It is very easy to get swept away by the beautiful landscapes and people, but reality checks have to be given and things such as the subject of this video have to be considered. Thank you for reminding us.
All points well taken. I’ve been on similar page of planning. However your approach of segregating emergency funds and the size of the failsafe account spurred me to reconsider what’s enough.
Dan, I agree with you. That Emergency fund is really important and you should have it in separate accounts from your savings and checking account and likely with a different bank.
A lot of UA-camr's travel the world like the Wizard of Oz."Pay no attention to the man behind the curtain!" Thank you Dan, for "owning" the most fundamental key to being an expat abroad.
Honestly this is the best Video Dan has ever done. I have never seen a more informative piece like this dealing with these Realities that are seldom if ever addressed on others. I know Dan says I'm not giving Advice, but Great Advice anyway, Dan
Hello Antonio Chevalier, thank you for your personal note of encouragement. It really does make a difference for us when we know people appreciate what we are doing. Your comments also cause UA-cam to show our video to more people so your note is like paying us a small tip $$ for our time. Thank you, Dan
Money makes the world go wrong**(but it also makes the world go right. Travel requires money. I have heard many talk about waiting to get their next check so they can bounce from the USA...I Say if you have to wait for a check you are not ready. I won't want to go a foreign country without some type of income surety. I truly believe that if you're over 30 and want to travel, you gotta figure the money out. If you're younger, maybe you're parents will cover you.
Hello v hoy! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
Wow lots of life wisdom! Your vlogs remind me to dream, plan, be flexible, keep learning and growing. Also thank you for sharing childhood memories. I too have early memories of so. cal drive-ins and working at an early age ( 31Flavors ) it taught me responsibility! Best to you both!
My story, l live in Thailand and have been here now for 23 months, last December I had a heart attack and went to Bangkok Hospital for help the first thing they wanted was money or health insurance coverage I am lucky I have BC/BS insurance and that got me in the door for treatment , so they put a stent in that day and then I contracted pneumonia , 6 days in ICU and 5 days in a private room to recover total cost was $23,000. I am 68 years old and most of the expats I know here in Thailand over time have needed some type of medical treatment either health issues or here in Thailand motor bike, cars or pedestrian accidents.
I would always rent overseas in case you have to leave. If you buy you don’t know how fast you can sell. Many people in this covid time have renters that aren’t paying rent and you can’t sell because people won’t buy with renters on the property not paying rent you can’t evict. Never fall in love with a place without being prepared to leave do to unforeseen obstacles.
@@VagabondAwake Right. Think about foreigners in Burma and Hong Kong this last year. And think about foreigners in the US last year, who had trouble returning to their home countries.
My personal advice to people is what the old Nike ad said - "Just do it!" Yes, do some planning and research, make some arrangements but don't overthink this thing. Look for ways to do it, not for excuses not to. There are people who spend their lives bumming around the world living out of backpacks and tents. I know that's not what many who come to this channel want but the point is - travelling the world CAN be done on just about any income level if you're brave, creative and determined enough to do it. Also, get rid of your "stuff." And by stuff, I mean anything, be it an item, a thing or whatever that is a drag on your freedom and your lifestyle. If it's not adding value to your life, get rid of it! You'll find that in doing so, you're also shedding a lot of needless expense along with it. Remember; every day you DON'T do this thing is another day that's lost to you forever. You could be dead or crippled tomorrow. If this is your thing and this is what you want, do some preparation yes and don't be dumb or short-sighted but - JUST DO IT!!
Excellent video and if only people would listen to you on how important it is to have a good budget plan, savings, emergency fund, and back up plans in case something goes very wrong in their retirement overseas. Plan Plan Plan, study study study, take a dry run to that country, investigate, run what if scenarios, touch base with other expats about living in that country(safety, medical, budgets, political stability). I'm retired in the Philippines.
Thank you for the wise thought Faron Ray. I couldn't have said it better myself. And thanks for taking the time to help our business grow by commenting. When you comment, like, share, or subscribe, UA-cam shows our videos to more people. So it is like you are paying me for my creative energy. So, thank you, :-) Dan
I went to Emergency Room in Taiwan. Blood test, x-rays, EKG, examination by physician due to a chest pain which was found to be a cracked rib in upper left rib cage (over the heart). Total cost was NT$6000 - six thousand Taiwan dollars. That is equivalent of US$200. That was cash price - NO insurance coverage involved. I simply walked in on a Saturday night to local top flight hospital. I broke my leg in Austria - with surgery, leg setting, tendon repair and a plate with six screws. EUROS €2500. Again no insurance was involved in the bill. Self insurance is practical if one keeps a cool head and asks the prices. I had a tooth rebuilt in Thailand for $75 , very well done. All of these things would have cost about TEN times more in USA even with insurance perhaps. In the other countries they don’t waste time with paperwork and bull crap. They simply get to the matter at hand. In Taiwan i label it - “Science and Service”. No deception, delays or appointments
All great advice about living in a foreign country when we get old, especially if we get sick. I also appreciate you sharing the way you plan for finances in an emergency, including 36 months of emergency fund, and moving back to your home country where you might be able to get help.
Many people I know have enough money and good health. But, they are worried about leaving family behind in their home country. It's really hard to move thousands of miles from loved ones.
Dan, good stuff. I definitely need to do more homework. One thing that blows away all your planning is your HEALTH. if you are sick, all your goals just go out the door. Thanks Dan.
It's tricky knowing how much money is enough as there is never a definitive number but one thing is certain, at some point we will all run out of time!
Hello Ashley W! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
Good video Dan and I agree, my retirement starts today May 1 and now I can leave here with the reassurance that I will have my monthly income even though I spend all day under a tree somewhere in the world I think that you can only enjoy your life if you are financially safe that is my opinion also, so for me let's start traveling and enjoy
Assuming you are my age - 59. You know you are eligible for Medicare at 65. So you always have a fall back on health care in USA. Assuming you have worked 15 or 20 years or more in US you paid into Social Security which means you have a guaranteed check as soon as 62 or postponing at your discretion.
My parents are on Medicare and it's nowhere near that high. It's A goid thing to have for very serious issues. Live overseas comfortably and if there's a medical issue that's beyond local expert fly back to the States. American medical is way overpriced but there's a reason the super wealthy of many countries fly in to get treated in the States. Take advantage of that expertise. And please don't take this as a put down of overseas medical which can be very good. But many of the best doctors from around the world are practicing in the States for the money they can make. So enjoy the world class care at minimal cost if you have Medicare.
Medicare Part A (hospital) is free. Part B (doctor expense) costs me $140/month, goes up every year. I live overseas but pay this in case I go back for major illness, or who knows, maybe I will move back to the states. It's tricky, if you don't start Part B payments, you can't start them in the future, or you have to pay catch up for all the payments you skipped.
@@formica. great point. Any American who reaches age 60 - 65 must do research on exact Medicare rules and costs . The same advice stands for the decision on when to commence SS benefits. Early at 62 or postpone for larger check .
This was excellent and your numbers of 36X monthly cash flow with a 24X time to get out signal show you have prepared well. Way to many people think they can retire in some tropical paradise for 1000 a month and no emergency funds. I saw this when visiting a surfing village in El Salvador. The Americans who moved there did so to live on the cheap and treated the locals in a negative way. In the late 90s I was working at a company and this guy was ready to retire and I talked him into staying for 6 months to load up the 401K even more and also the 6 months extra would give him a larger SS check.
Very important video. Financial education has always been the weakness of all educations systems, and in the future, will be even more important. Good luck to your channel to which I just subscribed.
Dan, ALL of your videos are very thought provoking. They keep a person grounded in reality while reaching for a better life. Thank you for the scenic and very informative videos.
Hi Dan -- a lot of comments below saying this is one of your most important videos yet -- I totally agree and have bookmarked it. Giving examples of money pool management and emergency funds is really helpful.
Wow that’s crazy money for healthcare in the US. Makes me nervous about traveling down there. We will need insurance for sure. Yup that klinking klanking Sound, is what makes the world go around. So, so true but sad. You have set yourself up in a good place Dan. I hope you enjoy your travels for years to come buddy. ❤️🇨🇦❤️ Cheers!!!
Sad that the people of the US pay so much for procedures and medication. All 1st world countries should provide a health system which is affordable for all. I would not want to be an American - taxing people overseas ridiculous. I have 2 passports which will be 3 soon enough - Biritsh, Australian & Portuguese:-).
@@WISERandHAPPIER yes an affordable for everyone is great but in Canada we have somehow got a two tiered system where the rich pay a little more and get seen right away and don’t have to wait months for a procedure. I have NEVER seen a well to do person in an emergency room at the hospital. It’s always full of the poor and middle class. Cheers
Dan, not enough people talk about these essential financial nuts and bolts. One ignores them at one’s own peril. For us, continuing to have income coming in and even growing as we age, rather than going into pure “drawn down” mode is what gives us a greater sense of security and peace. That way, in the event of the unexpected or a major turn of events, we have have financial cushion and options to address challenges and obstacles and we may even have to resources to create or pursue new opportunities for potential further income growth. And, rental income from the US, like you have is really a powerful opportunity to hedge against inflation and capitalize (pun intended) on the relative strength of the US dollar compared to the currencies in many “retire cheap” locations.
