Best Places to Retire

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The Six Cheapest Places To Retire In 2012

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The Six Cheapest Places to Retire |

2012

The Six Cheapest Places To Retire In 2012 From the Editors of Live and Invest Overseas Published by Live and Invest Overseas Altos del Golf, Loma Alegre, Los Tulipanes St., House #B1, Panama, Republic of Panama Republic of Panama Publisher: Kathleen Peddicord Copyright © 2012 Live and Invest Overseas

All rights reserved. No part of this report may be reproduced by any means without the express written consent of the publisher. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Any investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

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Table of Contents
Cheapest Place To Retire #1: Las Tablas, Panama.…………………………………….…5

Cheapest Place To Retire #2: Medellin, Colombia.……………………..…….…..……13

Cheapest Place To Retire #3: Kuala Lumpur, Malaysia.……………………..………18

Cheapest Place To Retire #4: Cuenca, Ecuador.……………………………….…..……23

Cheapest Place To Retire #5: Chiang Mai, Thailand.………………….………...……27

Cheapest Place To Retire #6: León, Nicaragua.…………………………….……..……31

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The Six Cheapest Places To Retire In 2012
Cheapest, safest…best weather, best infrastructure, best health care…most tax-advantaged and most foreign-resident-friendly. Not to mention most romantic, beautiful, exotic, historic, and adventure filled… We sent our scouts around the world to find the best, the most comfortable, the most affordable, and the most convenient locations for retirement in 2012. And the winners are: Las Tablas, Panama; Medellin, Colombia; Kuala Lumpur, Malaysia; Cuenca, Ecuador; Chiang Mai, Thailand; and Leon, Nicaragua. Each of these places has its drawbacks, of course. No place is perfect. But, all things considered, these six locations offer the greatest opportunities for enviable overseas retirement living in 2012. To help launch your thinking, we provide here an introduction to each of these six top retirement havens. We’ll continue this conversation, with more on the world’s top choices right now for living and retiring overseas, in your free e-letter dispatch, the Overseas Opportunity Letter, which you’ll be receiving from us each day.

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Cheapest Place To Retire #1: Las Tablas, Panama
Monthly budget: US$1,200 Monthly rent: US$400 For the potential retiree or foreign resident, Panama offers big and unequaled advantages—warm weather and lots of sunshine, a low cost of living, a foreign-resident-friendly tax system, one of the best banking systems in the world, a stable political situation, a bright economic outlook, and the world’s best program of discounts and perks for foreign retires…better than the famed pensionado program that operated in Costa Rica throughout the 1980s. Panama makes more sense now than ever. Panama has effectively sidestepped the recession that has crippled much of the rest of the world and continues to enjoy solid economic growth and a positive future outlook. Since taking office July 1, 2009, President Ricardo Martinelli has made ground-breaking changes…all of which forward Panama further along the path of progress and of political and economic stability. Every day the Martinelli government makes bigger and better news. From increasing police salaries to expanding highways, from putting corrupt politicians in jail to donating all but US$1 of his own salary to local charities each month, Martinelli is impressing not only Panamanians but us expats, too. Is Panama right for you? Still, Panama is not for everyone. Panama City is often compared with Miami, and the similarities are many. You’ve got to remember, though, that Panama is the developing world. Devout Europhiles argue it’s the Third World. It depends on your perspective, but, bottom line, life is going to be different here than you’re used to. www.liveandinvestoverseas.com

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Maybe more different than you’re ready for. Don’t come to Panama if you’re bothered by barking dogs in the middle of the night, blaring boom boxes at all hours, or the constant honking of car horns. Don’t move to Panama (especially not to Panama City) if you don’t want to own a car or if you’re an avid walker. This is not a city for strolling. The infrastructure may be the best in the region, but the sidewalks can be so cracked and broken that you’ve often got to tip-toe your way down the street. The only reasonable way to get around is by car. Yet, as the city’s population continues to expand, so does the number of vehicles on its streets. Some days it seems like rush hour extends from 4 a.m. to 8 p.m. On this front, relief could be forthcoming. The government is preparing to undertake the construction on a metro system that should ease traffic headaches and make getting around Panama City much easier. If all goes according to schedule, the new metro should be completed in 2014. Until then, be prepared to brave the chaos every time you cross town. To spend less, look to Las Tablas Your cost of living will be much lower, and your quality of life could be better (depending what, for you, qualifies as “quality”), if you’re willing to live outside Panama City. Most of Panama’s small interior towns (including seaside villages) offer a laid-back, inexpensive lifestyle. The town of Las Tablas, four hours from Panama City, has just 10,000 residents, but offers many amenities you’d expect from a larger city. At Las Tablas’ beaches, you can find furnished rental homes for as little as US$400 www.liveandinvestoverseas.com

