LIVING OFF DIVIDENDS & PASSIVE INCOME

Another excellent post! It interestingly enough is right on track with what I was doing this weekend. Looking for a country to “escape” to should the US go any further down the toilet than it is now.

Keep up the good work!

$3,000 a month would be easy. I currently live on less than that in Washington, DC, because I save a very high percentage of my salary. If it can be done in DC (I live in a very nice area), which is expensive, then it can be done most any where.

The big issue would be inflation, as $3,000 a month in 20-30 years won’t be much. You would need to save some of it per month or have some other way to make extra income to invest.

My family is from the Caribbean and although retiring there sounds interesting and financially advantageous, there are a lot of disadvantages that come with living in a 3rd world country. I’m in my mid thirties so adventure is ok now, I don’t know that I’ll be willing to put up with all of it when I’m 70. I want to live there NOW!

[...] Living Off Dividends asks if you can retire on less than $3,000 a month. [...]

Question: if Mexico is so great, why do the locals constantly try to get into US illegally? You are retiring in another part of the world, for example: Mexico, but you are using Canadian or American dollars to do so. What if you had to work in these countries (think retirees don’t need to work? they can run out of money too, get sick, etc. etc.) what kind of quality of life would you have?
Also, when you live in a foreign country, you are subject to their national upheavals . Think Croatia, Costa Rica, St. Croix (where the locals hacked to death all tourists one day). It’s a possibility. Or Aruba. The death of that 18 year old Holloway girl. What justice are the Aruban government officials giving that American family?
It’s something to think about also before you downgrade your style of living to a foreign country just to save a few bucks. What will the $3000 a month pricetag be worth when the foreign country you are living in is in disarray ?

I’ve thought about retiring in Italy. Right now that country doesn’t even have a government in place!
Nope…….I think I’ll stay here.
Just my opinion.
Thanks for listening.

Living: I WAS in NYC when it got bombed! So was my husband and my two young daughters!!!! Get your facts straight, 6000 people did not die, less than 3000, but that doesn’t make it right or make a difference. My daughters had to be evacuated off Manhattan island and walked through all the rubble and debris. We had to sell our home and move.

I know all about the world and what it entails. I’ve seen it first hand.

We are all free to do what we want.

Take your Canadian money and go spend it in Mexico.

I live a most fantastic and glorious life here in America. Even the poorest of the poor in America can be fed, get emergency health care, have big screen TV’s, free education. If you have just $15 bucks in your pocket, you are doing better than 90% of the rest of the globe.

Of course your friends have to go to India to get medical treatment. Why aren’t they getting it in Canada? Does Canadian medicine suck? If I had to choose between Columbia Prysbiterian (sic) Hospital in NYC or India, I’d choose NYC.

As for killings on college campuses, ever hear about ‘four dead in Ohio”? Nothing new. The world is a dangerous place. Everywhere. I grew up in the turbulent 60’s, Viet Nam war, gas lines, food shortages. My dad grew up in the Great Depression.

Not only am I an American, I AM A NEW YORKER!!!! and that means something more. I’m already semi-retired and it is NOT as bad as you think it is. There are so many great things here, and services for people as they age. I am very happy here in America and no, I am NOT well-to-do by any means.

I wouldn’t call living in a trailer, like you do, the good life.

Sorry dudes, there is no place better in the world than the United States Of America. I’ll take my chances here.

Dear Mr. Philippines:
Let me understand you correctly: you enjoy living in the Philippines, place of the 2002 and 2006 Bali terrorists bombings, home to foreign Islamic militants, who for 4 decades (40 years) have had the Philippino government struggle with muslim insurgents? Home to muslim militant groups? Several of the smaller islands are used as terrorist training camps? The campaign against the militants has caused civilian deaths and sometimes the evacuation of whole local communities?
In Manila, earlier this week, thousands of people protested against the U.S. military’s plans to hold humanitarian missions in areas controlled by the Moro Islamic Liberation Front (MILF) as part of annual training exercises with Philippine troops. And you are an American living in the midst of all of this? Who are you going to call when something happens to you and your family? The Indonesian government? Or perhaps the American military to help evacuate you out?
Are you spending American bucks in the Philippines? Or are you spending the philippino cash? Where did you earn the money that you are spending in the Philippines? Could it have been, god forbid I utter the word: a m e r i c a????

