And, he still hasn’t made up his mind.

How many more like him are out there?  I don’t know, but feedback from my readers here certainly let’s me know that it is more than a few.

I saw a neat quote this morning about an article from Steve Pavlina that I’ve read before … but perhaps not pointed out here.  Thanks, Michael, for pointing this important concept out to me, yet again Launching Your First Product – How We Did It!

Steve Pavlina explains READY FIRE AIM perfectly in this article:

As Steve explains – the ready-fire-aim approach, rather surprisingly works a lot better than the more common ready-aim-fire approach.

“The reason is that after you’ve “fired” once, you have some actual data with which to adjust your aim. Too many people get bogged down in planning and thinking and never get to the point of action. How many potentially great ideas have you passed up because you got stuck in the state of analysis paralysis (i.e. ready-aim-aim-aim-aim-aim…)?

If you think you want to move to the Philippines, then move to  the Philippines.  You know,the door swings both ways … if you try to make go of it here and you find out that the luster of your dream is a little less bright, then pack up and go somewhere else.

I need not be the soul numbing, stress inducing torture than so many of you seem to make it out to be.  What’s the worst that can happen?  You have to pay for some plane fares back home?  Let me assure you of something … if you are living in the US right now, you are likely wasting way more than the cost of some air tickets, each and every year, burning up your money on cable TV. ridiculous cell phone plans, insurance for everything up to and including orthodontics for your dog … and likely even some ore US-induced waste I haven’t thought of yet.

You might be interested in my article on “Economy Birding” in the Philippines as well.  Many folks, in today’s US economy, might find out it’s very smart to come here for a few years, wipe out the debts that are making you lose sleep now, get rid of the expenses you don’t really need, so you can focus on the important issues you feel you have to pay … and in general, just adding a few years to your life.

Could I be wrong?  Of course I could … but guess what?  If you just sit there, worrying and wishing and never do anything, you will never, ever know.

Ready, Fire, Aim … it can work.

But what the heck is an asteism?  Well, as my dear departed and sorely missed daddy would have said, it’s a 64 dollar word for a backhanded compliment.

OK, so what is a backhanded compliment, for those who aren’t familiar with the term? (Hey, my dad was born in 1903, and I not long thereafter, so I am not always as up-to-date as some of my younger readers).  Simply stated, it is an insult that is disguised as a compliment.  Sometimes, a backhanded compliment may be inadvertent.  However, the term usually connotes an intent to belittle or condescend.

A backhanded compliment may fool the listener, but the compliment remains "backhanded" because the speaker is being intentionally slighting and insulting. In some cultures, backhanded compliments are considered a genteel or polite way of expressing disdain

For example, how should a lady take this: "That dress is lovely; it does wonders for your figure."?  Or one I’ve received a time or two: "You’re smarter than you look."?

A few weeks ago, during the run up to the Philippine presidential Inauguration, a lady who was somehow connected with improving the President-elect’s appearance told an international TV audience, “The President’s appearance is very important, after all, he is the figurehead of the Filipino people.”

When I first heard that I thought she had chosen her words poorly and perhaps she should have said he was the leader or the embodiment or the public image of the country.  A beacon for the world, something along those lines. 

But then again, maybe she really meant to say that he was a non-functional, strictly decorative, wooden-headed figure placed on the bow of a ship solely out of tradition and vanity.  Not for me to say , I don’t know her thoughts.

But when a fellow devotes time and effort to establish a web site, do research and write articles promoting retirement in the Philippines … a situation I and many others like me are currently enjoying … one might expect he would use terms that actually were at least factual, and certainly he would avoid asteisms.  Here’s a quote:

… While Malaysia may have … even a special retirement scheme for single foreigners or expat couples, there’s little doubt that the Philippines has much more to offer … Foreign Retirement in the Philippines – Dreams can come true! »

I don’t know about you, but if I wrote regularly on retirement (which I do) and in particular on retirement in the Philippines (which I of course do here on PhilFAQS), I would try to do a better job on learning what’s available here in the Philippines via official programs which make it easier for Americans (and other foreigners) to retire here in the Philippines.  I have looked into the ‘special retirement scheme” offered by Malaysia, as well as ‘retiree enticements’ in several other countries and in my opinion the Philippines meets or exceeds the benefits of any Asian country for prospective retirees.

If you are a single person thinking about retirement, or a couple who neither one are Filipinos or former Filipinos, the Philippines has a comprehensive long-stay visa program just for you …it’s called the SRRV (Special Resident Retirement Visa).  And the purpose of this article is to let you know that is you are unaware of the SRRV (as the fellow Philippine retirement proponent I quoted seems to be), then you we it to yourself to find out.

In the past four years I have been living in the Philippines I find that the vast majority of retirees and potential retirees either don’t know of this program at all, or are handicapped because what they know isn’t correct.  Here are a few typical questions and answers that may help you in your planning:

Q: Is the SRRV for everyone?

A: No.  The earliest one can avail of the SRRV is age 35 (at the time of joining)

Q: Isn’t there some massive investment required?

