John has enough money, but I think he is making one mistake. He seems to have the understanding that he can know in advance that he will love Ecuador from day one and that he already knows sitting here right now that he will want to stay for 20 years. There is just no way to know that. The culture shock here is pretty extreme, in ways you can't know until you live it. So keep in mind that you should think in 6 month to 1 year increments, with the understanding that you may very well change your mind and end up somewhere far away from Ecuador 5 years from now. That could happen. But the beauty is, that's OK. Life is an adventure. Keep an open mind. With the financial resources you describe you can live well in 30 different countries. Ecuador is just one of them. So open your mind, open your heart, and take the dive. One thing I do highly recommend. If you do think you will end up in South America, get serious about learning Spanish as soon as possible.
Yes, you have spelled out the basic foundation for a move that involves changes that involves time and flexibility. The financial part is under control ; now you need open mind and humility . With that your suggestions are extremely on point and John and loved one should deep dive into , I hope, will be a life learning experience.
I find this as a weakness for some people. Culture shock is a matter of will power. I went from a small town to Detro Metro and adjusted. That was way more culture shock than going from a small farming community to living in Peru. I also became fluent in Spanish when living in Peru based on straight out will power. If you can handle change then Culture Shock is just for people without the ability to manage change. Can you handle change well? Then you will most likely handle living in Ecuador in an ExPat community.
I hate to see people inquiring about living on $500-$800 per month in Ecuador (or other central and South American countries) but the sad fact is if they stay in the USA, they won't have a roof over their heads at all for that price. I wouldn't want to live with roommates, but if i was in a similar financial situation, I'd consider trying to team up with some other broke expats, share a house, and be like the Golden Girls of Ecuador 😁.
I spent 10 years living in Southern California and had roomates the whole time I was there. I had a falling out with all but one and it made for a pretty miserable existence. The reason was that I couldn't afford a mortgage and housing was so expensive in those days. Fast forward to 2021, I owned my condo(with a mortgage) and it was very affordable but the &$%^# pandemic hit and everyone knows how that screwed the whole world economy. Looking back now, I wish I had kept my condo because I would be sitting in it right now while typing this reply instead of a friends. But as they say, hindsight is 20/20. I wish I had the answer but I still blame corporate greed for the extreme inflation and I don't see how many seniors can even live in the US any more.
@@DonShader Totally agree with you Don on senior citizens being priced out of their own country. The U.S. which has allowed greed to run rampant should be ashamed of itself if it had any shame left. Seniors like my mother and now myself worked their entire life and for what? To not be able to even afford even basic food and shelter in the country which they are a citizen of. And look at how disabled veterans and veterans as a whole are abused by the government. Very sad to say the least.
@@naderkhalighi6740 If you deposit money in a bank there you can and I believe neighboring Columbia offers a visa as long as you can provide proof of at least $684 a month USD.
You tipped your hand a little. You'd like to come back to the US but you can't see how that is possible? $2,000 per month? Savings in a CD? I am living comfortably on 1500 per month right here in the good old USA. Do you want to know my secret? I'm not fooling around. I spent a year in the Philippines before covid, discovering that life in a developing country is more than I can handle. Now I live here with all my American comforts.
Don, Argentina 🇦🇷 has lots to offer. They are transitioning to a new government, time might be tough for the next few years. I've been there many times. Great food, great medical, and many more other benefits.
Argentina has a great guy with good ideas but he has no experience or know how in how to run a government. So we need to pray for him that he surrounds himself with knowledgeable, good and trustworthy people. But your comment about Argentina's healthcare is misleading as the healthcare is 75th in the world but only in major cities. Not sure what others benefits you mean as Argentina is in bad shape economically
More benefits are a matter of opinion. Argentina has a lot higher crime rate against Gringos and has a more unstable government with inflation yet to be curbed. Less unknown future than Ecuador.
1st comment 🎉🎉🎉. Finally came in first on something! Another great no-nonsense video, Don. Very practical advice. There’s no harm in looking around Latin America (or Asia) to see which country feels best! You may visit Argentina and hate it, then go to Perú or Chile and love it. Once you’ve downsized from the States, moving around should be easier (at least that’s what I’m telling myself). Have fun riding your bike in AZ!!!!
1. You gotta do an exploratory visit. I know Don didn't, but he's really an exception, and it might have been more of a culture shock to him than it would be to others. 2. 2k-3k per months you'll be just fine. 3 Start learning Spanish now!!! A lot of folks have a lot of difficulties learning a 2nd language beyond a minimal stage. The biggest problems like you and Don mentioned, is that people here at home think you've gone totally batty, and why would you leave the most "perfect country in the world" well guess what, nothing is perfect and with the same income, you can live a much nicer life and standard of living in South America. Living in the US is very expensive, and as a senior citizen, I'd like decent medical care, and comfortable living situation. Don's actually pulled me to looking more at Ecuador than Colombia and I already have friends in Colombia. Been a couple of times. I'm still working on getting my house ready to sell, by painting, redoing the florring (all expensive) and once that's done, my dog and I are on our way.
Good video! Basically, I guess, if one can not afford to live in Ecuador, they can not afford to live in the U.S. There is good and bad with every choice/place. The U.S. currently costs way to much for housing, healthcare, insurance, grocery items, and security. All of those things are available cheaper in many other places, and of better quality in many as well. With $500k capital, one can live on the Interest/Investment income alone, without considering any retirement income. 500k at 5% annually is 25k year/2,083.00 month.
While I don’t disagree with anything you said, I would add the following. The only thing worst than retiring too late, is retiring early to a place you end up not liking a year later, but you don’t have enough income to go hone. That’s a hard nut to figure out.