Thanks, Dan... another thoughtful vlog. It was really good to hear your thought process (it doesn't hurt that we seem to think the same way). I always joke that the world doesn't need "artificial intelligence", it needs "artificial stupidity", to better predict all the things that will go wrong.
Great video. It’s so prudent to have that emergency fund without question.. 36 months is a great min Benchmark. I’d go as far to to 48-60 months would be a golden standard.
True. But if the USA had healthcare like the EU, Europe, Canada, etc. I don't think I would need so much in my Emergency fund. The big expensive surprise would be health care. Thanks Rudy. Dan
@@VagabondAwake totally agree the health care system in the USA is broken. It’s an absolute travesty. I’m in the camp if anything should happen and I can get quickly here away I would rather get much better service abroad than be paying thousands here. One bad incident can wipe you out completely here if u have no insurance and if u do the deductible will put a big dent in your savings. But I’m curious why u choose to just do out of pocket vs getting a global plan which usually will prob cost you 150-250 a month. Is it worth taking the risk that nothing major happens to you and just pay a lump sum out of pocket or just have the insurance in the event something bad happens that may cost a couple of thousand. So your insight on your risk would be great. For example I think minor things are better out of pocket but let’s say u have a major scooter accident and have to have some major surgery then the global plan would be worth it. So interested to know what your logic in the risk assessment is. I know your healthy so makes sense but what about the unknown accidents and that’s the big question.
@@absolutrudy no health insurance at his age 61, he is not old enough to be covered with medicare. a US health care incident can easily be 100 thousand $. He said he is self-insured, in good health and all. He an't bulletproof proof tho. The unexpected can come to you anytime.
@@absolutrudy I had a rude awakening about 12 years ago. Heart attack. To hospital for a Stent. $8,000 helicopter ride + $15,000 doctor + $50,000 five days intensive care. ,,,, Lucky me, I was age 70 so medicare paid 80%.
I never have heard anyone make the constant disclaimers that you do. Maybe you have had experiences where you have said something and someone wants you to be responsible for them. It’s pretty clear you don’t think people can figure out that costs are variables based on many things. (Your mileage may vary). I would bet that most of your viewers are actually adults. It’s also very interesting that you would perceive the US to be a place where you would have a “soft” landing. You have a wonderful channel and you take great shots everywhere you go. I don’t know how old you are or how long you feel that you can realistically travel. At some point you may want to travel less. I enjoy your channel very much. I doesn’t hurt to look at the beautiful model!
Hello Pedro Gonzales! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
I just found and subscribed to you channel. I have learned alot from this video. I want travel for long periods of time like the both of you. And What you said about an emergency fund really tough me a lot. Thank you
After ten years of tilling my own land of writing, finally I’m getting published by New York Times in print and online tomorrow. Thank you for being my muse and please tell your friends and family. Mathilde Diaz from Queens, New York
Medical costs in the USA: Home Depot delivered busted up kitchen cabinets and that's delaying us leaving the US now by 2 months. And that means we have to pay WAY too much for medical insurance. The knock-on effect hurts our "early retirement affordability" plan outside the US's exorbitant medical costs.
It's fun to listen to you talk of retirement. Your videos drive interesting conversations between me and my wife. Retirement is still a long ways away for me though. I'll qualify for social security by the time my youngest graduates hs, she's 2. I imagine the global economic and political landscape could be quite different in 16 years. Even then the principles you talk about should stay true.
Hello Massive-Headwound Harry, thank you for your personal note of encouragement. It really does make a difference for us when we know people appreciate what we are doing. Your comments also cause UA-cam to show our video to more people so your note is like paying us a small tip $$ for our time. Thank you, Dan
@@VagabondAwake Yes, I never did launch a side business, but it gave me a fresh view of money and income. That book and the first three chapters of Rich Dad Poor Dad are brilliant. Retired, I now have several income streams and no 'job'.
The problem with a 36 month emergency fund is the zero return on fixed income. So having so much in cash means you are losing money to inflation. As an example, if you're spending $2500/month, that would mean almost $100K in an emergency fund. At 2-3% inflation you're losing thousands each year which getting nothing on the income side. In the past it wasn't an issue because interest rates were reasonable, enough to offset inflation, but in the current situation it's a real conundrum for many.
I would keep it in precious metals to counter inflation. If you want to actively invest then look for good mutual funds if not individual stocks. But that's all with a bit of risk. And these days that might mean losing half your investment or more before getting out.
Great point. You should probably keep a good porton in some kind of low risk investment to offset inflation but not so risky as to drop by 40% in the next bubble.
Naturally an emergency fund can be kept in an investment account. I guess I missed the part where Dan said to keep your emergency stash in a pillow case of dollar bills and quarters.
As usual, good stuff. I like the framework of having a designated monetary point at which you automatically pull the plug and return to the US before ending up destitute in a foreign country. That kind of a decision is one best made in advance rather than when you're borderline broke. Good counsel.
Hello Bill Ruprecht! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
Hello Wiser and Happier.! No problem. Thanks for sharing your number. We are all different. Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
@@VagabondAwake Personally, I do not think it is a "number." it is the difference between being Rich and Wealthy. Rich people do not last very long (aka: The Number). The key is Wealth (aka: The cash "flow"). Not to say an emergency fund isn't important, it is extremely important too. As Dan said, the important number is calculating how much flows in monthly versus how much you spend, and invest the rest (AKA: The Richest Man in Babylon).
More very good information and advice Dan. As for me I don't have a bunch of money stashed away for emergencies but do have enough credit to save me from most emergencies abroad. I also live on pensions but was fortunate enough to have spent most of my working years with a company that had an employee pension plan, .... which is something companies seem to be getting away from these days. We're far from rich but looking at all of the factors plus owning our own small condo in the Philippines should make retirement abroad, ... or at least winter getaway's a good choice for us. Being as our home is Vancouver Canada there are a lot of good reasons to keep one foot in our home country, and let's be honest, .... summers here are so beautiful.
@@VagabondAwake those mountains and beautiful lakes of British Columbia would be hard to walk away from Dan. During the cool winter months it would sure be nice spending time on a tropical beach though. :)
@@timsretirementjourney8323 "Cool winter months"! Only cool?! Are British Columbians prone to understatement like the British? Definitely more than one way to do retirement. Choice is freedom.
@@formica. when I can take a 3 hour motorcycle ride in early January and not freeze I'd call that just cool. Vancouver very seldom gets below freezing. 😎
@@timsretirementjourney8323 Ok, not freezing is good! Last time I was in Seattle there was a (freak) ice storm, I'm guessing Vancouver gets more temperate ocean influence. In Saigon it is 85-90 year round, that is now my normal. 🌴
Many people prefer having creature comforts at a much lower cost which is understandable. I'm sacrificing a bit to get our home paid off before I die. I'm 59, have a real problem with my diabetes, probably won't live much past 70. As my wife's grown daughter who is a handful to say the least is living with us, my wife agreed to me living overseas to get our home paid for. I took an early out pension at 55 that drops to almost nothing at 67. So I'm living as cheap as possible without giving up eating out. I eat one meal a day plus a snack in a four hour window to help the diabetes with intermittent fasting. My room with private bath and great wifi is about $150 a month. I do send my wife and elderly mother a total of $300 a month. About four months from paying off a couple of bills that will give me around $900 a month to save and eventually at 62 with SS should save around $2300 a month. If I go to Argentina with the extra Pesos Western Union gives I can upgrade to a full apartment in a nice area for around what I'm spending in Mexico. I lived in a Honda Element for 8 months traveling around the Rocky Mountains so am used to living small but doing ok. I get wanting to live well for less but my focus is on making sure my wife can get by after I'm gone. Sometimes you have to sacrifice and in today's world living overseas is IMO the best way to reach those goals.
Great story Kenneth Kilpatrick. Thank you for sharing it with us. Your interaction with our channel helps us get subscribers and views, so we really appreciate it. Best, Dan
In fact I hope you have a channel or blog to explain more details about how you worked out your plan. It could help others about options to retire early, and overseas.
Thanks for the kind words. Learning about living overseas was a hobby for years before I finally went to Mexico in 2017 and have been in a total of 12 countries since then. Since I was on limited funds just focused on places I was interested in. The videos on UA-cam really help but you really don't get a sense of a place until you are actually there. When I went back to Mexico recently had a good idea what to expect and now it's more about figuring out how to live affordably. Joining expat groups on Facebook for areas you're interested in gives you a lot of information in archives as well as very helpful people who'll gladly answer questions. Can't beat current on the ground info. For me the place has to be affordable, try to find the most economical rent in a living situation you find acceptable, and the climate has to be mild. Or at least mild enough. I think Dan has touched on all of this and has stressed finding what works for you. Ultimately like anything else you get used to your surroundings, get into a routine, and go about your business. Only if you aren't fluent in the local language the learning curve takes longer. And all that being said it's easier for Americans in America as things tend to work and we can navigate things easily. It's just not affordable for many of us.
