Financial Question... how do I stack up?

ExpatInWaiting wrote:

Plan A is to work another 14 years and then retire, of course, but Plan B is to figure out where I can live off my savings and 401k for a while before pulling full-age-benefit Social Security payments.

...are there any “real expats” out there who would be willing to be open about what their personal financial situations were when they made the move?...e.g. their age at the time, how much they had in savings / 401k etc....

I am a "real" Expat, but like most, I am not inclined to disclose my financial records on the Internet.

So let's see if we can assist you in your quest without such.

There has been a lot of living-costs commentary on this forum, including cost-of-living-specific threads, in recent times.  The consensus as I see it is that a North American Expat could live comfortably in an Ecuadorian city for $1,500 per month including rent, 2K for a couple.

If you want to break that number down, visit www.numbeo.com and calculate costs by item and service.

Those minimums would have to be supplemented by any travel you do, any health expenses you incur and any extravagances or so-called vices.  Plus some pad for emergencies.

Since you do not have Social Security income yet, are you aware of the residency visa rules?  We don't know all your circumstances and how they square with your potential right to remain in Ecuador year-round.

In fact, it is conceivable that, absent a 25K investment in a bank CD (or real estate), you would have to remain outside Ecuador at least three months a year.

Not that that is a bad thing in your case, given you may return to the U.S. at age 66 (SS full retirement age)...and could possibly maintain a snowbird lifestyle in the interim.  Just figure in your travel costs, visa extension costs and what it would take to live somewhere outside of Ecuador at least three months of the year.

If any of the above is making sense, you undoubtedly have more questions.  Please ask them at your convenience.

cccmedia in Quito

Thanks for the reply, cccmedia! 

I appreciate your candor & information, and being able to swing the 25K investment is something I'd be able to do.  The snowbird option, though, is interesting.  What are flight costs like between Ecuador and the Lower 48?  Is there a "cheap" time of year to fly, or are prices fairly consistent throughout the year?

(Without prying... may I at least ask how old you were when you decided to make the move, even in a rough sense?)

How you stack up compared to the general population can be explored here:

http://cedlas.econo.unlp.edu.ar/esp/dis … ngreso.php

Although this link uses data from 2009, it still provides a good idea of what your purchasing power is relative to the majority of the population in various South American countries.  For instance for Ecuador, if your monthly income is $1000 USD, you receive more income than 94% of the population.

Under "Tu Perfil" you must fill in all fields (but only the first field for country is relevant for the calculation).

Under "Tu Percepcion Inicial" you are invited to estimate your perception of where you stand percentage-wise in the distribution of income.

Under "Ingreso Laboral Personal" you input your monthly income in the local currency.  Press the "Calcular" button to see where you stand on the scale below.

The last section "Ingreso Per Capita Familiar" asks for total household income and calculates where your family stands in those terms.

ExpatInWaiting wrote:

Thanks for the reply, cccmedia!...

The snowbird option, though, is interesting.  What are flight costs like between Ecuador and the Lower 48?  Is there a "cheap" time of year to fly, or are prices fairly consistent throughout the year?

(Without prying... may I at least ask how old you were when you decided to make the move, even in a rough sense?)

For the snowbird option, you get 90 days on your T-3 tourist stamp on arrival, then it has historically been easy to obtain an additional period of up to 180 days on a non-immigrant visa extension.  After that, you leave Ecuador for at least three months until the anniversary of the tourist stamp, at which time you may re-enter (each year) on a new tourist stamp (followed by another visa extension).

If you opt for the permanent residency visa based on the 25K investment, you don´t have to be concerned about serial visa extensions.  Quito attorney:  Sebastian Cordero, [email protected] ...

Check travel information for your flights at www.cheapoair.com ... U.S. hubs for EC are Houston, Miami, Atlanta, and -- coming soon -- Dallas.  Airport codes are UIO for Quito and GYE for Guayaquil.

I don't know how you ask someone's age or approximate age without prying.  Todavía no alcanzé noventa y nueve años a ese tiempo.

cccmedia in Quito

Thanks, OsageArcher -- that gives me a very solid idea, and I appreciate the information!

No need to pry. Everyone's situation is different. Just do the math.

It sounds like you will not be getting your SS for 14 years.  So 14 years x 12 months per year = 168 months that you will need to support yourself if you do this now. So if you low ball it with Osage's $1,000/month you would need $168,000. Of course you could shave some of this off in rent if you purchase real estate. I don't know how long the $25K  in the bank is tied up for if you go that way.

As far as cost of living the minimum acceptable monthly income EC will accept for the pensioner visa right NOW is $800/mo with $100 for each dependent.