A: Well, all “flavors” of the SRRV do require an investment.  It’s formally called a “Retiree’s Deposit” and in order of highest to lowest, they go like this:

Retirees who do not have (or chose to show) a formal pension income:

35 to 49 years old           – US$50,000

50 years old and above   – US$20,000

Retirees who chose to qualify with a monthly pension in addition to their required deposit

(for a single retiree, proof of at least USD$800 monthly, for a retired couple, USD$1000 monthly)

35 to 49 years old … not available

50 years old and above   – USD$10,000

There is is also a category for Former Filipinos and  certain foreign diplomatic personnel which I won’t get into in this article.  The investment there can be as little as USD$1,500 USD.

As a strictly personal editorial comment, if you are thinking of moving to the Philippines with less than $10,000 USD in savings, … don’t.  This is a very bad country to be broke in … even the poor on welfare in the US are very rich in comparison to poor people here, and there are very few government “safety nets”, unlike the USA.

Q: But is my deposit money gone forever?

A. No, not at all.  Retiree deposits must be placed in one 9or more) Philippine Retirement Authority banks, where they earn interest, very much like nay other bank time deposit.  If the retiree leaves the money in the approved account and then, for example, decides to leave the Philippines and give up his/her SRRV, the money is returned.  If the retiree dies, his/her investment is part of his estate and is dealt with in accordance with the retiree’s will, and/or the laws of the Philippines should s/he die intestate.

Q: I thought I could use the required deposit to purchase a condominium or lease a house and land.?

A:  You can.  After 30 days on deposit you can use your money to invest in several approved areas, including a condo purchase or the long-term 920 years or more) lease of property.  But there is a catch.  If you take your deposit out of the bank and invest it elsewhere, you will have to pay an annual “Visitorial Fee”  This is on the order of 1% of the required deposit, as always you should check with the source, the Philippine Retirement Authority web site for up to date information).

Q: But is my Investment Safe?

A. Well if you leave it in an approved bank I think it’s about as safe as can be. Many people have expressed concern to me that the PDIC (Philippine Deposit Insurance Corporation) only insures depositors in individual banks up to PhP 500,000 (about USD$10,800 at today’s rate).  True enough, but the work around is built in … if a retiree desires, s/he may spilt the required deposit among multiple approved banks to keep the total deposit amount covered by PDIC protection. 

Q: I heard the SRRV allows you to work in the Philippines?

A. Well the true answer is, it does and it doesn’t.  If you are an SRRV holder under the required monthly pension option, no.  You are not authorized to work (this may also include unpaid volunteer jobs) in the Philippines. 

If you are in a no pension required category then yes, you have the right to work or operate a business in the Philippines. But, (and this is a big but), I have seen a ton of false information on this aspect of Philippine living) having the right to work does not give you permission to work.  You must have an approved AEP (Alien Employment Permit)  issued by the Department of Labor and Employment which authorizes a foreign national to work in the Philippines.

Q: Someone offered to process an SRRV for me for a fee.  How do I know if this is a legitimate offer?

A. In almost all cases this is an offer you should avoid at all costs.  It is not legal for any agency or individual except the PRA themselves to charge any fees for the SRRV.  There are fees involved but they should be paid only to the PRA.  The PRA accredits two types of marketing partners … existing businesses and independent marketers to help prospective visa holders with learning about the SRRV, but these marketers are paid only through the PRA.  There is a list of accredited SRRV marketers on the PRA site.  You do not have to pay anyone to assist you with this visa … pay only fees provided by law and pay only to the PRA themselves. 

Q: But wait, don’t go, you haven’t answered another question I had…

A. Sorry, I’m all out of time at the moment.  Here’s a source I highly recommend who can offer you a lot more information on the SRRV and in foreigner retirement in the Philippines in general.  They are my main information source and I recommend them highly.  Look for Ms. Susan Dudley, a true friend of PhilFAQS (tell her Philly sent you) and I am sure she can help.

Retired brains seems like a legit, useful operation.  I haven’t yet explored all their services or signed up for anything they sell, but my “bullshit detector” hasn’t even been close to going into alarm and the main premise behind their work is sound and I salute their efforts.  Recommended for the subset of my readers who have reached the Golden Years and those who plan to live that long as well.

One article I did notice while perusing their site, though, sort of caught my attention.  The article was pointing up the advantages many seniors (and in today’s world, pre-seniors as well) have found in relocating overseas.  Retiring abroad.  Worth a read I think.  See my comments in italics regarding the Philippine slant on the articles main points)

Retiring Abroad

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There are many reasons to move away from the U.S. during your retirement years. One of the most important is that your money will buy you more. Another big reason is inexpensive health care and affordable prescription drugs.

The laws of various countries should influence those planning on living there as some penalize the wealthy and others make it difficult for those that are not wealthy.  Other important factors to consider are the crime rate, the distance from your home in the U.S. if you plan to return often to visit friends and family and, of course, the lifestyle you are seeking.