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a month. In a town like Las Tablas, not only your rent, but your transportation costs, as well, and your monthly entertainment bills, too, will be lower, maybe significantly so, than in the capital. Even at Las Tablas’ best restaurant, Los Faroles, you’ll have trouble spending more than US$25 on dinner for two, including a couple of drinks. Overall, expect to spend around US$1,200 per month if you rent and about US$800 if you own your pied-aterre in Las Tablas. The best thing about living in Las Tablas is the proximity to the beach. The town is located in the dry arch of Panama, so it‘s the ideal place to enjoy outdoor activities and water sports. The area receives far less rain than the rest of the country. In Las Tablas, not only is the beach on your doorstep, but its diversions are inexpensive or even free. The rental of a boat with a competent captain costs US$50 for six hours. Add about US$25 for gasoline, US$2.50 for outboard motor oil, and US$10 per rental rod if you don‘t have your own equipment. Known as the birthplace of Panama‘s folklore and traditions, no part of the country is more authentically Panamanian than Las Tablas and the Azuero Peninsula. Dozens of street vendors have stands set up on the main street in front of Iglesia Santa Librada offering their wares, including, typically, the sombrero pintado (traditional woven hat), cutaras (leather sandals), and polleras. Farther west, in Veraguas province, is the charming town of Santa Fe, another of our favorites. Daily life in this small town is relaxed and tranquil, maybe too tranquil for some. On the other hand, no one could take issue with the cost of living. You could rent a house in Santa Fe for just US$200 a month or invest in a large tract of land to develop at a cost of as little as US$1.50 a meter. No matter where you go in Panama right now, you’ll find better real estate prices than we’ve seen in a few years. Though the ongoing global recession has had only minimal impact in this country, it has served, indirectly, to www.liveandinvestoverseas.com

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deflate the ballooning property market. Many foreign investors, especially North Americans, invested in the pre-construction property boom of Panama City of the past several years. Now these gringo speculators, having suffered losses in their portfolios overall, are keen to off-load their Panama investments. Sometimes in dire need of cash, their asking prices can be tempting…and negotiable. Boquete is another place where recession sales are making owning here more appealing than it’s been in years. The sometimes super-inflated prices of yesteryear are no more, and Boquete is more within the financial reach of would-be expat retirees today than it has been in a long time. Note that Panama is the one Latin America market where it’s possible to borrow locally as a foreigner for the purchase of real estate. You will have to jump through some hoops, but if you’re willing to push through the bureaucratic red tape, and you qualify, you can be rewarded with up to 80% LTV financing. Note, too, that Panama’s banking sector is stable and solid. Furthermore, Panama is one country that rolls out the welcome mat for foreign retirees. With a monthly pension of just US$1,000, you can qualify for a pensionado visa and all the rewards that come with it, including discounts from 15% to 50% on everything from movie tickets to in-country airfares, even closing costs on your real estate purchase. Why else does Panama make sense? Specifically, Panama offers: • Affordable First-World health care Panama’s health-care facilities—built to U.S. standards ever since the U.S. ran the Panama Canal—are the best in Central America. You’ll find nearly every health-care service you could need, at a fraction of the cost, and with a level of personal service (remember house calls?) you may have forgotten ever existed. • Generous incentives for investors • The world’s best program of discounts and other benefits for foreign retirees www.liveandinvestoverseas.com