Dan & Qiang, sweet couple, great match, Thank you for important information to put in re-consideration all these important facts & true. I found you under your recent Live ' Unseen Thailand Chiang Mai' under bill's channel. I love the proposal in detailed discussion. I appreciate it!
Nice video. I admit being a bit confused by this. You yourself stated that if emergency fund gets below 24 times monthly budget you will leave for the US. However, you also stated how outrageously expensive American medical / medical for insurance is. Also, usually things as US rent is far higher than other countries. Therefore why head back to the US, considering such higher costs? FYI: I am in Tokyo now. Just had an MRI done. My eyes were tearing, constantly. Saw a doctor at 3:00. He suggested I do an MRI, made an appointment for me at 4:30. Had it completed. With the Japan State insurance, I paid $100 in total, and a week later even got the MRI CD. The State paid $200 (US). I heard in the USA an MRI would cost from $3000 to $10,000 or even more. Things like this prevents me from heading back to the USA. FYI: Also am so disgusted with the politics and cost of goods there, probably will not return other than for brief stints to visit family and friends. I also wonder if you posted on what International medical insurance you may recommend for us x-pats who live abroad. Reason is, I soon will retire from Japan and resume my travels.
Very good point Jon. I don't foresee ever getting to that point of desperation. So for me the conversation serves two purposes. First, it gets me thinking along the lines of how will I survive a health crisis that overwhelms my ability to pay personally out of my emergency fund. But that is because I pay as I go, I don't have international medical insurance for the reasons I stated in the video. Medical tourism seems like a smarter option to me. So it gets me thinking about how big should my emergency fund be so that I can still pay cash for medical services in a medical tourism country specializing in whatever disease shows up. And if a series of emergencies show up in a row that cause me to fall below my comfort zone for the emergency fund? Would I let my emergency fund deplete to zero? I don't think so. I am no medical finance expert, but as I understand it, if you are sick and show up in the emergency room in the USA, they are required to treat you. Not so in many parts of the world. If you are 65 or older you have medicare insurance available to pay for your medical. But if you are under 65, which I still am, then they still have to treat you even if you have no money. Then they just lien your house or whatever and the hospital will be reimbursed first if you ever sell. But even then, I agree with you, I would exit the USA once I was back on my feet. I met a guy in the Philippines that is about 75 and he flys back to the USA about once a year or so for back surgery. He has medicare because of his age. But if he was under 65 and had a problem, I think the hospital would still need to treat him. I am not saying it is a great solution, but I think you need an emergency fund and a set point where you would fly home before you completely run out of money. That is just how I think about it. I am not recommending it for anyone else. Thanks, Dan
@@VagabondAwake When you state "self-insure," I assume that you mean just pay out of pocket. I know that there are international insurance companies what will ensure you in case of emergency. These companys give medical insurance for everywhere around the world --- except for America. This is only because the US is so insanely expensive for medical (Ex: friend of mine collapsed due to dehydration, in summer, California. Ambulance was called. He was fine, only dehydrated. He said he was fine, only needed some water. They insisted that they go in the ambulance, get tested. The ambulance drivers FORCED him in the ambulance, and he was charged $5000. This was over a decade ago, so now that would probably be over $10,000. ) I need look into medical insurance that is valid across the world, except for the USA. I know that there are a few of them.
@@VagabondAwake Yes sure Dan. Question. If your home country was the UK with its free NHS medical service, how would you plan your health cover then? Would you still have a 3yr sum of emergency funds? Would you fly back to the UK (if needed) for your free NHS treatment?
Awesome video; very informative, keep up the good work. What are your thoughts of retiring at age 43, no retirement savings; but with pension, and paid off house, and no debt (yes, no debt) we're planning to relocate to P.I; my wife and I lives very frugal and have been a saver to pay off our debts.
I had my gallbladder removed in 2020. i had insurance and my copay was $2k ... Surgery and 3 days hospital stay cost $65k. I received the bill from my insurance and showed how much they paid ... Just giving you reference on how much it cost in US.
Great story Ron Dela. Thank you for sharing it with us. Your interaction with our channel helps us get subscribers and views, so we really appreciate it. Best, Dan
if your never take some risks you'll end up never going anywhere much and miss out experiencing the excitement of travel,maybe don't buy realistate out of the usa but if you partner with a native that gives you a place to hang out in the long run and wont have to always be worried about rents if you can stay there ,that money for rent is out the window but if you save that money u'd otherwise be paying for rent then you have some emergency funds ,as far as health care the best option is to stay healthy as possible but health is a risk no matter where you live even in the usa where meds are extremely expensive compared to most se asian countries
Very smart Bruce. Thanks for sharing this idea about partnering with a local in their residence. I had not heard this one before, but it makes sense if you find the right person. Thanks, Dan
When the worst comes to the worst, a US citizen can claim Medicaid. The US is still a humane country. Some families are desperate and they raise funds on Facebook, GOFUNDME. Of course, no one wants to reach to that desperate situation.
Here is the deal I'm one of those people who started out young lived life like it was no tomorrow saved absolutely nothing pretty much had everything now have nothing I'm in my mid 50s I have one of 2 choices retire cheap over seas or stay here and live in some government housing project based on my social security to watch some of yall videos I might as well stick a gun to my head now and pull the trigger because I dont have a chance to have anything
You sound like an intelligent man who knows what he is talking about. Most of youtube vloggers look confused about medical insurance and confuse every reader. I need your help to understand. I might retire in near future with good understanding of the future life. Medicare charges us about 150 a month after 65 and that money will be taken out of social security check each month. Why can't we keep that insurance and just buy an emergency insurance there which includes evacuations in any serious situation? Day to day small medical issues can be paid from our pocket. Secondly, if I retire in 2 to 3 years, 100,000 would be enough to cover that period?
One thing people don’t realize is that it’s not up to you whether you get evacuated - it’s up to the insurance company. They can decide it’s better for you to stay where you are for the “emergency” treatment, in part because this could be cheaper than the cost of emergency evacuation. So this is another reason self-insuring with a large emergency fund (if you have the means to do that) could make more sense. You then have more control over your options.
Hey New York 1, thanks for sharing this idea. That is what many expats do. Keep the Medicare and fly home for anything serious. I appreciate the ideas. Thanks for commenting too. When people comment, our videos are suggested to more people. So thank you so much! Best, Dan
My monthly budget is $1500 a month, my income is more than that. My Medicare Part B is $140 or $150?, so I am spending 10% on medical insurance that I actually have never used in 6 years, but I keep that in case I return to the US for emergency or to live. I pay medical and dental out of pocket cheaply where I am. I looked at medical insurance but the premiums looked high over 70 years old, and then there are always weird exclusions that aren't covered. Anyway that is the plan I worked out, and I started with double your savings, to be used only for non-monthly expenses like vehicles, big travel. I suggest you research insurance costs including exclusions and coverage areas. Some plans only cover you in one country, some plans will not cover you if you visit the US (because high costs), etc. Evacuation insurance (from where to where?) is not cheap. Also look into actual medical/dental costs in the country you are going to, to budget self insurance. A country with a great medical system is an obviously good selection criteria.
I live in the Philippine countryside very well and very cheaply as a personal choice. It has nothing to do with my financial situation. Filipinos have been leaving comments on the interview backing up what I said about it being very inexpensive to live here. I did the interview to share with viewers that a good life can be had in the Philippine countryside at a very low cost. As the old saying goes, you can lead a horse to water, but you can't make'm drink.
You can tell from your video of the Philippines that you are a very social person. So you are able to meet people where they live and create relationships. I see this as an important factor in how you have been able to create a meaningful life in a low density part of the Philippines. The locals create the relationships through family and friends but you do it by striking up conversations wherever you go. So a small town quickly becomes a place full of friends. That and having domestic help quickly integrates you into the rhythms of the local environment combine to allow you to have a meaningful connected life on so little money. You could spend more but that may create some distance between you and others because they might start to feel different from you ... or start judging themselves for not having as much as you. I look forward to your new movie about what Filipinos spend to live in your area. That sounds like an interesting topic. I want to hear it in their own words. That is also likely to blow some more minds about the possibilities of living on very little money in this world. What is life like on $200 per month?
@@VagabondAwake We just got the battery for our (4k video) android phone, so we're excited to be able to use that instead of the HD one. It will significantly improve the video quality in our next film. We also got exterior microphones and a tripod so we're slowly moving up in the world. We are a week behind schedule, starting filming Monday. Thanks for everything. We really appreciate you..💕
They seem to be everywhere. But to be extra safe, visit the Facebook expat group for the city you want to visit and ask people if that drug is stocked in the Pharmacies.
Your advice should be followed by all those Australians who retired to Thailand only to find in 2020 that their currency was devalued against the Baht and suddenly everything in Thailand was super expensive.
