Retirement Ponderings

[TerrorBerk]

Went to a Rotary Club meeting in Antigua, Guatemala tonight. There was were four US expats that are members. One guy came here four years ago and continues to work for his US company. Another retired here ten years ago. They said it was really easy to make the move.

Bought coffee from a German roaster that moved here 25 years ago. Same thing.

Panama seems to be pretty popular too.
I have 8 years until I head to Southeast Asia

 

[R1pps]

I keep thinking about if I should continue paying my mortgage at 3.625% with 20 years left or take some of the money I am currently investing and attack my mortgage more aggressively. I have the cash in HYSA, but now with rates dropping I think paying it off and then saving it back up may be a better option. When my HYSA was over 4% it made sense to not pay it off.

Currently I am tracking to be able to semi-retire by 55. I made the decision to just work a job after 55 for benefits. Would like to have my mortgage paid off by then, 8 years away for reference

 

[Disco P]

Panama seems to be pretty popular too.

Panama is a nice place. The fact you can go for a swim in the Atlantic in the morning and the Pacific in the afternoon absolutely wrecks my head.

Not the most politically stable though. Some dipshit from Florida killed a protestor for no reason expect he was on a picket line and inconveniencing him when I was there.

 

[OceanOfMead]

Panama is a nice place. The fact you can go for a swim in the Atlantic in the morning and the Pacific in the afternoon absolutely wrecks my head.

Not the most politically stable though. Some dipshit from Florida killed a protestor for no reason expect he was on a picket line and inconveniencing him when I was there.

Replace Pacific with Gulf and you just described Florida.

 

[Disco P]

I keep thinking about if I should continue paying my mortgage at 3.625% with 20 years left or take some of the money I am currently investing and attack my mortgage more aggressively. I have the cash in HYSA, but now with rates dropping I think paying it off and then saving it back up may be a better option. When my HYSA was over 4% it made sense to not pay it off.

Currently I am tracking to be able to semi-retire by 55. I made the decision to just work a job after 55 for benefits. Would like to have my mortgage paid off by then, 8 years away for reference

The Barista FIRE dream.

Personally everyone I know that retired before 60 was bored. They all went back to some sort of part time work to keep them occupied. There's only so much golf and day drinking you can do.

 

[Matterhorn]

I keep thinking about if I should continue paying my mortgage at 3.625% with 20 years left or take some of the money I am currently investing and attack my mortgage more aggressively. I have the cash in HYSA, but now with rates dropping I think paying it off and then saving it back up may be a better option. When my HYSA was over 4% it made sense to not pay it off.

Currently I am tracking to be able to semi-retire by 55. I made the decision to just work a job after 55 for benefits. Would like to have my mortgage paid off by then, 8 years away for reference

I think if your mortgage rate > HYSA and you don't plan on doing anything else with that money, then it would make numerical sense to pay down the mortgage some. But 3.625% is relatively low. If that money in your HYSA isn't being used for anything short- to mid-term, maybe it is better deployed in an index fund where long term averages suggest you might see 8+% return over the next 15-20 years?

I'm in a similar position with regard to mortgage length left and considering going part-time at some point relatively soon. For now I've decided that I don't mind carrying the mortgage into semi-retirement because I feel comfortable with the idea that returns over the next 20 years will most likely outpace my mortgage rate and I like the flexibility of not tying that money up in the house. Once you pay it off, that money is fairly illiquid and can only be accessed via home equity loan or sale.

I definitely also understand the peace of mind that comes with a paid off mortgage. It's a very personal decision.

 

[boogercrack]

There's only so much golf and day drinking you can do.

I don't believe it

 

[stoutsandstouts]

The Barista FIRE dream.

Personally everyone I know that retired before 60 was bored. They all went back to some sort of part time work to keep them occupied. There's only so much golf and day drinking you can do.

Absolutely mind boggling to me. Having retired seven years ago at 40, I have never felt bored for a single second. I suppose this is some sort of personality-type thing that I am incapable of understanding, but it is incomprehensible to me that a person needs a job/employer-type relationship to avoid boredom.

I don't get it and never will. The thought of having to do something I don't want to do because I have to do it makes me feel sick.

