The Money Plan for Retirement in Mexico

This is an update of a post written in February, 2006.

Target date changed, it is now the Spring/Summer of 2013

So, with some hesitation, I’ll launch into how we think we may be able to afford to indulge our desire to retire early.

We will still have pensions – one for me and two small ones for Kathy. Mine will be small also.

We will have two defined contribution plans, started by the state of Oregon in 2004. I’ll take mine over a 5 year pay-out. We have a 457 plan account – public employee equivalent of a 401k, and we each have an IRA.

I will get an early retirement stipend of a few hundred dollars a month until I turn 65 (I am 60 now). We will get most of our US based health insurance paid for until I turn 65. It will only cover emergency care in Mexico, so we will get another policy down there, but emergency care is significant if you need it.

Eventually we will take Social Security. The timing of that will depend on how long we can wait to add it to our income.

The pensions and Social Security should cover our monthly living expenses. The defined contribution bits will be consolidated into self-managed IRAs, and I have worked on learning investing and personal finance stuff over the past 15 years. Most of that money will invested in dividend yielding stocks that will provide us with a supplement to our pensions/social security. Some I will use to pursue my hobby of fairly aggressive stock and options investing. Enough to make it fun, but not enough to hurt us if I screw up.

Investing has been an intellectually challenging and profitable hobby. Who knew that an old liberal (almost socialist) fellow would enjoy capitalism so much :). My professional background as a research analyst has been helpful with this hobby. There may be more on this later, as I have joined a group of independent Apple analysts, and my first quarterly Apple earnings and revenue estimates will be published as part of that group in a few weeks. If mine don’t suck, I may post a link to them in this blog.

Hobbies are supposed to be good in retirement :). This is not my only one, but I do rather enjoy it.

6 thoughts on “The Money Plan for Retirement in Mexico

  1. Hi Roni, this is Dennis Hildebrand, I’m in the Braeburn group, and occasionally see you on AFB. I agree with your q4 estimates by the way… Anyway, I clicked on your link, and notice that you are blogging about one of my favorite subjects, and that is retirement. You are turning 60, and I just turned 55 in April. By the way, I live in Portland same as you.

    I noticed that you have plans to move to Merida… Interesting, way down on the Yucatan peninsula, and I would like to ask you a few questions, as you seem very open about your journey in your blog.

    First of all, let me offer best wishes to your wife Kathy with her ongoing health issues, eye problems.. You guys seem to be dealing with this in as positive manner as possible.. Good luck with everything.

    My questions are simple. If you have time to respond great, if not, that’s ok, I understand.

    1. Why Merida? Did you guys visit there and fall in love with the city and the people?
    2. Obviously the cost of living down there is cheaper right? Is that true, and Percentage wise, how much cheaper is it than the US?
    3. Do you already own a home down there? Where will you live? In the city limits?
    4. Health care – how will you manage it in Mexico? Will it be expensive?
    5. Climate – Portland to Yucutan, wow what a difference, bet you are looking forward to that. (not really a question, just kind of wondering what led you to choosing that climate)
    6. Are you selling your place in Portland? Or will you have a home in both cities?

    That’s it for now.. Thanks for your time, good luck with the move, it’s not far away.

    • Hi Dennis,

      I will get around to answering your questions, hopefully getting a start on it this weekend. I may use them as a blog post. The easy ones I’ll do right now:

      We plan on selling our home in Portland

      The climate is very different. There are about 240 days a year when the high temperature is 90 or higher in Merida. There are only a handful of days when that is the case in Portland

      We do not own a home there.

      The other ones I will deal with later, and provide some links that will help answer your other questions.

  2. Pingback: Questions from a reader, and a some answers | Retirement, say what?

  3. Hi Ron – I’ve been looking at Merida since around 1999, and may be finally on the verge of giving it a try for full-time living (seems I am fully retired now at age 60). May I ask what you intend to do for housing at first? Rent, then buy? Also – I would be interested in your thoughts on the Dengue situation. There is a good writeup on Yucatan Living that I saw recently –


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