user199 wrote: ↑
Tue Oct 30, 2018 12:36 pm
I am a single male(intent to stay single early 40's with savings around 200k all in a savings account currently.
i am looking to move abroad and retire preferably puerto vallarta mexico and intent to live a modest simple life.
expect my monthy expenses to be around 800-1000$ per month.
wondering if have enough savings to make this happen and also how to invest this amount to get the required returns.
Like most, I don't think you have enough. Most of the people here are fixating on some sort of withdrawal rate that you will take each month/year, but that is the absolute wrong way to look at this situation. You shouldn't be setting yourself up to withdraw anything, but setting yourself up to live off the income, but I dont see how you can do that with $200k. At 3%, that is $500 a month, not enough. At 6%, that is $1,000 a month, not enough. Nope, you need to save more it is that simple.
I have been planning my move abroad for 10+ years. Don't forget "setting up" money. You will need a small bucket of cash to get settled. I plan to take $10K with me for this. If you don't have this you are going to have to take that from your little "next egg" and anything you take will reduces your income going forward. There are a LOT of expat blogs and youtube channels (pick your destination) where they share real expenses and all the ins-and-outs for your particular area. Vietnam, Thailand, Philippines, Mexico, you name it, there are bloggers already doing this and sharing what it is like.
If you can get to $500K, and get 4%-5% (not hard to do), that is $1,600 to $2,000. Also, if it turns out you dont like it, want to move elsewhere or back, you still have the nest egg. Just keep that intact, and get yourself into a position where you can pay your expenses via dividend or interest income. I am not familiar with Mexico, but most SE Asia areas you can do quite nicely with $1200-$2000. My target has always been $1,500/month, but I am up to $1,900 and I won't stop saving until I pull the plug. Also, I am not far from SS, so that will add another $1,500 a month or so, but you are too far off age wise to count on that.