That’s what exactly keeps me up at night … selling my home that I would never be able to replace if we came back and leaving my job . Very very tough decisions
@@JohnM-yx9lq Agreed, and I stand with you. The housing pinch in the US doesn't help matters. Interest rates are trending downward which hopefully will help matters. There is so much to consider. Good day.
@@JohnM-yx9lqthe first step is to do an exploratory trip. A lot depends upon how much vacation time you get. I spent 4 weeks in Costa Rica one year, 5 weeks the next, and 6 weeks the following year in ecuador before jumping. My suggestion is pick a city, not a tourist city, and live at least 2 weeks there, better to live 4 and see how you do. I could do this because I was 1099 and there was a slow season in my business. They didn’t miss me much in the slow season
Great video! My wife and I were originally going to retire in Cuenca. After additional research we decided to retire in Chiang Mai, Thailand. We live very comfortable on under $2000 including health insurance. We came here site unseen . 7 months later we glad we made the decision at 55 years of age.
My best advice no matter where you want to retire is to research the places that appeal to you and then after narrowing it down go for an exploratory visit of at least a month.
Don, I like your honest, straight-forward videos! Thanks for being real, it is appreciated. I'm past retiring early, but trying to imagine where I could be in a few years!
I’m in Mexico...third city in two years...don’t speak Spanish so I only live in Tourist cities...many expats, people on vacation and great local people who want to speak English.
I saw a nice apartment, 3 bds and 2 car garage in a very nice area in Cuenca for $450 a month. There are also nice small apartments near the 3 rivers meeting point for $250.
John, if you're wanting to look at other South American countries too, make sure they have a visa type that works for your situation first. Lots of countries have retiree visas if you are receiving regular social security payments, but not all have good visa options if you aren't yet. Between the professional visa, investor visa, and digital nomad visa, Ecuador has lots of visa options for younger folks.
Dang, Kathy beat me to the first comment lol Glad to see you doing well and I always agree with the exploratory trip and if that means exploring various countries, then go for it. Mark Horning is doing just that and I think he’s doing great!
Good video Don. Great advise on exploratory trip. Question, if you had more cash you said you want to come back to the USA.. Why is that? What are some key things you find better in Ecuador and things better in the USA? Cost of living? Safety? Lifestyle? pros and cons? Ive been all over SA, lived in Colombia, I love Argentina! Maybe do a video?
Try Cotacachi!! 50f to 75f everyday. It is at 8,000 ft Rent or Own is very afforded here. Ibarra to the north..Otavalo to the south. They have all the fun you could want. Quito is 2 hours away.
Hola Don, John can get 10% interest in Mexico banks, Stay away from the beach and tourist cities and live very good for $1500 a month. Cities to look at San Luis Potosi and Leon two nice places to live.
I made a mock budget, and it's definitely not that cheap. I figure 360 a month (12 dollars a day) for food, 340 a month for rent and electricity in a one-bedroom apartment, 200 a month for entertainment, 100 a month in general necessities (transportation, clothes, shoes, glasses), 100 a month in health insurance, 100 a month in communications (phone plan, internet) and computer upgrades, and 100 a month as a safety margin. That's 1,300 USD a month for a comfortable lifestyle. With 2k a month you'd be able to afford some luxury, but at 800 a month you'd have a much more basic lifestyle (which is fine). At 500 a month (minimum wage), things would be pretty tight: a cheaper apartment or roommates to decrease housing (150 a month), cheaper food (150 a month), cheaper necessities (50 a month), a cheap phone with a cheap plan (20 a month), health insurance is too important to pass on (100 a month), and that would leave you with just 30 dollars a month for entertainment.
@@DonShader In a place like Manta, I imagine it would be very difficult. It's an enormous city (250k population), and it's on the coast (more desirable, much much much noisier). On the outskirts of a boring, normal-sized city (let's say 30k population), though... you should be able to find passable small apartments for 150 a month, and for 340 a month you'd get a whole fully furnished house in a quiet area. Location, location, location. People love to live in the most awful places (noisy downtowns of gigantic cities), so I get to live in the nicer ones (quiet outskirts of boring little towns) for cheap.
Retiring early is a good idea, but.........inflation is the enemy. It is always there. You will not be exempt from it anywhere in the world. You can move to the cheapest country in the world, and prices will rise there too. Inflation may be steady for 10 years, and then in the next decade be high.
Hi Don, I like that shirt you're wearing. The color looks really good on you. I am so appreciative for the valuable information you share. I am considered middle class in the U.S. Currently, retired in my early 60s with monthly expenses approximately $6-7K per month, so it sounds like I might be abr to afford to reside in Ecuador and possibly even cut my expenses in half should I move to South America. My primary concern is health care quality and of course costs. I take one medication for psoriasis that is terribly expensive. I looked at a list I believe you (or GM Ace) shared a long time ago and it wasn't on it, but perhaps it has been updated or an equivalent is available. I hope my question isn't too taxing or offensive, but would you please consider producing a video where you discuss the quality of medical care and options for some of the Central & South American countries you would consider retiring to...For example, Argentina, Mexico, Panama, Ecuador ...possibly even Uruguay/Argentina? I am very ignorant of Medicare but have been told my medical insurance costs should drop considerably when I am eligible for it. I have attempted to make inquiries to learn more about Medicare, but only receive responses like it is too far away, things may change. Which I suppose is understandable. Appreciate you and the straight, honest info you provide. Stay safe!
Hey Don...good stuff. I'll tell you what put me off with Ecuador...We called Guayaquil mid-80s...went to a museum with a couple of girls I had met...on the 2nd floor they had several actual shrunken skulls...Pass
I'd like to put out there a word of caution about taking your money to Ecuador. Since Correa, there's a tax to take money out of the country. I don't know exactly how it works, but I know of a few people who live there and keep their money abroad. They rely on ATMs and credit cards. Noboa is floating the idea to increase this tax to finance the war. If anyone is planning on bringing their cash to Ecuador, go talk to a specialist on this matter before opening any accounts there.
