Oct 6, 2003, 10:47 AM
Post #9 of 23
The numbers that I have seen in terms of withdrawal from savings without losing prinicpal are 4% or 5%, so one needs to convert the canadian amount to pesos, and then figure on a 4% or 5% withdrawal rate, and then see if that amount is enough. No way would I have most of my assets in pesos, safer in US or Canadian investments.
Of course, enough money is mostly in the lifestyle, and partially in where you live, as the cost of housing varies a great deal. I understand that the amount of income to get an FM3 is halved if you own a house.
For those planning to live in Mexico, one of the best sources for
information, especially on the cost of living, is the AIM
(Adventures in Mexico) newsletter. It has a practical focus,
with each issue covering a different town or area. $19 per year,
Apartado Postal 31-70, Guadalajara, Jalisco, 45050, Mexico. (My
2002 renewal included an envelope addressed to 1761 Hotel Circle
S, Suite 100, San Diego, CA, 92108, USA). Ask for the back issue
list. Some issues profile actual residents who keep records on expenses, so this should be of special interest.
The other question is whether you want to live in Mexico, in a town that you can afford. I think that one can live cheaply in Arizona, New Mexico, or Texas, maybe as cheaply as Mexico. Mexico is not as cheap as it once was.