Do you enjoy spending your american dollars in a country that supports muslim terrorists? Do you think maybe some of that american cash is being used to help finance the next attack on American soil? Am I to be impressed that you have slave labor cleaning your house or fixing up your yard? Because what you are paying them, according to your own words, is technically slave labor rates.

If the housing deteriorated in CO, you just simply move to another part of the USA. What’s the big deal? I moved to a less expensive part of USA. I went from $5600 a month to $1200 a month. What’s the problem?

As for your derogatory, ageist comment regarding ‘early birds special’ just shows your contempt for America.

Enjoy your retirement in the terrorist occupied Philippines. Just don’t come-a-calling here when things don’t work out in paradise, as you think you planned. I hope our American military has something else better to do, then evacuate you out.

Just to show you how stupid YOU really are:
I AM a European. I was born in Italy.
All my relatives in Italy would love to come here and live in the USA. I had thought about going back to Italy to retire, since I could get dual citizenship but NO THANKS! Americans, believe it or not, do live a better quality of life here on American soil, rich or poor, black or white, north or south. It is not as bad as you are portraying it and that is the problem I have with your site.
I understand you are only in your 30’s and lost your job due to 9/11. Be thankful you didn’t lose your life, as some of my associates and friends of my children did. After 9/11, I lost my home, my business and my way of life. My family had to make very painful choices and decisions. We chose NOT to run away. My kids get up each and every day and live and work in NYC for American companies. They are braver than me. They refuse to give in. I am very proud of them and their peers. My youngest, who was in college when WTC was attacked, chose to go back to class, along with her fellow classmates and all of them refused to let the terrorists change their lives.
Europeans are flocking to our shores and retiring here by the bucketfull! Why? Their euros may be stronger BUT they know they can live ‘the good life’ here rather than there. I sold my first home to a Chinese family many, many years ago. I welcome all of them. Welcome.

Living in the Philippines or Thailand is just giving your American dollars to terrorists countries. Before I would seek out a foreign country to live in, I would exhaust my outlook here on American soil. As I have said, it is NOT as bad as you are portraying it. Mexico is a sh**hole. Mexico City is so polluted, you can’t see. The water is undrinkable, even in top notch resorts. Many areas in Mexico, that are having condos built for American retirees overlook waterview vistas. Only problem is that the water is so polluted, you can’t swim in it. Nice. Very nice.

I used to think that life would be better outside the USA. I’ve traveled and looked around. Sorry, dude. Nothing beats the USA. And now we have an election coming up. Every 4 (or years we get to choose a new President. Geese, ain’t life here grand!

Dear Living-First and foremost, I am an American citizen. Paying rent to a landlord, paying the salary of hired help or owing a home in the Philippines supports an economy that shelters terrorists.

It’s a simple equation learned in Algebra math classes.

If A = B and B = C, then A = C.

As for Thailand, on September 16, 2006 there was a junta military coup that overthrew the elected government there. Martial law was declared and partially revoked in Jan’07. The junta continues to censor the media and has been accused of other human rights violations. All political activities were banned in July 2007.

When you own a home or live on foreign soil, you are subject to their governments. American laws are written to protect it’s people. You are given rights to speak freely (how else could we bash Bush or speak our minds about America) and we can seek justice in a court of law, by our peers (in most cases) if we are wronged.

I am not saying other countries are bad. I am saying that America is better. And the sooner we all realize that, the happier we will all be. I think we Americans take ourselves for granted.

