Forums > General > Living, Working, Retiring

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larrys

Jul 22, 2005, 10:09 AM

Post #1 of 37 (2017 views)

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Question on retiring to Mexico full time

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Can a couple retire in Mexico and live comfortably (not extravagantly), on
US $90,000-$100,000 per year? My wife and I are looking at either Merida or Cuernavaca and we plan on paying cash for a 3 bedroom house, with a yard, and possibly a small swimming pool. I keep telling my wife that without a mortgage to worry about ,and only one vehicle, our income would be sufficient. She's not so sure.

Larrys

Esteban

Jul 22, 2005, 10:17 AM

Post #2 of 37 (2009 views)

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Re: [larrys] Question on retiring to Mexico full time

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You will have to cut back on trips to Europe and the Orient, good wine, caviar, maids and butlers and a few other things but with a little discipline, it should be doable.

larrys

Jul 22, 2005, 10:26 AM

Post #3 of 37 (2005 views)

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Re: [Esteban] Question on retiring to Mexico full time

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Was that a yes? Serioulsy, my wife is scared to death!

larrys

1ajijic

Jul 22, 2005, 10:51 AM

Post #4 of 37 (1998 views)

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Re: [larrys] Question on retiring to Mexico full time

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With the caveat that everyone's lifestyle is different, you should be able to live and travel very comfortably for 20K - 30K. However, if you need to travel back to the states regularly you'll start to eat up your balance.
http://www.newbeginningsmexico.com

larrys

Jul 22, 2005, 11:37 AM

Post #5 of 37 (1986 views)

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Re: [1ajijic] Question on retiring to Mexico full time

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My wife would like to return to San Antonio every 3 months or so for 3-4 days.

Other than that, we don't really plan to come back here very often.

Neither of us require much extravagance to live....except we do eat out alot. Her major concern is prices would be too high for us to afford two coach airline tickets to S.A. (every 3 or 4 months) so she could visit her mom.

larrys

Bear

Jul 22, 2005, 12:28 PM

Post #6 of 37 (1973 views)

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Re: [larrys] Question on retiring to Mexico full time

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This is a joke, right?

esperanza

Jul 22, 2005, 12:44 PM

Post #7 of 37 (1965 views)

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Re: [larrys] Question on retiring to Mexico full time

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What the other posters are trying to say is--you will have absolutely nothing to worry about on $90-100,000 USD per year. You will live high on the hog. You will have plenty for airline tickets to San Antonio. You will have a maid, a gardener, a wonderful house, and all the pleasures of life in Mexico.

Fear not, tell your wife to fear not, and come on down.

http://www.mexicocooks.typepad.com

rickc

Jul 22, 2005, 12:59 PM

Post #8 of 37 (1959 views)

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Re: [larrys] Question on retiring to Mexico full time

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Heck, if eating out will be your only extravagance you should be able to live a very good life in Mexico on $90K per year retirement. Especially if you have purchased your home and are not renting.

For comaprison; a quick check on flights (round Trip) from either Guadalajara or Mexico City showed many available flights to San Antonio for less than $800 round trip for two travelers. So even if you made several trips each year to SAT you are looking at less than $2400 US per year. That shouldn't make too large a hole in your yearly disposable income pool.

Believe me, if we had that much yearly retirement revenue available we would already be moved to mexico permanently.

Rich Chambers
Navigating the Sea of Life..

Rolly

Jul 22, 2005, 1:13 PM

Post #9 of 37 (1949 views)

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Re: [larrys] Question on retiring to Mexico full time

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Sr Larrys, the thing that distresses me about your post is the profound lack of knowledge about life in Mexico that it implies. Before you buy property in Mexico, I urge you and your wife to spend 6 to 12 months renting to be sure that retirement in Mexico is what you really want. Mexico is not for everyone. Many of us have a happy life here, but many others become disenchanted after a while and head back north. Be sure you want to stay before you spend a bundle on property that may be hard to sell later.

Rolly Pirate

(This post was edited by Rolly on Jul 22, 2005, 2:18 PM)

1ajijic

Jul 22, 2005, 1:45 PM

Post #10 of 37 (1940 views)

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Re: [Rolly] Question on retiring to Mexico full time

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Rolly, well said and a big DITTO!
http://www.newbeginningsmexico.com

Bubba

Jul 22, 2005, 2:19 PM

Post #11 of 37 (1925 views)

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Re: [1ajijic] Question on retiring to Mexico full time

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Larrys:

Don't listen to these folks. To live well in Mexico you will need an income of at least $500,000USD per year. These other posters are peasants and have no idea what the rest of us need to lead a proper existence.