Enjoy your videos. Thank you! Question; why do you have the USA as your safety zone should cash run low? With exception of Medicare (maybe) cost of living in countries you visit much less than in USA - unless returning to work, I guess.
What do you do for health insurance? 58 and rather travel from one to another locale every few months or so. My daughter TravelsofSarahFay was just at Lake Atitlan... So she travels alot and very healthy. She just started her UA-cam. She is on Instagram.
Great video you both make a great couple. I have 220 thousand in my investment sccount and I have 2 thousand. In my monthly retirement as I. Want to live 8n Davao Philippines with my wife and child who are both philipino do you think it's enough
I could do it easily. But we are all different. Do you think your child will want to go to Harvard Medical school? That might be a problem. lol. She may need some student loans besides grea grades. How old are you too. That makes a difference. And is that 2000 montly on top of the 220k guaranteed? For how long? Let us know how it goes Frank. Best, Dan
Gr8 info for some idiots Dan 😆 some people just don't research. My emergcy fund is I'm a veteran! All I need is enough cash to get a ticket to a VA hospital anywhere in the world 😆
Love your blogs,,,I'm here in the PH,my three yr visa expires in June,I have to venture to another country coz the PH is not extending visas,,as an experienced traveler can you recommend me a safe city in Mexico or central America with similar costs to the Philippines that I can live there untill the PH is open again,,, I m an American but no way I'm going back to the crazy States,,,,,thank you in advance,stay happy and Safe
Hi Ken, Check out our playlist for Mexico. ua-cam.com/play/PLkkrWgjrjsUyfay3-9_flm-0KbeIe8fAI.html Or, our retire cheap reports: vagabondbuddha.com/ Thanks, Dan
Ken, I was under the impression that from RP, you could just leave and return after the three years. Can I assume that COVID has changed this? I keep hearing different stories. Agreed about no desire to head back to the US ... not a chance !!
@@jonb3189 ,can't return as a tourist,but if married or kids with a Filipina looks like one can be allowed to return,that's the real scoop you heard it here,all other stories are plain bs
VMFB, If the free eBook link doesn't work (did you check your spam mail?) Then leave a message at the bottom link! Free eBook Link: vagabondbuddha.com/fire-your-boss-travel-world/ Bottom Link: vagabondbuddha.com/contact/ Thanks, Dan
Question. Do your numbers reflect the “expenses” of one person or two? Do you pay as a couple or as a single person? A much younger wife or gf may not have the income or discipline habit of a budget.
Great video. I love travel and am planning to sell my home have an amazing 10 years travelling and then if I am still alive try and figure something out then
Its just pay as you go. That means you need to have the resources to pay for whatever happens. Calla round and get quotes for various diseases around the world. It can be 80% off the USA prices. Don't take the risk until you verify. I haven't done the verification in over 5 years. So it may not make sense anymore. Make an informed decision.
Some hospitals and dental clinics post their costs online. Have you ever seen a US hospital do that? Here is Bumrungrad Hospital, Thailand's most famous: www.bumrungrad.com/en/blog-news/fixed-prices. All inclusive means all costs for room, procedure, doctor, etc. Here is Thonglor Dental Hospital, top 2 in Bangkok per thaivisa. We went there, incomparable facility and service compared to any of my US dentists: www.thonglordentalhospital.com/price-dental-en/
Thank you for the wise thought BENJAMIN KUSI. I couldn't have said it better myself. And thanks for taking the time to help our business grow by commenting. When you comment, like, share, or subscribe, UA-cam shows our videos to more people. So it is like you are paying me for my creative energy. So, thank you, :-) Dan
☆★☆ 𝗠𝗢𝗥𝗘 𝗜𝗡𝗙𝗢𝗥𝗠𝗔𝗧𝗜𝗢𝗡 𝗣𝗥𝗢𝗠𝗜𝗦𝗘𝗗 𝗜𝗡 𝗧𝗛𝗘 𝗔𝗕𝗢𝗩𝗘 𝗩𝗜𝗗𝗘𝗢☆★☆
vagabondbuddha.com/two-biggest-risks-of-retiring-early-overseas/
☆★☆ 𝗗𝗮𝗻’𝘀 𝗥𝗲𝘁𝗶𝗿𝗲 𝗖𝗵𝗲𝗮𝗽 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗪𝗼𝗿𝗹𝗱𝘄𝗶𝗱𝗲☆★☆
vagabondbuddha.com/
☆★☆ 𝗗𝗮𝗻’𝘀 𝗙𝗥𝗘𝗘 𝗘-𝗕𝗢𝗢𝗞→ 𝗙𝗶𝗿𝗲 𝗬𝗼𝘂𝗿 𝗕𝗼𝘀𝘀 𝗧𝗿𝗮𝘃𝗲𝗹 𝗪𝗼𝗿𝗹𝗱 ☆★☆
vagabondbuddha.com/fire-your-boss-travel-world/
☆★☆ 𝗗𝗮𝗻’𝘀 𝗛𝗼𝘄 𝘁𝗼 𝗠𝗮𝗸𝗲 $$$ 𝗢𝗻𝗹𝗶𝗻𝗲 𝘄𝗶𝘁𝗵 𝗬𝗼𝘂𝗿 𝗛𝗼𝗯𝗯𝘆 𝗖𝗼𝘂𝗿𝘀𝗲☆★☆
vagabondbuddha.com/courses/the-hobby-income-course/
It is very easy to get swept away by the beautiful landscapes and people, but reality checks have to be given and things such as the subject of this video have to be considered. Thank you for reminding us.
Happy to help!
All points well taken. I’ve been on similar page of planning. However your approach of segregating emergency funds and the size of the failsafe account spurred me to reconsider what’s enough.
Thanks for sharing your thoughts Eigo Bike! Dan
This is the most important of all Vagabond Awake videos. All other factors are based on your health and how much money you have month to month.
Thank you James Campbell! Thanks for watching and commenting. :-) Dan
Dan, I agree with you. That Emergency fund is really important and you should have it in separate accounts from your savings and checking account and likely with a different bank.
Good point. :-)
A lot of UA-camr's travel the world like the Wizard of Oz."Pay no attention to the man behind the curtain!" Thank you Dan, for "owning" the most fundamental key to being an expat abroad.
Thank you Bob Frazier! That is my favorite scene from the movie. Thanks for watching and commenting. :-) Dan
Honestly this is the best Video Dan has ever done. I have never seen a more informative piece like this dealing with these Realities that are seldom if ever addressed on others. I know Dan says I'm not giving Advice, but Great Advice anyway, Dan
Hello Antonio Chevalier, thank you for your personal note of encouragement. It really does make a difference for us when we know people appreciate what we are doing. Your comments also cause UA-cam to show our video to more people so your note is like paying us a small tip $$ for our time. Thank you, Dan
Your female companion is beautiful, what a lucky man!
Thank you KENNETH WILLIAMS! Thanks for watching and commenting. :-) Dan
Money makes the world go wrong**(but it also makes the world go right. Travel requires money. I have heard many talk about waiting to get their next check so they can bounce from the USA...I Say if you have to wait for a check you are not ready. I won't want to go a foreign country without some type of income surety.
I truly believe that if you're over 30 and want to travel, you gotta figure the money out. If you're younger, maybe you're parents will cover you.
Hello v hoy! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
Thankyou for the video.
Your talent with the camera is way up there.
The wisdom of the audio is priceless.
Happy traveling...
Cheers mike
Thank you Michael Pettett! Thanks for watching and commenting. :-) Dan
Wow lots of life wisdom! Your vlogs remind me to dream, plan, be flexible, keep learning and growing. Also thank you for sharing childhood memories. I too have early memories of so. cal drive-ins and working at an early age ( 31Flavors ) it taught me responsibility! Best to you both!
My pleasure!
My story, l live in Thailand and have been here now for 23 months, last December I had a heart attack and went to Bangkok Hospital for help the first thing they wanted was money or health insurance coverage I am lucky I have BC/BS insurance and that got me in the door for treatment , so they put a stent in that day and then I contracted pneumonia , 6 days in ICU and 5 days in a private room to recover total cost was $23,000. I am 68 years old and most of the expats I know here in Thailand over time have needed some type of medical treatment either health issues or here in Thailand motor bike, cars or pedestrian accidents.
Yes. You need that emergency fund or health insurance.
I would always rent overseas in case you have to leave. If you buy you don’t know how fast you can sell. Many people in this covid time have renters that aren’t paying rent and you can’t sell because people won’t buy with renters on the property not paying rent you can’t evict. Never fall in love with a place without being prepared to leave do to unforeseen obstacles.
That is my thinking exactly. Stay liquid and mobile so you can move along if politics or other factors make another place more desirable.
@@VagabondAwake Right. Think about foreigners in Burma and Hong Kong this last year. And think about foreigners in the US last year, who had trouble returning to their home countries.
My personal advice to people is what the old Nike ad said - "Just do it!" Yes, do some planning and research, make some arrangements but don't overthink this thing. Look for ways to do it, not for excuses not to.
