Hi:
Here is an example of how one family group made retirement to the sun possible.
The point I wish to make is how moving to a warm climate can be considered for a family, not just one person or couple.
Family and friends are a major focus, especially when work is no longer the reason to stay in one area.
One couple, a retired professional and his wife from Alberta bought a condo in the Caribbean. His brother and sister-in-law from BC then bought in the same complex and then their sister followed. She, however, lived in England. She is still working and so she furnished her apartment. The family managed it as a short term rental.
Next came their son and daughter-in-law, in their thirties, with two kids. They bought a two bedroom, but also rented it out on a long term basis. This younger family was not able to live in it for a number of years because they had young school-age kids. The family's parents were also able to manage that apartment. The couple with kids continued to live in Canada.
There were other children of the older generation as well with varying situations.
So now we have an extended family where the older generation moved and the younger generation followed. Christmas and family vacations are spent in the Caribbean. This family group has moved to a warm country.
As the mom said, "We live in shorts and teeshirts. We don't have anywhere close to the clothing expense of winter gear. Although food is expensive because it is an island, we don't have to pay huge heating and utility bills as we did in Canada. We are a short 40 minute boat trip to Florida and can shop in the malls. Life here is pleasant, relaxing, and much cheaper."
This couple said there were around 400 expats, mostly from Canada and the U.S. Of course it took a few months to get to know people, but now they have a great circle of friends and interesting activities.
Not a bad way to live.
M.
retire to the sun
retirement
Wednesday, March 29, 2006
Tuesday, March 28, 2006
Retirement and Global Living
Hi:
Many people never think of the large factors that are changing our lives in so mnay ways. Yesterday, talking about real estate, the big factors that come to mind for me are globalization and demographics, as well as lesser social trends.
Globalization is the process of including global factors in your decision making. People are now looking internationally at opportunities that interest them. People all over the world are awakening to the fact that the world has exciting places to live other than where they were born. Further, citizens have the ability to buy property where they want. They want Vancouver, you want Costa del Sol.
Take Portugal, for example. On the Algarve coast massively large homes with ocean views have been built. For whom, you might ask? Well, the Germans apparently enjoy getting away from their cold winters. Facing Africa and the brilliant blue skies and water are pleasant ways to forget the cold days, warm the arthitic bones.
There are 60 million people in the U.K. over the age of 60. Where will they want to enjoy their time? For some, not in grey cold London. In spite of its charm, England gets left behind for Greece and Spain.
Closer to home, Americans are buying second homes in the Okanagan and Victoria. Canadians buy home in Florida and Arizona. Many retirees are moving to Central America. Panama, for example, is appealing because of its pensionado status.
We are a global village now, whether we like it or not.
M.
retirement
Many people never think of the large factors that are changing our lives in so mnay ways. Yesterday, talking about real estate, the big factors that come to mind for me are globalization and demographics, as well as lesser social trends.
Globalization is the process of including global factors in your decision making. People are now looking internationally at opportunities that interest them. People all over the world are awakening to the fact that the world has exciting places to live other than where they were born. Further, citizens have the ability to buy property where they want. They want Vancouver, you want Costa del Sol.
Take Portugal, for example. On the Algarve coast massively large homes with ocean views have been built. For whom, you might ask? Well, the Germans apparently enjoy getting away from their cold winters. Facing Africa and the brilliant blue skies and water are pleasant ways to forget the cold days, warm the arthitic bones.
There are 60 million people in the U.K. over the age of 60. Where will they want to enjoy their time? For some, not in grey cold London. In spite of its charm, England gets left behind for Greece and Spain.
Closer to home, Americans are buying second homes in the Okanagan and Victoria. Canadians buy home in Florida and Arizona. Many retirees are moving to Central America. Panama, for example, is appealing because of its pensionado status.
We are a global village now, whether we like it or not.
M.
retirement
Monday, March 27, 2006
Retirement: Mining your Home for Money
Hi:
Well, mining the primary asset, that is the family home, is what many people plan to do when they retire. With real estate prices rising world-wide, many are gleefully rubbing their hands and calculating how much they can get out of their family home.
I talked to one person last week who listed their home last year for $800,000. There were no takers, so they pulled it off the market. They sold it in a week this March for $1.1 million. This couple made $300,000 by sitting in their home for a year!
New-found wealth of comfortable proportions inspires many fantasies, and in truth, some of these dreams can now come true. There are many, many people in this same position. Especially in hot urban areas, prices move quickly. My realtor told me one west-side house had twenty offers, and eventually accepted the highest bid - a cool one-quarter million over their asking price.
I think this is quite a unique bubble, and if possible, we should take advantage of opportunities. Of course the doom-and-gloomers predict prices will drop stratispherically.
Real-estate does have it's bell-curve, and cycles exist. However, what long-term residents must consider is globalization. People live everywhere, and we must move beyond our local-yokel conceptions of high prices and what's fair. What's fair is what the market can bear.
We forget that poor people live in Paris, London and San Francisco. How and where they live might be challenging for them, just as it is now challenging for the average young person to buy in Vancouver.
Yet Vancouver is full of young people. People can and do adapt. Before we take a stance it's wise to look at the big picture and the winds of change: demographics, globalization, technology, environmental and industrial shifts. More tomorrow.
M.
retirement and money
Well, mining the primary asset, that is the family home, is what many people plan to do when they retire. With real estate prices rising world-wide, many are gleefully rubbing their hands and calculating how much they can get out of their family home.
I talked to one person last week who listed their home last year for $800,000. There were no takers, so they pulled it off the market. They sold it in a week this March for $1.1 million. This couple made $300,000 by sitting in their home for a year!
New-found wealth of comfortable proportions inspires many fantasies, and in truth, some of these dreams can now come true. There are many, many people in this same position. Especially in hot urban areas, prices move quickly. My realtor told me one west-side house had twenty offers, and eventually accepted the highest bid - a cool one-quarter million over their asking price.
I think this is quite a unique bubble, and if possible, we should take advantage of opportunities. Of course the doom-and-gloomers predict prices will drop stratispherically.
Real-estate does have it's bell-curve, and cycles exist. However, what long-term residents must consider is globalization. People live everywhere, and we must move beyond our local-yokel conceptions of high prices and what's fair. What's fair is what the market can bear.
