million Americans already residing there.
Our analysis indicated that living in Mexico would allow us greater financial flexibility compared to other potential destinations like Spain or Canada. Additionally, its proximity to the U.S. was crucial for us since we wanted easy access to family members living in California and Florida.
A visit to Mérida in 2018 opened our eyes; housing costs were far more manageable than what we’d seen back home. In Brooklyn’s Bushwick neighborhood, small apartments were priced around $600K; meanwhile in Mérida nice homes with pools could be purchased for between $250K-$300K at that time.
This opportunity felt too good to ignore; thus began our journey from the U.S. to Mexico.
Embracing Early Retirement Abroad
We decided on an early move before fully retiring because we believed acclimating ourselves while still working would ease the transition later on. By relocating during our 50s instead of waiting until our 60s or beyond—we hoped this would give us ample time for exploration without feeling rushed or overwhelmed by change.
I also reflected on my parents’ experience—they had contemplated retiring in Mexico but delayed their decision until moving became daunting due to their age-related challenges.
Transforming an Abandoned House into Our Dream Home
Fabian Martinez
In Mérida’s historic center, we discovered an abandoned house that was surprisingly well-preserved which we bought for one million pesos—around $50K—in 2019. We hired a contractor who completely renovated it based on designs created by my husband,Marc Perrotta.
The total renovation cost reached $220K over one year’s time frame: initially spending six months coordinating remotely from NYC via Zoom calls followed by another six months renting nearby so we could monitor progress closely during construction phases.
Our patience paid off—we now enjoy living in what feels like paradise!
Lower Income but Reduced Living Costs Make Sense Here
Earning less money than when residing back East hasn’t been problematic due largely because expenses have dropped significantly overall! For instance: health insurance premiums are drastically lower here compared with New York City rates where I previously paid around $543 monthly just covering myself under basic plans while now paying only $2221 annually covering both of us!
Additionally taxes are considerably lighter thanks partly due Foreign Earned Income Exclusion allowing up roughly$120k earned without incurring income tax obligations provided you remain outside US borders longer than thirty-five days per annum! This year alone saw me pay merely$125 real estate taxes since no mortgage exists either!
Dailyliving costs such as groceriesand gasare also cheaper though not quiteas muchas housingor healthcare expenses overall!
Future Uncertainties Remain Yet Security Grows Stronger Each Day
While some concerns linger regarding future care options given fewer assisted-living facilities available locally versus stateside—the affordabilityof hiringhomecare services remains promising should needs arise down road ahead .
Although Medicare eligibility isn’t uponus yet ,we’re mindfulof navigatingchallengesother expats discuss online forums about how they’ll manage once reachingthat stagein life withinnext decade . However ,the landscape surroundingMedicare may shift dramaticallyby then so keeping abreast current developments seems prudentfornow ! < P >Ultimately ,we ownour house outrightand assumingSocial Security continues existingten years henceforth ,livingoffthose payments should prove feasible —an option manyAmericans find increasingly difficult nowadays ! We can reserve modest savingsfor emergenciesor occasional splurgeswithout anxiety creepingin whenever glancingatretirementcalculators anymore !
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