There are people who spend their lives bumming around the world living out of backpacks and tents. I know that's not what many who come to this channel want but the point is - travelling the world CAN be done on just about any income level if you're brave, creative and determined enough to do it.
Also, get rid of your "stuff." And by stuff, I mean anything, be it an item, a thing or whatever that is a drag on your freedom and your lifestyle. If it's not adding value to your life, get rid of it! You'll find that in doing so, you're also shedding a lot of needless expense along with it.
Remember; every day you DON'T do this thing is another day that's lost to you forever. You could be dead or crippled tomorrow. If this is your thing and this is what you want, do some preparation yes and don't be dumb or short-sighted but - JUST DO IT!!
Love it. This is all really good advice. :-)
Great video and framework for funding. I will have my emergency fund when I get on that one way ticket plane!
Good for you Kevin!
Excellent video and if only people would listen to you on how important it is to have a good budget plan, savings, emergency fund, and back up plans in case something goes very wrong in their retirement overseas. Plan Plan Plan, study study study, take a dry run to that country, investigate, run what if scenarios, touch base with other expats about living in that country(safety, medical, budgets, political stability). I'm retired in the Philippines.
Thank you for the wise thought Faron Ray. I couldn't have said it better myself. And thanks for taking the time to help our business grow by commenting. When you comment, like, share, or subscribe, UA-cam shows our videos to more people. So it is like you are paying me for my creative energy. So, thank you, :-) Dan
I went to Emergency Room in Taiwan. Blood test, x-rays, EKG, examination by physician due to a chest pain which was found to be a cracked rib in upper left rib cage (over the heart). Total cost was NT$6000 - six thousand Taiwan dollars. That is equivalent of US$200. That was cash price - NO insurance coverage involved. I simply walked in on a Saturday night to local top flight hospital. I broke my leg in Austria - with surgery, leg setting, tendon repair and a plate with six screws. EUROS €2500. Again no insurance was involved in the bill. Self insurance is practical if one keeps a cool head and asks the prices. I had a tooth rebuilt in Thailand for $75 , very well done. All of these things would have cost about TEN times more in USA even with insurance perhaps. In the other countries they don’t waste time with paperwork and bull crap. They simply get to the matter at hand. In Taiwan i label it - “Science and Service”. No deception, delays or appointments
I love stories like these.
Your health or unforeseen health issues has to be the biggest risk factor travellers underestimate.....thanks for reminding us.....
Thank you thylacine! Your interactions help our channel grow! Have a great day. :-) Dan
All great advice about living in a foreign country when we get old, especially if we get sick. I also appreciate you sharing the way you plan for finances in an emergency, including 36 months of emergency fund, and moving back to your home country where you might be able to get help.
Many people I know have enough money and good health. But, they are worried about leaving family behind in their home country. It's really hard to move thousands of miles from loved ones.
It s the case of my wife . So I m stuck in my country upon retirement but with the Covid pandemic anyway it's unavailable.
I try to go back once a year or so and visit. Plus, Zoom and Skype help you stay in contact.
With T-Mobile I can talk to the US whenever I want from Mexico
Dan, good stuff. I definitely need to do more homework. One thing that blows away all your planning is your HEALTH. if you are sick, all your goals just go out the door. Thanks Dan.
True. That is why we cover it as one of the two biggest risks in this video. :-)
Dan your a very level headed man , appreciate all you do 👍🏼
Thank you Robert DeBorde! Thanks for watching and commenting. :-) Dan
Great advice very down to earth. Wish you both good health and safe and happy travels.
Thank you Aldric Woo! Thanks for watching and commenting. :-) Dan
Thank you so much you two 💗
Our pleasure!
It's tricky knowing how much money is enough as there is never a definitive number but one thing is certain, at some point we will all run out of time!
There are two ways to have enough: 1. To keep accumulating more and more. 2. To desire less.
Hello Ashley W! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
Wise ... Man Overboard!
Good video Dan and I agree, my retirement starts today May 1 and now I can leave here with the reassurance that I will have my monthly income even though I spend all day under a tree somewhere in the world I think that you can only enjoy your life if you are financially safe that is my opinion also, so for me let's start traveling and enjoy
Congratulations in your retirement!!! :)
You can do it!
@@VagabondAwake yes i can and i want, and because the philphins is not open i will do something else first Guatemala?
Assuming you are my age - 59. You know you are eligible for Medicare at 65. So you always have a fall back on health care in USA. Assuming you have worked 15 or 20 years or more in US you paid into Social Security which means you have a guaranteed check as soon as 62 or postponing at your discretion.
My parents are on Medicare and it's nowhere near that high. It's A goid thing to have for very serious issues. Live overseas comfortably and if there's a medical issue that's beyond local expert fly back to the States. American medical is way overpriced but there's a reason the super wealthy of many countries fly in to get treated in the States. Take advantage of that expertise. And please don't take this as a put down of overseas medical which can be very good. But many of the best doctors from around the world are practicing in the States for the money they can make. So enjoy the world class care at minimal cost if you have Medicare.
Yes, just fly home to get treated once you are 65 and enrolled in Medicare.
Just fly home for treatments. Medicare will not pay a foreign health care bill from what I am told.
Medicare Part A (hospital) is free. Part B (doctor expense) costs me $140/month, goes up every year. I live overseas but pay this in case I go back for major illness, or who knows, maybe I will move back to the states. It's tricky, if you don't start Part B payments, you can't start them in the future, or you have to pay catch up for all the payments you skipped.
@@formica. great point. Any American who reaches age 60 - 65 must do research on exact Medicare rules and costs . The same advice stands for the decision on when to commence SS benefits. Early at 62 or postpone for larger check .
This was excellent and your numbers of 36X monthly cash flow with a 24X time to get out signal show you have prepared well. Way to many people think they can retire in some tropical paradise for 1000 a month and no emergency funds. I saw this when visiting a surfing village in El Salvador. The Americans who moved there did so to live on the cheap and treated the locals in a negative way. In the late 90s I was working at a company and this guy was ready to retire and I talked him into staying for 6 months to load up the 401K even more and also the 6 months extra would give him a larger SS check.
Cool. How is your friend doing now?
Very important video. Financial education has always been the weakness of all educations systems, and in the future, will be even more important. Good luck to your channel to which I just subscribed.
Absolutely! So basic but not a word about it in school. I learned from the book, "Richest Man in Babylon." Loved it.
I studied Economics in 1 year at school because of my grades. Economics should be compulsary.
@@VagabondAwake Good book. Am a Rich Dad fan, but Robert Kiyosaki is really bit of a nut case.
Another great video, and all excellent ideas, thanks.
Glad you like them!
Dan, ALL of your videos are very thought provoking. They keep a person grounded in reality while reaching for a better life. Thank you for the scenic and very informative videos.
Wow, thank you Mark. Dan
Hi Dan -- a lot of comments below saying this is one of your most important videos yet -- I totally agree and have bookmarked it. Giving examples of money pool management and emergency funds is really helpful.
Glad it was helpful!
Good stuff---I am planning to work the same program
Thank you Michael Salinger! Your interactions help our channel grow! Have a great day. :-) Dan
Wow that’s crazy money for healthcare in the US. Makes me nervous about traveling down there. We will need insurance for sure. Yup that klinking klanking Sound, is what makes the world go around. So, so true but sad. You have set yourself up in a good place Dan. I hope you enjoy your travels for years to come buddy. ❤️🇨🇦❤️ Cheers!!!
Thank you F&T! Your interactions help our channel grow! Have a great day. :-) Dan
Sad that the people of the US pay so much for procedures and medication. All 1st world countries should provide a health system which is affordable for all. I would not want to be an American - taxing people overseas ridiculous. I have 2 passports which will be 3 soon enough - Biritsh, Australian & Portuguese:-).
@@WISERandHAPPIER yes an affordable for everyone is great but in Canada we have somehow got a two tiered system where the rich pay a little more and get seen right away and don’t have to wait months for a procedure. I have NEVER seen a well to do person in an emergency room at the hospital. It’s always full of the poor and middle class. Cheers
Dan, not enough people talk about these essential financial nuts and bolts. One ignores them at one’s own peril.
For us, continuing to have income coming in and even growing as we age, rather than going into pure “drawn down” mode is what gives us a greater sense of security and peace.
That way, in the event of the unexpected or a major turn of events, we have have financial cushion and options to address challenges and obstacles and we may even have to resources to create or pursue new opportunities for potential further income growth.
And, rental income from the US, like you have is really a powerful opportunity to hedge against inflation and capitalize (pun intended) on the relative strength of the US dollar compared to the currencies in many “retire cheap” locations.
very informative. good job
Glad you liked it
Great wisdom and experience shared here.
Glad you enjoyed it!
Hello Dan this has to be one of your best video I have watched. Thank you for all your valuable information
Glad it was helpful!
Thanks, Dan... another thoughtful vlog. It was really good to hear your thought process (it doesn't hurt that we seem to think the same way). I always joke that the world doesn't need "artificial intelligence", it needs "artificial stupidity", to better predict all the things that will go wrong.