We forget that poor people live in Paris, London and San Francisco. How and where they live might be challenging for them, just as it is now challenging for the average young person to buy in Vancouver.
Yet Vancouver is full of young people. People can and do adapt. Before we take a stance it's wise to look at the big picture and the winds of change: demographics, globalization, technology, environmental and industrial shifts. More tomorrow.
M.
retirement and money
Thursday, March 23, 2006
Retirement Travel and Women
Hi:
Besides the adventure trips that some women like to take, there are also the shopping trips that others fancy.
There is something quite engaging about shopping in another country. Things are different. Sometimes it is in quite small ways, or other times the focus of the country comes to the fore.
I remember shopping in Spain. The stores were full of magnificent shawls. The variety of styles and qualities was dazzling. They were so beautiful that I had to buy a lovely red one with a six or eight inch fringe. Spain also had wonderful leather goods, magnificent purses and shoes. With a cosmopolitan city life in Spain, women dress elegantly there.
In Paris I bought scarves. Although I've always worn them quite a bit, the verve with which the Parisiennes wear them in engaging. It was just fun to do.
I like to buy small personal items such as cosmetics and toiletries. They are unusual, easy to carry around, and not expensive.
Power shoppers, however, go for their major purchases. Outlet stores even exist in Europe, usually outside the large cities such as Florence.
Organized tours to these shopping meccas usually focus on particular seasons, when the best buys are available. Some enjoy these marathon days of bargain hunting.
These shopping extravaganzas sound like a nightmare to me, but there are certainly those that enjoy it. I'd rather browse in small local shops. Cultural experiences are my joy.
M.
retirement travel
Besides the adventure trips that some women like to take, there are also the shopping trips that others fancy.
There is something quite engaging about shopping in another country. Things are different. Sometimes it is in quite small ways, or other times the focus of the country comes to the fore.
I remember shopping in Spain. The stores were full of magnificent shawls. The variety of styles and qualities was dazzling. They were so beautiful that I had to buy a lovely red one with a six or eight inch fringe. Spain also had wonderful leather goods, magnificent purses and shoes. With a cosmopolitan city life in Spain, women dress elegantly there.
In Paris I bought scarves. Although I've always worn them quite a bit, the verve with which the Parisiennes wear them in engaging. It was just fun to do.
I like to buy small personal items such as cosmetics and toiletries. They are unusual, easy to carry around, and not expensive.
Power shoppers, however, go for their major purchases. Outlet stores even exist in Europe, usually outside the large cities such as Florence.
Organized tours to these shopping meccas usually focus on particular seasons, when the best buys are available. Some enjoy these marathon days of bargain hunting.
These shopping extravaganzas sound like a nightmare to me, but there are certainly those that enjoy it. I'd rather browse in small local shops. Cultural experiences are my joy.
M.
retirement travel
Wednesday, March 22, 2006
Retirement, Travel and Women
Hi:
More and more women are travelling alone. They are doing it for a variety of reasons.
One survey I read, from where I do not know, said that the average "adventure" traveller is not the stereotypical 20-something jock. Instead, the average is a 45 year old married women with two kids who works and wants a week away from it all.
These women go on the one-week guided adventure packages, often with their friends, but just as often alone. They know that if they are with a group of similar women, they will have made some friends during the week.
A Travel Industry Association survey said that women make 75% of all travel decisions. (Vancouver Sun article, March 2006)
Women, being the social creatures they are, want to travel with others, but often find it difficult to arrange their time-lines to coincide with their friends or family. This way they will have company.
Another bonus of organized travel is that they don't have to do the work. They just have to show up. What a relief this is for busy working professionals who are also running the family home and raising kids.
For the more strenuous adventure tour, safety of the sport, knowledge of the area and having trained guides become paramount. Having an expert along allows women to experience sports and challenge themselves in new ways.
More tomorrow.
M.
retirement travel
More and more women are travelling alone. They are doing it for a variety of reasons.
One survey I read, from where I do not know, said that the average "adventure" traveller is not the stereotypical 20-something jock. Instead, the average is a 45 year old married women with two kids who works and wants a week away from it all.
These women go on the one-week guided adventure packages, often with their friends, but just as often alone. They know that if they are with a group of similar women, they will have made some friends during the week.
A Travel Industry Association survey said that women make 75% of all travel decisions. (Vancouver Sun article, March 2006)
Women, being the social creatures they are, want to travel with others, but often find it difficult to arrange their time-lines to coincide with their friends or family. This way they will have company.
Another bonus of organized travel is that they don't have to do the work. They just have to show up. What a relief this is for busy working professionals who are also running the family home and raising kids.
For the more strenuous adventure tour, safety of the sport, knowledge of the area and having trained guides become paramount. Having an expert along allows women to experience sports and challenge themselves in new ways.
More tomorrow.
M.
retirement travel
Monday, March 20, 2006
Retirement, Travelling, Hotel Rooms
Hi:
Further to my post yesterday, I select hotels when I'm travelling in the following fashion.
If I'm in travelling mode I look for a hotel that has a decent bed and is clean and safe. I do not need to spend a bunch of money on amenities I am not going to use.
We usually arrive later in the day, around four o'clock or so, check in, have a shower and maybe a nap, go out for dinner and go back to the room, relax, go to bed, get up and leave. Who needs the rest?
If we are planning to stay for a few days in the hotel, then I get a bit pickier. Then I want more atmosphere, a pool, perhaps a dining room and a larger room. If I need to relax, I want to do it in a nice place with good furniture and a view.
So, for example, when travelling in Portugal we stayed in various and sundry hotels along the way. When we went to the Algarve coast and stayed a few days we had a nicer place with a lovely breakfast and more room. Otherwise it was just basically in and out. Some places we stay less than twelve hours.
As my husband snores and I'm a chronically poor sleeper, I sometimes try to get a suite with a separate room so I can get a good nights' sleep. Otherwise the days go by and I function with less and less sleep.
Pretty simple plan but it works. Seasoned long-term travellers often travel three weeks of the month and plan for the fourth week in a much higher quality hotel with lots of amenities. They use these amenities to the fullest. Otherwise it's a waste of money to pay for what you are not using.
