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Help me make my goal.

January 29th, 2007 at 07:07 am

My plan is simple - to retire early, and never work again. I have a five year plan to save as much as possible and live of the savings/interests for the rest of my life.

Laughing yet? The plan will look plausible knowing that I'm planning to retire in a tropical island in the Pacific, where the cost of living is very low.

How much do I need to retire for life? (I currently have about 30k in cash and 10k in a retirement fund.) I'm thinking i need about 100k in cash to retire for the rest of my life - tips,comments,help will be greatly appreciated.

I'll use this to help in making my dreams a reality.

Posted in Uncategorized | 9 Comments »

9 Responses to “Help me make my goal.”

  1. yummy64 Says:
    January 29th, 2007 at 01:21 pm 1170076871
    1170076871

    Wow! You have a great goal.

    You need to figure out what you need to live on in a year in order to figure out how much you need to save. You also have to take into account that if you can live on a say $10,000 in 2010 that each year following inflation will mean you need a bit more to live on.

    Do you have things like medical insurance figured into your plan?

  2. campfrugal Says:
    January 29th, 2007 at 01:35 pm 1170077713
    1170077713

    Housing costs are, from what I hear, expensive on tropical islands, unless you are planning on building your own hut. Check out Mel and Bob Blanchard's "Live What You Love" and a "Trip to the Beach" books. There is a website for "Live What You Love" and they also own a restaurant "Blanchard's Restaurant" which also has a website.

  3. Broken Arrow Says:
    January 29th, 2007 at 01:40 pm 1170078033
    1170078033

    Welcome, um, fool.

    The plan does sound kind of crazy. I suppose it depends on your age as well, since directly reflects how long that money will need to last.

    I have heard of such a plan before... to move to somewhere with very low cost of living and "retire big". And believe me, it's not like I've never given such a move some thought before. Big Grin

    Well, if you're hip to the idea and the numbers fit, then... I don't see why not? Best of luck!

  4. davidg Says:
    January 29th, 2007 at 01:44 pm 1170078296
    1170078296

    $100,000 gives you $5000 a year to live on at 5% interest. The problem with predicting more than that (such as the stock market) is that you could lose money several years which would severely hamper your goal.

    Don't want to put a damper on it, just think that $100k is not going to be enough even in a cheap paradise.

  5. Ima saver Says:
    January 29th, 2007 at 03:22 pm 1170084151
    1170084151

    We lived on $5K a year when I was first married, but that was in 1965. What Island is that cheap and won't you get terribly bored?

  6. fern Says:
    January 29th, 2007 at 04:57 pm 1170089843
    1170089843

    I hate to burst your bubble, but $100,000 will not last you the rest of your life.

    Have you ever calculated what your total annual expenses are for any given year, including housing costs (rent or mortgage), phone, electricity, heating oil, food, health insurance, not to mention all the discretionary things all of us need once in a while, like diing out, going to a movie, etc?

    There's no escaping most of these costs, regardless of where you live.

  7. laceshawl Says:
    January 29th, 2007 at 07:11 pm 1170097883
    1170097883

    There are a lot of Pacific Islanders where I live. They tell me they immigrated here because there were no jobs in the Islands, they wanted better education for the children, etc. Generally the standard of living in the Islands is low. You can live very cheaply if you live like the natives, but if you want conveniences like electricity and running water, you will pay the same price as in Western countries.

  8. fern Says:
    January 30th, 2007 at 02:34 pm 1170167669
    1170167669

    I don't think many Americans would consider electricity and running water "conveniences."

  9. dreambig Says:
    March 19th, 2008 at 09:21 pm 1205961716
    1205961716

    I have this same dream and have been running the numbers, i'm 38 and should have about $300,000 by the time i'm 55. At 5% this amount would give me an annual income of $15,000. Also i've found out if i am a duel resident i.e. (USA/Rarotonga)i can still recive my social security at age 65. So i won't live like a king, but could sustain a nice life. Also other things to consider health insurance cost and if you find part time work that extra income would come in handy and would keep you from going crazy. As far as earning the money, work as much as you can now, invest into good dividend paying "blue chip" stocks (GE, PG, JNJ). And most of all don't buy anything you don't need (DVD's, plasma tv, etc...) because when it's time to move you'll have to sell most of it anyway. Well good luck to you, and maybe someday we will be sharing a bottle of beer together somewhere in the south pacific. Cheers

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