Job Discussion Forums

jfurgers · Joined: 18 Sep 2005 Posts: 442 Location: Mexico City

Here's a question that has probably been asnwered before but perhaps there's new information out there. From what I've been reading on this forum, it's possible top live in Mexico on the salary of an ESL teacher.
My question is this.
If one stays in Mexico for the majority of one's life teaching ESL, do you worry about not having much income after you retire? I know people pay taxes in Mexico and their home country, but would something like social security be enough to survive on in Mexico?
Especially since an ESL teacher may never expect to make what's equivalent to say $40,000 a year in the states. Just wondering since we'll be moving to DF if our house ever sells.

Thanks all!

John

Guy Courchesne · Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City

Good question and the one for which may well all be screwed. I'm looking at socking away maybe $100 us a month in a fund somewhere...probably Lloyd's. We'll see what happens.

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

M@tt · Joined: 16 Jan 2003 Posts: 473 Location: here and there

if you're from texas, buy real estate. rent it out while you're gone. by the time you retire the mortgage will be paid off and you'll have residual income, or you can sell it for x hundred thousand dollars.

another option, though harde to swing and maybe not important depending on your current age, is to figure out a way to earn $4000 in the US each year. i realize that sounds unrealistic, but maybe you'll have summers free, or you could work online. as long as you have reported income in the US, you can contribute an equal amount to a Roth IRA up to $4000. it's probably the best personal retirement fund in existence, as you are not taxed when you withdraw the money. i think it's the only one like that. i don't know, my dad spends all day every day reading about this crap and he has me and all my siblings on Roth IRAs. if you start around 20, and consistently contribute, and the market performs average, you can expect to withdraw about a million and a half when you turn 65. obviously most 20 year olds aren't doing that, but it's never too late to start if you have the money.

but seriously, i would look into real estate, especially in texas because it's pretty cheap but will probably keep growing.
good luck

zack · Joined: 13 Jul 2005 Posts: 7

Matt and Is650 hit upon some vip points.
In one of my other lives I used to run an investment mgmt co.
We invested the serious retirement money(money you cant afford to lose) of high net worth individuals.
Vip points:
Better watch out for yourself-no body else will!
Never,ever underestimate the power of compound interest. Time is your friend so start early.If you cant start early --start anyway!
Never trust the Taxman.
Roth ira an excellent choice --remember however you have to decide how and where to invest your $$$ or pay someone else to.
Inflation can be your friend if you are on the right side of the power curve. If, however, you are solely on a fixed income you are pretty much screwed.
Diversification is your friend. Dont bet the farm on any one investment.
Real estate is an illiquid long term investment and is driven by location, location, location.
Just ask the original poster from Mckinney Texas who is still waiting for the house to sell.
End of public service announcement from your Uncle Zack