"We’ve discovered that a lot of our clients are surprised to learn that a Self-Directed IRA can still be used as an incredible investment tool when they retire overseas...."

-- Steve Sheppard
 

There’s a popular misconception that if you retire to a foreign country -  you can’t use your IRA to take advantage of any kind of investment opportunity you might find overseas. This is basically true if you’re working with a traditional IRA, but with a Checkbook IRA LLC – you can absolutely make your money continue to grow and work for you no matter where you live – if you structure it the right way.

 

We have clients in all 50 states – but we also have clients in 32 countries, and our commitment has always been to educate and mentor our clients – no matter where they are – or where they move to. So if you’re considering moving overseas to enjoy your retirement in a place where your money goes a lot farther than it does here in America – we’re here for you.

 

We not only set up your Checkbook IRA for you, but unlike many custodians who file the paperwork and walk away and you never hear from them again – our door is always open, and it stays open. We develop relationships with our clients over the years, and we’re always available to answer any questions they may have at any time, whether it’s three weeks after the papers are signed – or five years down the road. Our reputation is impeccable because it’s based on our client’s satisfaction, and our client’s satisfaction is based on their security and success.

 

So Where Are People Retiring Overseas?

When people start researching the best “bang for their buck” in terms of making their retirement dollars go further, current trends for retiring overseas are all pointing toward “Latin America.”  But wait – what about “South America?” There’s sometimes confusion between what constitutes “Latin America” and “South America.” People tend to either use them interchangeably, or think they’re completely different countries, but Latin America actually refers to everything south of the U.S. – and that includes Mexico, Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama. Technically, “South America” refers to everything south of or below Panama, and leaves those 8 important countries out. So, for our purposes, we’re going to use the term “Latin America,” because it includes 6 of the hottest hotspots for "ex-pats" looking for a second home for the second part of their lives, as well as that entire Southern Hemisphere below Panama, which some people prefer. We want to be thorough, and we don’t want to leave anything – or anybody - out.

​

​

​

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

​

​

​

​

​

Which Latin American Countries are Most Popular With American Retirees?

Interestingly – and not surprisingly, considering how we love polls and research and disagreeing with each other – you’ll get both agreement and disagreement on which countries are best, which countries are worst, and which countries are trending on the “quality of life” scale. When looking at the rankings, though, remember that every “poll” has its own idea about what’s most important, so it depends on what’s important to you and your family. When you start your own research, make sure you keep that in mind what your priorities are.

 

The importance of a low cost of living is, of course, one of the primary reasons people look at retiring outside of the U.S., but if you’re looking to retire in a culture vastly different from the one you’ve lived in most of your life, there are a lot more things to consider than just the money you’ll save. The quality of life you’ll have is going to be even more important than money in the long run. You can’t have one without the other, though, so you’ll need both, but if you’re not happy with the lifestyle, then extra money won’t make up for the things you’re not happy with.

​

When we talk about quality of life we’re talking about things like the climate and the friendliness of the people, the beauty and culture of the country, what activities and amenities are available, the infrastructure (do you have wi-fi? TV?), the stability of the country, how big the ex-pat community is, the benefits for seniors like transportation, medical care, discounts, and ease of residency requirements, and – what’s become a truly major consideration now is - how easy it is to take your pets down there. Here is a very generalized overview of the top spots now attracting American attention south of the border, but you should use it only as a place to start your own research.

 

Ecuador –

As of 2015 a majority of the “lists” put Ecuador as #1, and if it’s not #1 – then it’s #2. Ecuador has a beautiful, very temperate climate, and diverse geography – doesn’t matter if you’re a mountain person or a person who loves the ocean – they’ve got both. The cost of living is very low, and there are a lot of benefits for those over 65. It has very good medical facilities, great public transportation, a growing economy – and the people in Ecuador are happy to see Americans (not always true), so there are a lot of Ecuadorians who speak English fluently, and love to help you learn.