List what is important to you as this should influence your decision:

• Climate: Hot, cold, temperate; do you want a beach or mountains or both?  (Here you pretty much get hot)
• The arts: Museums, opera, symphony, ballet, theater. (Not big in the Philippines at all)
• Sports: Do you wish to play golf, tennis, ski, run, bike and do you wish to be able to watch professional or amateur sporting events? (Don’t forget SCUBA diving, boating, flying, many others for participation.  Spectating?  Not so much)
• Healthcare: Do you have medical problems that require you be near a hospital that can provide quality care? Do you need prescription drugs regularly? (Readily available in major cities, in the provinces … YMMV)
• Cost of living: What can you afford to pay for your monthly comfort? What kind of lifestyle do you plan? Luxurious, Simple, Moderate? (About 40% of US cost of living up to 100%, depending on your wants and needs … overall, much cheaper than the USA)
• Language: Are you comfortable in a country where English is not the native language and perhaps is not spoken or understood by many of the natives? (English is an official language and the language of the law, etc.  It’s better to learn a local language too, but you can live for years in areas near major cities, as I do, and never need a word of any language except English.  Also, consider this.  Signs in the Philippines, even if written in a native language, use the standard Western alphabet, so it’s very easy to learn a word like “bawal” … forbidden … and get the idea of what you aren’t supposed to be doing.  Try that with Thailand’s Sanskrit-style scrawl and see how well it works for you.)
• Can I bring my pet with me? Some countries have long quarantine times and some simply do not allow you to bring your pet with you. (No quarantine on pets into the Philippines.  Simple permissions and vet certifications and you are good to go)

Below we cover some of the possible destinations that meet some or several of these criteria, but we urge you to do substantial research as well as spend time in the location you think you wish to retire to prior to your actual move. Every country has its pluses as well as its minuses.

Many U.S. Citizens are retiring to Central and South America. Housing as well as the cost of living is usually substantially less than in the states. …learned that deeds on their beachfront property were not valid as they did not meet certain provisions of a national-security statute that permits only citizens to own land on Mexico’s coasts

(Regular readers here can understand that, since the Philippines makes no secret of the fact that ownership of land in the Philippines is reserved for Filipinos … many Americans seem to want to ignore this fact, but you can’t fault the country for not being open and upfront)

Millions of Americans have retired to Mexico but depending on where you live the crime rate has risen to dangerous levels and some retirees have been forced to hire bodyguards for protection. ….

(I can’t imagine living in a country that made me feel I needed a bodyguard.  Bodyguards in the Philippines, BTW are not uncommon, but in many cases they are much more of a status symbol for rich Filipinos than something really necessary because of crime.  And sad to say, in my view, at least 90% of the crimes of violence, involving foreigner or Filipino I have learned of over the past 10 years have a bodyguard component … often the bodyguards are the criminals … not necessary here in the Philippines and not recommended)

Belize, Panama, Honduras and Nicaragua also have a good sized population of U.S. retirees and they actively court American retirees by offering tax-free status to anyone willing to buy or build a house there.

(Philippines does not tax your foreign-earned income .. no need to buy a house to get the tax advantage.)

Moving to Brazil is great choice as it is relatively inexpensive and has much to offer with regard to climate and amenities but Brazil’s murder rate is four times that of the U.S. (This has been argued many times but in most people’s views, Philippines murder (and other violent crimes) rate is much lower, per capita, than the US)

Excellent an inexpensive health care is available in France. Insurance companies there are prohibited by law from dropping you or raising your premiums. (Excellent that this is pointed out here, health care is often a huge decision factor for Americans.  The US is stuck at 37th world-wide, France is a clear number one … best in the world, hands down.  If health care were really as important as many older Americans _say_ it is, they’d move to France)

Thailand also has good quality and affordable hospitals and Thailand’s "O" visa is available to any American retiree with at least $24,000 in the bank and a minimum of $1,935 in monthly income. (Equivalent Philippines SRRV requires as little as $10k in the bank and $800 a month income.  Thailand and Malaysia get the press regarding their visa programs, but the Philippines provides the real benefits.  You can also stay in the Philippines up to two years on a simple tourist visa .. Thailand require “visa runs” for every extension now … if the army hasn’t closed the borders.)

Australia is a particularly good choice for many Americans as it is relatively inexpensive, English is the native language and it offers most of the amenities retirees are seeking; however Australia’s "investment retirement visa" requires that an immigrant have at least $56,000 in annual income ($43,000 if you settle in a rural area) and you must be prepared to invest a minimum of $650,000 locally ($430,000 in a rural location). (Wow!  if I had that kind of income, I’d live in Pacific Heights in San Francisco … or on a yacht)

…

FORBES has created a list of ten top countries for Americans retiring abroad.They considered costs, safety, medical care, ease of obtaining a visa, political stability, public transportation and availability of flights home. Their winners: Austria, Thailand, Italy, Panama, Ireland, Australia, France, Malaysia, Spain and Canada.

(Again, no big surprises there except Canada … with their tax structure, cost of living and proximity to the US I can’t imagine an American retiring there … the retiree flow south rather than north is about 100 times higher than the south to north flow … but Canada is way too much like the US to me to consider moving there.

And no surprise about Austria either, I had the chance to meet regular reader John from Austria a few months back and got some interesting insider information on Austria … a nice place for retirement if you can stand the cold.

But my thought again is, why Malaysia and Thailand yet no Philippines on the list?

Thailand (when they aren’t burning Bangkok to the ground or warring with their neighbors) is a fine country … I’ve lived there two years myself, but for retirement, Thailand versus the Philippines?  Philippines wins hands-down … peace and order, cost of living, ease of keeping a visa, driving, language and a whole lot more … and I say that being able to live in either country … I even still speak more Thai than I do Tagalong   Retire in Thailand in today’s world?  No way.