When we went on a safari in Africa, for example, we roughed it for quite a few days and then relaxed with the best of everything when we had the time to enjoy it.
Seems like a plan to me.
M.
retirement travel
Further to my post yesterday, I select hotels when I'm travelling in the following fashion.
If I'm in travelling mode I look for a hotel that has a decent bed and is clean and safe. I do not need to spend a bunch of money on amenities I am not going to use.
We usually arrive later in the day, around four o'clock or so, check in, have a shower and maybe a nap, go out for dinner and go back to the room, relax, go to bed, get up and leave. Who needs the rest?
If we are planning to stay for a few days in the hotel, then I get a bit pickier. Then I want more atmosphere, a pool, perhaps a dining room and a larger room. If I need to relax, I want to do it in a nice place with good furniture and a view.
So, for example, when travelling in Portugal we stayed in various and sundry hotels along the way. When we went to the Algarve coast and stayed a few days we had a nicer place with a lovely breakfast and more room. Otherwise it was just basically in and out. Some places we stay less than twelve hours.
As my husband snores and I'm a chronically poor sleeper, I sometimes try to get a suite with a separate room so I can get a good nights' sleep. Otherwise the days go by and I function with less and less sleep.
Pretty simple plan but it works. Seasoned long-term travellers often travel three weeks of the month and plan for the fourth week in a much higher quality hotel with lots of amenities. They use these amenities to the fullest. Otherwise it's a waste of money to pay for what you are not using.
When we went on a safari in Africa, for example, we roughed it for quite a few days and then relaxed with the best of everything when we had the time to enjoy it.
Seems like a plan to me.
M.
retirement travel
Sunday, March 19, 2006
Travelling Close to the Ground
Hi:
Further to yesterday's post about being a tourist or a traveller, here are some thoughts about the phrase "travelling close to the ground."
The basic idea is that the closer you live with the people who live in the country, the more you will experience of that country. If you are staying in a five-star hotel you will be meeting others who stay there. These people might be business people, wealthy people, and other travellers.
You won't be meeting the average local citizen and talking to him or her.
The premise that money separates people couldn't be truer than in travel. That being said, the premise that if you stay in a five-star hotel you can't meet the mingle with the locals is also not logical. That is, unless you never leave your hotel room.
The point of happenstance, serendipitious experiences and unplanned encounters is perhaps the greater point of living close to the ground. The ongoing daily life of walking into a small coffee shop in Portugal is different than the $200 a day hotel dining room.
Experiencing traditional food, people at work, milling about the streets, shopping where the locals do and sharing a bit of fun with them is what makes travel so interesting.
That being said, great hotels provide a bit of a buffer against the onslaught of sensory overload that is India, for example. It provides quiet, good beds, cleanliness, and much needed rest. Safety is generally better.
It provides something very important to some people, and that is a sense of the familiar. It probably reflects Western culture, and some people love to interact with the country during the day and get back to where they are comfortable at night.
Elitism exists in travel also. Don't fall for it.
M.
retirement travel
Further to yesterday's post about being a tourist or a traveller, here are some thoughts about the phrase "travelling close to the ground."
The basic idea is that the closer you live with the people who live in the country, the more you will experience of that country. If you are staying in a five-star hotel you will be meeting others who stay there. These people might be business people, wealthy people, and other travellers.
You won't be meeting the average local citizen and talking to him or her.
The premise that money separates people couldn't be truer than in travel. That being said, the premise that if you stay in a five-star hotel you can't meet the mingle with the locals is also not logical. That is, unless you never leave your hotel room.
The point of happenstance, serendipitious experiences and unplanned encounters is perhaps the greater point of living close to the ground. The ongoing daily life of walking into a small coffee shop in Portugal is different than the $200 a day hotel dining room.
Experiencing traditional food, people at work, milling about the streets, shopping where the locals do and sharing a bit of fun with them is what makes travel so interesting.
That being said, great hotels provide a bit of a buffer against the onslaught of sensory overload that is India, for example. It provides quiet, good beds, cleanliness, and much needed rest. Safety is generally better.
It provides something very important to some people, and that is a sense of the familiar. It probably reflects Western culture, and some people love to interact with the country during the day and get back to where they are comfortable at night.
Elitism exists in travel also. Don't fall for it.
M.
retirement travel
Saturday, March 18, 2006
Retirement: Traveller or Tourist
Hi:
What are the semantics around being a traveller or a tourist?
Yesterday I mentioned round-the-world trips. Part of retirement travel is and having the time to experience a country and people in a more meaningful way.
Everything in context, I believe. You could zip 'round the world tasting the highlights of each country. Another goal checked off your list.
But hold it - that may be how we had to operate when we couldn't carve out more than a few weeks of time. Now we can contemplate depth, rather than just breadth.
A tourist does see the highlights of each country. That's very important and if you have a few days, well there it is.
I have known people who have gone on trips and never actually interacted with one individual from that country in a meaningful way. They have stayed in large western hotels and been shuttled from place to place. Interactions have been primarily with people in their group.
They have seen the places but not talked to the people. They have only had one-half of the experience. A country is made up of the people, the customs, their history and their monuments and buildings.
Difficult, of course, if you are in a country where you don't speak the language. Difficult if you are not travelling close to the ground as it were. How can we do this? If you have ideas, please write.
M.
retirement travel
What are the semantics around being a traveller or a tourist?
Yesterday I mentioned round-the-world trips. Part of retirement travel is and having the time to experience a country and people in a more meaningful way.
Everything in context, I believe. You could zip 'round the world tasting the highlights of each country. Another goal checked off your list.
But hold it - that may be how we had to operate when we couldn't carve out more than a few weeks of time. Now we can contemplate depth, rather than just breadth.
A tourist does see the highlights of each country. That's very important and if you have a few days, well there it is.
I have known people who have gone on trips and never actually interacted with one individual from that country in a meaningful way. They have stayed in large western hotels and been shuttled from place to place. Interactions have been primarily with people in their group.
They have seen the places but not talked to the people. They have only had one-half of the experience. A country is made up of the people, the customs, their history and their monuments and buildings.
Difficult, of course, if you are in a country where you don't speak the language. Difficult if you are not travelling close to the ground as it were. How can we do this? If you have ideas, please write.