The exit tax was 5% when I came here in 2021. Lasso issued a decree to eliminate the exit tax and he started it by reducing the tax 25% per quarter and it's been continually reduced at that rate since then.
For orientation, our friends (Ecuadorian), 2 professional salaries ($1500 - $2000 a month each), 2 small kids - upper 20% lifestyle. It's a good life at that level if it weren't for the insecurity (they are in Guayaquil). People in the barrios live on $400 a month and less, but it's a lifestyle that would make most Americans uncomfortable. $2000 a month is what we budget when we are in Ecuador for a family of 4 when we are there. I would be careful with the CDs and follow the news about dollarization stability issues. If it ever falls over it will be quick and you won't be able to get your money out in time (study previous cases in Ecuador in 2000, Argentina, Venezuela etc). For comparison: We were quoted 9.25% on a CD from one of the big banks, no need for a cooperativa, but we didn't take it regardless - we have better investment opportunities in North America, but that's us. Good video.
As always, it depends on so many factors, both financial and personal. Definitely do your math a dozen times back and forth, and more importantly, have somebody else that is knowledgable review that with you, there are so many extras that tend to not get considered. Make sure you throughly investigate any investment options you are considering. That said, $2000 is pretty good in Ecuador. I think Cuenca is great as well. I could not tolerate the altitude when I first moved to Ecuador, but now (almost 2 years later) when I go up to visit, I do fine. As much as I love the ocean, I did not enjoy living on the coast. I like Loja, but Don is correct... very little english and a bit out of the way in terms of travelling. As Don says, also consider other countries, get as much information as you can, then make an exploratory trip as one of your vacations.
Hello, this is not how retirement works, its not 2k for 20 years its a 4% withdraw rate indefinitely, you try to balance growth and fixed income investments and shoot for 8% YOY growth so you can take 4% out and never run out of money 4% of 500k is 20k /12 is 1666$ but put aside some for taxes and lets say you have 1500$ this is what you could responsibly spend a month so no you are not ready to retire unless you spend much less, in most of Ecuador you can live comfortably on 800 a month but really depends try to aim for a million and then I would say you can spend 3k a month and be VERY comfortable in Ecuador
Okay, I read this comment three times and I still don't know what the hell you're talking about. I guess I'm just too ignorant for you man. Can you dumb this down and try again?
Hello Don, I really enjoy the content of your videos, your'e quite the character and i mean that's in a good way. As you know firsthand it's getting incredibly difficult to support oneself due to outrageous inflation starting once this administration took over the white house. I'm looking to live abroad soon, im retired age 65 and seriously looking at Mexico, are they're still any rental areas for $300-$500? My monthly retirement income is around $2,300.00 what would you advise, thanks for all you do. Rafael
I'm not a tax advisor. I have to pay taxes on MY income which includes SS but if you're not sure about it, I would consult a tax accountant. After my retirement, my income was reduced significantly and in the last two years, after applying my deductions and personal excemption, I didn't have to pay anything.
I am no expert and as someone looking at the proverbial “light at the end of the tunnel”, I think his calculations of Social Security earnings are incorrect. When he stops working, and moves, his income will drastically change. If he is planning a living income of just about $30k for about ten plus years, that is going to drop his Social Security payments. If he essentially is cutting his income down to a quarter, he is going to receive a drastically adjusted payout. I think he should consult an expert - that is, unless he’s done so and I’m completely wrong. Maybe someone with expertise can correct me, but having been on the Social Security website, it does speak only of your earnings at the point you declare your intent to receive the benefits, not what is was ten years ago.
I don't agree 100% with you Andrew. I did a little research on how the Social Security benefits are calculated and here's what I've concluded. 1. Social Security benefits are calculated based on your lifetime earnings. The Social Security Administration (SSA) uses a formula that takes into account your highest 35 years of earnings, adjusting them for inflation. Here's a simplified overview: 2. Earning Record: The SSA considers your earnings over your working years. They take the highest 35 years of inflation-adjusted earnings into account. 3. Average Indexed Monthly Earnings (AIME): The total earnings are then divided by the number of months in those 35 years to get the average. This is called the Average Indexed Monthly Earnings (AIME). 4. Primary Insurance Amount (PIA): The AIME is then used to calculate your Primary Insurance Amount (PIA), which is the amount you would receive if you claim benefits at your full retirement age (FRA). FRA is between 65 and 67, depending on your birth year. 5. Full Retirement Age (FRA) Adjustment: If you claim benefits before your FRA, your benefits will be reduced. If you delay beyond your FRA, your benefits will increase until you reach the maximum at age 70. 6. Cost-of-Living Adjustments (COLA): Your benefit amount can also be adjusted for inflation through Cost-of-Living Adjustments (COLA) to maintain its purchasing power. It's important to note that the specific details can vary based on individual circumstances, and it's advisable to check with the Social Security Administration or use their online calculators for a personalized estimate based on your work history.
@@DonShader, thanks Don for the reply. 35 years is a lot to average. Most people are going to even peak until they can find a career level job with upward salary mobility. It took me 25 years at my current job of now 27 years to really see impressive figures even with overtime. So working with an average that has many more low years than high ones is a tough nut to overcome. 35 years of working by itself is almost an entire lifetime of work. If you have college and enter the workforce in a meaningful way in your low to mid twenties, 35 years puts you at 60 already and you’ve bare had the time to make that good salary that will push your retirement earnings upward. What a racket. Still, if, like the person that emailed you, you were to leave the work force and live off of investments after having a salary of over $100k per year, this last ten years of only $30k a year are going to cut into that 35 year average and sharply drop the potential retirement at 62/65/67 depending on the age he chooses. Good luck to you. My plan in the future is still retirement in Ecuador. But I continue to watch the trends, just in case. It’s too expensive in the USA.