Malaysia I haven’t yet gotten to know, it’s reputedly a nice place for retirement, but from a practical standpoint, like visa availability, costs and such, the Philippines is much more retiree-oriented.  One big difference often touted is, “You can own a house in Malaysia.”  Well, actually, you can own a “villa” in government approved communities and the ownership is a form of condominium contract … a foreigner can not own the land in either country and in the Philippines I don’t have to be herded into “government approved” concentration camps compounds.

In my view, the Philippines BADLY needs a decent public relations/advertising agency firm when articles like this one are the norm.  The advantages are here, the country is just not getting the word out.)

And just in case this economical talk made you think about how you could still afford to fly if you started living Dave’s Cheap Life, you might be interesting in this:

"If you are planning a vacation, wish you could visit distant family or just want to see the world then my guide is for you. I give you all the essentials on how to get Extremely Cheap Flights , tell you the scams to avoid and reveal all of the biggest money saving and confidential insider secrets the airlines have threatened me to keep silent about…"

It’s pretty clear to me there are a lot of folks out there “flying blind” and in some cases they are going to run right past important life choice deadlines and decision points, never having taken the time to find the proper path through the alphabet soup.

Recently a reader wrote in with some questions.  Here are some answers I provided, many are of general interest, so I republish them anonymously here:

One concern this reader has is about the “Stay Navy” retirement calculator I link to here at Retired Pay World.

The Navy site “throws” a warning about the security certificate when people visit for the first time.  You can see my explanation below.  So far as I am concerned it is perfectly safe, but I can’t control how the webmaster there chooses to run his/her site.

Here’s the issue with that warning.  Sad to say, most government computer systems administrators refuse to buy the commercial security certificates the rest of the world uses to certify their web site ownership.

They seem to figure that since you wouldn’t get these security warnings if you were coming to the site via a computer already inside the military (.mil) domain, you wouldn’t get these warnings they can ignore the civilian side of the equation.  I can assure you I use that site all the time and there have been no problems with it, but especially in a work situation you need to talk with your local systems admin/network security guy.

You can give that site an “exception” after the initial message about the security certificate and it will work normally ever after, but right now, like a lot of things military, the situation is what it is.  Sorry about that, it’s outside my control.

Now let’s move on to the real questions.  Are you a retied active duty member or a “gray area” retired reservist/guards,am waiting to draw retired pay at age 60?  Your statement abut TRICARE starting at age 60 makes me think you might be a reservist, but I can only guess.

If you are retied from the active forces or retired from the reserves and drawing pay, the good news is, TRICARE “Standard” is free for life.  It’s a benefit given to retirees to make up for what many call the “broken promise” of free medical care for life that used to be made to servicemen.  My personal experience with TRICARE in the States has been good. I had a very good health care plan through my Federal Civil Service retirement, when I went to the doc I always showed them my military retied ID first, they made a claim to TRICARE and I used my federal plan to cover most of any difference.

TRICARE also operates a very economical Mail Order Pharmacy, which is also free for life.

The bad news is, at age 65 you will automatically be signed up for Medicare Part A (hospital care) and Part B (doctors and other outpatient care).  Part A is free, Part B costs … this year it is about $110 a month.  Part B requires a monthly premium for life.  But Part B is optional.  You can decline it and you won’t be charged.  Two factors to consider

Your company’s medical insurance (which you hint that you are considering keeping) … may essentially require you to have Medicare Part B.  Typically health plans expect that over 65, you look to Medicare to provide care first, then the commercial company “picks up the slack”.  You need to explore this issue with them … can you even keep the insurance in retirement without Medicare Part B. and specifically, what will it cost?

Second factor … TRICARE.  remember I said it’s free for life?  Well, technically TRICARE itself _is_ free, but at age 65 you will automatically be converted from TRICARE Standard to TRICARE For Life (TFL).  TFL requires you have Medicare Part B … works the same as most commercial plans.  You see doctors of your choice, you submit through Medicare and what Medicare doesn’t cover, TFL will.

It sounds to me as if no one has explained TRICARE to you very well.  You may want to start here: http://www.tricare.mil/mybenefit/ They have a world of information available thee … there are other “flavors” of TRICARE aside from the standard plan you are automatically under now which are available to those residing in the US.  There are also many supplementary plans that add on to TRICARE through organizations like the Reserve Officers Association (ROA) http://www.roa.org/site/PageServer Non-Commissioned Officers Association http://www.ncoausa.org/ and other worthy groups.

Hope this will be of some help.

Best regards

Dave

MSgt, USAFR (ret)

Well, I can “Assure” you I didn’t … misusing “Insure” in that way is what we used to call in the old technical training business and “An Attention Step” … part of every good lesson plan.

The reason I chose this topic and headline is that I’ve been getting tons of queries and information from folks about all sorts of insurance in the Philippines.

I also hear a lot from readers who want to move to the Philippines and would do so tomorrow …except they are broke.  And it’s surprising how many of those ‘broke’ stories all too often involve insurance.  Seems to me there is a great opportunity there for someone to sell insurance against going broke

Now, so far as I know, there are no legitimate insurance plans that insure you against going broke … but it seems to me these days that it is the insurance itself that is killing our country.