I have never heard that before Andy. That is funny, and sadly, accurate. Dan
This was helpful. Thank you!
You are welcome!
Great video. It’s so prudent to have that emergency fund without question.. 36 months is a great min Benchmark. I’d go as far to to 48-60 months would be a golden standard.
True. But if the USA had healthcare like the EU, Europe, Canada, etc. I don't think I would need so much in my Emergency fund. The big expensive surprise would be health care. Thanks Rudy. Dan
@@VagabondAwake totally agree the health care system in the USA is broken. It’s an absolute travesty. I’m in the camp if anything should happen and I can get quickly here away I would rather get much better service abroad than be paying thousands here. One bad incident can wipe you out completely here if u have no insurance and if u do the deductible will put a big dent in your savings. But I’m curious why u choose to just do out of pocket vs getting a global plan which usually will prob cost you 150-250 a month. Is it worth taking the risk that nothing major happens to you and just pay a lump sum out of pocket or just have the insurance in the event something bad happens that may cost a couple of thousand. So your insight on your risk would be great. For example I think minor things are better out of pocket but let’s say u have a major scooter accident and have to have some major surgery then the global plan would be worth it. So interested to know what your logic in the risk assessment is. I know your healthy so makes sense but what about the unknown accidents and that’s the big question.
I agree since the cost of living in the USA is probably much more than you are paying at that time in a foreign country.
@@absolutrudy no health insurance at his age 61, he is not old enough to be covered with medicare. a US health care incident can easily be 100 thousand $.
He said he is self-insured, in good health and all. He an't bulletproof proof tho.
The unexpected can come to you anytime.
@@absolutrudy I had a rude awakening about 12 years ago. Heart attack. To hospital for a Stent. $8,000 helicopter ride + $15,000 doctor + $50,000 five days intensive care. ,,,, Lucky me, I was age 70 so medicare paid 80%.
I never have heard anyone make the constant disclaimers that you do. Maybe you have had experiences where you have said something and someone wants you to be responsible for them. It’s pretty clear you don’t think people can figure out that costs are variables based on many things. (Your mileage may vary).
I would bet that most of your viewers are actually adults.
It’s also very interesting that you would perceive the US to be a place where you would have a “soft” landing.
You have a wonderful channel and you take great shots everywhere you go.
I don’t know how old you are or how long you feel that you can realistically travel. At some point you may want to travel less. I enjoy your channel very much. I doesn’t hurt to look at the beautiful model!
Hello Pedro Gonzales! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
I just found and subscribed to you channel. I have learned alot from this video. I want travel for long periods of time like the both of you. And What you said about an emergency fund really tough me a lot. Thank you
Welcome aboard!
@@VagabondAwake I tried to get the free E-book but nothing, 5 attempts at this point.
Go to vagabondbuddha.com and leave your email and eBook request under "More" tab at "CONTACT" page.
Go to vagabondbuddha.com and leave your email and eBook request under "More" tab at "CONTACT" page.
Thanks for this video - a good reminder about emergency fund. I’ve been saving & investing while learning about retirement options.
Yup in Mexico health care is expensive for example a heart bypass in Mexico, $10,000 in usa $240.000 plus, that was years ago,
Glad it was helpful!
We seems to live around the same places in the world... financial same mindset too... Well done !
Thank you Peter Toh! Small world! Thanks for watching and commenting. :-) Dan
After ten years of tilling my own land of writing, finally I’m getting published by New York Times in print and online tomorrow. Thank you for being my muse and please tell your friends and family. Mathilde Diaz from Queens, New York
I was your muse? Congratulations. :-)
Medical costs in the USA: Home Depot delivered busted up kitchen cabinets and that's delaying us leaving the US now by 2 months. And that means we have to pay WAY too much for medical insurance. The knock-on effect hurts our "early retirement affordability" plan outside the US's exorbitant medical costs.
Ahhh! Can you see any light at the end of the tunnel?
Great vid and thank you for your words of wisdom.
My pleasure!
Great video,great information Dan. I spent 6 months on Lake Atitlan beautiful place thanks for your practical info
Glad you enjoyed it!
It's fun to listen to you talk of retirement. Your videos drive interesting conversations between me and my wife. Retirement is still a long ways away for me though. I'll qualify for social security by the time my youngest graduates hs, she's 2. I imagine the global economic and political landscape could be quite different in 16 years. Even then the principles you talk about should stay true.
Hello Massive-Headwound Harry, thank you for your personal note of encouragement. It really does make a difference for us when we know people appreciate what we are doing. Your comments also cause UA-cam to show our video to more people so your note is like paying us a small tip $$ for our time. Thank you, Dan
You should look into "mini retirements" popularized by Tim Ferriss. Helps to plan by trying out the lifestyle when younger.
@@formica. I love that book. The 4 hour work week by Tim Ferris. Dan
@@VagabondAwake Yes, I never did launch a side business, but it gave me a fresh view of money and income. That book and the first three chapters of Rich Dad Poor Dad are brilliant. Retired, I now have several income streams and no 'job'.
The problem with a 36 month emergency fund is the zero return on fixed income. So having so much in cash means you are losing money to inflation. As an example, if you're spending $2500/month, that would mean almost $100K in an emergency fund. At 2-3% inflation you're losing thousands each year which getting nothing on the income side. In the past it wasn't an issue because interest rates were reasonable, enough to offset inflation, but in the current situation it's a real conundrum for many.
What if that emergency fund was in a home based bank account, accessible at any time & giving a small interest return, enough to counter inflation?
He never said to keep your emergency fund all IN cash.
I would keep it in precious metals to counter inflation. If you want to actively invest then look for good mutual funds if not individual stocks. But that's all with a bit of risk. And these days that might mean losing half your investment or more before getting out.
Great point. You should probably keep a good porton in some kind of low risk investment to offset inflation but not so risky as to drop by 40% in the next bubble.
Naturally an emergency fund can be kept in an investment account. I guess I missed the part where Dan said to keep your emergency stash in a pillow case of dollar bills and quarters.
Quiet & friendly couple there..stay healthy and happy
Thank you Roland Sensitive! Thanks for watching and commenting. :-) Dan
excellent, 72 months/6 years emergency fund.
and 36 months/3 years parachute fund.
36 month emergency fund, 24 month parachute. :-)
As usual, good stuff. I like the framework of having a designated monetary point at which you automatically pull the plug and return to the US before ending up destitute in a foreign country. That kind of a decision is one best made in advance rather than when you're borderline broke. Good counsel.
Thank you Marc! Yes, we tend to go into denial when stress is happening. Thanks for watching and commenting. :-) Dan
Very sound advice! Love your channel
Hello Bill Ruprecht! Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
Hi.i love the way you explain things. This video is very informative . Says things as they are. One of the best i have ever seen. Thanks.
Great advice 👏👍😃
Thanks for watching!
Only planning to have 1 years worth of cash/silver/gold. 3 years excessive for me - different strokes for different folks.
Hello Wiser and Happier.! No problem. Thanks for sharing your number. We are all different. Thank you for taking the time to share. Our UA-cam channel grows when people like, comment, or subscribe. It is like you are giving us a pay raise every time! So we really appreciate your help! Best, Dan
@@VagabondAwake Personally, I do not think it is a "number." it is the difference between being Rich and Wealthy. Rich people do not last very long (aka: The Number). The key is Wealth (aka: The cash "flow"). Not to say an emergency fund isn't important, it is extremely important too. As Dan said, the important number is calculating how much flows in monthly versus how much you spend, and invest the rest (AKA: The Richest Man in Babylon).
Great video, very informative. Always plan accordingly but specifically prepare for retirement abroad way in advance.
Absolutely!
More very good information and advice Dan. As for me I don't have a bunch of money stashed away for emergencies but do have enough credit to save me from most emergencies abroad. I also live on pensions but was fortunate enough to have spent most of my working years with a company that had an employee pension plan, .... which is something companies seem to be getting away from these days.
We're far from rich but looking at all of the factors plus owning our own small condo in the Philippines should make retirement abroad, ... or at least winter getaway's a good choice for us. Being as our home is Vancouver Canada there are a lot of good reasons to keep one foot in our home country, and let's be honest, .... summers here are so beautiful.
Good point. Hard to beat the Pacific Northwest for summers Tim. Dan
@@VagabondAwake those mountains and beautiful lakes of British Columbia would be hard to walk away from Dan. During the cool winter months it would sure be nice spending time on a tropical beach though. :)
@@timsretirementjourney8323 "Cool winter months"! Only cool?! Are British Columbians prone to understatement like the British?
Definitely more than one way to do retirement. Choice is freedom.