 

[Disco P]

For sure it can be done. But personally all the people I know that could afford to retire young (by 50) were all type A workaholics. They massively struggled to adjust. One of them turned into an actual alcoholic.

 

[boogercrack]

One of them turned into an actual alcoholic.

I do believe it

 

[R1pps]

The Barista FIRE dream.

Personally everyone I know that retired before 60 was bored. They all went back to some sort of part time work to keep them occupied. There's only so much golf and day drinking you can do.

I think I would be ok. Between all the outdoor activities I enjoy doing I would be fine. I’m just want benefits as I spend a lot of time in the mountains and it’s an easy place to get hurt.

I think if your mortgage rate > HYSA and you don't plan on doing anything else with that money, then it would make numerical sense to pay down the mortgage some. But 3.625% is relatively low. If that money in your HYSA isn't being used for anything short- to mid-term, maybe it is better deployed in an index fund where long term averages suggest you might see 8+% return over the next 15-20 years?

I'm in a similar position with regard to mortgage length left and considering going part-time at some point relatively soon. For now I've decided that I don't mind carrying the mortgage into semi-retirement because I feel comfortable with the idea that returns over the next 20 years will most likely outpace my mortgage rate and I like the flexibility of not tying that money up in the house. Once you pay it off, that money is fairly illiquid and can only be accessed via home equity loan or sale.

I definitely also understand the peace of mind that comes with a paid off mortgage. It's a very personal decision.

I have a good portion of my portfolio in ETFs/index funds now. I want them dividends to supplement part of my retirement expenses, but having more can’t hurt.

I was thinking of just selling off the RSUs I receive this year to attack my mortgage, but the have to weigh then tax penalties I may incur.

As you stated, the peace of mind of no mortgage is very appealing to me.

 

[clevelandisthecity]

The Barista FIRE dream.

Personally everyone I know that retired before 60 was bored. They all went back to some sort of part time work to keep them occupied. There's only so much golf and day drinking you can do.

My dad retired at 65 (should have retired well before that) and within 6 months he was doing consulting for a company in the field he was in. He did it because he was bored and it paid for his country club membership and then some. He is not an alcoholic however.

 

[shadowane]

I have enough hobbies that I could retire right now and fill my days with stuff but I can't afford to do that in any way. It's a real shame. My wife would definitely have to volunteer or work part time as she can't fill her days or deal with downtime very well.

 

[stoutsandstouts]

I think I would be ok. Between all the outdoor activities I enjoy doing I would be fine. I’m just want benefits as I spend a lot of time in the mountains and it’s an easy place to get hurt.

Especially for retiring before Medicare kicks in.

Not a reply directly to either of you, but healthcare cost, insurance, etc. come up very frequently for people who are considering an international move. I had my first experience with the medical system here (Ecuador) at the end of October last year. Here is a brief summary of my experience and costs.

First of all, I should add that our visas require that we have either public or private health insurance, so we have a private plan (pay about $80 per month for our joint plan with a $5,000.00 deductible). We've never used it and likely never will unless there is a catastrophic illness/accident. Many people cancel after they get their visas (since compliance is not policed by the government), but I'm not willing to do that just in case it could someday result in someone saying we didn't comply with our visa terms.

I had what is considered a major laparoscopic surgery (four hours under anesthesia with a three-month recovery period) at a private hospital here. The average uninsured/cash pay cost of this surgery in the United States is around $18,000.00.

My surgeon lived in the US for 17 years. All of his university, med school, and residency was in the US - all at major universities and a university-affiliated hospital - and he is one of the founders of the hospital where he works here. I had surgery on a Thursday morning, and I was discharged on Friday night. Since my surgeon has a Social Security Number, I was able to pay cash directly to him via Zelle (giving me a 9% discount by avoid CC processing). My total charge for everything was $3,610.00.

Overall, it was an excellent experience, and I am now back to normal - actually better since it had been a problem for over 15 years. I never did much of anything with the medical system in the US, but the most surprising aspect of this experience here was how I could text my surgeon at any time and get a reply to any questions I had before or after the surgery.

It seems that leaving the US comes up occasionally in this thread, so I figured a real world example of a significant healthcare interaction might be of interest to anyone considering a departure.