Also factor in things like health care costs. I don't know your situation but I'm assuming you are in your early 50's and healthier than the average pensioner.With the resident visa you can get public health care IESS for less than $100/month. I think about $75.

I would also caution you from using five year old data that reflects your purchasing power compared to other South American countries. The average South American earns a fraction of what is considered the poverty level in the US. I believe the Ecuadorian minimum wage is about $450/month and the standard of living is much higher than large populous countries like Brazil or Venezuela.

No need to say that the cost of living is going up like everywhere else and Ecuador's laws and economy are fairly likely to change in 14 years

O of O

suefrankdahl wrote:

I believe the Ecuadorian minimum wage is about $450/month and the standard of living is much higher than large populous countries like Brazil or Venezuela.
O of O

Ecuador's minimum monthly wage is $354/month for 2015:

http://www.elcomercio.com/actualidad/sa … dores.html

Also realize that just because that's the minimum, not everyone makes even that - there is just as much if not more informal employment that is not covered by this minimum wage, than there is formal emplyment that is covered.

Unfortunately right now and for the forseeable future, Venezuela's standard of living is deteriorating rapidly.  One need only read the desperation in the Spanish language forums here, of those trying to leave.

OsageArcher wrote:

Unfortunately right now and for the forseeable future, Venezuela's standard of living is deteriorating rapidly.  One need only read the desperation in the Spanish language forums here, of those trying to leave.

Notice to Donald Trump:  No one needs Univision or NBC to see international beauty queens, just check out the new members of this forum from Venezuela.  Beautiful and apparently they are all fluent in Spanish.

mugtech wrote:

Notice to Donald Trump:  No one needs Univision or NBC to see international beauty queens, just check out the new members of this forum....

'The Donald' reads the Ecuador forum?

cccmedia wrote:

mugtech wrote:

Notice to Donald Trump:  No one needs Univision or NBC to see international beauty queens, just check out the new members of this forum....

'The Donald' reads the Ecuador forum?

He needs to know that they are NOT trying to sneak into the USA.
Can't say for sure, but they are probably not drug running rapists.
He can afford to have someone read it for him, he's too busy selling hotels to Chinese, suing former business associates etc.

mugtech wrote:

Notice to Donald Trump:  No one needs Univision or NBC to see international beauty queens, just check out the new members of this forum from Venezuela.  Beautiful and apparently they are all fluent in Spanish.

I thought I was the only one who noticed...

Thanks for the heads-up about the Venezuelans, I will check out the new members. 

Back to the subject matter -- I lived in Quito for about $1400/month. Single guy, non-drinker/smoker, quiet lifestyle, but eating out regularly and making no effort to economize. I'm sure I could have cut my monthly expenses by a couple hundred or more quite easily -- my rent ($570 for a small furnished 2br) was on the high side.

mugtech wrote:

cccmedia wrote:

mugtech wrote:

Notice to Donald Trump:  No one needs Univision or NBC to see international beauty queens, just check out the new members of this forum....

'The Donald' reads the Ecuador forum?

He needs to know that they are NOT trying to sneak into the USA.
Can't say for sure, but they are probably not drug running rapists.
He can afford to have someone read it for him, he's too busy selling hotels to Chinese, suing former business associates etc.

Watch out fellas. You know how the "team"  feels about discussions of politics on the Forum
Religion probably also verboten but would love to hear about the Pope's visit. Will start a new thread as this is

So expat in waiting, have we answered your question?

Thanks, everybody -- you've given me a lot of great information to think over!

If you're willing to go public with the info (and only if, of course), would anyone share what age they were when they made the move?

EIW: I was just short of my 67th birthday when I arrived in Quito (collecting SS).

Why is that relevant?

Those with pensioner visas are over 65 and they are in the majority I would guess

You are in your early 50's. Everyone's situation is different. Not everyone is willing to broadcast personal info like age and financial info on this large public forum for many reasons. It really is none of your business to be very blunt.

Financial scamming is a huge problem in Ecuador and now any expat or native Ecuadorian knows that putting $25K in a bank is no problem for you. Because of your persistence in asking for financial info and ages, some might even suspect that you are a scammer.

There is a way to send private messages on this site. Maybe some might be willing to share more info there

O of O

Great points, Sue.

Frankly, I would counsel against giving out personal information such as age and financial situation if anyone sends you a PM seekiing such. 

Scammers are just too sophisticated these days to think you can safely post financial information on the Internet, even in so-called private areas.  And do you really know the person asking for your information?

cccmedia in Quito

Exactamente

Anyone can say anything on the internet. You have no way of knowing who they are, where they are or what they might want or nefarious plan they might be hatching. The NSA among other three letter agencies is monitoring and storing all cyber communications. So be warned and beware