@@formica. when I can take a 3
hour motorcycle ride in early January and not freeze I'd call that just cool. Vancouver very seldom gets below freezing. 😎
@@timsretirementjourney8323 Ok, not freezing is good! Last time I was in Seattle there was a (freak) ice storm, I'm guessing Vancouver gets more temperate ocean influence. In Saigon it is 85-90 year round, that is now my normal. 🌴
Many people prefer having creature comforts at a much lower cost which is understandable. I'm sacrificing a bit to get our home paid off before I die. I'm 59, have a real problem with my diabetes, probably won't live much past 70. As my wife's grown daughter who is a handful to say the least is living with us, my wife agreed to me living overseas to get our home paid for. I took an early out pension at 55 that drops to almost nothing at 67. So I'm living as cheap as possible without giving up eating out. I eat one meal a day plus a snack in a four hour window to help the diabetes with intermittent fasting. My room with private bath and great wifi is about $150 a month. I do send my wife and elderly mother a total of $300 a month. About four months from paying off a couple of bills that will give me around $900 a month to save and eventually at 62 with SS should save around $2300 a month. If I go to Argentina with the extra Pesos Western Union gives I can upgrade to a full apartment in a nice area for around what I'm spending in Mexico. I lived in a Honda Element for 8 months traveling around the Rocky Mountains so am used to living small but doing ok. I get wanting to live well for less but my focus is on making sure my wife can get by after I'm gone. Sometimes you have to sacrifice and in today's world living overseas is IMO the best way to reach those goals.
Great story Kenneth Kilpatrick. Thank you for sharing it with us. Your interaction with our channel helps us get subscribers and views, so we really appreciate it. Best, Dan
Yeah great story. If only more people could plan like that. Plus you are very adaptable to change. Hope you are enjoying your adventure!
In fact I hope you have a channel or blog to explain more details about how you worked out your plan. It could help others about options to retire early, and overseas.
Thanks for the kind words. Learning about living overseas was a hobby for years before I finally went to Mexico in 2017 and have been in a total of 12 countries since then. Since I was on limited funds just focused on places I was interested in. The videos on UA-cam really help but you really don't get a sense of a place until you are actually there. When I went back to Mexico recently had a good idea what to expect and now it's more about figuring out how to live affordably. Joining expat groups on Facebook for areas you're interested in gives you a lot of information in archives as well as very helpful people who'll gladly answer questions. Can't beat current on the ground info. For me the place has to be affordable, try to find the most economical rent in a living situation you find acceptable, and the climate has to be mild. Or at least mild enough. I think Dan has touched on all of this and has stressed finding what works for you. Ultimately like anything else you get used to your surroundings, get into a routine, and go about your business. Only if you aren't fluent in the local language the learning curve takes longer. And all that being said it's easier for Americans in America as things tend to work and we can navigate things easily. It's just not affordable for many of us.
Another video gem Dan ,thank you so much .
Thank you Mike!
Dan & Qiang, sweet couple, great match, Thank you for important information to put in re-consideration all these important facts & true. I found you under your recent Live ' Unseen Thailand Chiang Mai' under bill's channel. I love the proposal in detailed discussion. I appreciate it!
Thank you ....!! much appreciated informative video .Just what I was lookking for ..!!!
Cheeerrrsss !!!!
Super valuable ideas on topics. Money and health = Happiness.
Thank you Osborne Bay! Thanks for watching and commenting. :-) Dan
Thank you,both. Be safe 🤓
Thank you Heather! You be safe too! Dan
Nice video. I admit being a bit confused by this. You yourself stated that if emergency fund gets below 24 times monthly budget you will leave for the US. However, you also stated how outrageously expensive American medical / medical for insurance is. Also, usually things as US rent is far higher than other countries. Therefore why head back to the US, considering such higher costs?
FYI: I am in Tokyo now. Just had an MRI done. My eyes were tearing, constantly. Saw a doctor at 3:00. He suggested I do an MRI, made an appointment for me at 4:30. Had it completed. With the Japan State insurance, I paid $100 in total, and a week later even got the MRI CD. The State paid $200 (US). I heard in the USA an MRI would cost from $3000 to $10,000 or even more. Things like this prevents me from heading back to the USA. FYI: Also am so disgusted with the politics and cost of goods there, probably will not return other than for brief stints to visit family and friends.
I also wonder if you posted on what International medical insurance you may recommend for us x-pats who live abroad. Reason is, I soon will retire from Japan and resume my travels.
Very good point Jon. I don't foresee ever getting to that point of desperation. So for me the conversation serves two purposes. First, it gets me thinking along the lines of how will I survive a health crisis that overwhelms my ability to pay personally out of my emergency fund. But that is because I pay as I go, I don't have international medical insurance for the reasons I stated in the video. Medical tourism seems like a smarter option to me. So it gets me thinking about how big should my emergency fund be so that I can still pay cash for medical services in a medical tourism country specializing in whatever disease shows up. And if a series of emergencies show up in a row that cause me to fall below my comfort zone for the emergency fund? Would I let my emergency fund deplete to zero? I don't think so. I am no medical finance expert, but as I understand it, if you are sick and show up in the emergency room in the USA, they are required to treat you. Not so in many parts of the world. If you are 65 or older you have medicare insurance available to pay for your medical. But if you are under 65, which I still am, then they still have to treat you even if you have no money. Then they just lien your house or whatever and the hospital will be reimbursed first if you ever sell. But even then, I agree with you, I would exit the USA once I was back on my feet. I met a guy in the Philippines that is about 75 and he flys back to the USA about once a year or so for back surgery. He has medicare because of his age. But if he was under 65 and had a problem, I think the hospital would still need to treat him. I am not saying it is a great solution, but I think you need an emergency fund and a set point where you would fly home before you completely run out of money. That is just how I think about it. I am not recommending it for anyone else. Thanks,
Dan
@@VagabondAwake When you state "self-insure," I assume that you mean just pay out of pocket. I know that there are international insurance companies what will ensure you in case of emergency. These companys give medical insurance for everywhere around the world --- except for America. This is only because the US is so insanely expensive for medical (Ex: friend of mine collapsed due to dehydration, in summer, California. Ambulance was called. He was fine, only dehydrated. He said he was fine, only needed some water. They insisted that they go in the ambulance, get tested. The ambulance drivers FORCED him in the ambulance, and he was charged $5000. This was over a decade ago, so now that would probably be over $10,000. )
I need look into medical insurance that is valid across the world, except for the USA. I know that there are a few of them.
Great information
Glad it was helpful!
Totally agree,I overspent in Philippines in 4years,so much unexpected factors happened,around 150K USD,it's not cheap at all in Philippines I qurantee
Wow. That is some serious cash to burn through in 4 years. That is $3100 USD per month. Bummer.
@@VagabondAwake but I enjoyed much while unaware of the consequences
@@mateor7302been to angles city off course
Philippines is not cheap to retire ! Cambodia,Laos and Vietnam is a lot cheaper , food 🥑🥝 is much better people more genuine !
Great video Dan, very informative.
Thanks for sharing.
Glad it was helpful!
@@VagabondAwake
Yes sure Dan.
Question.
If your home country was the UK with its free NHS medical service, how would you plan your health cover then?
Would you still have a 3yr sum of emergency funds?
Would you fly back to the UK (if needed) for your free NHS treatment?
Lower emergency fund amount and fly home for healthcare.
@@VagabondAwake
Just as I thought, thanks Dan.
That's what I do
well I guess I will never retire abroad I don't have a emergency fund LOL but your points are well taken and I agree with your reasoning
Thanks for watching and commenting Moresugar.
My greatest fear is our government's insatiable spending making our UA dollars worthless.
We are in a precarious situation. Only time will tell.
Awesome video; very informative, keep up the good work. What are your thoughts of retiring at age 43, no retirement savings; but with pension, and paid off house, and no debt (yes, no debt) we're planning to relocate to P.I; my wife and I lives very frugal and have been a saver to pay off our debts.
Wow. Without knowing the numbers, it sounds like you guys will be fine. Let us know how it goes.
I had my gallbladder removed in 2020. i had insurance and my copay was $2k ... Surgery and 3 days hospital stay cost $65k. I received the bill from my insurance and showed how much they paid ... Just giving you reference on how much it cost in US.
Great story Ron Dela. Thank you for sharing it with us. Your interaction with our channel helps us get subscribers and views, so we really appreciate it. Best, Dan
Thanks for sharing that.
Great info!
Glad it was helpful!
Thanks for another informative video!
Our pleasure!
very good video....important information given....thanks:))))
Glad it was helpful!
Thank you for numbers
You are so welcome
if your never take some risks you'll end up never going anywhere much and miss out experiencing the excitement of travel,maybe don't buy realistate out of the usa but if you partner with a native that gives you a place to hang out in the long run and wont have to always be worried about rents if you can stay there ,that money for rent is out the window but if you save that money u'd otherwise be paying for rent then you have some emergency funds ,as far as health care the best option is to stay healthy as possible but health is a risk no matter where you live even in the usa where meds are extremely expensive compared to most se asian countries
Very smart Bruce. Thanks for sharing this idea about partnering with a local in their residence. I had not heard this one before, but it makes sense if you find the right person. Thanks, Dan
you are right on the ....money ...very good information
Glad it was helpful!
