Retire in the Philippines
Retire in the Philippines, with No Plan? Well, perhaps not exactly, “No Plan”, but, then again, a lot less “Plan” than many of you are beating yourself up with. I really think everyone even thinking in passing about retiring in the Philippines should give this article a ‘read’ and come back for a little “Retire in the Philippines” discussion, if you are still in the mood
… What on earth is that supposed to mean? It means expatriating without any plans is very difficult and, quite frankly, foolhardy, but those plans should be very flexible.
This title occurred to me after reading an article about how the combination of high inflation, low interest rates, poor exchange rates, and weak economies are making things difficult for many expats and soon-to-be expats. The article offered its advice, which I have distilled down to my “No Plan” Plan… read more about Julie’s “no Plan” plan … recommended … The “No Plan” Plan: Better Than No Plan At All
Retire in the Philippines — A Strategy
For those who don’t want to spend a lot of time reading, I’ll summarize Julie’s major points here, with the “Philly touch” where I fee it’s needed:
Retire in the Philippines — High Points
- “...the world is in a tremendous moment of flux, so the idea of locking yourself into a single course of action, such as selling your current property and immediately investing in property abroad, merits some reconsideration.” Time and time again I get contacted by people who tell me, “I hear what you say about the reasons that investing in property in the Philippines is risky and often a bad deal, but “I prefer” to own rather than rent.” OK, fine, I “prefer” to have hair, rather than be bald, also, but the situation is, it’s unlikely I’ll grow hair any time soon. You can wait until all factors in life align to suit your preferences, or you can use the “marbles” you have left in your jar (3900 Marbles and Government Health Care) to forge a retirement life that is “good enough”.
- “… Culture shock is one major factor that is very difficult to quantify, and how each individual will deal with it once they are abroad is in many cases unpredictable. The stress on families may be another huge issue that can hinder successful expatriation attempts….” I go through this spiel a dozen times a week it seems, but what can I do except keep repeating until it is understood. It costs less to live in the Philippines. The continual fixation on costs of things here in, in my view, the number one mistake most potential retirees are making. It is not the costs that will make or break your successful retirement. It is the cultural and family issues … no doubt about it. A Surplus of Riches — Or Comparisons of Riches
- “… A firm financial foundation is definitely a good plan, while investing in the learning of new skills, such as a foreign language, teaching English as a second language, professional translating, or a highly sought-after professional skill could be considered to be another kind of planning. ...” I write about this subject extensively as well. No matter your age now, you should be planning, today, how to empower your retirement. Whatever your plan for financial support in your retirement, my thought is, do not make yourself a “one trick pony”.
In my case, I have a generous government pension. But you know what? Even though it’s generous, it’s dwindling in real-world purchasing power. Looks like 2008 was going to be my highest pension income year ever. Now with no further COLA’s in sight, government-imposed pay freezes, boosts in medicare costs and contributions, there’s very little chance my income from the government is going to increase for years to come.
The way I look at it, there are two basic courses of action I can follow.
One is join the ranks of the other ‘chronically short on money’ retirees and commiserate with other ‘chronically short on money’ retirees … complaining again and again about “broken promises”, “missed opportunities”, the vagaries of whichever political “color” happens to be the one we hate or hold responsible for the current situation, and so on. Frankly, although I don’t think about suicide very often, that course of action makes me daydream about handguns and just one bullet … not very appealing.
Or. I can do what I’m doing now. Take charge of my own life. Work to empower my own retirement, help others along the way, and do (what I am currently on track to do), make myself independent from political handouts (which often come with a huge price).
So what’s your strategy to Retire in the Philippines (or wherever your dream location might be)?