I'm considering moving to Vilcabamba area, have you been there and if so; what is your view of the area? It's my understanding that there is now over 1000 Expats living in the area of Vilcabamba.
@@joann5157 There are millions of them in EC but as an expat, I am not allowed to import any motorized vehicle into the country. It's simply not allowed. If I was married to an Ecuadorian, I believe I could import one in but the fees would make it not worth it.
We are planning on leaving canada when I retire at 58, April 2025. We will sell our home and will end up with about 500k capital and will have a monthly retirement income of about $4k/month. We are interested in buying a condo near Manta. We are hoping to live comfortably with this amount. We are going to visit this year for the month of December to get acquainted with the area.
Great video as always Don! I’d suggest just travel around, 2-3 months here and there, a year will go by fast and some place will click with you or just keep doing that. I’m sure budget will average to your level eventually. The main thing is this, leave your EGO back home. No one likes a pretentious gringo anywhere. They’ll go out of their way to please you if you’re NICE!!!! Try as much as possible to blend into the culture, other cultures will not bend to your demands! Try to learn their customs and language, you may sound funny but they’ll love you for trying. This and that is not like it is in the states! No it isn’t and never will be!!
Hello Hermes! You are correct that inflation in Argentina is high. 2023 was the highest on record since 2004. It was a whopping 121.67%! Not quite 200% percent, but still crushing. The good news is, that it is projected to go down over the next Five years to 32.47%. Of course that’s still untenable and would not work for me, but the trend line looks good.
@@boink800 That is true. As an airline crewmember, I have layed over in EZE more times than I can count and I have enjoyed many delicious, low priced meals. That said, I have always worried about safety as the average Argentinian has great difficulties, dealing with such high inflation, and many are forced to commit petty crimes. I have been on several layovers where fellow crewmembers have been mugged on the street. Perhaps, as inflation softens, I might feel safer.
I make $6500 CAD ($4,750 USD) guaranteed income a month for life, would I have a comfortable life in Salinas, Ecuador? For me and my wife? As she wants to retire but doesn’t have the income I have … I’m wondering if my income would support the 2 of us ???
@@covertcohiba181 Everything. It's too damned close to Gye, it's a Vegas style party town that's open only during holidays, and too much petty crime and lawlessness.
I agree with you in absolutely everything you said, even Quito it’s a super comfortable city to live in, with its colonial Spanish side and it’s ultra modern side, a lot of places to eat, all the conveniences of the first world, fun city! One thing I completed disagree with you though, 𝙎𝙩𝙖𝙮 𝙖𝙬𝙖𝙮 𝙛𝙧𝙤𝙢 𝙋𝙀𝙍𝙐!!! Horrible, dirty, all around tourist trap! Argentina a paradise, a Europe in South America! Buenos Aires nice but the best part are the smaller cities towards the south. Same thing applies to Chile, Santiago it’s OK, but the most beautiful cities are the smallest cities that contain all the benefits and goodies we are used to! 👍🏻🍺
I've lived for three years in Cuenca and wouldn't live anywhere else in Ecuador. Great city with lots to see and do.
hows the year round weather?
Thank you Don ! I didn’t expect a vid blog on my email! Thank you and all the comments! Definitely appreciate it! It’s a lot to think about
You are very welcome.
John has enough money, but I think he is making one mistake. He seems to have the understanding that he can know in advance that he will love Ecuador from day one and that he already knows sitting here right now that he will want to stay for 20 years. There is just no way to know that. The culture shock here is pretty extreme, in ways you can't know until you live it. So keep in mind that you should think in 6 month to 1 year increments, with the understanding that you may very well change your mind and end up somewhere far away from Ecuador 5 years from now. That could happen. But the beauty is, that's OK. Life is an adventure. Keep an open mind. With the financial resources you describe you can live well in 30 different countries. Ecuador is just one of them. So open your mind, open your heart, and take the dive. One thing I do highly recommend. If you do think you will end up in South America, get serious about learning Spanish as soon as possible.
I absolutely loved this comment! Thank you so much
Yes, you have spelled out the basic foundation for a move that involves changes that involves time and flexibility. The financial part is under control ; now you need open mind and humility . With that your suggestions are extremely on point and John and loved one should deep dive into , I hope, will be a life learning experience.
I find this as a weakness for some people. Culture shock is a matter of will power. I went from a small town to Detro Metro and adjusted. That was way more culture shock than going from a small farming community to living in Peru. I also became fluent in Spanish when living in Peru based on straight out will power. If you can handle change then Culture Shock is just for people without the ability to manage change. Can you handle change well? Then you will most likely handle living in Ecuador in an ExPat community.
I hate to see people inquiring about living on $500-$800 per month in Ecuador (or other central and South American countries) but the sad fact is if they stay in the USA, they won't have a roof over their heads at all for that price. I wouldn't want to live with roommates, but if i was in a similar financial situation, I'd consider trying to team up with some other broke expats, share a house, and be like the Golden Girls of Ecuador 😁.
@@acajudi100 not everyone has a large enough income to live below 🤷♀️.
I spent 10 years living in Southern California and had roomates the whole time I was there. I had a falling out with all but one and it made for a pretty miserable existence. The reason was that I couldn't afford a mortgage and housing was so expensive in those days. Fast forward to 2021, I owned my condo(with a mortgage) and it was very affordable but the &$%^# pandemic hit and everyone knows how that screwed the whole world economy. Looking back now, I wish I had kept my condo because I would be sitting in it right now while typing this reply instead of a friends.