Nice video. Always great advice. Thanks
Thank you Carl Schleicher! Thanks for watching and commenting. :-) Dan
When the worst comes to the worst, a US citizen can claim Medicaid. The US is still a humane country. Some families are desperate and they raise funds on Facebook, GOFUNDME. Of course, no one wants to reach to that desperate situation.
Yes. People that don't want to lose their house to the hospital use gofundme in the USA. Sad.
Here is the deal I'm one of those people who started out young lived life like it was no tomorrow saved absolutely nothing pretty much had everything now have nothing I'm in my mid 50s I have one of 2 choices retire cheap over seas or stay here and live in some government housing project based on my social security to watch some of yall videos I might as well stick a gun to my head now and pull the trigger because I dont have a chance to have anything
Here. Watch this Mark. ua-cam.com/video/gN2sKNr5xP4/v-deo.html
You sound like an intelligent man who knows what he is talking about. Most of youtube vloggers look confused about medical insurance and confuse every reader. I need your help to understand.
I might retire in near future with good understanding of the future life.
Medicare charges us about 150 a month after 65 and that money will be taken out of social security check each month. Why can't we keep that insurance and just buy an emergency insurance there which includes evacuations in any serious situation?
Day to day small medical issues can be paid from our pocket.
Secondly, if I retire in 2 to 3 years, 100,000 would be enough to cover that period?
One thing people don’t realize is that it’s not up to you whether you get evacuated - it’s up to the insurance company. They can decide it’s better for you to stay where you are for the “emergency” treatment, in part because this could be cheaper than the cost of emergency evacuation. So this is another reason self-insuring with a large emergency fund (if you have the means to do that) could make more sense. You then have more control over your options.
Hey New York 1, thanks for sharing this idea. That is what many expats do. Keep the Medicare and fly home for anything serious. I appreciate the ideas. Thanks for commenting too. When people comment, our videos are suggested to more people. So thank you so much! Best, Dan
My monthly budget is $1500 a month, my income is more than that. My Medicare Part B is $140 or $150?, so I am spending 10% on medical insurance that I actually have never used in 6 years, but I keep that in case I return to the US for emergency or to live. I pay medical and dental out of pocket cheaply where I am. I looked at medical insurance but the premiums looked high over 70 years old, and then there are always weird exclusions that aren't covered.
Anyway that is the plan I worked out, and I started with double your savings, to be used only for non-monthly expenses like vehicles, big travel. I suggest you research insurance costs including exclusions and coverage areas. Some plans only cover you in one country, some plans will not cover you if you visit the US (because high costs), etc. Evacuation insurance (from where to where?) is not cheap. Also look into actual medical/dental costs in the country you are going to, to budget self insurance. A country with a great medical system is an obviously good selection criteria.
I live in the Philippine countryside very well and very cheaply as a personal choice. It has nothing to do with my financial situation. Filipinos have been leaving comments on the interview backing up what I said about it being very inexpensive to live here. I did the interview to share with viewers that a good life can be had in the Philippine countryside at a very low cost. As the old saying goes, you can lead a horse to water, but you can't make'm drink.
You can tell from your video of the Philippines that you are a very social person. So you are able to meet people where they live and create relationships. I see this as an important factor in how you have been able to create a meaningful life in a low density part of the Philippines. The locals create the relationships through family and friends but you do it by striking up conversations wherever you go. So a small town quickly becomes a place full of friends. That and having domestic help quickly integrates you into the rhythms of the local environment combine to allow you to have a meaningful connected life on so little money. You could spend more but that may create some distance between you and others because they might start to feel different from you ... or start judging themselves for not having as much as you. I look forward to your new movie about what Filipinos spend to live in your area. That sounds like an interesting topic. I want to hear it in their own words. That is also likely to blow some more minds about the possibilities of living on very little money in this world. What is life like on $200 per month?
@@VagabondAwake We just got the battery for our (4k video) android phone, so we're excited to be able to use that instead of the HD one. It will significantly improve the video quality in our next film. We also got exterior microphones and a tripod so we're slowly moving up in the world. We are a week behind schedule, starting filming Monday. Thanks for everything. We really appreciate you..💕
What about prescription medications? Thanks.
They seem to be everywhere. But to be extra safe, visit the Facebook expat group for the city you want to visit and ask people if that drug is stocked in the Pharmacies.
Love it, kudos to u.
Thank you! Cheers!
Your advice should be followed by all those Australians who retired to Thailand only to find in 2020 that their currency was devalued against the Baht and suddenly everything in Thailand was super expensive.
Plus the Aussie government changed their pension rules and told many they had to live inside Australia most of the year to keep their pensions.
Enjoy your videos. Thank you! Question; why do you have the USA as your safety zone should cash run low? With exception of Medicare (maybe) cost of living in countries you visit much less than in USA - unless returning to work, I guess.
Great question. Maybe only senior care?
I always liked you guys.
Thank you British Comedy Intellectual Artist Podcast! Thanks for watching and commenting. :-) Dan
What do you do for health insurance? 58 and rather travel from one to another locale every few months or so.
My daughter TravelsofSarahFay was just at Lake Atitlan... So she travels alot and very healthy. She just started her UA-cam. She is on Instagram.
This video explains what I do for health care. Take a listen and see what you think. :-)
Great video you both make a great couple. I have 220 thousand in my investment sccount and I have 2 thousand. In my monthly retirement as I. Want to live 8n Davao Philippines with my wife and child who are both philipino do you think it's enough
I could do it easily. But we are all different. Do you think your child will want to go to Harvard Medical school? That might be a problem. lol. She may need some student loans besides grea grades. How old are you too. That makes a difference. And is that 2000 montly on top of the 220k guaranteed? For how long? Let us know how it goes Frank.
Best,
Dan
Gr8 info for some idiots Dan 😆 some people just don't research. My emergcy fund is I'm a veteran! All I need is enough cash to get a ticket to a VA hospital anywhere in the world 😆
I would say people watching this video are researching. And that's not idiotic.
@@kennethkilpatrick3758 yes that's why I said what I said they need to reaserch!
Thank you Philip Janek! Your interactions help our channel grow! Have a great day. :-) Dan
Love your blogs,,,I'm here in the PH,my three yr visa expires in June,I have to venture to another country coz the PH is not extending visas,,as an experienced traveler can you recommend me a safe city in Mexico or central America with similar costs to the Philippines that I can live there untill the PH is open again,,, I m an American but no way I'm going back to the crazy States,,,,,thank you in advance,stay happy and Safe
Hi Ken,
Check out our playlist for Mexico.
ua-cam.com/play/PLkkrWgjrjsUyfay3-9_flm-0KbeIe8fAI.html
Or, our retire cheap reports:
vagabondbuddha.com/
Thanks,
Dan
Ken, I was under the impression that from RP, you could just leave and return after the three years. Can I assume that COVID has changed this? I keep hearing different stories. Agreed about no desire to head back to the US ... not a chance !!
@@jonb3189 ,can't return as a tourist,but if married or kids with a Filipina looks like one can be allowed to return,that's the real scoop you heard it here,all other stories are plain bs
@@kenstar1862 I assume this is due to the pandemic. Also, I assume that once RP opens back up that you may return.
@@jonb3189 👃
Hi Dan the link to your free ebook download does not work - please advise how I can get it - Many Thanks
VMFB,
If the free eBook link doesn't work (did you check your spam mail?) Then leave a message at the bottom link!
Free eBook Link: vagabondbuddha.com/fire-your-boss-travel-world/
Bottom Link: vagabondbuddha.com/contact/
Thanks, Dan
Question. Do your numbers reflect the “expenses” of one person or two? Do you pay as a couple or as a single person? A much younger wife or gf may not have the income or discipline habit of a budget.
Most of our written reports include expense estimates for 2 people.
Great video. I love travel and am planning to sell my home have an amazing 10 years travelling and then if I am still alive try and figure something out then
Hello Big N, Sounds like a well-thought-out plan! Let us know how it goes. Thanks for commenting Big N, it helps grow our channel. Best, Dan
How you manage with self insurance can be very risky
Its just pay as you go. That means you need to have the resources to pay for whatever happens. Calla round and get quotes for various diseases around the world. It can be 80% off the USA prices. Don't take the risk until you verify. I haven't done the verification in over 5 years. So it may not make sense anymore. Make an informed decision.
Some hospitals and dental clinics post their costs online.
Have you ever seen a US hospital do that?
Here is Bumrungrad Hospital, Thailand's most famous: www.bumrungrad.com/en/blog-news/fixed-prices. All inclusive means all costs for room, procedure, doctor, etc.
Here is Thonglor Dental Hospital, top 2 in Bangkok per thaivisa. We went there, incomparable facility and service compared to any of my US dentists: www.thonglordentalhospital.com/price-dental-en/
I love that Thai Hospital.
GOOD VIDEO, I HAVE PLAN A PLAN B AND A PLAN C
Thank you for the wise thought BENJAMIN KUSI. I couldn't have said it better myself. And thanks for taking the time to help our business grow by commenting. When you comment, like, share, or subscribe, UA-cam shows our videos to more people. So it is like you are paying me for my creative energy. So, thank you, :-) Dan