Since your spouse has a need to go to San Antonio periodically, clearly neither of you has any taste in communities so you can probably get by on $400,000USD as long as you bring down your trailer and grow your own corn.

carlw

Jul 22, 2005, 2:37 PM

Post #12 of 37 (1913 views)

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Re: [larrys] Question on retiring to Mexico full time

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I have to agree with Bear. Is this a joke? I, and many people I know, live quite comfortably in the USA on less than half the amount you mentioned. When I say comfortably, I mean that I own a decent home in a decent neighborhood, have a relatively decent automobile, and do most of what I want, including some traveling. I am single but support 3 teenage children and their mother and will be able to get them through school. I expect, when and if I am retired in Mexico, to live quite well on this amount. Something is wrong with this question

Gringal

Jul 22, 2005, 2:39 PM

Post #13 of 37 (1909 views)

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Re: [Bubba] Question on retiring to Mexico full time

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Shame on you, Bubba. These folks are beyond innocent and need some help. Do you know of a nice little trailer park in Ajijic they could afford?

Gringal

Jul 22, 2005, 2:49 PM

Post #14 of 37 (1908 views)

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Re: [larrys] Question on retiring to Mexico full time

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Assuming that was a serious question: As others suggested, you need to do some research before you do anything else. I suggest you begin with a book, which is probably in its ninth edition by now, called "Choose Mexico" by John Howells. It will give you a rough idea of what is involved in a Mexico retirement. After more research, you need to travel to the areas you think you might like, check out the real estate and talk to the locals. Then by all means, rent for awhile. Don't buy until you're sure.

To give you a direct answer: yes, you can live very well on that amount, trips home and all. Most retirees here are living well on much less.

Esteban

Jul 22, 2005, 2:57 PM

Post #15 of 37 (1897 views)

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Re: [Gringal] Question on retiring to Mexico full time

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In all honesty, I would suggest, one of my favorite Mexican/Spanish towns in California; Santa Barbara. It has everything to offer that Mexico has and you could live there easily with their income and not have to worry about living out of the country. Cheap flights out of the local airport or take a short drive to LAX. It has restaurants, night life, theater, beautiful beaches and perfect weather. One could not ask for more.

Gringal

Jul 22, 2005, 3:27 PM

Post #16 of 37 (1881 views)

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Re: [Esteban] Question on retiring to Mexico full time

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Santa Barbara is one of my faves. However, you would not believe what's happened to the price of real estate in that lovely area! San Antonio doesn't translate into Santa Barbara these days.

Esteban

Jul 22, 2005, 3:41 PM

Post #17 of 37 (1871 views)

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Re: [Gringal] Question on retiring to Mexico full time

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If you know San Antonio like I know San Antonio, there are expensive places there that would easily translate into a modest home in Santa Barbara. No problem. If it weren't up to par, take a look just 30 miles south, down Ventura way.

Carol Schmidt

Jul 22, 2005, 4:00 PM

Post #18 of 37 (1863 views)

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Re: [larrys] Question on retiring to Mexico full time

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The Mexican government has determined that for a foreigner to live in Mexico and not become any kind of burden on Mexico, which can barely take care of its own people, a verifiable, steady income of about $1,600 a month for a couple is sufficient.

That is the income requirement to get an FM3, the basic residency visa for foreigners choosing to live in Mexico. It is fairly easy to live well on that amount, under $20,000 a year for a couple. Add $5,000 a year for your two trips back to the States.

If you own the house you live in, you usually only have to prove half that amount, or have a year's income in the bank.

I thought you were joking, too.

You might want to do a search of these forums on the topic of "prices" and see what we're talking about. I've posted a lot of articles about what I spend daily on stuff, living on just Social Security.

Carol Schmidt

"The rich are different from you and me. They have more money." I forget who said it.