But as they say, hindsight is 20/20.
I wish I had the answer but I still blame corporate greed for the extreme inflation and I don't see how many seniors can even live in the US any more.
@@DonShader Totally agree with you Don on senior citizens being priced out of their own country. The U.S. which has allowed greed to run rampant should be ashamed of itself if it had any shame left. Seniors like my mother and now myself worked their entire life and for what? To not be able to even afford even basic food and shelter in the country which they are a citizen of. And look at how disabled veterans and veterans as a whole are abused by the government. Very sad to say the least.
$500-$800 ? How you ould get residency in Ecuador !!
@@naderkhalighi6740 If you deposit money in a bank there you can and I believe neighboring Columbia offers a visa as long as you can provide proof of at least $684 a month USD.
You tipped your hand a little. You'd like to come back to the US but you can't see how that is possible? $2,000 per month? Savings in a CD? I am living comfortably on 1500 per month right here in the good old USA. Do you want to know my secret? I'm not fooling around. I spent a year in the Philippines before covid, discovering that life in a developing country is more than I can handle. Now I live here with all my American comforts.
Don, Argentina 🇦🇷 has lots to offer. They are transitioning to a new government, time might be tough for the next few years. I've been there many times. Great food, great medical, and many more other benefits.
Argentina has a great guy with good ideas but he has no experience or know how in how to run a government. So we need to pray for him that he surrounds himself with knowledgeable, good and trustworthy people. But your comment about Argentina's healthcare is misleading as the healthcare is 75th in the world but only in major cities. Not sure what others benefits you mean as Argentina is in bad shape economically
Javier Milei gives me hope for the future of the world.
@@hrollinsnyc Do you like his chainsaw?
@@Hi-bt1efwhat specific comment about Argentina are you talking about?
More benefits are a matter of opinion. Argentina has a lot higher crime rate against Gringos and has a more unstable government with inflation yet to be curbed. Less unknown future than Ecuador.
1st comment 🎉🎉🎉. Finally came in first on something! Another great no-nonsense video, Don. Very practical advice. There’s no harm in looking around Latin America (or Asia) to see which country feels best! You may visit Argentina and hate it, then go to Perú or Chile and love it. Once you’ve downsized from the States, moving around should be easier (at least that’s what I’m telling myself). Have fun riding your bike in AZ!!!!
1. You gotta do an exploratory visit. I know Don didn't, but he's really an exception, and it might have been more of a culture shock to him than it would be to others. 2. 2k-3k per months you'll be just fine. 3 Start learning Spanish now!!! A lot of folks have a lot of difficulties learning a 2nd language beyond a minimal stage.
The biggest problems like you and Don mentioned, is that people here at home think you've gone totally batty, and why would you leave the most "perfect country in the world" well guess what, nothing is perfect and with the same income, you can live a much nicer life and standard of living in South America. Living in the US is very expensive, and as a senior citizen, I'd like decent medical care, and comfortable living situation.
Don's actually pulled me to looking more at Ecuador than Colombia and I already have friends in Colombia. Been a couple of times. I'm still working on getting my house ready to sell, by painting, redoing the florring (all expensive) and once that's done, my dog and I are on our way.
Thanks for the great info, Don! Always appreciate ur honesty & candor
Thank you Don. You are the man. Great content! Agree with your sentiment and opinion on the trending situation in the US. Good day.
Hi Don, thank you for your updates.
Good video! Basically, I guess, if one can not afford to live in Ecuador, they can not afford to live in the U.S. There is good and bad with every choice/place.
The U.S. currently costs way to much for housing, healthcare, insurance, grocery items, and security. All of those things are available cheaper in many other places, and of better quality in many as well. With $500k capital, one can live on the Interest/Investment income alone, without considering any retirement income. 500k at 5% annually is 25k year/2,083.00 month.
While I don’t disagree with anything you said, I would add the following. The only thing worst than retiring too late, is retiring early to a place you end up not liking a year later, but you don’t have enough income to go hone.
That’s a hard nut to figure out.
That’s what exactly keeps me up at night … selling my home that I would never be able to replace if we came back and leaving my job . Very very tough decisions
@@JohnM-yx9lq Agreed, and I stand with you. The housing pinch in the US doesn't help matters. Interest rates are trending downward which hopefully will help matters. There is so much to consider. Good day.
@@JohnM-yx9lqthe first step is to do an exploratory trip. A lot depends upon how much vacation time you get. I spent 4 weeks in Costa Rica one year, 5 weeks the next, and 6 weeks the following year in ecuador before jumping. My suggestion is pick a city, not a tourist city, and live at least 2 weeks there, better to live 4 and see how you do.
I could do this because I was 1099 and there was a slow season in my business. They didn’t miss me much in the slow season
Great video! My wife and I were originally going to retire in Cuenca. After additional research we decided to retire in Chiang Mai, Thailand.
We live very comfortable on under $2000 including health insurance. We came here site unseen . 7 months later we glad we made the decision at 55 years of age.
I always appreciate your candor and straightforwardness Don. Thanks for the videos.
I appreciate that.
My best advice no matter where you want to retire is to research the places that appeal to you and then after narrowing it down go for an exploratory visit of at least a month.
Don, I like your honest, straight-forward videos! Thanks for being real, it is appreciated. I'm past retiring early, but trying to imagine where I could be in a few years!
Best of luck!
I’m in Mexico...third city in two years...don’t speak Spanish so I only live in Tourist cities...many expats, people on vacation and great local people who want to speak English.
I saw a nice apartment, 3 bds and 2 car garage in a very nice area in Cuenca for $450 a month. There are also nice small apartments near the 3 rivers meeting point for $250.
