The “baby boomer generation’s” dreams of retiring to and maintaining a comfortable lifestyle in a great paradise location (like La Paz) has come to realization. Retirees are heading down to Mexico to take advantage of reasonably-priced health care, food, transportation, entertainment, travel and benefit from affordable home ownership costs – maintenance, mortgage, insurance, utilities and property taxes. This is the New Math for Retirement.
For some, a revelation takes place after their financial “check up”. Do you have a dream to live in ‘paradise’? Why not make La Paz your primary residence? How much could you sell your current home for? What could you buy as a replacement in La Paz? Here, you can purchase a home or water view condos starting around $150,000. By selling there and buying here you are applying the New Math for Retirement.
Compare home ownership costs. Start with one element – property taxes. My friend, who owns a half million-dollar-La Paz-home recently paid his 2012 property taxes – $325. He sold his US home for $600,000. His annual property tax bill for that home was $6,500. The $500 per month saving works well for him in maintaining a comfortable retirement lifestyle.
Now compare other cost of living expenses. How about health care? Did you know that you can purchase an individual Mexican health insurance policy for less than $400 per year… not per month? The quality of health care in La Paz is very good. Recently, my friend, who just moved here and does not have insurance, got the flu and went to a local clinic. 45 minutes, English speaking doctor (cost $40 pesos – a little over $3 US) and prescriptions filled next door ($97 pesos – $8 US). How does this compare to a visit to your doctor back in the US?
How about food – groceries and eating out? If you insist on brand names and top restaurants you will not experience a big savings. However, once you get to know La Paz you will find great local grocery stores and terrific, affordable restaurants. For example, my friend and I love shrimp tacos. So we go to Pepe’s on Prieto. We each have two shrimp tacos and a drink. Total bill – $76 pesos ($6 US) for both of us.
As much as I disliked the New Math when going to school in the 60’s, I love the New Math as it applies to affordable cost of living in La Paz.
By the way, the rumors are true… summers do get a little warm in La Paz. If you need a break from the summer heat… take a “vacation”. Visit family and friends or travel to some other exotic location… after all, you can afford it… simply by applying the New Math.
Jim Donahoe has been a licensed real estate broker for 30+ years, has consulted throughout Western Mexico for the last 9 years and has been a full time Paceno for nearly 3 years. Jim is the Broker Manager for Linda Neil Properties in La Paz.
Want to discuss your retirement dreams! Contact Jim Donahoe at LINDA NEIL PROPERTIES – You’ll be glad you did!