M.
retirement travel
Friday, March 17, 2006
Retirement Travel and Money
Hi:
One of the biggest ways you can save money when you travel is by judicious use of your time and airline costs.
The flight costs are often a major factor in a trip, especially if you are going to a country with lower costs than major western nations.
One of the great points of retirement is that now you can take much longer trips, and so make better use of your airline costs.
If you fly to a region and then take full advantage of your time to fully explore that part of the world, it becomes a wonderful adventure. You become a traveller, not a tourist.
Say you are considering Thailand. What about going to the other countries in the area at the same time? Places such as Malaysia, Myanmar, Vietnam, Korea, Bali, some safe parts of Indonesia would be fascinating to visit.
The intellectual process around this changes radically. Planning, reading, scheduling, packing - every activity take on different dimensions when you become a traveller, not a tourist.
This will be quite a trip - life changing, I would dare say, and life-expanding. The additional cost might be considerably less than you would expect. The issue of time is not such a pressing one at retirement.
But, perhaps most important of all, you are finally making your dreams a reality.
Perhaps the fear of how great a time you could have is holding you back. I often see reluctance when boldness is in order.
M.
retirement travel
One of the biggest ways you can save money when you travel is by judicious use of your time and airline costs.
The flight costs are often a major factor in a trip, especially if you are going to a country with lower costs than major western nations.
One of the great points of retirement is that now you can take much longer trips, and so make better use of your airline costs.
If you fly to a region and then take full advantage of your time to fully explore that part of the world, it becomes a wonderful adventure. You become a traveller, not a tourist.
Say you are considering Thailand. What about going to the other countries in the area at the same time? Places such as Malaysia, Myanmar, Vietnam, Korea, Bali, some safe parts of Indonesia would be fascinating to visit.
The intellectual process around this changes radically. Planning, reading, scheduling, packing - every activity take on different dimensions when you become a traveller, not a tourist.
This will be quite a trip - life changing, I would dare say, and life-expanding. The additional cost might be considerably less than you would expect. The issue of time is not such a pressing one at retirement.
But, perhaps most important of all, you are finally making your dreams a reality.
Perhaps the fear of how great a time you could have is holding you back. I often see reluctance when boldness is in order.
M.
retirement travel
Thursday, March 16, 2006
Retirement and Travel: Round the World Trips
Hi:
These trips can be very exciting!
The basic premise of an around-the-world ticket is that you buy a ticket from a large airline that is connected with other airlines. These airline alliances, as they are called, connect three or four large commercial airlines for major countries and several smaller country airlines. You may fly with the airline you purchased the ticket from, or with any of their airline alliance partners.
With this you can travel the world.
The tickets are not that much, and all have varied connections. The cost starts somewhere in the $3,500 to $5,000 range. This is for a several months to one-year ticket. You travel in one forward direction only. For example you must go around the world in an easterly or westerly direction. You cannot go back and forth.
Some groups allow you to also include ground transportion as part of your mode of travel. This means you do not have to leave from the same city you arrived in. If you arrived in London, for example, you might explore the rest of Europe and fly out of Rome.
More tomorrow
M.
retirement travel
These trips can be very exciting!
The basic premise of an around-the-world ticket is that you buy a ticket from a large airline that is connected with other airlines. These airline alliances, as they are called, connect three or four large commercial airlines for major countries and several smaller country airlines. You may fly with the airline you purchased the ticket from, or with any of their airline alliance partners.
With this you can travel the world.
The tickets are not that much, and all have varied connections. The cost starts somewhere in the $3,500 to $5,000 range. This is for a several months to one-year ticket. You travel in one forward direction only. For example you must go around the world in an easterly or westerly direction. You cannot go back and forth.
Some groups allow you to also include ground transportion as part of your mode of travel. This means you do not have to leave from the same city you arrived in. If you arrived in London, for example, you might explore the rest of Europe and fly out of Rome.
More tomorrow
M.
retirement travel
Wednesday, March 15, 2006
Retirement and Middle and High Income Folks
Hi:
Well, as I mentioned yesterday, low income folks with little assets might not have too many problems in leaving Canada simply because there is not too much the government can take. They could certainly live a peaceful, simple life in a warmer but poorer country and enjoy themselves.
Travel is somewhat expensive so probably they would not do too much.
Middle and high-income folks have different scenarios, however. After the famous Bronfman case, when this family exited Canada with millions of dollars, the government started closing up the loopholes.
One thing is certain, in my opinion, and that is that you will have to pay the government some money. What needs to be weighed is the amount of money paid now versus the amount of financial freedom from future taxes you will receive.
People like Alex Doulis, who wrote Take your Money and Run, seem to have done it. I would recommend you read that book. Mr. Doulis lives on a boat somewhere in the Mediterranean. He doesn't say what country he lives in, or if indeed he does. Is his passport still Canadian. As I believe he is a Canadian citizen, he would be entitled to it.
Besides that, arranging your affairs does take some thought. Trusts can be set up. There are many lawyers and acountantants who advise on this.
One caveat. Do not be fooled by internet scams that offer secret bank accounts, high interest rates and fabulous bank guarantees. If the government cn't find it, maybe you won't be able to either.
More tomorrow.
M.
retirement and expatriates
Well, as I mentioned yesterday, low income folks with little assets might not have too many problems in leaving Canada simply because there is not too much the government can take. They could certainly live a peaceful, simple life in a warmer but poorer country and enjoy themselves.
Travel is somewhat expensive so probably they would not do too much.
Middle and high-income folks have different scenarios, however. After the famous Bronfman case, when this family exited Canada with millions of dollars, the government started closing up the loopholes.
One thing is certain, in my opinion, and that is that you will have to pay the government some money. What needs to be weighed is the amount of money paid now versus the amount of financial freedom from future taxes you will receive.
People like Alex Doulis, who wrote Take your Money and Run, seem to have done it. I would recommend you read that book. Mr. Doulis lives on a boat somewhere in the Mediterranean. He doesn't say what country he lives in, or if indeed he does. Is his passport still Canadian. As I believe he is a Canadian citizen, he would be entitled to it.
Besides that, arranging your affairs does take some thought. Trusts can be set up. There are many lawyers and acountantants who advise on this.
One caveat. Do not be fooled by internet scams that offer secret bank accounts, high interest rates and fabulous bank guarantees. If the government cn't find it, maybe you won't be able to either.