In just the first few minutes of research on what Americans are spending on insurance I decided to break things down into some of the common burdens people seem to take on willingly, often without a single thought,

Number one on this list .. yeah, you guessed it … Heath Insurance:

WASHINGTON — An average family health insurance policy now costs more than some compact cars, and four in 10 companies will likely pass more of that expense on to workers, according to a closely watched survey of businesses released Tuesday.

The average cost of a family policy offered by employers was $13,375 this year, up 5% from 2008, the Kaiser Family Foundation and the Health Research & Educational Trust survey found. By comparison, wages rose 3% over that period, the study said. .. Read the full article on increases in health insurance costs here.

As the article said, that’s more than the cost of some small cars.  It’s not only an obscene (IMO) figure, but it is many times brought on by the intended beneficiaries themselves.  Insurance seems to have become like crack cocaine to America.  Gotta have it, no matter how much we really need it, or how bad it might be for us.

Not too long ago I was talking with a Fil-Am couple I know who lives in the US.  The subject revolved around their possible return to the Philippines to retie in the not too distant future, and insurance came up.

This couple .. in their early 50’s, no small children, are both decently employed in semi-professional jobs.  The woman shared with me some astounding (to me, anyway) total costs for their health insurance.  When I asked her to tell me more about what they actually had … what all that money was going for … one of the things that popped up immediately was that between the two of them they had 3 different Dental Plans.

Now I’m no dental health care maven … my local dentist knows I am long overdue for routine cleaning and checkups … but I know dental care is important … and out of pocket costs can be high.  I asked how often they visited the dentist.  The answer was, neither had been in years!

The idea of two middle aged people eating and living in the USA, with no particular health problems, needing three separate dental care plans just kind of floored me.  Although part of each plan was paid for by their employers,the annual cost came up to nearly a month’s worth of Philippine living expenses … if they lived modestly.  Sadly, the real tragedy is, like the majority of dental care plans I have seen in my life, they were all three, close to worthless.  They pay so little in terms of modern-day costs that the overhead of having them around and the annual costs just doesn’t seem worth it to me.  Especially living here in the Philippines.  Here is just one Philippine dentist (in Davao City) whom I know does good work for foreigners in the Philippines … there are thousands of others to choose from.  Compare those sample prices with what you pay in the US, and tell me why it is worth carrying ANY dental insurance in the US … unless you don’t have a passport.

I can clearly see this is going to turn into several articles … because the obscene rates for insurance and the propensity I see in Americans to massively over insure certainly deserves further treatment.

Here’s a rather astounding graphic I came across looking at insurance prices.  I urge you to click on it and see the breadth and scope of just one web site’s offerings.  You folks back there are buying and paying for types of insurance I didn’t even know existed.  Amazing.

Couple closing thoughts … in reference to my post about retirement planning a few days ago.  Health insurance doesn’t mean you live longer.  We all die, and most of us eventually die from some health condition.  Will paying$13,000 USD per year or even more assure you you will live longer that someone paying $1,000 USD per year in the Philippines ?  (got any facts to back up your opinion?)

Remember, when considering quality of health care .. the US is number one in only a single area … costs.  In terms of medical care quality .. as reported by the World Health Organization (a UN and thus largely US-funded independent third-party evaluator), the US ranks a dismal 37th world-wide.

Remember too, when thinking about buying this, that, or the other sort of insurance.  You can’t afford to insure against everything … and it often doesn’t make any sense to.

Life consists of risks and choices.  It makes sense to insure against certain risks … and each of us owes it to ourselves to “assure” ourselves that the choices we make on what risks to “Insure” against make sense … as always, YMMV.

One of the better actors on the show was Edie Falco who played Carmela, the wife of the central character, Tony Soprano. One of the many writers devices used to give Carmela’s role some depth was to give her an appropriate, pithy saying to deliver every few episodes …just to show there was more to Carmela than a suburban housewife who mostly was able to ignore how her husband came by his money.  Sometimes these little “Carmela-isms” would fund their way back into later episodes of the series.

One “Carmela-ism” I always remembered was advice she gave her husband when they were mulling over the purchase of a luxury home “down the shore” (If you’re from New Jersey, no need to elaborate on where that is).

After seemingly trying to talk Tony out of making such a big expenditure, “Carmela” left him to drift off to sleep with these words …

“More is lost by indecision than by wrong decisions.”

It’s clear to me now that Carmela might just as well have been talking about retirement in the Philippines.  It surprises me in a way how many people write me personally or leave comments here at PhilFAQS who don’t really have specific questions … but instead want someone to ‘tell’ them if they should or shouldn’t retire to the Philippines.

To “do it” or “not do it” is, no doubt, a big decision, but it is hardly the most momentous of decisions and very seldom is it worth the agonizing so many of you seem to go through.

I’ve mentioned before, it is not really all that more difficult a decision as if you lived in California and were trying to decide on a chance to move to New York.  I mean; if you avoid burning bridges and going deeply in debt, what’s the worst that could happen?

You find out that after you live there a while you hate it, so you move back to California?  I mean really, not the sort of thing that will scar you for life, you know.