My mother-in-law is 79 years old and really didn’t prepare too well for her retirement. She was a nurse supervisor. She is completely retired on just her social security of approx. $1900 a month. In America, low income housing is sprouting up everywhere (communities for age 55+ and above). She lives in a beautiful, 1 bedroom apartment with a great mountain view for only $450 a month. Her children and shopping are nearby. They drive a car (a bit old, yes) have cable TV and every 3-4 yrs or so, the management paints the interior, lays down new carpeting or linoleum if need be and they live a very nice life. They have neighbors who are the same age, same interests etc. etc.
In my own neighborhood, the local government is doing so much to accommodate our aging citizens. We have ‘meals-on-wheels’ that brings 2-3 meals a day to the aged, senior citizen day care centers are being built so that our seniors can remain in their community and near their family, in addition to several assisted living centers, low cost affordable housing is being built. The list goes on and on and on. As the baby boomers age, they seem to be making efforts to take care of themselves with dignity. As I have said, it is NOT as bad as you portray it to be. We can and we will be able to retire, with dignity, here in the USA.

Touting to me that some 65 yr old is cohorting with some 30 year old babe just shows me what little reverence or sincerity you have over such a serious matter as this. Getting older is inevitable for ALL OF US. Running off to a foreign land has many dangers and pitfalls and should be seriously thought out.

Staying here and successfully finding solutions for our aged is really where it’s at.

My Dearest Darling Living:
I’m going to make this my last post to your blog.

I’d like to end it with this:

My husband is 7 years younger than I. He is a handsome, young virile man. We’ve been together for over 20 years. I met him while he was a very young stud. Today, when I look at him, it’s still as if I am seeing him for the very first time.

I adore him!

We are all going to get old. We are all going to get sick and infirm. Eventually the day will come when we can no longer live on our own or take care of ourselves.

The number one goal of any retiree should be to stay as close to their family and friends as possible. They are, in the end, the only people you can trust (I’ll give it a 90% average to be fair). Spending $700 to visit one’s children is not OK in my book. My children are a $6 train ride away (or 1.5 hrs car ride). If I were over 65, I could get that train ride for a senior citizen discount.

Good luck to you and your readers. I’ve got other things to do. My MIL collecting soc security is NOT a gov’t handout. It’s there for her. She paid into the system for 54 years of working.

BTW: my brother and SIL were scheduled to go to Thailand at that time for a vacation, but had the trip canceled on them.

Wow. Woner why I doubt that will be the last post, Boomie? Aside that thinking bali is somehow in the Philippines, some of your points are valid … but like many of my fellow Americans, you geoographical education is a bit lacking.

Hopwever, I served 38 years with the US military in order to give you the right to spout, even if you have no knowledge of the countries you are denigrating … so feel free, I’m a tiny part of the reason you are free.

I like your math. base don your own equations, since there are terrorists within the US then the US government supports terrorists? The government of the Philippines does not support terrorists any more than G W Bush does … they certainly don’t have all the answers, but then neither does my dear old USA. As a life-long Christian I still find your rabid anti-Muslim comments offensive … I prefer living in a country that promotes tolerance and doesn’t try to blameit’s problems on a religion … but again, you’re certainly free todo so if you wish to.

I will say, however, that it is not my duty nor desire to ’stay in the US and solve the problem of the aged’. Our government has already screwed that up royally. I prefer living where my wife can hire qualified (not illegal ailien) nursing help for me as I age … she’s 45 by the way, as if it is someone else’s business how old a woman a man should marry.

Best of luck to you, but please, take a breath and re-read some of your comments … your concept of freedom and the dictionary’s (and the Constitution’s) do seem very far apart.

PS: By community, I mean neighbourhood.

Hi all,

I’ve been following the comments and thought that I might add a few points.

The first point is simple math. Say you were earning A and the cost of living is B a year, Your lifestyle would be C (A/B=C). And if for some reason the cost of living in another place is a quarter of your current cost of living (B/4) you would have…mmmm, let me see..4 times (4C) the lifestyle you are having now.. if you were an economic animal (pardon my exaggeration), you would definitely opt for the 4C lifestyle.

But this discussion somehow turned out to be about judging the countries people FREELY CHOSE to live in. I must say that most of boomie’s facts are right (except for that Bali is in Indonesia and the Philippines are an independent country from Indonesia. but no biggie, people mix them up all the time) about what happened in those countries. But I’ll have to say that no country is perfect. Not Mexico, not the Philippines, not Thailand and not (gasp!)The united States Of America.

The essence of living is about being happy. If you are happy living with a C lifestyle but living with pride of your country, you have the right to do so. But if you opt for a 4C lifestyle and have to move out of the US to do so, you have the right to do it too.

