Older Americans who are deeply concerned about their financial future

I just looked at the November 2008 edition of the AARP Bulletin. The feature article talks about older Americans who are deeply concerned about their financial future. I found it interesting that moving abroad to a country like Costa Rica was never mentioned as an alternative. In almost all of my previous articles I have talked about  the practicality of retirement in here (affordable medical care, inexpensive hired help, low cost transportation and  more). Costa Rica is one of a handful of places in the world where you can easily reduce your cost of living without sacrificing your lifestyle. In fact, in most cases you will probably have a better better lifestyle than you did in the States or Canada.

Here are some of the questions from the AARP article.

• “The market has shaken me up. I’m worried about my nest egg.”
• “My money is tied up in a money market fund and in a brokerage account. Is it safe?”
• “What about my annuity?”
• “ I live on Social Security and stock dividends. Given the market, I’m worried about having enough money to live?”
• “My insurance only partially covered my post-op treatment.  I’ve been trying to pay off the balance. What should I do about my medical bills?”

This are only a few of the concerns that were voiced in the article.

Costa Rica just could be a viable solution for some of these people.

Many of shoe repair shops can also fix leather goods like purses and even canvas backpacks

One of the main reasons people choose to retire here is the affordability of the country. Utilities, hired help, public transportation, medical care and much more are a bargain here. Something I have never written about is shoe repair.

A few years ago I purchased a pair of Clark’s shoes in the States. Those of you are familiar with men’s shoes know that Clark’s makes high quality shoes. They usually cost over $100 dollars and are worth every cent of the price because of their comfort and durability.

A while back I noticed that the stitching had come undone on both of my shoes. This is because the humidity in most closets here can rot the thread. This can happen during the rainy season, especially when one doesn’t use a pair of shoes for a couple of months. Fortunately, shoe repair in Costa Rica is very inexpensive. This is mainly because the locals can’t afford to buy new shoes each time a sole wears out, a strap breaks or some other shoe repair is needed.

In downtown Heredia, about a mile from my home, there are two shoe repair shops. You enter and there are hundreds of shoes scattered all over the place. They have a system of labeling the shoes so you don’t have to worry about them getting lost or misplaced. You enter, they examine your shoes and they tell you how much it will cost to repair them. Repairs seldom cost more than a couple of dollars. The shoe makers here are very cleaver when it comes to fixing shoes. They can repair almost any type of shoe. The only down side is that they have so many customers you can’t get your shoes fixed on the spot.

Back to my pair of Clark’s shoes. I left my shoes there for four days. When I got them back I noticed they were as good as new. The best part was that I didn’t have to spend over $100 dollars to buy a new pair. “When in Rome do as the Romans.” Here we do as the Costa Ricans and  save a lot of money.

By the way, many of these shoe repair shops can also fix leather goods like purses and even canvas backpacks. I even had a special wallet made to my specifications and numerous repairs done to other items I own like a suitcase.

I provide my client ancillary services and opportunities like this Lots With Panoramic Valley Views Building Lot.

Recently I had the opportunity to bump into two couples who had taken my relocation/retirement tour. James and Darlene were on the  Combination Beach and Central Valley Tour. The other couple , Ron and Carolyn, took my Central Valley tour. Both couples attended a dinner party for the clients on my October Tour. I invite former clients so they can share their experiences with people who are planning to come here.

The dinner takes place at the home of someone who has also made the move. That way my clients get to see an expatriate’s home and sample the lifestyle here. My tour participants really enjoy this activity.

Back to the two couples from the first paragraph. Both couples have purchased home and are in the process of moving here. They personally thanked me from the bottom of their hearts for offer my tour and all of the contacts that have help make their move successful. They told me that without my help they could have never made their dreams come true and change their lives for the better. I really felt flattered and told them that I was only doing my job. Ron and Carolyn invited the people on my tour to visit the beautiful home they built in Atenas the next day.

So the following day while touring the Central Valley we stopped at Ron Carolyn’s dream house. It has to be seen to be believed. The house has a 180 degree breathtaking view of the Central Valley with an infinity pool. Their interior decorator did a fantastic job. The place should be in a magazine with other beautiful homes. Ron and his wife were not there during most of the construction which in most cases isn’t advisable. However, I hooked them up with a person who supervised all areas of the construction of their home  and stayed constantly in contact with them to ensure things would be done to their liking.