 

Panama –

Panama and Ecuador generally vie for the top spot in terms of “best places to retire;” last year Panama was #1, in 2015 it was #2. Panama’s biggest draw for retirees is that there is absolutely no other country that does more for those over 65 in terms of benefits, discounts, and “making it easy” to grow older there. The cost of living is slightly higher than it is in Ecuador, but there are also more sophisticated amenities available in Panama; Panama has been catering to expats for a lot longer than many Latin American countries.

 

Mexico –

Mexico used to be further down the popularity scale, but it’s moving up, thanks to a growing economy and an infrastructure that’s increasingly modern and reliable. It’s proximity to the U.S. make it truly desirable as a retirement haven for those with a lot of family living in the U.S., as easy access is important. Also, the cultural gap and culture shock isn’t as pronounced as it is in countries further south; the U.S. is generally pretty familiar with the “vibe” of Mexico. At this point, Mexico has the highest number of American expats living there than any other country, and while the cost of living has risen thanks to its popularity as a tourist destination, things are still less expensive than you’ll find in the states.

 

Costa Rica –

Even though Costa Rica no longer boasts the lowest cost of living that made it one of the “best-kept retirement secrets” 10 years ago, it’s still hugely popular because of the gorgeous climate and the many diverse cultural and entertainment amenities. Plus, Costa Rica still has a lower cost of living that – coupled with the great health care and the stability of the government - make it a great choice for retirees. Costa Rica is another country that has been on American radar long enough that it’s easier for non-natives to navigate the country, in terms of the language and the people.

 

Columbia –

Columbia doesn’t deserve the somewhat unsavory reputation it has; talk to any ex-pat who’s retired there, and they’ll tell you it’s an unfair bias propagated by a few American television series. In fact, Columbia has turned itself around in the past 10 years, and it deserves serious consideration because the cost of living is not only extraordinarily low – but the country is breathtakingly beautiful. It’s culture and social amenities are incredibly rich, and of all the Latin American countries, the general consensus is that the Columbian people are the kindest and most welcoming to American expats.

 

We could easily have included Argentina, Belize, Guatemala, Brazil and Nicaragua – even Suriname, Uruguay and Paraguay have their enthusiastic champions, so don’t just take our recommendation – do your own comparison research. If there’s one thing that’s certain – it’s that virtually everything in Latin America is cheaper than it is in the United States, so you can start with that as a given. With such favorable financial living conditions, it also means that there are abundant investment opportunities to be found, you just need to know how and where to look – and – of course, have funds ready so you can take advantage of what you find.

 

But - Can I Invest in Real Estate in Latin America?

The advantage of a Checkbook IRA is that it makes your money available to you directly, when you want it and where you want it – quickly. A lot of our clients move out of their traditional IRA’s so they can take advantage of the flexibility a CheckBook IRA offers. They want the satisfaction of choosing their own path to saving for retirement, as well as the freedom to access their money whenever they want to. They’re tired of seeing their hard-earned dollars underperform, and want the freedom to choose non-traditional investments that will grow rather than stagnate, or worse – lose money.

 

In terms of ROI, there are few investments that offer the kind of value that the right piece of real estate can, and with a CheckBook IRA, you can move to any Latin American country you choose, and take advantage of opportunities you wouldn’t be able to touch if otherwise. Real estate in Latin America has always been a great deal, but a lot of people are unaware of the great opportunities available south of the border, and they’re all perfectly legal and far easier to do than most people would ever believe!

 

At Checkbook IRA we’re interested in helping our clients no matter where they live, and if you want to live somewhere in Latin America – that’s where we’ll help you set up your Self-Directed Checkbook IRA, LLC. If you’re ready to make the move now, we can help you put it all in place so you can plot your own retirement growth and security while you’re living down there. And once you’re our client – you’re always our client, so we’ll be there to answer any questions, now or in the years to come, just the way we would if you were in the same city.

 

If you’re thinking about it as a possibility for future retirement in three to five years – or more – well, now couldn’t be a better time to start the process either. You can look into buying and maintaining property either as a rental or other investment now, and you’ll have your retirement villa waiting for you when you’re ready to make the move. With a CheckBook IRA, there are possibilities for a tropical dream retirement out there that no one in the states – or with a traditional IRA – can believe, so start doing your homework, and we’ll be here to answer any questions you may have.

​

​

~ end ~