I am a lucky person to have lived in the US for 7 years. Being an (legal) alien, I had my fair share of racial offenses and intolerable behavior from some Americans (since she says that the U.S.A is a country that tolerates all, I bet boomie wouldn’t treat me that way. ) Nonetheless, I had a blast while living there.

I now live in Indonesia. Although it not as developed as the US, I still enjoy my life here. and that is what only matters.

Arlo, growing up in America as an Italian, there were many occassions that I was called a ‘wop’, a ‘dago’ or some other derogatory name. It didn’t bother me BUT if it did, I could have sued whomever I wanted to. In other words, the laws of America could have enabled me to seek justice.
Duvallite, good for you! I sold my home of 16 years and with that equity I was able to build a new home, without a mortgage on 4 acres of land, in another part of the US and invest the remaining equity. I did all of this while I was 50 years old. Hubby was 43. My monthly expenses were only $1200 a month and needless to say, I haven’t worked since. Hubby does, because he is younger than I, but only works 2-3 days a week. We’ve been able to start our own business, which can be difficult to do in other countries. We’ve also been able to save a lot of money which enabled us to buy a beach house (again, without a mortgage). All things are possible in the US, yes! with long term planning, it CAN be done: to live well and retire well.
Here is a travel warning, issued by The Dept. of State on Feb. 18, 2008 regarding the Philippines:
http://travel.state.gov/travel/cis_pa_tw/tw/tw_2190.html

Kidnappings are a big problem right now.

People can go and do whatever they like. I just do not appreciate when people, who’ve earned their money here in the US, take that cash and go spend it someplace else while denigrating the US at the same time. To me, that is biting the hand that had been feeding you. Not very nice.

As for David Starr and his 45 year old wife, who will be taking care of him in his old age, in the Philippines….who will be taking care of your wife after you die, David???? Who? If you have been in the army for 38 years your disdain for your country is quite evident and inexcusable.

Living Of Dividends-you should spend some time seeking out places in the US that retirees would benefit from. You are in your 30’s and this is the ideal time to start preparing. Long term planning is the key. You do your readers a disservice to plan otherwise.

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Carnival of Everything Finance: #14…

Welcome to the March 6, 2008 edition of Carnival of Everything Finance.We had over 110 really good articles submitted for this edition. Unfortunately I could not inc ……

Reading boomie’s comments, I come to the conclusion that her main beef with this those retiring outside of the U.S. is that they are taking resources (money) “created” in the U.S. and using them to fund a luxurious life in other countries, especially countries with historic human-rights atrocities.
She is especially concerned with the idea that these funds are now supporting the institutions/individuals who committed these atrocities.

Boomie, please correct me if I have misinterpreted anything.

I can understand these concerns, and share them to some extent, but my response is different and includes some opinions which differ from boomie’s.

My first point of difference is in the thought that this money was “created” in the U.S. The U.S. economy is dependent on the resources of other countries, both human and natural. (How many things do you own have “Made in China” stamped on them?) We have externalized many costs associated with our lifestyle while internalizing the profits, which makes the U.S. an aggregator of wealth rather than a creator of it.

My second difference is based on this first. By supporting the system described above(externalizing cost, while internalizing profit), we also tend to support abuses to human rights and the environment. Whether it is a country or a multi-national corporation who is committing the abuses does not matter. While the money spent in countries with human-rights abuses may very well end up supporting those committing the abuses, the same is true for those of us spending money in the U.S. I remember once hearing that about 50% of my income tax goes to military spending. Considering the historic expenditures of the U.S. military, as well as the criticisms of the current war in Iraq, I’m pretty sure I’ve been supporting a number of abuses I’d rather not think about.

And here is where my response to all of this differs slightly from boomie’s. When living in the world you’re going to get dirty. So don’t try to avoid all the dirt, but rather try to make the place a little cleaner for the people around you and those that come after. Basically, wherever you live, be it the U.S. or abroad, become a member of the community and strive to enhance it in some way other than just providing money (although money doesn’t hurt, it just doesn’t act as a substitute for a personal attachment to the community.)

