You can retire in your 20s or in your 60s. It doesn’t really matter how old you are, you can absolutely retire in the next few months.
You’re probably thinking one of two things: either you are seduced by the “get rich quick” overtones and want a piece of the action, or you want to find out what kind of gimmick I’m selling, and then expose me for the scam artist that I truly am.
Well I’m sorry to disappoint you people looking for a scam, because this is real. It doesn’t matter if you are 20 or 65, you can retire if you can just follow two steps.
How To Retire At Any Age
- Generate a small amount of passive income every month
- Move to a country where you can live on that passive income
As some of you may know, I’m going to Costa Rica for over three weeks this summer. You may not know that the Purchasing Power Parity (PPP) of Costa Rica is about $10,732, which is less than 1/4th of PPP of the United States at $47,123. This means that you can buy about the same amount of stuff for $10k in Costa Rica as you can with $47k in the US. Think of PPP like median family income.
That means if I could generate $1,000 a month in passive income, I could live in Costa Rica without working and have enough money to live a reasonably comfortable life.
If Costa Rica doesn’t do it for you, Brazil, South Africa, and Venezuela are a few other countries where your money could go roughly four times as far as it goes in America. Wikipedia gives you a convenient list of countries by PPP. Find a place you want to live (or at least spend some time), and then get to work on the two step process.
Step 1: Generate Passive Income
While it’s not easy to generate $1,000 a month in passive income, it’s not exceptionally difficult either. Lots of my readers have their own websites and make money on advertising. If what you’re making with your website is enough to pay for where you want to live, then you just have to maintain that website and you’re ready to retire. Maybe you have enough money to buy high dividend yielding stocks to give you the money you need. There are thousands of ways to create passive income; all you have to do is find one.
With that being said, people have written books, devoted blogs, and sold lots of crappy infomercial products about generating passive income. I’m not an expert on generating passive income, so if you want more information on how to execute this step, you can do a Google search and find more information on the topic from the experts.
Step 2: Move to Another Country
This, in my opinion, is probably just as difficult if not harder than step one. Moving to another country is not as easy as vacationing there. For example, in order to establish residency in Costa Rica as someone without social security or a pension, you have to deposit $150,000 into a Costa Rican bank. Once again, I’m not an expert on fulfilling requirements for moving to a different country, but if you know where you want to go then figure out what it will take.
If you are looking for something less permanent, you could try to travel to a variety of different countries without staying in one place for too long. Again it depends on the laws of the individual countries you want to visit, but you could probably stay 2-3 months in one country, and then move onto a new one. You could rotate between four or five countries and never truly establish residency anywhere; just be a guest in different countries indefinitely.
Next Step: Retire
I’m sure there are a lot of people saying, “Sure, you can retire to some far away country, and then have no friends or family and be miserable.” If that’s how you feel about moving, then this obviously isn’t for you. However, I live 600 miles from my mom and see her about four times a year. I live a few thousand miles away from my dad and see him about once every year or so. I could maintain this frequency of visits with my immediate family on just a few thousand dollars in travel costs. If you have a similar situation, then this could work for you too.
With these two basic steps, you are ready to retire. If you want to live a more extravagant retirement lifestyle, then you’ll need more passive income than just the median household income for the country or countries you want to visit, but the same concept still applies.
It’s really that easy. There’s only one question left.
Are you ready to retire?