Marlene

Jul 22, 2005, 9:13 PM

Post #19 of 37 (1792 views)

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Re: [Carol Schmidt] Question on retiring to Mexico full time

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Quote

This is only true for retirees on the Rentista FM3. For example, a foreign school teacher may only make $5000.00 pesos a month, however that individual will still qualify for an FM3. Anyway, I don't know of any kind of support Mexico gives to anyone having a short-fall. The support is called "Bank of Family" as far as I can tell.

Jerry@Ajijic

Jul 22, 2005, 9:16 PM

Post #20 of 37 (1790 views)

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Re: [Carol Schmidt] Question on retiring to Mexico full time

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If your money is a little tight your wife can ride a bus to SA. The busses are very nice and inexpensive.

pat

Jul 23, 2005, 2:03 AM

Post #21 of 37 (1766 views)

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Re: [Rolly] Question on retiring to Mexico full time

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"Sr Larrys, the thing that distresses me about your post is the profound lack of knowledge about life in Mexico that it implies."

Rolly, This is only the man's third post on MC.... and his question is the first we all asked... can I afford it? A good first step in learning about Mexico, in my mind. The answer, it seems, is that he and his wife can do quite well on $90-$100k/yr.

(This post was edited by pat on Jul 23, 2005, 2:04 AM)

ms mac

Jul 23, 2005, 7:30 AM

Post #22 of 37 (1722 views)

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Re: [Bubba] Question on retiring to Mexico full time

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Bubba, you're outrageous.
ms mac

not_ally

Jul 23, 2005, 8:16 AM

Post #23 of 37 (1705 views)

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Re: [pat] Question on retiring to Mexico full time

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The problem with the post - if it's serious - is, as Rolly suggested, that the poster has never *been* to Mexico and yet is planning on buying a house (a terrible idea without much on-site diligence) and retiring there (ditto). Wouldn't anyone who had ever spent a day in any part of Mexico instantly conclude that you could live extremely comfortably in a place where (e.g.) you can order a four course lunch for $4-$8 US?

Also, to be honest, I thought it was a trolling post to draw responses from the many, many people (certainly I'm included in the group) who live cheerfully (if sometimes frugally!) on much less than 100K a year.
----------------------------
"The first question I ask myself when something doesn't seem to be beautiful is why do I think it's not beautiful. And very shortly I discover there is no reason." John Cage

jennifer rose

Jul 23, 2005, 9:15 AM

Post #24 of 37 (1689 views)

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Re: [Carol Schmidt] Question on retiring to Mexico full time

Carol, I believe that much of the information contained in your post is incorrect.

The rentista version is but one of the several flavors of the FM-3 migratory statuses. There are status for employees, ministers of a cult, journalists, professionals, and dependents -- all of which do not require a showing of income.

The income requirement for the FM-3 rentista is a monthly figure of not less than 250 times the minimum wage in the Federal District. Roughly, $1,250 USD. The requirement for each dependent is 50% of that figure. The minimum income requirement may be reduced by up to 50% if the applicant is the owner of the house in which he or she resides in Mexico. The law does not speak to "a year's income in the bank."

Bubba

Jul 23, 2005, 9:50 AM

Post #25 of 37 (1680 views)

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Re: [jennifer rose] Question on retiring to Mexico full time

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Thanks, Jennifer and Carol:

My wife and I decided this year to switch from FM-3 to FM-2 status with the notion that we will become permanent residents here in the next five years. There are also other advantages to FM-2 status such as Geezer Discounts and establishing credit for credit card issuance by Mexican banks. We had been on one FM-3 with my wife stipulated as my dependent (which is hilarious if you know who is really the "dependent". Immigration was unable to cope with the notion that the man in a marraige was capable of being the "dependent" or with the notion that all of our assets are mutually owned by both of us.) We want to go for two independent FM-2s so we each have to present a bank statement. Now, our account at a local investment house is joint but the account statement itself shows just my name. It is in English which is OK. However, the other account is in a U.S. investment house so must be translated, verbatim, into Spanish.

Here is the issue. This is one of her IRA accounts and there is only very modest interest income shown there. However, the principal amount in the account remains substantially the same and will for years with only incremental growth from TCD interest income. We have been told by immigration that as long as the principal amount in the account is sufficient to cover the minimum annual living expences of the FM-2 applicant, no income need be accruing to the benefit of the applicant. That principal amount is more than adequate to cover her annual income requirements so we'll see what happens. Stay tuned for the next episode.

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