Boomie touched on this when she spoke of ensuring that retiring with dignity is possible, I’m just broadening that idea to include other issues and those who choose to live abroad.

And that is one long-winded comment. Yikes!

[...] Boomer Daily Digest wrote an interesting post today onHere’s a quick excerptEver wondered if you could retire on $3000 a month? Well the answer is “Yes!”. Not only that, you might be able to get by on only $2000 a month! Of course, you’d have to sell you gas-guzzling Tahoe and move -out from your swanky … [...]

Boomer claims that most italians want to move to the USA hahaha!

if you think people in the US don’t die from natural disasters, I guess you forgot what happened in New Orleans.

Funny how George Bush sent $770 million quicker to Africa than he did to Louisiana.

The US currently spends $2Billion per day (or ~$2500/year per person in the US) on interest payments on the money it has borrowed to pay for its deficit spending. For it to send aid to foreign countries is like a broke person with a $100,000 in credit card debt donating $1000 to the salvation army.

Apart from that, considering that Bush’s moronic proposal to use a food source for fuel is aggravating the food shortage problem, he definitely ought to be sending out food aid.

but why am I arguing with someone who doesn’t know the difference between Burma and Thailand?

It continues to amaze me how ignorant US citizens can be. Living Off Dividends is talking about retirement options, and people start moaning here how they provided the freedom and the embassies and the money creation.

Bullshit!

First, people are individuals in the first place, not citizens of a country. Read your constitution if you are the patriot you claim to be.

Second, the thinking that moving out of a country after earning your money there is unpatriotic or unfavorable economically, is totally bogus. Ask an economist. If you really believe this, the inverse must also be true; immigrants, legal or illegal, increase the welfare of the USA just by showing up. Right? No. Immigrants benefit a country (these people are more entrepreneurial than average and increase skill set competition), but not by simply arriving. Governments would have marketing campaigns to attract mexicans if your thinking would have any merit!

Third, if anything, US military abroad will only cause more blowback in future generations. So far for providing freedom. But it is a self-fulfilling prophecy (more ‘defending’ yields more attacking), so keep on believing it, patriots.

Anyway, believe what you want and feel free to keep on bashing other people’s life style. I will conclude by saying that I would much rather spend a week with living off dividends than with one of the patriot commenters on here.

At the risk of appearing trite, I must repeat something I heard frequently in my youth “Don’t knock it if you haven’t tried it” I would hazard a guess that 75% of the “patriotic citizens” who responded here- extolling the virtues of “Living in the USA”, have never lived anywhere else. I’m not talking about “It’s Tuesday, so it must be Brussels” I’m talking about buying a home and raising a family outside the confines of this country. Life is not always better in Thailand, Bali, Mexico, or Costa Rica etc. Nor is it “better” in the U.S.. It might appear “safer” to someone who views all “foreigners” as potential terrorists and thinks that any intelligent human being is born with a comprehensive understanding of the English language but the truth is that “home is where you hang your hat” and it is whatever you make it where ever you are.

It is the sort of “Know-Nothing”, jingoistic ignorance displayed by some of the recent posters to this Blog that has made this country and its citizens the butt of humor all over the world and enabled a “Know-Nothing” deliberately ignorant caprpet-bagging Yale graduate from Texas, to rule this land for eight horrible years. I guess it’s just another chorus of “love it or leave it” and I think I’ve heard enough.

I’m so glad for Boomie for stirring things up. Apparently, she still has a lot of things to learn.

Philippines has never supported terrorism and is one of the U.S. most loyal allies in the Pacific. Filipinos fought alongside the Americans during WWII, and many lost their lives fighting for freedom and democracy. I know this has nothing to do with getting by on $3000.00 to retire, which definitely could make one live quite comfortably in the Philippines. It is a land of very hospitable people, mostly poor, mostly Christians, but mostly literate. There are a few areas in the country with islamic terrorists but they represent a very tiny fraction of the population. It is not crime free, but where on earth there is no crime. However, to denigrate the Philippines or any other county because of ignorance is absurd and quite shameful.

I love this country and what it stands for. I think it would be a dishonor if this beautiful land of ours is not properly represented by its citizen in a dignified manner.

Peace to all!