More tomorrow.
M.
retirement and expatriates
Tuesday, March 14, 2006
Retirement, Finances and Non-Residency
Hi :
Well, further to this thread of the last several days, money and weather still are the prime reasons people leave Canada.
On the money front, it can be relatively easy to leave without punative measures if you do not have much money, but have a stable pension.
The basic principle here is that you spend relatively high-value dollars in countries with a lower cost of living.
Mexico is a prime example. It is possible to live in some smaller communities for around $1,500 to $2,000 a month for a couple. This includes rented accommodation, some maid service and all other expenses.
This will not include a large home, as is common in Canada. However, it also doesn't include all the expenses of running that home. Challenges, especially in extreme winter conditions, such as heating bills, struggles against the weather, being bundled up for months at a time, and other related issues are gone.
The lifestyle is relaxed, casual, slower. You are only five hours away by plane from your home town. This may be important to consider.
If you and your partner only have the OAS and some CPP benefits, with few other financial assets, you won't pay much departure taxes on those assets.
The lifestyle can be great. Being out daily in the sun, socializing and pursuing creative or intellectual activities such as learning Spanish can be excellent for your mental health.
Departure Taxes? Deemed disposition of assets? What? More tomorrow.
M.
retirement and money
Well, further to this thread of the last several days, money and weather still are the prime reasons people leave Canada.
On the money front, it can be relatively easy to leave without punative measures if you do not have much money, but have a stable pension.
The basic principle here is that you spend relatively high-value dollars in countries with a lower cost of living.
Mexico is a prime example. It is possible to live in some smaller communities for around $1,500 to $2,000 a month for a couple. This includes rented accommodation, some maid service and all other expenses.
This will not include a large home, as is common in Canada. However, it also doesn't include all the expenses of running that home. Challenges, especially in extreme winter conditions, such as heating bills, struggles against the weather, being bundled up for months at a time, and other related issues are gone.
The lifestyle is relaxed, casual, slower. You are only five hours away by plane from your home town. This may be important to consider.
If you and your partner only have the OAS and some CPP benefits, with few other financial assets, you won't pay much departure taxes on those assets.
The lifestyle can be great. Being out daily in the sun, socializing and pursuing creative or intellectual activities such as learning Spanish can be excellent for your mental health.
Departure Taxes? Deemed disposition of assets? What? More tomorrow.
M.
retirement and money
Monday, March 13, 2006
Moving from Canada after Retirement
Hi:
What else do you have to give up if you want to escape the cold Canadian winters and the high income tax rate? Well, there actually is quite a bit.
As I mentioned yesterday, to be a non-resident of Canada you must be a resident of somewhere else. If you are not a resident of Canada, why would you need the Canadian health system?
Not to fear. Contrary to opinion touted by some, we do not have the best health care system in the world. There are many, many countries with excellent care.
You must also give up your credit cards, club membership, video store memberships and driver's license. Of course this can be done over time, as you set up residency in your new country. But while you still have all those things you still are taxable on your world-wide income in Canada.
You may keep property in Canada, but it must be rented at arms-length. That means you can't put your son or daughter in and charge them nominal rent so you can come back at will. You must use an agent. It is also recommended that you stay out of Canada for at least two years. Arrange your holidays so your kids come and see you, or go to a U.S. border town and meet them there.
This seems like a terrible amount of bother. Why would anyone do it? Well, the answer lies in the tax system. More tomorrow.
M.
retirement and expatriates
What else do you have to give up if you want to escape the cold Canadian winters and the high income tax rate? Well, there actually is quite a bit.
As I mentioned yesterday, to be a non-resident of Canada you must be a resident of somewhere else. If you are not a resident of Canada, why would you need the Canadian health system?
Not to fear. Contrary to opinion touted by some, we do not have the best health care system in the world. There are many, many countries with excellent care.
You must also give up your credit cards, club membership, video store memberships and driver's license. Of course this can be done over time, as you set up residency in your new country. But while you still have all those things you still are taxable on your world-wide income in Canada.
You may keep property in Canada, but it must be rented at arms-length. That means you can't put your son or daughter in and charge them nominal rent so you can come back at will. You must use an agent. It is also recommended that you stay out of Canada for at least two years. Arrange your holidays so your kids come and see you, or go to a U.S. border town and meet them there.
This seems like a terrible amount of bother. Why would anyone do it? Well, the answer lies in the tax system. More tomorrow.
M.
retirement and expatriates
Sunday, March 12, 2006
Retirement, Expats, and Taxes
Hi:
So what's the deal if you decide you do like living somewhere else? What do you do?
Also, what happens tax-wise if you earn all this money off-shore in another country? Are you liable for tax in Canada if you have not earned money in Canada and been out of the country for the whole year?
The short answer to the second question is yes, unless you have structured your tax situation properly.
If you decide you want to move elsewhere in the world for a variety of reasons, you still have obligations to the tax department in Canada.
Here are a few pointers.
1. Canada taxes on residency, not citizenship. This is an enormous plus in my opinion. The U.S. for example, taxes on citizenship and U.S. citizens who earn over $80K must pay tax to the U.S. for life. I guess it's OK for the vast majority of US citizens who live elsewhere and don't make the $80,000, but Canadians often want to move from here for two reasons: the weather and the tax.
2. Say you have found your place in the sun. The cost of living is low, the community friendly, and you have started making friends, and getting established.
Your next step is finding out what that country's rules are on residency.
Some countries are quite open, while others do not want retirees. They are concerned, and perhaps rightly so, that as you age you will become a burden on their health system.
3. The point is, to be a non-resident of Canada, you must be a resident of another country. Otherwise you are taxed the same as a Canadian citizen living in this country.
4. The government will withhold 15% of your Canada Pension Plan and Old Age Security cheques, which is reasonable in my opinion. Other income may have withholding taxes.
5. The bottom line is that if you can live well in another country and don't have much retirement income, moving offshore can be a good deal. If you have considerable assets in Canada, you will have to pay departure taxes. In both cases you need professional advice.
More on this tomorrow.
M.
retirement and expatriates
So what's the deal if you decide you do like living somewhere else? What do you do?