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• As a Panama pensionado, you save on almost everything, including incountry airfares, hotel stays, restaurant meals, prescription drugs…even closing costs when buying a home. • Real-world infrastructure Panama offers the most reliable Internet in the region, not to mention the best cross-country road system, domestic flights, reliable water and electricity supply, satellite TV, four cellular service providers competing against each other, and, it seems like every day the Martinelli government is announcing even more ambitious plans, like the Panama City Metro, highway expansions, and new domestic airports. • Great shopping Thanks to its position as one of the world’s premier trading centers (and its canal), you’ll find anything you might want in this country—everything from Benetton and Burberry to the latest electronic gadgets, and any American comfort food you could name. • One of the world’s biggest international banking centers Panama is one of the world’s few remaining offshore tax havens. • A U.S. dollar-based economy (since 1904) Americans face no currency-exchange risk. • Favorable tax legislation for foreign residents Foreign residents pay tax in Panama only on money earned in Panama. When it comes to taxation, this is as good as it gets for the foreign resident or retiree. • A stable political system Panama’s government is as stable as it’s ever been and President Martinelli wants Panama to compete on an international level. He’s weeding out the corrupt politicians of yesterday, and replacing them with people who want to work for a better Panama. • A fast-growing economy and a bright economic outlook • Safety and security www.liveandinvestoverseas.com

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Panama is one of the safest places in Central America. There are poor areas and a definite division between the “haves” and the “have-nots,” but there is little random violent crime. Panamanians are friendly and they welcome foreigners, both as tourists and as residents. And, after eight decades of American involvement in the running of the Panama Canal, they’re well-accustomed to Americans among them. The family circle is important in Panama, much more so than in the U.S., as is religion. • A natural wonderland The world doesn’t know it yet, but Panama is a natural wonderland. Its expansive rainforests are among the richest and most complex on the planet. It’s the only country where jaguars and pumas prowl only a short drive from the capital. It’s also the only country where you could spend the morning diving in the Caribbean, and the afternoon swimming in the Pacific. Panama’s vast, road-less jungle are home to more than 940 recorded bird species and 105 endangered species, including the Central American tapir, the American crocodile the scarlet macaw, and many species of eagle. Off Panama’s shores are some of the best diving, surfing, boating, deep-sea fishing, and snorkeling anywhere. The advantages for the would-be retiree, expat, entrepreneur, and investor in this country right now are too many and too great to ignore. Further Information on Panama: Panama Starter Kit – Our ever-expanding and comprehensive Panama publication package. Note that a subscription to the Panama Letter (below) includes free access to the entire kit. The Panama Letter – The comprehensive monthly Panama e-zine in which we bring you the real Panama…warts and all. The Panama Letter brings you the real Panama, warts and all. This is your chance to discover what it is really like to live in this country, without the sugar coating. This is the good, the bad, and the ugly, brought to you by a team of insiders, with, among them, decades of firsthand experience living, investing, and doing business www.liveandinvestoverseas.com

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in Panama. Understand, with their help, the opportunities that are right for you in the world’s top retirement, lifestyle, investment, doing-business, and embarking-on-a-new-adventure haven. Each monthly issue spotlights a different top choice in Panama, from Panama City to Las Tablas, from Santa Fe to Boquete. Glossy magazines and websites tell you the best of Panama; the Panama Letter introduces you to all Panama. Live and Invest in Panama Conferences – The only way to truly experience Panama…to determine if it’s a place you could call home…or a place to invest. The Panama Circle – The premier hand-holding VIP service we offer in Panama. Includes real estate vouchers of up to $3000, free conference attendance for life, a personal trilingual assistant, access to all of our Panama publications for life, and much, much more. Our Panama Country Page – Maps, photos, and general demographic, tax, and government information. For a complete list of publications and services, visit our Live and Invest Overseas Online Store. If you have general Panama-related questions, you can reach our editorial team at: [email protected] Recommended resources For current real estate opportunities in Panama and the surrounding beach areas you can get in touch with our preferred Panama real estate agency, Inside Panama Real Estate. To view listings or schedule a real estate tour, get in touch here. Attorney Rainelda Mata-Kelly in Panama City is our number-one resource in this country, not only for legal issues, but also for all questions related to visas, residency, citizenship, taxes, property purchase, holding structures, corporations, banking, and investment incentives. You can get in touch with Rainelda here. For Americans interested in how to connect their tax obligations in the United States with those in Panama, we recommend tax attorney Chris

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Rusch, whom you can contact through this page. Panama is one of the countries we feature in our How To Retire Overseas Kit, a brand-new first-ever two-part kit to help you, first, consider all the world's current top options at once (20 destinations in total), while arming you with the practical support you'll need to make your retirement dreams come true as easy and hassle-free as possible. Get in touch here for more information.

