Most retirees live on a fixed income. With no Social Security raises for a couple of years Baby Boomer retirees are more pressed than ever to make ends meet, especially those with the added expenses like the ones below. Costa Rica just might be the solution to these particular financial situations.

Caring for an elderly parent or relative can really place a financial burden on a retiree with a fixed income. This type of care can cost thousands of dollars monthly in the United States. Retirees will be happy to know that in Costa Rica they can hire a full-time person to do this kind of work for under $500 a month.

In addition, having a special needs child who depends on you after you retire, can also affect your retirement income. Adults with a disability diagnosed before age 22 also are eligible for Social Security Disability Insurance benefits, based on the retired parent’s Social Security earnings. These monies may help but your retirement income may still be affected. As I just mentioned above Costa Rica’s affordable hired help can enable you to stretch your retirement dollars. Over the years I have had several clients on my monthly relocation/retirement tours with adult children with disabilities. All were very interested in Costa Rica as an alternative.

With today’s faltering economy many Boomers retirees may also have adult children with financial problems. Consequently, they may also have to help with their grandchildren’s college education. Enrolling their grandchildren in a bilingual Costa Rican university is a possible solution. My Costa Rican son goes to ULACIT University which costs under $3,000 per year. He has some classmates from the U.S. who are studying here because of the low tuition. They are able to do this because a lot of classes are given in English and the courses are also accredited.

By moving to Costa Rica and reducing your costs when confronted by situations like the one above, you most certainly will stretch your retirement dollars and enjoy a higher quality of life than you would I the States.

When Baby Boomer retirees or relocate to new areas within the United States or abroad they most often choose warm weather destinations to spend their “golden years.” It comes as no surprise that states like Florida and Arizona have become retirement places. Furthermore, Costa Rica, Panama, Nicaragua and some parts of Mexico have become increasingly popular foreign retirement havens because of their excellent year-round weather.

I just finished a three-week vacation in the Seattle and Portland areas. Both places resemble Costa Rica in that the countryside is green, however the comparison stops there. Costa Rica is tropical and warm all year. Both Portland and Seattle are cold most of the year. With the exception of a few winter activities like snow skiing, the outdoors in both areas can only be enjoyed during the summer months because of the predominantly inclement weather. Portland was just selected as one of the “best” places to vacation during the summer months. Notice it says only the summer months. The city does have its charm but it rains a lot in the winter.

Every July I visit my sister who lives in Seattle area. In the past the weather was warm during this time of year and there were even a few nights where you could sleep with your windows opened. Not this time around! It has been unseasonably cold and rainy this summer. Even the locals are complaining about it.

The bad weather in the Seattle/Portland areas has actually helped my relocation/retirement tour business. During the last couple of years I have had many clients from the Pacific Northwest who are fed up with the long dark winters with their gray skies, almost constant drizzle and a general lack of sunshine. All of these people are seeking a warm climate for their retirement and Costa Rica seems to fit the bill. The country’s exceptional weather is one of its main attractions along with affordable medical care, the pura vida lifestyle, friendly people and so much more.

I admit that we do have more rainy than sunny months in Costa Rica but at least during the wet season the weather is warm and there is abundant sunshine.

For many years retirees in Costa Rica, who draw monthly Social Security, have been able to have they monthly payments deposited directly to their Costa Rican bank accounts. Up to a few years ago, those who wanted their monies sent directly to Costa Rica, had to wait until the fifteen of the month or longer to receive their checks at a local post office.A few years ago several local banks agreed to handle direct deposits making it more convenient and faster for retirees to have access to their money. All they had to do was fill out the correct forms at the local bank and the process would kick in about 30 days later. I have personally interviewed many retirees who use this method and they seem very pleased with it. There is a small charge of $5 dollars for this service which is very reasonable considering the service.

Recently, it was just announced that starting May first the U.S. Department of the Treasury will no longer issue paper checks to the millions of baby boomer retirees and other applying for federal benefits. A press release issued this week, anyone newly applying for Social Security, Veterans Affairs or other benefits must choose an electronic payment method. Retirees who currently receive their benefits by paper check must switch to direct deposit by March 1, 2013.

According to the Treasurer this change will save taxpayers $1 billion in the next 10 years, More than 18 million baby boomers are expected to reach retirement age during the next five years, with 10,000 people a day becoming eligible. Deposting the money electronically will cost 92 cents per check less.

In addition the electronic method of payment is much safer and more convenient. In 2010 alone, it was reported that more than 540,000 Social Security and Supplemental Security paper checks were reported lost or stolen and had to be replaced.

The move toward electronic payments has been increasing. According to the 2010 Federal Reserve Study, electronic payments now make up more than three-fourth of all noncash payments nationwide, the press release said.

For more infortmation about this program see. www.GoDirect.org.

Indeed, Costa Rica was miles ahead of the U.S. Treasury when it decided to provide this service years ago.