Also, what happens tax-wise if you earn all this money off-shore in another country? Are you liable for tax in Canada if you have not earned money in Canada and been out of the country for the whole year?
The short answer to the second question is yes, unless you have structured your tax situation properly.
If you decide you want to move elsewhere in the world for a variety of reasons, you still have obligations to the tax department in Canada.
Here are a few pointers.
1. Canada taxes on residency, not citizenship. This is an enormous plus in my opinion. The U.S. for example, taxes on citizenship and U.S. citizens who earn over $80K must pay tax to the U.S. for life. I guess it's OK for the vast majority of US citizens who live elsewhere and don't make the $80,000, but Canadians often want to move from here for two reasons: the weather and the tax.
2. Say you have found your place in the sun. The cost of living is low, the community friendly, and you have started making friends, and getting established.
Your next step is finding out what that country's rules are on residency.
Some countries are quite open, while others do not want retirees. They are concerned, and perhaps rightly so, that as you age you will become a burden on their health system.
3. The point is, to be a non-resident of Canada, you must be a resident of another country. Otherwise you are taxed the same as a Canadian citizen living in this country.
4. The government will withhold 15% of your Canada Pension Plan and Old Age Security cheques, which is reasonable in my opinion. Other income may have withholding taxes.
5. The bottom line is that if you can live well in another country and don't have much retirement income, moving offshore can be a good deal. If you have considerable assets in Canada, you will have to pay departure taxes. In both cases you need professional advice.
More on this tomorrow.
M.
retirement and expatriates
Saturday, March 11, 2006
Retirement and Expats
Hi:
Well, how do you do it - become an expat, that is.
After you have applied and been accepted, there will generally be some time before you actually start the job. This is where you have to get busy!
What are you going to do with your belongings? Of course this depends on how many you have and what your personal relationship status is, etc.
In the simpliest case, if you are single, and rent, it is relatively easy. You can organize a container and leave.
The moving companies now have wonderful systems in place. They basically load your stuff into a container and store the container. It is not unpacked and repacked. It is simply locked in a warehouse. When you return you get your container back.
I had the full contents of a two bedroom apartment stored for around $250.00 a month. I didn't think that was an exhorbitant price.
If you have a house or apartment to rent, you need to make decisions about where you will rent it furnished or unfurnished. It is also wise to get a property agent, to whom you will need to pay about 10% of your rental income. They can handle any issues. Specifically stipulate the handling of marijuana grow-op inspections.
If you want to do a short term contract to try it on for size, it might be just as wise to find a friend, family member or other contact and leave your house intact. However, you would need time off to come home and get it organized if you wanted to stay.
This all points in one direction. Now is a good time to get rid of things you won't or don't need.
If you are finally moving out of your profession, you definitely won't need all the related books, journals and information around it. Have your grown children take their stuff. Cull, sort, delete, hold garage sales. Keep the best and pitch the rest. Time to move on.
More tomorrow about government, taxes and non-residency
M.
retirement and expatriates
Well, how do you do it - become an expat, that is.
After you have applied and been accepted, there will generally be some time before you actually start the job. This is where you have to get busy!
What are you going to do with your belongings? Of course this depends on how many you have and what your personal relationship status is, etc.
In the simpliest case, if you are single, and rent, it is relatively easy. You can organize a container and leave.
The moving companies now have wonderful systems in place. They basically load your stuff into a container and store the container. It is not unpacked and repacked. It is simply locked in a warehouse. When you return you get your container back.
I had the full contents of a two bedroom apartment stored for around $250.00 a month. I didn't think that was an exhorbitant price.
If you have a house or apartment to rent, you need to make decisions about where you will rent it furnished or unfurnished. It is also wise to get a property agent, to whom you will need to pay about 10% of your rental income. They can handle any issues. Specifically stipulate the handling of marijuana grow-op inspections.
If you want to do a short term contract to try it on for size, it might be just as wise to find a friend, family member or other contact and leave your house intact. However, you would need time off to come home and get it organized if you wanted to stay.
This all points in one direction. Now is a good time to get rid of things you won't or don't need.
If you are finally moving out of your profession, you definitely won't need all the related books, journals and information around it. Have your grown children take their stuff. Cull, sort, delete, hold garage sales. Keep the best and pitch the rest. Time to move on.
More tomorrow about government, taxes and non-residency
M.
retirement and expatriates
Wednesday, March 08, 2006
Further thread on Retirement and Expatriates
Hi:
Well, although it may not be absolute retirement, educators do have choices about working around the world.
Lots of educators think about teaching elsewhere when they have reached their required number of years for a pension. This is especially possible in the K - to 12 system. Many in the old days started teaching at 22 years of age, making it possible to retire at 57 with a full pension.
Often people retire even sooner because they are tired of the "system". They want to take some time off, but after that are looking for a bit of adventure of a fashion.
Moving to a new country and teaching there fulfills that need for many. Money needs are not quite as great. They are doing something they are familiar with - that is teaching - but in a new environment. On one hand, it is stimulating to be challenged with new circumstances. On the other hand, it is not too hard, because they have lots of experience teaching, interacting with students, etc. etc.
Teaching overseas is certainly an interesting way to keep on working. It seems to be the best of both worlds.
More tomorrow.
M.
retirement and expatriates
Well, although it may not be absolute retirement, educators do have choices about working around the world.
Lots of educators think about teaching elsewhere when they have reached their required number of years for a pension. This is especially possible in the K - to 12 system. Many in the old days started teaching at 22 years of age, making it possible to retire at 57 with a full pension.
Often people retire even sooner because they are tired of the "system". They want to take some time off, but after that are looking for a bit of adventure of a fashion.
Moving to a new country and teaching there fulfills that need for many. Money needs are not quite as great. They are doing something they are familiar with - that is teaching - but in a new environment. On one hand, it is stimulating to be challenged with new circumstances. On the other hand, it is not too hard, because they have lots of experience teaching, interacting with students, etc. etc.
Teaching overseas is certainly an interesting way to keep on working. It seems to be the best of both worlds.
More tomorrow.
M.
retirement and expatriates
Tuesday, March 07, 2006
Other Links for Retirement Activities
EDUCATORS’ RETIREMENT AND OTHER WEBSITES
March 6, 2006
Mahara Sinclaire
FIRST LINKS TO WEBSITES. As promised, here are a few links to websites on a variety of topics. It took a bit longer than expected to come up to speed with the technology.