Here’s a conversation related to me by a friend of mine who is a senior airline captain, now retired.  It involves my friend, who was the captain on that flight, (one of his last before he retired himself), his younger copilot Bob, who automatically assumed the role of so many of your own friends and family in trying to find any way possible to convince you not to break with the ‘do nothing’ status qo, and Ted, another senior pilot, ‘deadheading in the cockpit on the trip, who had just announced he was taking early retirement.

Bob asked, “What in the world are you going to do?  If you leave early the retirement system they set up post-bankruptcy won’t pay you enough and things like your health insurance won’t be covered either.

Ted and I looked at each other and smiled.

“Son,” Ted said, “it is better to retire young and live poor than it is to retire at whatever age they allow you to and die with health insurance (my emphasis). I just got to the point where none of this is fun anymore and decided that quitting early and hanging out in Palm Beach (or he might have said Davao City or Subic Bay) for the next 30 years was a far superior way to live than dying in a hotel room on a business trip I didn’t want to be on of old age in five years.”

So what will you do?  Work five or 10 or 15 more years in order to make some insurance company happy?  Pay more per month for long term care insurance than a month of living in the Philippines will cost, or will you finally, indeed, “get off the pot”?

“More is lost by indecision than by wrong decisions.”

Table of contents for Why Chose the Philippines

1. Why Choose the Philippines — Intro
2. Is the Philippines Really a Potential Retirement Destination?

I know, you’ve likely hear this question a time or two before.

For some who are going to read this who can’t separate the image of old men drinking themselves to death in bars while “ladies of the evening” (very young ladies at that) pick their pockets) from the many other ways to spend a retired life, then it’s likely that the answer to the Retirement Destination question is “NO”.

I always attempt to give you the straight answers to questions here on PhilFAQS, the site that answers your Frequently Asked Questions about the Philippines.  I don’t “sugar coat” anything.  If I tried to tell you that there are old men making a fool of themselves in girly bars here, you’d know I was lying, and where would my credibility be then?

But I can also tell you that the “old men” (and even the not so old ones) who see the Philippines as nothing more than a place to act out immature fantasies are far, far from the only foreigners living here in the Philippines by choice.

In order to form your own answer to the title question properly, you have to look at things in balance … because those of you who think there is, for example, no “sex trade” or “foolish old men” in their own country must be looking at the world with blinders on.

Now I’d propose that one of many decision factors that should be thought through is, does the government of the Philippines make it relatively easy and affordable for folks to retire here in the Philippines.  Some of you may recall I haven’t delivered (yet) on a promised series I started some months back which was going to answer the question “Why Chose the Philippines”.

You can consider this article as an ongoing installment in that series.

Is it relatively inexpensive for folks of retirement age to relocate to the Philippines?  Yes, indeed.  In common with two other notable retirement destinations we are going to talk more about … Thailand and Malaysia, the Philippines has a very flexible and affordable long-term visa system in place … it’s called the SRRV … Special Residents Retirement Visa.

I’ve mentioned the SRRV many times before here on PhiFAQS but today I came across a neat resource that actually is brand new.

Some weeks back I met (online only, so far) a fascinating lady named Susan Dudley.  Ms. Dudley has lived and worked in the Philippines for years, and even though she is officially retired, she’s taken on a new role … marketing the SRRV via the excellent resources of the Subic Bay Freeport Chamber of Commerce.  Ms. Dudley, welcome to the PhilFAQS “club”, and let me be the first of I am sure many from this site in the future who thank you for helping sort out the information in this many faceted program and offering yourself as a resource for people who want to learn how to do retirement “right” in the Philippines.

Now before I close let me be quick to emphasize a could things that people always seem to breeze past … and then prove by their comments that the never actually read the article itself.  (I know that doesn’t apply to “you)  but you’d be surprised how many people do just ‘scan’ rather than read and then let go with both barrels restating a lot of inaccurate, or at best, semi-accurate statements that have been floating around since before even I started reading and writing about the Philippines.

First of all the SRRV is for people of retirement age.  Although some “flavors” of the program allow visa holders to work here in the Philippines, a lot of opportunities don’t exists for younger, actively working folks who might well be better served with a Foreigner Working Visa.

Secondly, the SRRV is not a program for those who are penniless.  Some versions of the visa require a substantial investment, all require some investment and financial responsibility.  I always advise people not to come to the Philippines without at least a modest cash reserve as well as a proven way to earn more income.  The SRRV will not be for you if you’re broke .. for rather obvious reasons.

Third, the SRRV is not needed for folks who qualify for a “13” series visa .. married to a Filipino or former Filipino citizen.  There are some special cases where even those who qualify for a marriage-based visa might benefit from the SRRV, but in the vast majority of cases the SRRV offers a similar path to retirement as the 13(a) and 13(g) permanent resident visas for those not married, or not married to someone who can sponsor them in the 13-series programs.

Lastly, the most glaring inaccuracy I hear all the time is, “The Philippine government is selling you a visa and once you get in the program you have lost all your savings.”  Stated simply, that is just not true.  The money you invest to qualify for the SRRV program is always yours.  You decide where to place it (within approved programs), and if you decide the SRRV program is not for you, you can pack up and move somewhere else, taking your investment back with you.

