A lot of retirees and Baby Boomers about to retire have serious concerns about their future financial security. Many of them fear they will end up will in poverty if they deplete their savings too quickly. They also worry about not having sufficient investment knowledge to protect themselves against future economic downturns.

As one expert stated, “Retirement is full of uncertainties including how long you will live, how your investments will perform, whether your home will gain or lose value, and how long you will be able to work. Workers simply don’t know if they will get sick, need long-term care, and how they will pay for the out-of-pocket costs if they require ongoing medical treatment.”

The biggest fear of the retirees and Baby Boomers is to be impoverished their in old age because they outlive their savings. No one knows how long they will live, so it’s difficult to know how much you can safely spend each year in retirement without running out of money. In a recent survey 58 percent of respondents with $100,000 or less in savings were nervous about outliving their money, but so were 36 percent of people with $500,000 or more. To cope with this fear, some workers and retirees avoid thinking about retirement altogether, while others are optimistic that things will work themselves out or they will just keep working until they die.

Investment may be one solution, but many Boomers and senior retirees don’t have the “know how” to do it. They just don’t feel confident about their financial knowledge or the ability to may prudent investment decisions. On top of that, many were clobbered during the recent financial meltdown and are extremely distrustful and skeptical about the financial services industry which has been riddled with scandals, bad brokers and caused havoc with the world economy.

What’s the solution? Move to a foreign country like Costa Rica where the cost of living is less. Costa Rica fits the bill because it offers a great lifestyle, lower cost of living, affordable first-class medical care and the possibility of not having to work the rest of your life. Let’s face it time is our greatest enemy and the most precious thing we have. Nobody in their right mind wants to spend their “Golden Years “ working until they die.

Here is a sample budget for living in Costa Rica.

Here is an example of a budget for a single person who has no more than $1500. Add about another $500 – $ 700 if you are a couple since two can often live as cheaply as one.

Rent $300 – $500
Electricity and water $20
Cable TV $25
Monthly Transportation $50
Monthly public health insurance (medicines included) $50
Food $200 Fruits and vegetables are a steal at the weekend farmers markets. For example a bag of 8-10 bell peppers is only one dollar.
Entertainment $100 -$150 or less
Misc. $200
Internet $1 per hour at an Internet café or for free in someplaces

Anyone who moves to Costa Rica has to be a different breed of animal. Living in Costa Rica is not for everyone or the faint of heart. Relocating within the United States presents challenges let alone moving abroad. Those who have lived in a foreign country or have traveled extensively seem to be the best fit Costa Rica. In the end about fifty percent of the Americans who move here go back for a variety of reasons. According to a friend who moves people two and from Costa Rica, it is usually the wife who can’t handle living here, especially the culture, so couples are faced with either returning to their home country or splitting up.

One thing I have noticed over the last few years is that the new wave of American retirees who have moved here are very different from the old times and pioneers who came here before the year 2000.

Here is a list of the obvious differences between the two groups.

(1) NEW: The new kids on the block are mostly Baby Boomers many of whom end up going into business here or should I say try to go into business.
OLD: Are a special group who paved the way for those who came after them.

(2) NEW: In general I find most are boring due to their lack of awareness of the local culture and their neophyte attitude
OLD: Much more interesting, fun and usually don’t have the attitude of the newbies.

(3) NEW: Think they know everything about the country after living here for less than a couple of years. Indeed Costa Rica is a magical country!
OLD: Most people from this group have experienced living here for many years and have a good understanding of how things work.

(4) NEW: They don’t even speak the language, so how can they understand the culture and people? The funny thing is that some of the people in this group who have websites are dolling out advice on how to learn Spanish without knowing the language or having formal training as a language teacher.
OLD: Most survive because they have taken the time to learn Spanish . Although I must admit I have met a few who never made an effort to learn the language.

(5) NEW: Most are Internet savvy so they are able to access to a lot of info. about the country. The problem is that 80 percent of the information they come across is posted by other neophytes with NO real knowledge of the culture and country. DON’T get me wrong. There are some good people who provide useful information. However the newcomer flakes far outweigh the sensible people. Hobby websites and quasi-business sites abound with people looking for their five minutes of fame and a stage on which to perform.
OLD: Have some Internet skills but got their knowledge by living here and from the local school of “hard knock.”

(6) NEW: Regularly post on internet forums. Some of the topics are interesting and educational but in general the forums are a stage for the fame seekers who are looking for attention. I guess with all of the time on their hands they have nothing else to do.
OLD: Some people in this group share their knowledge with the less experienced members of the Internet groups but don’t get on their soap box.

(7) New: They consider themselves skilled entrepreneurs and start businesses here. Most ventures are on-line businesses related to travel or real estate. However, there seems to be an overabundance of these businesses and fortunately the current world economic crisis is weeding the less competent and “fly-by-night” people. Many were the carpetbagger types who swooped into Guanacaste during the real estate boom a few years back hoping to make a “quick fortune.”
OLD: Most of these people are retired but some are involved in a variety of established time-tested businesses.

(8) New: Don’t have the “soul” that comes with living here. Soul in the sense of the “vibe” expressed in areas such as language, social customs, religion, and music.
Old: The old timers do.