What I’ll do is include a few links now to get the ball rolling. More will follow.
I’m hoping that you will also provide links to interesting sites. You can just respond to this email and they will be sent to everyone.
You can also forward this email to as many people as you wish. They will need to enter their email address to get on this newsletter.
****************************************************************
One I mentioned is Canadian Executive Service Organization (CESO) http://www.ceso-saco.com
In operation since 1967, they have 3,000 volunteers. They work primarily in America, Africa and Eastern Europe – formerly Soviet Bloc countries. The focus of their work is with peoples of developing nations. They also work with First Nations groups.
Another group is Actions Without Borders http://www.idealist.org. They boast links to 22,000 non-profit and community organizations. I checked out their International Fellowships – looked pretty interesting.
One site for teaching esl is http://www.eslteachers.ca. I haven’t used it, of course, but it is Canadian and has jobs in Asia, Turkey and Russia. There is more to be checked out here as far as reasonable working conditions, salaries, etc.
That’s all for now. Happy exploring.
If you wish to view this online, click here. http://www.yournextgreatadventure.com/blogs
retirement links
March 6, 2006
Mahara Sinclaire
FIRST LINKS TO WEBSITES. As promised, here are a few links to websites on a variety of topics. It took a bit longer than expected to come up to speed with the technology.
What I’ll do is include a few links now to get the ball rolling. More will follow.
I’m hoping that you will also provide links to interesting sites. You can just respond to this email and they will be sent to everyone.
You can also forward this email to as many people as you wish. They will need to enter their email address to get on this newsletter.
****************************************************************
One I mentioned is Canadian Executive Service Organization (CESO) http://www.ceso-saco.com
In operation since 1967, they have 3,000 volunteers. They work primarily in America, Africa and Eastern Europe – formerly Soviet Bloc countries. The focus of their work is with peoples of developing nations. They also work with First Nations groups.
Another group is Actions Without Borders http://www.idealist.org. They boast links to 22,000 non-profit and community organizations. I checked out their International Fellowships – looked pretty interesting.
One site for teaching esl is http://www.eslteachers.ca. I haven’t used it, of course, but it is Canadian and has jobs in Asia, Turkey and Russia. There is more to be checked out here as far as reasonable working conditions, salaries, etc.
That’s all for now. Happy exploring.
If you wish to view this online, click here. http://www.yournextgreatadventure.com/blogs
retirement links
Monday, March 06, 2006
Retirement and Expats
Hi:
Further to this thread of the last few days, the most exciting aspect of an expat life is, in my opinion, the social interaction.
When you become an expat, you move into a new community. This will be the new country you live in. The experiences of meeting new people in that community, doing business with them, being exposed to a culture different than your own can be very enriching. You observe the universal similarities and the tiny quirks that make a people and culture unique.
In the larger expat community you also start to observe cultural differences. This is not with the people from your host country, however, but with the folks who are also expats. To use the slang, you see how the Brits, the Aussies, the Yanks, and the Canucks act under the same circumstances.
Besides learning about the place you are in, you learn about the places your new friends are from. You start to compare all sorts of things. Every topic is interesting, from the government policies, the education system, the social system.
The natural extension of this is a broadening of perspective and a greater tolerance. It is not a paucity, but an enrichment of interaction, stimulating discussion and learning.
More tomorrow.
M.
retirement and expatriates
Further to this thread of the last few days, the most exciting aspect of an expat life is, in my opinion, the social interaction.
When you become an expat, you move into a new community. This will be the new country you live in. The experiences of meeting new people in that community, doing business with them, being exposed to a culture different than your own can be very enriching. You observe the universal similarities and the tiny quirks that make a people and culture unique.
In the larger expat community you also start to observe cultural differences. This is not with the people from your host country, however, but with the folks who are also expats. To use the slang, you see how the Brits, the Aussies, the Yanks, and the Canucks act under the same circumstances.
Besides learning about the place you are in, you learn about the places your new friends are from. You start to compare all sorts of things. Every topic is interesting, from the government policies, the education system, the social system.
The natural extension of this is a broadening of perspective and a greater tolerance. It is not a paucity, but an enrichment of interaction, stimulating discussion and learning.
More tomorrow.
M.
retirement and expatriates
Sunday, March 05, 2006
Why become an expat?
Hi:
Why would anyone become an expat? I don't think it is what people start out looking for, but something that people fall into as a lifestyle.
For example, I know of several people who went to work in Dubai, as post-secondary educators.
The money was not great but OK, say around $60,000 a year. However, considering that this was tax-free income, the money offered seems much more attractive that the same amount here.
Of course people had to structure their tax situation properly to get it tax free.
Besides that, these individuals received a $10,000 furniture allowance, paid-for accommodation, a round-trip air ticket back home once a year, and the usual two months' holiday. At this point things did look considerably better.
Expenses consist of food and personal items. They could bank say, $50,000 per year, or $100,000 per year as a couple. Suddenly it becomes possible to save half a million dollars in five years.
Besides that, the close proximiity of the middle east makes foreign travel in that part of the world more accessible. People spend part of their holidays in exotic places and take short weekend jaunts to Paris or Barcelona.
It adds up to a stimulating and challenging lifestyle.
All this being said, the dangers of the middle east were not what they are now.
Would I do it today? Good question. The point of this example is that there are opportunities, with short windows, for those that are brave.
More tomorrow.
M.
retirement and expatriates
Why would anyone become an expat? I don't think it is what people start out looking for, but something that people fall into as a lifestyle.
For example, I know of several people who went to work in Dubai, as post-secondary educators.
The money was not great but OK, say around $60,000 a year. However, considering that this was tax-free income, the money offered seems much more attractive that the same amount here.
Of course people had to structure their tax situation properly to get it tax free.
Besides that, these individuals received a $10,000 furniture allowance, paid-for accommodation, a round-trip air ticket back home once a year, and the usual two months' holiday. At this point things did look considerably better.
Expenses consist of food and personal items. They could bank say, $50,000 per year, or $100,000 per year as a couple. Suddenly it becomes possible to save half a million dollars in five years.