Wow, that's inexpensive.
Great content and advice, Uncle Don. Keep it as real as it can be without any "sugar talk."
John, if you're wanting to look at other South American countries too, make sure they have a visa type that works for your situation first. Lots of countries have retiree visas if you are receiving regular social security payments, but not all have good visa options if you aren't yet. Between the professional visa, investor visa, and digital nomad visa, Ecuador has lots of visa options for younger folks.
Dang, Kathy beat me to the first comment lol
Glad to see you doing well and I always agree with the exploratory trip and if that means exploring various countries, then go for it. Mark Horning is doing just that and I think he’s doing great!
Love your direct no nonsense presentation and your humor 🎉😂
Thank you 😊
@@DonShader I was thinking of Argentina??
Awesome info as always Don. Thanks
good chat...enjoy arizona
Good video Don. Great advise on exploratory trip. Question, if you had more cash you said you want to come back to the USA.. Why is that? What are some key things you find better in Ecuador and things better in the USA? Cost of living? Safety? Lifestyle? pros and cons? Ive been all over SA, lived in Colombia, I love Argentina! Maybe do a video?
I'm going to answer this in a video today or tomorrow.
Try Cotacachi!! 50f to 75f everyday. It is at 8,000 ft Rent or Own is very afforded here. Ibarra to the north..Otavalo to the south. They have all the fun you could want. Quito is 2 hours away.
But 8000 ft is too damned high for me and others that I know.
Good video Don
Hola Don, John can get 10% interest in Mexico banks, Stay away from the beach and tourist cities and live very good for $1500 a month. Cities to look at San Luis Potosi and Leon two nice places to live.
Never heard about this places. Are they safe ro live therr? I know about Cuanca...
Mexico changed its immigration policy regarding income. Most of us don’t qualify anymore for residences, unless only temporary
@@galenamullen6444 Those two cities are in Mexico, not Ecuador.
Another good video. Very informative. Thanks Don!
Thanks 👍
I made a mock budget, and it's definitely not that cheap. I figure 360 a month (12 dollars a day) for food, 340 a month for rent and electricity in a one-bedroom apartment, 200 a month for entertainment, 100 a month in general necessities (transportation, clothes, shoes, glasses), 100 a month in health insurance, 100 a month in communications (phone plan, internet) and computer upgrades, and 100 a month as a safety margin. That's 1,300 USD a month for a comfortable lifestyle.
With 2k a month you'd be able to afford some luxury, but at 800 a month you'd have a much more basic lifestyle (which is fine). At 500 a month (minimum wage), things would be pretty tight: a cheaper apartment or roommates to decrease housing (150 a month), cheaper food (150 a month), cheaper necessities (50 a month), a cheap phone with a cheap plan (20 a month), health insurance is too important to pass on (100 a month), and that would leave you with just 30 dollars a month for entertainment.
Good luck on that rent. If you find something that cheap, you will be in a very bad area and it won't be even remotely quiet.
@@DonShader In a place like Manta, I imagine it would be very difficult. It's an enormous city (250k population), and it's on the coast (more desirable, much much much noisier). On the outskirts of a boring, normal-sized city (let's say 30k population), though... you should be able to find passable small apartments for 150 a month, and for 340 a month you'd get a whole fully furnished house in a quiet area.
Location, location, location. People love to live in the most awful places (noisy downtowns of gigantic cities), so I get to live in the nicer ones (quiet outskirts of boring little towns) for cheap.
Great advice Don🤠👍
Retiring early is a good idea, but.........inflation is the enemy. It is always there. You will not be exempt from it anywhere in the world. You can move to the cheapest country in the world, and prices will rise there too. Inflation may be steady for 10 years, and then in the next decade be high.
Hi Don, I like that shirt you're wearing. The color looks really good on you. I am so appreciative for the valuable information you share. I am considered middle class in the U.S. Currently, retired in my early 60s with monthly expenses approximately $6-7K per month, so it sounds like I might be abr to afford to reside in Ecuador and possibly even cut my expenses in half should I move to South America. My primary concern is health care quality and of course costs. I take one medication for psoriasis that is terribly expensive. I looked at a list I believe you (or GM Ace) shared a long time ago and it wasn't on it, but perhaps it has been updated or an equivalent is available. I hope my question isn't too taxing or offensive, but would you please consider producing a video where you discuss the quality of medical care and options for some of the Central & South American countries you would consider retiring to...For example, Argentina, Mexico, Panama, Ecuador ...possibly even Uruguay/Argentina? I am very ignorant of Medicare but have been told my medical insurance costs should drop considerably when I am eligible for it. I have attempted to make inquiries to learn more about Medicare, but only receive responses like it is too far away, things may change. Which I suppose is understandable. Appreciate you and the straight, honest info you provide. Stay safe!
Wow well said Sir
Hey Don...good stuff. I'll tell you what put me off with Ecuador...We called Guayaquil mid-80s...went to a museum with a couple of girls I had met...on the 2nd floor they had several actual shrunken skulls...Pass
I'd like to put out there a word of caution about taking your money to Ecuador. Since Correa, there's a tax to take money out of the country. I don't know exactly how it works, but I know of a few people who live there and keep their money abroad. They rely on ATMs and credit cards. Noboa is floating the idea to increase this tax to finance the war. If anyone is planning on bringing their cash to Ecuador, go talk to a specialist on this matter before opening any accounts there.
The exit tax was 5% when I came here in 2021. Lasso issued a decree to eliminate the exit tax and he started it by reducing the tax 25% per quarter and it's been continually reduced at that rate since then.
@@DonShader thank you. Good to know. Will keep an eye open to see if Noboa brings it back.
