Early Retirement and the Best Places to Retire

Early Retirement and the Best Places to Retire

Plan How You Want to Retire Early

Plan How You Want to Retire Early

Before you start planning how you want to live like a king, you need to have a good understanding of what your end goal is. Knowing your end goal is critical for successfully retiring the way you want. Here are two of the main reasons you may want to retire early:

You Want Time to Live an Abundant Life

You Want Time to Live an Abundant Life

However they’ve come into their millions – inheritance, business, investments, etc. – there are some people who just get tired of the chase and want time to actually enjoy life. You may be tired of the US government and all the rules and regulations and high prices. 

Years ago, this was me. I had started and sold several businesses in the US and my latest business was doing well and I wanted to eventually grow it to become the number one company in the country in its industry. But I got to a point where I said, “I’m tired of being here.” There were many reasons behind my decision to leave, but that was when I sold my last business in the US and really began looking for ways to go where I was treated best. Maybe now is the time for you to do the same.

You Want Time to Figure Out Your Next Move

You Want Time to Figure Out Your Next Move

When I first moved overseas, I approached it as an early retirement. But then Nomad Capitalist happened and I couldn’t be happier with where I’ve taken my life and the business I’ve built. But Nomad Capitalist never would have happened without my early retirement.

If you’re anything like me, even if you enjoy an early retirement for a time, you’ll probably end up jumping back in because of all the business opportunities you’ll find. Like Tim Ferris talks about, you should have numerous mini-retirements throughout your life. You can build up a significant sum so you can afford to sit back and relax for a year or two without touching the principal, affording yourself the time to figure out your next move.

Retiring in South America

Retiring in South America

The two big countries that make for the most interesting opportunities are Colombia and Paraguay. There are other options, but these two stand out as the most affordable places where you could live a really nice lifestyle.

Colombia

Colombia

Colombia has an incredibly vibrant culture and a rich variety of great food. The cities of Bogota, Medellín, Cali, and Santa Marta are all well-equipped when it comes to infrastructure. Rush hour traffic is often a terribly stressful experience, but public transport can get you just about anywhere you need to be.

Colombia has had safety issues, but cities like Medellín have taken great strides to improve the safety of its residents. While crime hasn’t been completely eradicated, there has been some serious progress. From 1991 to 2010 the homicide rate has decreased by almost 80%

Paraguay

Paraguay

Paraguay has similar advantages. Although it has a reputation as one of South America’s poorest countries, Paraguay has seen some incredible growth over the last decade. Because of a stable currency (as far as South American currencies go) it’s been reported that Paraguay has the second-highest ROI for South American private sectors.

Residency is easy to obtain and hold onto and Paraguay uses a flat rate of 10% for its taxes. Which is about it as far as taxes go. No inheritance or estate tax, no net worth tax, no capital gains tax, and no stamp duty. The big problem with going to South America is the amount of exposure these countries get to the US and Canada. There are a few elements in that relationship that could contribute to making retirement a little harder.

Retiring in Eastern Europe

Retiring in Eastern Europe

Living in Europe is the stuff of dreams for many people. The entire continent is filled with stunning architecture, countless museums, and all kinds of cultural and historic sites. Traveling around Europe will get you everything from Mediterranean beaches to Alpine skiing. There’s a diversity there that, if you do it right, can allow you to retire just the way you want at a very affordable price.

Hungary

Hungary

Budapest, Hungary is hands down the most beautiful city in Europe. It sits at the edge of the European Union both geographically and in regard to cost of living. Food, real estate, and taxes in the incredible city are all much lower than you’ll find anywhere else on the continent.

Serbia

Serbia

Belgrade, Serbia is probably one of the most underrated capitals in Europe and I find myself going back for more every time. There’s a perfect balance in the city of entertainment, culture, great living conditions, and an affordable cost of living that will help you stretch that retirement budget for a very long time.

Georgia

Georgia

A favorite of mine that needs to be included on this list is Tbilisi in Georgia. If you don’t have plans to visit Georgia, you need to think about changing those plans. An attitude of openness to foreigners combined with low and simple taxation makes it a great choice for retirement. Tbilisi itself has a historic core with all the amenities of a modern city, making it easy to retire like a king.

If living like a king is what you’re looking to do, all of these countries have access to very cheap luxury goods. Wine, cigars, tobacco, and excellent food are easy to come by. Eastern Europe is probably the easiest place to live if you plan on going all out. Having a residence permit will give you decent interest in your bank account and allow you to live a European lifestyle without feeling like you’re paying for it.