Note:  An expert weighed in here and pointed out a couple of things in the preceding paragraph that could be more clear:

….  folks should be aware that, if they DO utilize their investment for any of the authorized purposes, (house, condo, etc) they will be subject to paying PRA a hefty annual “visitorial fee” .

The other point is, they are not compelled to use the invested $.  In my case, I bought my house some time ago … the SRRV $ just sits in the bank and I collect the monthly interest …  As long as it remains, I get to keep my SRRV – no additional fees, charges or complications.. no annotations against my property.…Maintaining the SRRV $ intact is almost like placing a surety bond…

The SRRV … is it for you?  Only you can make that decision, but a big vote of thanks and a tip of the blog hat to the folks at the Subic Bay Freeport Chamber of Commerce for providing some extra help in making that decision.

If this is your first time reading this, I encourage you to read the whole article, because I spend a little time there explaining why accurate, up-to-date costs may not be all they seem to be.

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Courtesy Yugatech.com, a really useful source of info in the high-tech world here in the Philippines.  If you follow yuga, and you are from the USA, be prepared to learn that tech items in the Philippines are along way from what your concept of a “third-world” country may be….

Let’s look at how much a 1Mbps to 3Mbps residential DSL costs nowadays:

PLDT myDSL 2Mbps: Php1,995 (DSL only)

Globe Broadband 2Mbps: Php1,995 (DSL w/ free Landline)

Bayan DSL 1.5Mbps: Php1,699

Sky Broadband 2Mbps: Php1,999

From the list above, we can see that all of the current DSL offerings that’s “up to 2.0Mbps” have prices ranging from Php1,699 to Php1,999. That should give us what’s the current market prices that’s acceptable to broadband consumers.

Now let’s look at a rundown of unlimited mobile 3G by the networks and see if the prices are cheaper or not:

Sun Wireless Broadband 2Mbps – Php799

SmartBro Plug-It 2Mbps – Php999

Globe Tattoo 2Mbps – Php1,200

It’s pretty obvious now — 3G internet is now way cheaper than DSL. Remember when unlimited 3G used to be Php3,000 per month? That’s a price cut of 60% in 2 years. It doesn’t even consider the fact that 3G speeds used to be 384Kbps. I’d say 3G internet has become 92% cheaper if we take speed and price considerations into account.

Even at current rates, a 2Mbps unlimited 3G subscription is 60% cheaper than an unlimited 2Mbps DSL line. The only reason why people still think it’s expensive is that they don’t use 3G internet as much as they do with DSL.

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In addition to the ever popular “Jobs For Foreigners, Philippines” search term, a great many of my queries here in the website, and in my mail box involve the “Cost of Living, Philippines”.
I write about this often, and even publish pretty complete personal cost data for living in the Philippines.

Philippine Cost of Living Questions

But as we say on the Internet, YMMV (Your Mileage May Vary).  One of the most difficult questions I get involves something like “How much for a modest lifestyle”, or “Can I live in the Philippines on Social Security”.

The answers are not difficult at all in actual financial or numerical terms, but they are very difficult in what I might suggest are “difference between you and I” terms.  A “modest lifestyle” as I conceive it might translate into something totally different in how you may conceive it … and neither of us would be right or wrong.

I know of no way to reconcile this issue.  People are different, (thank God) and I guarantee you, even if I exchanged homes with you for say a year, the amount you would spend over time living here in my home, and the amount I would spend if I were living back there wherever you are today, would differ significantly.  I can say this, with a certainty.  My wife and I spend a heck of a lot less here in the Philippines than we spent for a modest life style in Colorado, USA.  But we could also spend a lot more, if we chose to.

I think my dear wife, the Unofficial Cook, said it best when we were discussing this the other day.  “We have more options here.”

Now one point of actual comparison I do like is something I have written about here before … the “Big Mac Index”.

Before you tell me “I don’t like McDonald’s” or “I’m a vegan” or all the other manifold and myriad reasons this index is flawed, let me tell you why it has value and why The Economist, perhaps the most useful and prestigious international magazine of finance (highly recommended, by the way) has bothered to compile data and run these features for more than 24 years now … they mean something.

There are very few products sold in so many countries so much alike as the ubiquitous Big Mac.  Even if you never buy one, knowing what a Big Mac costs in any country gives you a very useful snap shot of day-to-day costs in that country, without getting a headache or having to pull out an economics textbook.

If you look at the chart here, you can clearly see that in the Philippines a US dollar will buy close to 60% more “Big Mac” than it would in the USA … or, conversely, that the cost of living on Big Mac’s alone here in the Philippines is roughly 40% of living exclusively on Big Mac’s in the USA.  I don’t recommend such a diet, but if you needed to, you certainly could buy a lot more here in the Philippines.

Now, regarding that other difficult question … “Can I Live on Social Security in the Philippines”?  I think the best answer is, “If You Can Live On Your Social Security, You Can Do So in the Philippines”.

There are many programs under US Social Security, and may variables in each program …(some don’t work overseas, also, so be advised to use www.ssa.gov rather than a lot of on-line pundits, like me, to base your decision on).  Your case is different from mine and ours together are certainly different from Freddie’s down the street.