For orientation, our friends (Ecuadorian), 2 professional salaries ($1500 - $2000 a month each), 2 small kids - upper 20% lifestyle. It's a good life at that level if it weren't for the insecurity (they are in Guayaquil). People in the barrios live on $400 a month and less, but it's a lifestyle that would make most Americans uncomfortable. $2000 a month is what we budget when we are in Ecuador for a family of 4 when we are there. I would be careful with the CDs and follow the news about dollarization stability issues. If it ever falls over it will be quick and you won't be able to get your money out in time (study previous cases in Ecuador in 2000, Argentina, Venezuela etc). For comparison: We were quoted 9.25% on a CD from one of the big banks, no need for a cooperativa, but we didn't take it regardless - we have better investment opportunities in North America, but that's us. Good video.
Thanks for sharing..Enjoy. eating if still Arizona..
Good video and video information
As always, it depends on so many factors, both financial and personal. Definitely do your math a dozen times back and forth, and more importantly, have somebody else that is knowledgable review that with you, there are so many extras that tend to not get considered. Make sure you throughly investigate any investment options you are considering. That said, $2000 is pretty good in Ecuador. I think Cuenca is great as well. I could not tolerate the altitude when I first moved to Ecuador, but now (almost 2 years later) when I go up to visit, I do fine. As much as I love the ocean, I did not enjoy living on the coast. I like Loja, but Don is correct... very little english and a bit out of the way in terms of travelling. As Don says, also consider other countries, get as much information as you can, then make an exploratory trip as one of your vacations.
Hello, this is not how retirement works, its not 2k for 20 years its a 4% withdraw rate indefinitely, you try to balance growth and fixed income investments and shoot for 8% YOY growth so you can take 4% out and never run out of money 4% of 500k is 20k /12 is 1666$ but put aside some for taxes and lets say you have 1500$ this is what you could responsibly spend a month so no you are not ready to retire unless you spend much less, in most of Ecuador you can live comfortably on 800 a month but really depends try to aim for a million and then I would say you can spend 3k a month and be VERY comfortable in Ecuador
Okay, I read this comment three times and I still don't know what the hell you're talking about. I guess I'm just too ignorant for you man. Can you dumb this down and try again?
You've mentioned several times that Manta is really loud and noisy. Is it quieter in Cuenca ?
Yes.
Hello Don, I really enjoy the content of your videos, your'e quite the character and i mean that's in a good way. As you know firsthand it's getting incredibly difficult to support oneself due to outrageous inflation starting once this administration took over the white house. I'm looking to live abroad soon, im retired age 65 and seriously looking at Mexico, are they're still any rental areas for $300-$500? My monthly retirement income is around $2,300.00 what would you advise, thanks for all you do. Rafael
Very informative video found it to be honest. My question is can you recommend a visa facilitator. Thank you.
Yes, definitely, Gringo Visas.
docs.google.com/document/d/1ArNRtsdqfleE1-l9r1yKrh-XyzksSIwj0MMyb09L0ro/edit?usp=sharing
Thank you for the referral and I have another question do us expats pay taxes on social security and on any other income. . Thank you
I'm not a tax advisor. I have to pay taxes on MY income which includes SS but if you're not sure about it, I would consult a tax accountant.
After my retirement, my income was reduced significantly and in the last two years, after applying my deductions and personal excemption, I didn't have to pay anything.
Do you suggestions for health insurance? Also looking at Argentina by the way...
Blue Box as far as an agent is concerned. I can't say much for any insurance company.
Argentina, Chile, Peru, Colombia, Brasil tax you on worldwide income. EC taxes only on income you make in country.
I am no expert and as someone looking at the proverbial “light at the end of the tunnel”, I think his calculations of Social Security earnings are incorrect. When he stops working, and moves, his income will drastically change. If he is planning a living income of just about $30k for about ten plus years, that is going to drop his Social Security payments. If he essentially is cutting his income down to a quarter, he is going to receive a drastically adjusted payout. I think he should consult an expert - that is, unless he’s done so and I’m completely wrong. Maybe someone with expertise can correct me, but having been on the Social Security website, it does speak only of your earnings at the point you declare your intent to receive the benefits, not what is was ten years ago.
I don't agree 100% with you Andrew. I did a little research on how the Social Security benefits are calculated and here's what I've concluded.
1. Social Security benefits are calculated based on your lifetime earnings. The Social Security Administration (SSA) uses a formula that takes into account your highest 35 years of earnings, adjusting them for inflation. Here's a simplified overview:
2. Earning Record: The SSA considers your earnings over your working years. They take the highest 35 years of inflation-adjusted earnings into account.
3. Average Indexed Monthly Earnings (AIME): The total earnings are then divided by the number of months in those 35 years to get the average. This is called the Average Indexed Monthly Earnings (AIME).
4. Primary Insurance Amount (PIA): The AIME is then used to calculate your Primary Insurance Amount (PIA), which is the amount you would receive if you claim benefits at your full retirement age (FRA). FRA is between 65 and 67, depending on your birth year.
5. Full Retirement Age (FRA) Adjustment: If you claim benefits before your FRA, your benefits will be reduced. If you delay beyond your FRA, your benefits will increase until you reach the maximum at age 70.
6. Cost-of-Living Adjustments (COLA): Your benefit amount can also be adjusted for inflation through Cost-of-Living Adjustments (COLA) to maintain its purchasing power.
It's important to note that the specific details can vary based on individual circumstances, and it's advisable to check with the Social Security Administration or use their online calculators for a personalized estimate based on your work history.