I am currently writing this blog from a coffee shop about one-half hour south of Seattle, Washington. My sister lives in the area and I make it a point of spending a few weeks here every summer. I only come in July because it is the only time of the year when the weather is decent.

Last night I saw an incredible fireworks show from a home perched high on a cliff high overlooking the water and the city of Tacoma. It was an incredible sight with snow capped Mount Ranier in the distance and hundreds of fireworks exploding right before my eyes. The whole area resembles Costa Rica in that everything is green, the only difference is that it not tropical. It must admit that the cool northwest Pacific air is very invigorating and I find it refreshing.

Back to the coffee shop….every morning there is a group of retirees who gather there and I have managed to eavesdrop on their conversations. All of them seem very happy enjoying the high quality of life that the Pacific Northwest affords them. Many engage in the outdoor activities the area offers like hiking, sailing, biking, skiing, fishing, camping, etc. However, there are a couple of drawbacks to living here which we don’t have in Costa Rica.

First, the cost of living is noticeably much higher. I went to an outdoor farmers market and noticed that the cost of strawberries, bell peppers and other items was much higher than what we pay at the weekend ferias in Costa Rica. Our ferias like the ones in Pavas, Heredia and Alajuela dwarf their counterparts found here, so there is more from which to choose at a considerably lower price.

Furthermore, the weather here sucks most of the year. The locals tell me that this year was one of the worst weatherwise. In fact on last night’s news the weatherman said that the last time they had a day above 80 degrees was August of 2010. Indeed those of us who live in Costa Rica are blessed with our incredible year-round weather. The summer days are longer here with sunset after 9 PM. The problem is that in the winter the opposite is true. The sun usually goes down around 4 PM. Combine that with the almost perpetual drizzly weather and it equates to a LONG dreary winter. At least during our rainy season we usually have sunny mornings.

I could go on making endless comparisons between both places but it would be pointless. Both have a lot to offer retirees and others: a great lifestyle and a lot of outdoor and indoor activities to stay busy and happy. However, if you put everything on scale, for me it tilts in favor of Costa Rica mainly because of the year-round sunshine and lower cost of living. I rest my case.

Restless in Seattle!

Pura vida!

The Merriam-Webster Dictionary defines “buzz word” as a voguish or “in” phrase. Here is the million dollar question among retirees who want to live abroad to stretch their shrinking dollars and enjoy a quality lifestyle. Is Costa Rica “the” place to retire offshore? I feel the answer is “yes” for a variety of reasons.

Almost anyone you talk to in the Unites States knows someone who has visited Costa Rica, bought a vacation home or retired here. Regarding the latter, there are more foreign retirees proportionately living in Costa Rica than any country outside of the U.S. That should say it all. Indeed Costa Rica is the “buzz word” abroad.

Why?
The country enjoys a stellar international reputation. You never hear anything negative about it in the U.S. news. On the other hand, Nicaragua, Mexico, Ecuador and even Panamá and other so-called “new” retirement havens receive a lot of negative press. All you hear and see about Costa Rica is basically positive. There have been countless programs and documentaries about the country’s natural beauty, adventure tourism and spectacular scenery. No wonder, the country is often referred to as the “Switzerland of Central America.”

Costa Rica is also famous for having the longest enduring democracy in Latin America and for abolishing its army over 50 years ago. If you look at the latter it is quite an accomplishment with all of the wars and conflicts in our present day world.

The country has other achievements like a literacy rate of 95% and universal medical care for its citizens and residents. The U.S. with all of its money and resources is still trying to solve its health care issues. This little county of just over 4 million people did it over 50 years ago.

So what else keeps Costa Rica in the radar as a prime Baby Boomer retirement haven? First, the country offers affordable medical care for retirees. They can choose either the public or private system at a drastically lower cost than in the U.S. The year-round spring-like weather in the Central Valley is a strong attraction. Low utility bills and domestic help are another plus. A wide variety of affordable rentals and homes in different settings is definitely something else to consider. Public transportation is also dirt cheap. You can go anyplace in the country for less than $12.00 at the most. To boot, the friendly Costa Rican people actually like Americans.

On top of all of the above for many people the Costa Rican lifestyle is hard to beat. It really all comes down to lifestyle. It’s reflected in the national motto, pura vida, which means pure life or pure living. As an American friend of mine often says, “If you get hooked on the lifestyle here, you won’t ever want to return to the U.S. to live. Heck, they’d have to drag me back.”

Hopefully now you can now understand why Costa Rica is the buzz word in many circles.

Be aware if you understand Spanish and have access to the local news you’ll see certain issues sensationalized. The media all over the world thrives on this. Many on-line newspapers and forums in English talk about some of the negative aspects of living here. Most of these threads are written by neophytes with clouded perception who don’t understand the language or culture, have brought their personal problems with them and the majority of whom have nothing better to do with their time than seek their “five minutes of fame.” Unfortunately, the Internet is the perfect stage for them. Always consider the source of anything you may read on-line and remember paradise doesn’t exist anywhere. No country is utopia. But for me Costa Rica definitely comes close.