Retire Early, Move to New Zealand and Enjoy Life to the Full
June 2, 2009 by Thomas Jones
Filed under Investing, New Zealand, Retirement, Strategies
Americans who have grown weary of George Bush’s big government conservatism — and who will soon grow weary of Barack Obama’s even bigger government liberalism — are beginning to look for greener shores when considering early retirement.
One possibility: New Zealand.
New Zealand is a stunningly beautiful South Seas paradise, about the size of California, with only 4 million mostly-friendly people who speak English, are polite to a fault and who welcome retirees with a little money to invest.
Best of all, the Kiwis even have a special program that allows new immigrants to forego taxes for the first four years — and taxes after that are lower, on average, from what Barack Obama has proposed. Americans living overseas are, of course, taxed on all worldwide income regardless of where it originates — although the first $87,000 in foreign sourced income is not taxed — but early retirees can use a variety of strategies to reduce their tax burdens.
To get an idea of how Kiwis themselves view early retirement, here is a letter to the editor from a New Zealander contemplating a “sea change” to the beach:
I am 60, my wife is 62. We have a home in Auckland and a holiday home down at the beach. Recently we have been thinking of getting out of the rat-race, selling up and retiring to a life of bowls, fishing and gardening. We figure that if we start now, as long as we stay healthy, we can live comfortably and extend our retirement by five years.
We calculate that if we sold our house and paid off the mortgage on the beach house, we could move there with about $600,000 to invest.
We are conservative so we would place most of it on term deposit in the bank, providing a return of about $24,000 a year after tax.
We think we could enjoy a comfortable lifestyle on about $36,000 a year, so we would top up our investment income by reducing our capital by $12,000 a year.
In three years time, our capital would still be over $560,000, and then my wife would start receiving her NZ Super and our capital could be preserved from then on. Two years later I too will receive my super at which time the household income would be over $45,000 a year after tax.
Get Rid of All Debt and Retire at a Young Age!
June 2, 2009 by Thomas Jones
Filed under Debt Elimination, Strategies
If overwhelming with heavy debt is already a fact to you, then the only solution is to get rid of it. Debt won’t go away if you keep ignore it, instead it will become more and more with the adding of interest from month to month, and your options to handle it will become less and less until you need to face the ultimate and the worst option, bankruptcy filing. Don’t let yourself reaches this bad situation; you need to react proactively to find debt solutions that fit your debt situation and get rid of your debt as soon as possible.
Your first proactive action is to find help. Nobody will provide help if you don’t let others know that you are facing a debt problem. If you already stressful with your heavy debt, you won’t be able to have fresh mind to think out a solution to solve the debt problem alone. You should discuss with your family members and your friends to see what other potential solutions to resolve the problem. Their proposals might not be the best for you, but at least you have some direction to go for.
Another better option to find help is to approach professional help. Many people do not know that they may have better option to resolve their debt issue just because they did not explore to the available options which will enable them to choose the one that best fit their needs. There are many debt relief solutions available to help people to resolve their debt problem, but not all will suit your situation and help you get out of debt effectively. You should proactively approach debt counseling services. Most of these services will give free consultation and help you to understand your debt seriousness and what are the potential solutions that you could implement to resolve it.
When you approach a debt counseling service, a counselor will be assigned to handle your case. He can’t help you if he does not understand your current financial situation, so be prepared to honestly tell him your actual situation and let him know all your debt issues and your financial affordability at this moment. Then, the counselor will propose a solution that best fit your financial situation. The solution may involve a debt management plan which is customized to fit your financial at the time. The debt management plan may involve some management fee. It’s your choice whether you want to enroll into the debt management plan or you choose other alternative options.
The bottom line is you have taken an initiative and act proactively to find help to resolve your debt issue. It’s our own responsibility to get a solution for our debt problem. Nobody will be able to help us if we don’t help ourselves.
Article Source:http://www.wearticles.com
Early Retirement Not a Pipe Dream But a Reality for Some
October 4, 2008 by Thomas Jones
Filed under Strategies
Forbes had an interesting article on our favorite topic: early retirement. “Imagine living a life in which your suit is one for swimming, your only appointment is walking the dog and the most important report of the day is on the Weather Channel,” asks writer Anna Vander Broek. “Actually, this life isn’t that hard to picture because this is how many American’s view their retirement. Now imagine living this life before turning 50.”
According to Vander Broek, “there are ways to retire young without winning the lottery or having valuable options to cash out.” The keys, she says, are “savvy investing, smart spending and very strict saving” that can “pave the road for the average American to find a way to live out the dream of early retirement.”
When planning for early retirement, you must first understand just how much money you are going to need. If you retire at age 50, you could very well have another 35 years or more left to live. Americans in their 20s probably won’t have Social Security or pension plans to lean on.
“Your portfolio will have to finance everything,” emphasizes Alyce Zollman, a financial adviser with Charles Schwab.
To understand how much money you’ll need after you say good bye to your nine-to-five, take your pre-retirement income and multiple it by 35 (assuming you’ll live to age 85). For example, if you are living off $100,000 now, you’ll need about $2,450,000 when you retire. Not a small sum.
Saving is essential for most people who want to retire early. Max out your 401(k) and consider an IRA. Put money into safe, long-term investments, and don’t gamble on the stock market. Read more
Quit Your Job Today And Retire in Mexico Right Now!
August 17, 2008 by Thomas Jones
Filed under Mexico, Strategies
If you think you have to wait until your 50s, 60s or 70s to retire, think again! Thousands of people in their 30s and 40s — and a few even in their 20s — are saying goodbye to the rat race, quitting their Dilbert-cubicle jobs, and living the good life in Mexico.
How do they do it?
They’re not rich, for one thing. Most have some savings but, the truth is, living in luxury in Mexico is possible for ordinary people with ordinary savings. Even with the recent real estate crash, many Americans find that they can live like kings in Mexico when they sell their U.S. homes and retire early.
What most people lack is… information. Now, that problem is solved. A remarkable woman named Barbara Parks has prepared a new, inexpensive special report all about how she and her husband broke free from a life of drudgery and stress — and now live a life of freedom and leisure in Mexico. You can find out how easy it is to quit your job and retire early in Mexico. Here’s Barb’s story: Read more