Besides that, the close proximiity of the middle east makes foreign travel in that part of the world more accessible. People spend part of their holidays in exotic places and take short weekend jaunts to Paris or Barcelona.
It adds up to a stimulating and challenging lifestyle.
All this being said, the dangers of the middle east were not what they are now.
Would I do it today? Good question. The point of this example is that there are opportunities, with short windows, for those that are brave.
More tomorrow.
M.
retirement and expatriates
Saturday, March 04, 2006
More on the Expat Life
Hi:
Two expat websites are www.expatriates.com and www.geocities.com/canadians_abroad.
These sites are like any others, changing, developing, sometimes well used, sometimes not. There are links to many countries. Some countries have lots of posts and information, others not, of course depending on the participants.
The first site is for the world, while the second focuses on Canadians living abroad. There are dozens of other sites - just google expatriates.
There, I've used a what was a noun "google" as a verb, "to google". Our ever evolving language!
M.
retirement and expats
Two expat websites are www.expatriates.com and www.geocities.com/canadians_abroad.
These sites are like any others, changing, developing, sometimes well used, sometimes not. There are links to many countries. Some countries have lots of posts and information, others not, of course depending on the participants.
The first site is for the world, while the second focuses on Canadians living abroad. There are dozens of other sites - just google expatriates.
There, I've used a what was a noun "google" as a verb, "to google". Our ever evolving language!
M.
retirement and expats
Friday, March 03, 2006
What is an expatriate?
Hi:
Have you ever heard of the word? Many haven't, but more and more people are becoming aware of the expatriate lifestyle.
Those are people who travel a great deal or have worked internationally. They have linked up with other transplanted people in their current city or country.
These "expats" usually hang out together, socialize, compare housing prices and all sorts of information that is needed to navigate a new country or city. They often become good friends by virtue of the fact they can speak the same language.
Expats often take small jaunts together, going off on extended weekends to visit neighboring countries or recreation areas such as the beaches and lakes of the countries where they live.
Expat communities can be quite large. I understand there are 6,000 expats in San Miguel de Allende in Mexico.
Some larger expat groups have social events and organized activities. There are art and symphony groups, writing, sports and parties and special events.
If you are thinking of moving internationally, be sure to find out the size of the expat community in the place you are going.
More tomorrow, including some websites.
M.
retirement and expatriates
Have you ever heard of the word? Many haven't, but more and more people are becoming aware of the expatriate lifestyle.
Those are people who travel a great deal or have worked internationally. They have linked up with other transplanted people in their current city or country.
These "expats" usually hang out together, socialize, compare housing prices and all sorts of information that is needed to navigate a new country or city. They often become good friends by virtue of the fact they can speak the same language.
Expats often take small jaunts together, going off on extended weekends to visit neighboring countries or recreation areas such as the beaches and lakes of the countries where they live.
Expat communities can be quite large. I understand there are 6,000 expats in San Miguel de Allende in Mexico.
Some larger expat groups have social events and organized activities. There are art and symphony groups, writing, sports and parties and special events.
If you are thinking of moving internationally, be sure to find out the size of the expat community in the place you are going.
More tomorrow, including some websites.
M.
retirement and expatriates
Thursday, March 02, 2006
Planning for Leisure Time in Retirement
In the past retirement was for the elderly, as life expectancy was lower. "Older" folks stepped aside for the "younger" ones, and gradually disappeared from the scene.
Well, the old days are over! Today baby boomers are totally involved, doing interesting new things, traveling, redecorating, socializing, going wild.
Really, when you think of it, retirement at a young age has all the hallmarks of a great life. You have enough money to live reasonably well. This is, of course, subjective, but let's not be too picky about how North Americans live. Reasonably well is probably an apt description.
You are relatively healthy, and if suffering a bit from lifestyle issues such as smoking or obesity, these can be changed.
You have opportunities to give back in amazing ways.
Travel has never been easier or more interesting.
So we can truly do as we wish, and without the major factor that has governed so much of our life up to now, that is, work and our time commitments to it.
What more can we ask for? The ability to step out of our comfort zone, take the challenge and go for what we want. Vision and action are all we need.
retirement, travel
Well, the old days are over! Today baby boomers are totally involved, doing interesting new things, traveling, redecorating, socializing, going wild.
Really, when you think of it, retirement at a young age has all the hallmarks of a great life. You have enough money to live reasonably well. This is, of course, subjective, but let's not be too picky about how North Americans live. Reasonably well is probably an apt description.
You are relatively healthy, and if suffering a bit from lifestyle issues such as smoking or obesity, these can be changed.
You have opportunities to give back in amazing ways.
Travel has never been easier or more interesting.
So we can truly do as we wish, and without the major factor that has governed so much of our life up to now, that is, work and our time commitments to it.
What more can we ask for? The ability to step out of our comfort zone, take the challenge and go for what we want. Vision and action are all we need.
retirement, travel
Wednesday, March 01, 2006
Variety of Small Places to Live
Hi:
Although many people still want a large family home when they retire, there are other options to consider.
What do you want to do? If you want to travel a great deal, why not get a smaller place that you can lock up and go. Or, why not have two smaller homes, or a time-share you can trade. People with several time shares go all over the world. It's best to be with a large time share company if that is your aim.
What about a home in another country? The cost of living can be considerably cheaper elsewhere. Your can live here and there for several months of the year and choose your best weather options.
Dozens of permutations exist, limited only by our imagination. You can even be homeless for a while if you are travelling for extensive periods. Could you stand it psychologically?
The point is to expand our options and get out of ruts. If you are not doing what you want, be creative and make it happen.
M.
retirement and where to live
Although many people still want a large family home when they retire, there are other options to consider.
What do you want to do? If you want to travel a great deal, why not get a smaller place that you can lock up and go. Or, why not have two smaller homes, or a time-share you can trade. People with several time shares go all over the world. It's best to be with a large time share company if that is your aim.
What about a home in another country? The cost of living can be considerably cheaper elsewhere. Your can live here and there for several months of the year and choose your best weather options.
Dozens of permutations exist, limited only by our imagination. You can even be homeless for a while if you are travelling for extensive periods. Could you stand it psychologically?
The point is to expand our options and get out of ruts. If you are not doing what you want, be creative and make it happen.
M.
retirement and where to live
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