This is just one of the ancillary services I provide my clients to make sure they have good experiences here. I have whole network of reliable and honest people with whom work which includes lawyers, real estate brokers, architects, decorators, builders, doctors, property management people, concierge services and more.

In Costa Rica you can reduce your month to month living expenses and live very well.

I was watching the CBS Evening News last night and they mentioned that the average middle class person in the U.S. only has the equivalent of three months savings if he loses his job. Many people of retirement age are probably in a similar situation. Most have pensions but are basically living from check to check. Most of them are not aware that there is a solution to these economic woes  - Costa Rica.

By moving to a country like Costa Rica you can reduce your month to month living expenses. For example, utilities are only a fraction of the cost of what they are in the States. I spend about forty dollars a month on water and electricity for my 1800 square foot home. One of the clients on my monthly retirement tours told me he spends about $700 per month on utilities for his home in Texas.  He couldn’t believe what I spend.

My property taxes run about $130 per year and that includes garbage pick up. As a rule of thumb property taxes are a quarter of one percent of the declared value of your home.

Public transportation is dirt cheap. Your can go anyplace in the country by bus for under $12. You don’t need to have a car, so you will save money on repairs, insurance, annual fees and car payments.

Health care is also significantly more affordable. I insure my family for under $2000 per year through the private health care system. The public system is even more affordable for legal foreign residents.

Once you get settled here and know the prices you will be able to save even more money.  When you consider most Costa Ricans get by with less than $1000 monthly the average retirement pension from the U.S. will seem like a fortune.

Costa Rican state Banks offer a Full Range Services

Your retirement plans in Costa Rica should not include Scotia Bank. The Bank of Nova Scotia, is the second oldest bank in Canada, was the second largest Canadian bank in 2003 in term of assets (trailing only Royal Bank of Canada).

Don’t confuse the local branch with Scotia Bank in Canada. First, it is a franchise here. Second, because of the political and economic chaos that followed Argentina’s defaulting on its foreign debt in December 2001, the operations of Banco Scotiabank were suspended by the local government because of liquidity problems, after Scotiabank refused to inject more capital into the troubled bank. They were one of the first banks to pull out of Argentina when things got tough. Third, your money is not insured in any of the private banks in Costa Rica.

“We have heard many foreign retirees and residents complain on various Internet forums about unfair treatment at this bank. They complain about having to open their safety boxes for random inspections (which is illegal without a court order) and general lack of privacy at this overly intrusive  bank.

Here is what one resident said about Scotiabank, ”I was with Scotiabank for over a year. They were awful. And I mean bad. Their statements were impossible to read. But worse is they didn’t know how to read them and often took two months to research the problems. The worst was telling me they would have a decision for a home loan in two weeks and then taking three months. In the end they said the property was worth $4 per square meter when all other sales in the neighborhood are $25 to $35. I moved to Promerica and they have been tons better. Not to say they are perfect. But compared to Scotiabank, they are amazing.”

Another local who works in the real estate business said about Scotiabank:  “Atrocious service, and they outright mislead. I have seen them pull the rug out of a sale at the last minute, when sellers and buyers both had their house packed up to go.  No good reason.  I have heard this tale from others, too. Overall, I regard them as the worst because they seem so up-to-date and modern with the fancy air conditioning and slick offices.  I avoid them like the plague and have no clue why they behave this way.”

This is another bad experience a local resident had at Scotiabank. “I have a good excuse to report an experience at Scotiabank from several years ago (downtown branch).  I withdrew some money, which the teller gave me after opening an unusual number of drawers (not all at his window) and roaming about a lot. Within 10 minutes of leaving the bank, I discovered I had been given a $100 counterfeit bill. I returned and they wouldn’t do anything about it saying, of course, “You left the bank.” Whenever I had occasion to be in the bank, I would look at him in passing and he would duck his head and look away. I think he was just waiting for someone to pass it to. I avoid Scotiabank every opportunity I get.”