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Cheapest Place To Retire #2: Medellin, Colombia
Monthly budget: US$1,700 Monthly rent: US$500

Colombia’s city of springtime and flowers offers a superior quality of life for far less than you’d expect. Medellin makes a good impression immediately and on many levels. Architecturally, this city is lovely. Built almost entirely of red brick, with most every structure topped by a red clay tile roof, the place is pleasing in its consistency, especially when viewed from some height. It appears a sea of red clay tiles and red brick buildings interspersed regularly by swatches of foliage and flowers. The effect is calming and peaceful. Medellin is impressively green, with trees, plants, and small gardens everywhere, and, as it’s remarkably clean. In the central neighborhoods, you see no litter. The metro, a point of pride for the local population, is spotless and like new. Medellin is a pretty, leafy city, a safe, peaceful, welcoming place. That’s a good starting point. But would this city with such a troubled past be a good place to chart your own course, an appealing place to plan to spend time in your retirement? What is it about this city? Here are some things you should know about this area. First, real estate in this country is priced in pesos, meaning you have to remember the exchange rate, which fluctuates daily. The U.S. dollar has been strengthening against the peso for the past few months, but who knows where the exchange rate will stand in the future. Also note that exchange controls and other bureaucratic restrictions are in place. As an early expat in Colombia, you would need to be prepared to navigate the system. This market is still in what I refer to as the “workaround stage.”

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There are pensionado and rentista visas available, if you qualify. The pensionado visa requires a guaranteed pension income equivalent to three times the Colombian minimum wage monthly (right now, this amounts to about US$850 per month); the rentista requires a guaranteed income equivalent to 10 times the Colombian minimum wage (about US$2,750 as of this writing). Note that the required monthly income amounts fluctuate with the exchange rate. If you don’t qualify for the pensionado or rentista visa, your options are an “Executive” or an “Investor” visa. To qualify for the Investor Visa, you must invest a minimum of US$200,000 in real estate or US$100,000 in a non-real estate investment. To acquire full-time legal residency without investing that much money, your option is to set up a corporation outside Colombia and apply, as the owner of that corporation, for an Executive Visa. As I’ve mentioned, this is a bit of a workaround and may or may not be a good idea for you. Note that it does not give you a work permit, only a residency visa. Medellin makes sense both for full-time living…and part-time If you’re not up for the hassles, the current uncertainties, and the risks involved with working around the system to acquire legal fulltime residency, consider part-time retirement to Medellin instead. Plan to spend up to six months a year in this City of Flowers…and the other six months at the beach maybe, in Panama, say, or Nicaragua, or Belize. Another big plus is the climate, which is temperate year-round, and is near-perfect. As it’s situated on the side of a mountain, the altitude of Medellin ascends from around 1,500 meters to 1,800 meters. The surrounding mountains rise to more than 2,500 meters. Temperatures range from 16 to 30 degrees Celsius (60 to 85 degrees Fahrenheit). The rainy season is during the second half of the year, but it’s mild (that is, prolonged rainy periods and flooding are uncommon). Next, Medellin is culturally and recreationally rich and diverse. Living here, you'd never want for something fun and interesting to do. On any given day, you could go hiking or bike riding. You could visit a museum or one of the many shopping malls. You could see a tango show or an opera (in season). Come evening, you could dance the night away (tango is a national pastime) and sample the local rum in one of the bawdy nightclubs or enjoy a fine www.liveandinvestoverseas.com