 

[mborden]

Definitely sounds like some of the classic FIRE conundrum of "are you retiring FROM something or retiring TO something". I currently have not enough time in the day to do all of the stuff I want to do, between climbing, hiking, cooking, reading, video games, etc. No vacation is ever long enough for me. Meanwhile over Christmas I asked my parents what they want to do when they are both retired (my mom already is, mostly) and they couldn't answer. And then I asked what they like doing for fun, and they couldn't really answer that. It made me sad for them.

 

[preluderl]

It's probably not ideal that I have like, four separate 401ks that I haven't consolidated, huh? That seems like something I should remedy.

 

[TerrorBerk]

Not a reply directly to either of you, but healthcare cost, insurance, etc. come up very frequently for people who are considering an international move. I had my first experience with the medical system here (Ecuador) at the end of October last year. Here is a brief summary of my experience and costs.

First of all, I should add that our visas require that we have either public or private health insurance, so we have a private plan (pay about $80 per month for our joint plan with a $5,000.00 deductible). We've never used it and likely never will unless there is a catastrophic illness/accident. Many people cancel after they get their visas (since compliance is not policed by the government), but I'm not willing to do that just in case it could someday result in someone saying we didn't comply with our visa terms.

I had what is considered a major laparoscopic surgery (four hours under anesthesia with a three-month recovery period) at a private hospital here. The average uninsured/cash pay cost of this surgery in the United States is around $18,000.00.

My surgeon lived in the US for 17 years. All of his university, med school, and residency was in the US - all at major universities and a university-affiliated hospital - and he is one of the founders of the hospital where he works here. I had surgery on a Thursday morning, and I was discharged on Friday night. Since my surgeon has a Social Security Number, I was able to pay cash directly to him via Zelle (giving me a 9% discount by avoid CC processing). My total charge for everything was $3,610.00.

Overall, it was an excellent experience, and I am now back to normal - actually better since it had been a problem for over 15 years. I never did much of anything with the medical system in the US, but the most surprising aspect of this experience here was how I could text my surgeon at any time and get a reply to any questions I had before or after the surgery.

It seems that leaving the US comes up occasionally in this thread, so I figured a real world example of a significant healthcare interaction might be of interest to anyone considering a departure.

How much does it cost you for a regular doctors visit?

 

[stoutsandstouts]

How much does it cost you for a regular doctors visit?

I've never gone to a regular doctor to have firsthand proof, but people I know pay $20.00 for an office visit with an English-speaking general medicine doctor.

I paid $40.00 for my initial consultation appointment with the surgeon, then my follow up appointment to discuss the imaging he ordered was free. The imaging involved Xray video of my stomach, then me drinking a substance, then getting images of my stomach taken each hour for the next four hours - that whole five hours at the hospital and five sets of imaging cost me $120.00.

The only cost after that was the all-in surgery charge mentioned in my earlier post. Three in-person, follow-up appointments spread over the first six weeks after surgery were scheduled to cost $40.00 each, though I only did two of them - we did the second via text/video and there was no charge.

 

[TerrorBerk]

I've never gone to a regular doctor to have firsthand proof, but people I know pay $20.00 for an office visit with an English-speaking general medicine doctor.

I paid $40.00 for my initial consultation appointment with the surgeon, then my follow up appointment to discuss the imaging he ordered was free. The imaging involved Xray video of my stomach, then me drinking a substance, then getting images of my stomach taken each hour for the next four hours - that whole five hours at the hospital and five sets of imaging cost me $120.00.

The only cost after that was the all-in surgery charge mentioned in my earlier post. Three in-person, follow-up appointments spread over the first six weeks after surgery were scheduled to cost $40.00 each, though I only did two of them - we did the second via text/video and there was no charge.

That's crazy. My co-pay for a specialist is $15. And I have "good" insurance. I had to go to the ER in Thailand last year and it was $64 total with three prescriptions. It made me much more comfortable thinking about ex-pat retirement.

 

[Kasher]

Since my surgeon has a Social Security Number, I was able to pay cash directly to him via Zelle (giving me a 9% discount by avoid CC processing). My total charge for everything was $3,610.00.

I know it's probably not, and growing up the complete opposite type of system has probably clouded by judgment but holy shit does this sound sketchy as fuck out of context.