Become a Costa Rica Retirement Arbitrageur!

When you are planning for your retirement, experienced financial planners typically recommend that you replace 70 to 100 percent of pre-retirement income through wealth and savings.

Unfortunately thanks to the catastrophic financial “crisis” caused by our banksters – not one of whom has gone to jail – which wiped out $16.4 trillion in wealth, that goal is now more difficult than ever before for tens of millions of Americans.

So you can either plan to retire where you are and drastically cut back on your living expenses and your quality of life or, you might consider living somewhere else where life is simpler and the cost of living is less…

Maybe even Costa Rica? A land of stunning scenery sunshine and smiles where you can “arbitrage” your retirement.

A recent Reuters article explains that: “In the financial world, arbitrage is a trading strategy that earns profit by exploiting price differences between markets.”

“Consider that at the end of 2012, the average 401(k) balance of those ages 60 to 64 was $133,100, according to Boston-based Fidelity Investments. Now factor in that an American man turning 65 can expect to live to age 83, and a woman to 85, according to the Social Security Administration. Your money might have to last a long time.”

“An American couple retiring now will need roughly $220,000 to cover healthcare costs throughout their retirement, even with Medicare coverage, according to estimates from Fidelity.”

Now I’m no mathematical genius but if you will need $220K just to cover your “healthcare costs throughout retirement” and “the average 401(k) balance of those ages 60 to 64 was $133,100” then, looks to me like a lot of people have some very serious problems ahead of them.

Now please don’t get me wrong! The cost of living in Costa Rica is not as affordable as it was..

Electricity costs in particular have increased dramatically (so you may wish to rethink living with your air conditioner at full blast), import taxes on cars are high so they are expensive and gas prices are high, but property taxes are pitiful compared to what you will be accustomed to and property insurances rates are low.

The quality of health care in the “Social Security” type facilities will depend on the geographical area in which you live but the monthly cost for most couples is way less than $100.

There are also many different private health insurance options available which are not nearly as affordable as the state system in Costa Rica but more reasonably priced than what you would find in the U.S.

There’s nothing wrong with having your creature comforts but if you insist on buying lots of imported food products – where there may be import taxes, there will always be insurance and big transportation costs – instead of locally grown Costa Rica foods, then you’ll pay through the nose for them.

Having said that, I know many people living in Costa Rica who are living very happy and satisfied lives where their cost of living is much lower than it was in the U.S.

We even have recent articles on this site that speak about how: “We spend about $75 per week on groceries for the two of us…” and “Living in Costa Rica costs us half of what it cost us to live a similar lifestyle in California.”

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.