(9) NEW: Live a laid –back existence in Grecia, San Ramón, Atenas or other outlying areas
OLD: Live all over but usually closer to San José for the action and entertainment

NOTE: I realize that I have made a lot of generalizations but anyone who has lived here for a long time quickly notices these differences in the new wave of immigrants from the U.S. Perhaps it is part of the Baby Boomer mentality. I don’t really know but the newcomers are definitely different from us veterans.

The lead singer of the American rock band Aerosmith and judge on Latin American idol, Steven Tyler, visited Costa Rica the last week of May. It was not known if he came to Costa Rica on vacation or if he was scouting for some new project. Regarding the latter possibility, in recent years several movies and reality shows have been filmed in here. The country makes an excellent backdrop for film productions with its many spectacular vistas.

Steve Tyler joins a long list of celebrities who have visited Costa Rica lately. Mel Gibson, Chuck Norris, Pink, Shaquille O’Neil, Bill Gates, Bruce Willis, Michael Jordan Brad Pitt and his wife Angelina Jolie, Steven Segal, and Madonna are just a few of the rich and famous who discovered this tropical paradise.

Many of these celebs have fallen in love with the country’s beauty to the extent that they have purchased properties. They know that Costa Rica is a good investment given the fact that it is stable, a prime vacation destination and Latin America’s most popular retirement haven. Football star Tom Brady and his model wife Brazilian Gisele Bundchen are a couple of the celebrities who have purchased a vacation home here. Mel Gibson is rumored to have invested over $25 million in several prime Costa Rica properties.

Now you can own a piece of paradise, too. There are all sorts of affordable options for potential retirees and others out there. Due to the world-wide economic downturn there are some good bargains thus making Costa Rica a buyer’s market. Because of the country’s stellar international reputation as a nature lover’s paradise, long-term investments in land is a good bet. You still have to do your due diligence, have a competent broker and lawyer, and recognize value when you see it. If you follow these guidelines you can make an intelligent purchase and enjoy the country’s great lifestyle during your retirement while you investment grows.

My one-of-a-kind real estate book, Christopher Howard’s Guide to Real Estate in Costa Rica, will help retirees or anyone understand how things work and demistify the process of buying property in Costa Rica. It is a good start!

With all of the information on the Internet about retiring in Costa Rica readers can often become confused. One of the biggest myths is that Costa Rica has become too expensive, therefore you can live more affordably in the U.S.

Here are some facts to help you put things in their proper perspective:

(1) Fruits and vegetables are DIRT cheap at Costa Rica’s weekend farmers markets. For example, a bag of Bell Peppers (6 to costs around a dollar. If I am not mistaken one pepper can cost about $2.00 in the U.S. So, you can see the savings here.

(2) Rentals are quite affordable here. A nice apartment, condo or home can be found for well under $1,000

(3) Real estate taxes are .25% of one percent. In the U.S. You would be hard-pressed to find property taxes so low. Most everyone in North America I know pays a few thousand dollars yearly.

(4) Hired help is a also affordable here. A maid, gardener or repairman will cost under $20 per day. People in the States pay their maids around $100 a day.

(5) Medical care is much less expensive. The cost to belong to the country’s public healthcare system is under $50 monthly for 100% coverage with NO deductable. I have private insurance for my family that runs around $2,000 per year with a 20% deductable. I have friends in the States who pay over $1000 per month for a similar policy.

(6) Electric and water bills are cheap in the Central Valley. I just paid my monthly bill which was $56. I had a client on my tour who lives in Texas that pays about $500 monthly for air conditioning in the summer. Heating bills in the winter are also sky high there. You don’t need to heat your home here because of the country’s spring-like climate.

(7) Cell phone bills are the lowest in Latin America. I pay about $25 per month for two lines. I had one AT&T line from the U.S. and paid almost $100 per month.

(8) If you are a single male there are obvious advantages to living in Costa Rica which is a single man’s paradise.

I rest my case!

Chris Howard have personally introduced young entrepreneurs, middle age people, Baby Boomers and retirees to Costa Rica.

Many senior Baby Boomers say they plan to postpone retirement or work indefinitely, and the data shows they’re doing just that. During the last ten years, the overall labor-force participation rate–the percentage of the population that wants to work–has been gradually shrinking. But for workers 55 and over it’s been rising. Beginning in 2001, for example, about 33 percent of seniors counted themselves as part of the labor force. Before the recession started, in 2007, the figure was about 39 percent. The participation rate dropped for all other age groups during the recession, as people gave up looking for work, went back to school, or decided to stay home for awhile to help with the kids. But for seniors it inched up, and is now at 40 percent–about 7 points higher than a decade ago. A rising later-life employment rate is a sign of economic stress that will last awhile.

Well now there is hope for those Boomers who face the prospect of having to work the rest of their lives to supplement their shrinking pensions and/or Social Security. For those who are lucky enough to have a fixed income but will have to supplement it by working if they stay in the States, relocating to a country like Costa Rica might be the solution. In countless blogs and articles I have repeatedly listed the benefits of moving to a less expensive country in order to not have to continue to work and be able to enjoy the remainder of one’s life. Most people have already worked at least forty years and deserve the opportunity to start enjoying their lives with dignity.

Thousands of expats have a lifestyle they could have never dreamed possible if they had stayed in the U.S. or Canada. I have personally helped thousands of people relocate to Costa Rica. I find it rewarding to help make it possible for Boomers to enhance the quality of their lives and not spend the rest of their Golden Years as wage slaves.