@@DonShader, thanks Don for the reply. 35 years is a lot to average. Most people are going to even peak until they can find a career level job with upward salary mobility. It took me 25 years at my current job of now 27 years to really see impressive figures even with overtime. So working with an average that has many more low years than high ones is a tough nut to overcome. 35 years of working by itself is almost an entire lifetime of work. If you have college and enter the workforce in a meaningful way in your low to mid twenties, 35 years puts you at 60 already and you’ve bare had the time to make that good salary that will push your retirement earnings upward. What a racket. Still, if, like the person that emailed you, you were to leave the work force and live off of investments after having a salary of over $100k per year, this last ten years of only $30k a year are going to cut into that 35 year average and sharply drop the potential retirement at 62/65/67 depending on the age he chooses. Good luck to you. My plan in the future is still retirement in Ecuador. But I continue to watch the trends, just in case. It’s too expensive in the USA.
what is situation in Ecuador now, please? When you planning go back?
It's becoming more stable. When I return won't be public information.
thanks
You're welcome!
I'm considering moving to Vilcabamba area, have you been there and if so; what is your view of the area? It's my understanding that there is now over 1000 Expats living in the area of Vilcabamba.
I don’t know if that number is accurate. I personally would not live there for reasons I can’t publish here. Sorry.
Hi Don, is that your motorcycle in the background outside the window? Hope you are enjoying it. Will it go back to Ecuador with you?
Yes it is. I just took it to lunch and got pelted with rain and hail. No, unfortunately it won't be going back with me. That's not allowed in Ecuador.
@@DonShader Stella, huh?
@@joann5157, not really. It's immigration. They won't allow it.
@@DonShader But I've seen other motorcycles there. Is it just that you have to buy it there and not import?
@@joann5157 There are millions of them in EC but as an expat, I am not allowed to import any motorized vehicle into the country. It's simply not allowed. If I was married to an Ecuadorian, I believe I could import one in but the fees would make it not worth it.
If you only have $500 a month income it may be better to stay in the U.S. and try to get social services.
🤡
What a conclusion! Who wants to live your retirement begging for health services and food to the government. No Sir, go to Ecuador !!
We are planning on leaving canada when I retire at 58, April 2025.
We will sell our home and will end up with about 500k capital and will have a monthly retirement income of about $4k/month.
We are interested in buying a condo near Manta.
We are hoping to live comfortably with this amount.
We are going to visit this year for the month of December to get acquainted with the area.
You need more than a month to visit this place before you decide to buy something in or near Manta.
Rent. Please think carefully before buying anything.
@@rvdareyet7201 Yes. We will rent before making any purchases and actually we have made some changes and are now considering moving to Panama.
Panama much safer cost is very similar and its closer to America
Me want to live in Salinas, can you help me?
Sure. Don't live in Salinas unless you are Ecuadorian, young, and like to spend your life drinking, drugging and partying.
Great video as always Don! I’d suggest just travel around, 2-3 months here and there, a year will go by fast and some place will click with you or just keep doing that. I’m sure budget will average to your level eventually. The main thing is this, leave your EGO back home. No one likes a pretentious gringo anywhere. They’ll go out of their way to please you if you’re NICE!!!! Try as much as possible to blend into the culture, other cultures will not bend to your demands! Try to learn their customs and language, you may sound funny but they’ll love you for trying. This and that is not like it is in the states! No it isn’t and never will be!!
I'm planning a two week visit to Argentina next. I think you're reading my mind.
Argentina with 200% or thereabouts inflation - no thanks.
Hello Hermes! You are correct that inflation in Argentina is high. 2023 was the highest on record since 2004. It was a whopping 121.67%! Not quite 200% percent, but still crushing. The good news is, that it is projected to go down over the next Five years to 32.47%. Of course that’s still untenable and would not work for me, but the trend line looks good.
If your income is from outside of Argentina, it's not a problem. In fact, it starts getting cheaper.
@@boink800 That is true. As an airline crewmember, I have layed over in EZE more times than I can count and I have enjoyed many delicious, low priced meals. That said, I have always worried about safety as the average Argentinian has great difficulties, dealing with such high inflation, and many are forced to commit petty crimes. I have been on several layovers where fellow crewmembers have been mugged on the street. Perhaps, as inflation softens, I might feel safer.
Does one have to live in ecuador to invest in their c-d-system?
Yes. You need a Visa.
I make $6500 CAD ($4,750 USD) guaranteed income a month for life, would I have a comfortable life in Salinas, Ecuador? For me and my wife? As she wants to retire but doesn’t have the income I have … I’m wondering if my income would support the 2 of us ???
No! Don't go to Salinas. Listen to the RUclipsrs that tell you NOT to live in a place like Salinas.
@@DonShader what’s wrong with Salinas??
@@covertcohiba181 Everything. It's too damned close to Gye, it's a Vegas style party town that's open only during holidays, and too much petty crime and lawlessness.
If you want to become a millionaire, buy land in Argentina
😂 🤎 👍 🙏 👏🍺
He will be there for the rest of his life. Not because of the girlfriend, but because life is short when you are 90 😂
Not if you get robbed everyday
I agree with you in absolutely everything you said, even Quito it’s a super comfortable city to live in, with its colonial Spanish side and it’s ultra modern side, a lot of places to eat, all the conveniences of the first world, fun city! One thing I completed disagree with you though, 𝙎𝙩𝙖𝙮 𝙖𝙬𝙖𝙮 𝙛𝙧𝙤𝙢 𝙋𝙀𝙍𝙐!!! Horrible, dirty, all around tourist trap! Argentina a paradise, a Europe in South America! Buenos Aires nice but the best part are the smaller cities towards the south. Same thing applies to Chile, Santiago it’s OK, but the most beautiful cities are the smallest cities that contain all the benefits and goodies we are used to! 👍🏻🍺
We would love to move to Mendoza, Argentina but we’re waiting and watching the crime/economic situations.