In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 3rd decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
A Bailout for Your Retirement
Billy and Akaisha Kaderli
Your 401(k) is in the dumpster and your
home equity is all but depleted. Retirement was right around the corner -- or so
The question now is: Where do you go from
Before you can plan where to go, you have
to know where you are. The first place to start is by figuring out what you have
-- doing a full financial inventory to gget a complete picture of what the
downturn has done to your retirement prospects.
Adding it up
First, substantiate your net worth by taking your assets minus liabilities. Find
the true value of your home from a service like
www.Zillow.com and subtract your mortgage balance. This will give you the
current equity value in your home. Next, add any other assets, including stocks,
bonds, IRAs, and any retirement accounts through your employer. Conservatively
estimate the worth of your cars, expensive china, jewelry, boat, furnishings,
coin collections, tools and artwork that you own which has value. Add all of
this up, subtract out any other debts you have, and you'll find your total net
Next you need to know your living
expenses: the amount of money you are spending monthly or annually. This figure
can easily be obtained from your past financial records. What if you sold your
house and car and had no mortgage, no payments and no debt? What would your
monthly expenses be now?
The bare essentials
We know it's a stretch for most people to consider selling everything,
and you cannot live in a box, but stick with us here on this. It's important to
know where you stand with your finances, your debt and most importantly, your
If this figure were invested, what rate of
return would you need in order to generate enough money to cover your living
expenses? Is this a doable proposition? Don't forget that your Social Security
payments and any pension you might have will be adding to your future income.
If you're coming up short, look at other areas of the world where costs of
living are lower. Mexico, Guatemala, Panama, Ecuador, the Philippines and
Thailand are a few retirement havens where North Americans have happily been
living for years.
Online forums are a reliable source of
information on living as an expatriate and will help you learn about particular
foreign retirement locations. There are forums for each country listed above,
and if you have questions about retirement visas, how to register a car, or
obtaining local health insurance, this is the place to do your research. Believe
us: You would not be the first to pack up and leave the Land of the Free to
carve out a comfortable retirement lifestyle elsewhere. These places have been
bargains for decades, and with the recent rebound of the U.S. dollar, they are
even more so.
We have been living in Chapala, Mexico,
for the last five months. Our costs during this period -- including one month of
traveling throughout the country -- have been less than $50 per day. With that,
we've paid for lodging, food, transportation, and entertainment. We eat well,
play tennis, socialize, and travel comfortably on that amount and want for
nothing. Many here, in one of the largest expatriate communities in the world,
easily live on less than we do.
Now is the time
We encourage you to look at your options, and make a plan today to bail
out of the rat race. In many cases, your quality of life will improve along with
your health in this new lifestyle. There will be less stress, better weather,
new adventures and friends -- all of which will combine to give you new reasons
for living. It might be your greatest investment yet.
About the Authors
Billy and Akaisha Kaderli are
recognized retirement experts and internationally published authors on topics of
finance and world travel. With the wealth of information they share on their
they have been helping people achieve their own retirement dreams since 1991.
They wrote the popular books,
The Adventurerís Guide to Early Retirement and
Your Retirement Dream IS Possible.
information about financial independence and travel, visit our
Billy and Akaisha continue to journal and photograph their
Retire Early Lifestyle Blog
About Billy & Akaisha