Just the simplest form of Social Security income … your retirement benefit … can vary from under $310 USD a month (oh yes, they do go that low, mine is) to over $2300 USD a month.  So can you live on your Social Security income?  I can’t tell you … I can tell you the cost of things, you have to tell me if you can live on yours in the Philippines.

One of the things that will prove very different to you here is, there is a much broader spread between what you may chose to spend each month and what you have to pay each month, just to “keep the lights turned on” in a typical US home.  personally, I enjoy the flexibility which I didn’t feel I had back in the USA.

A large percentage of the folks who find their way here to PhilFAQS, where you get the answers to questions about living in the Philippines, come here on the phrase “jobs for Americans in the Philippines”, or “foreigner jobs, Philippines.”

Consequently, I write a fair amount on this broad subject, even though I really don’t want to … what can I say, I’m a “pleaser”, I want to give people what they want.

Truth be told, though, the job market here in the Philippines is not well suited to a great many foreigners, and many of you are in a position where I can’t be of much service.  Some people even get nasty with me over this … as if I were somehow sitting on a cache of conventional “9 to 5″ jobs here and refusing to let the word out.

I try not to take offence at the frustration or sarcasm, tough, because I know a lot of it is driven by very real problems in the US these days.  It’s no secret I advocate “building your own job (or more accurately, your own source of income”, because I belive that the “job”, in the concept that most of you reading this have, is an item of the last century.  No matter what happens in the US economy, “jobs”, the way our fathers knew them, are dead and gone.

Here’s a couple rather disturbing excerpts from my friend Don Brown’s Get the Flick blog that show me (and you, if you are willing to learn) just what handwriting is on the wall for US jobs over the foreseeable future.

… It’s one of the central points of Mr. Phillips’ book. Nations that start making most of their money off of playing with other people’s money (instead of producing something) soon decline. He makes his case with the latest empires to dominate history — Spain’s, Holland’s and the British Empire. Each grew wealthy from exploration, innovation and manufacturing. Each declined when finance grew larger than other productive endeavors. In America, manufacturing swapped places with finance in the 1980s . In 1950, manufacturing was 29% of GDP while finance was only 11%. By 2005, manufacturing was only 12% of GDP but finance was over 20%.

To make those numbers a little more real, Mr. Phillips also provides a contrast in pay. Or should we say, “executive compensation” ? In 1981, the top spot belonged to a Mr. Genin of Schlumberger. $5.7 million. By the year 2000, it was Mr. John Reed with Citigroup. He made $290 million. Now we have numerous hedge fund managers making a billion plus a year. Lest I forget to make my point — oil field services (Schlumberger) to finance (Citigroup and hedge funds).

In 1981, the minimum wage was $3.35 and hour. In 2000, it was $5.15 an hour.

$3.35 to $5.15 — is over 1.5 times as much.
$5,700,000 to $290,000,000 — is over 50 times as much.

If the minimum wage had kept up with “executive compensation”, the kids at Burger King would be making right at $170 an hour. Let me write that out for you — one hundred and seventy dollars an hour. …

The bottom line is, the US worker has bene exploited for the majority of the 20th century and the downhill slope is getting even steeper.  Don’t look for “big business” to bail things out, job-wise, because the “great recession” is nearly over for the rich … stock market is up, hedge funds are making money hand over fist, but the guy who builds Chevies for GM … whose executives are paid obscene amounts, has had to take pay cuts and lose medical benefits.

photo credit: jjsink

I got a kind of chuckle … a sad chuckle .. a few weeks back when President Obama was in China and called upon the Chinese to but more US made goods.  I didn’t laugh because of any political leanings, or because I don’t like the president or anything “Fox Newish” like that.

I laughed, derisively, because what the hell does he think the US is making that Chinese or anyone else wants to buy?

(You might like to read an article I wrote on this concept of producing tangible “things” rather than imaginary paper,a few months back .. I’d like to add that my tire gauge is still with me and still gets noticed big time whenever I check my air … an actual piece of metal evidence that the USA once was a producing nation rather than a paper shuffling nation of licensed “Hide the Pea” fairground hucksters.)

So what’s your point, Dave.  Is this just another thousand words oor so of rant?  “I want a job, dammit, I don’t care what Brown, and you and the rest of you old retirees have to say.  You got yours, now let me get mine!”

Fair enough.  What if I told your there were hundreds and thousands of jobs … decent paying ones … in the US right now, often going begging?

Jobs that might pay enough benefits and have enough retirement so that you could go to the Philippines someday … without needing a job here?

Go take a look at another friend of mine’s site.  Mike Rowe Works Be prepared to spend quite a bit of time there, if you really want a job, that is, or if you want to improve upon the one you are afraid of losing right now.

Fair warning though.  These are not white-collar “three-card monte” jobs.  The majority of them have some physical labor involved, and most of them are also based upon production .. in other words at the end of the week, products have to be visible t the naked eye .. or to the tape measure.

Also, very few of them involve sitting at a desk reading web sites when you are supposed to be working (caught ya, didn’t I? 

While Fox News, and Sarah, and the Perky One and the rest of the talking heads Americans seem to look for to furnish their thoughts these days want to tell you the solution is to pay more crooked bankers more bonuses and suck it up if you can’t find a job, heres’s a TV personality who not only knows where the jobs are, but spends his own money to help you find them.  Hat’s off to you, Mike.