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meal and white glove service at one of the many international-standard restaurants. Day-to-day costs in Medellin are on par with those in Panama City, which is to say they’re not ultra-bargain basement. A bottle of water in a corner shop, restaurant meals, taxis, and movie tickets all cost more or less what they'd cost in the Panamanian capital. The difference, of course, is that the cost of everything fluctuates in U.S. dollar terms every day. The dollar has been gaining on the peso lately, but this trend could reverse itself any time. Bottom line, the cost of living here would be greater than in Ecuador, for example, or Nicaragua; on par with that in Panama City; less than in Argentina. One notable cost savings living in Medellin would have to do with utility expense. Thanks to the climate, you could live here with neither heating nor air conditioning, meaning your utility costs could be almost negligible. This could reduce your overall monthly budget by as much as US$200 or more. However, the real cost advantage of Medellin has to do with real estate. This market today is like the Panama City market about a decade ago. That is, it qualifies as a screaming bargain. El Poblado is the top end of the market, for both renting and buying. Here you're looking at US$1,000 to US$1,500 per square meter to purchase resale (sometimes furnished); US$1,500 to US$2,000 per square meter to buy new; and US$1,000 (for a one-bedroom) to maybe US$3,000 (for a luxury-level penthouse) per month to rent, furnished. Again, that’s the top of the market. In less recognized, more local neighborhoods, those prices can fall in half and more. Right now, for example, you could rent a one-bedroom apartment in the Laureles neighborhood (a neighborhood that we found to be safe, pleasant, and up-and-coming…a very good budget choice compared with more central and more discovered El Poblado) for as little as 850,000 pesos a month, maybe less. At the current exchange rate, that's about US$450. In the more local middle-class Florida Nueva neighborhood, you could rent a twobedroom apartment for 650,000 pesos a month, or, again, maybe less. That's all of US$350. The general consensus among expats in Medellin is that a retiree needs between 1.5 million pesos (currency converter) and 2 million to live in this city comfortably. That’s a budget for living a comfortable lifestyle. You could probably live on less, if you’re willing to go completely local. And you certainly could spend more, two or three times as much, to live like a king, as they say. One of the appealing things about Medellin is that this is a place where a www.liveandinvestoverseas.com

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luxury level lifestyle is available if you’re interested in pursuing and paying for it. This isn't true of all places we recommend. Speaking in round figures, expect to spend around US$300 for rent each month, the same for groceries, and the remainder of your monthly budget for phone/Internet, transportation, and entertainment. The current cost of renting or of investing in your own second or retirement home in this city is an absolute (as opposed to a relative) bargain. Bundle this with the quality of life on offer in Medellin, and you understand why this city is near the top of our cheapest places to retire in 2012 list. Further reading To find out more about living and retiring in Medellin, Colombia, have a look at the full report we’ve published on this beautiful City of Flowers and Springtime. For maps, photos, and general demographic, tax, and government information, check out our Colombia Page on the Live and Invest Overseas website. In addition, stay tuned to your daily Overseas Opportunity Letter dispatch from Publisher Kathleen Peddicord for specific opportunities and regular updates on Medellin. Recommended resources For all legal matters, including thinking through which residency options might work in your situation, we recommend Juan Dario Gutiérrez, one of the partners in the firm Gutiérrez Márquez Asesores. You can reach him directly here. For Americans interested in how to connect their tax obligations in the United States with those in Panama, we recommend tax attorney Chris Rusch, whom you can contact through this page. Rich Holman, a native of Texas who established a real-estate agency in Medellin four years ago, is the first person to visit when you want to rent or buy property in this city. Get in touch with him here. To find out more about this beautiful country join us at our annual Live and Invest in Colombia Conference.

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Colombia is one of the countries we feature in our How To Retire Overseas Kit, a brand-new first-ever two-part kit to help you, first, consider all the world's current top options at once (20 destinations in total), while arming you with the practical support you'll need to make your retirement dreams come true as easy and hassle-free as possible. Get in touch here for more information.

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Malaysia

Cheapest Place To Retire #3: Kuala Lumpur,

Monthly budget: US$1,250 Monthly rent: US$500 Malaysia is a tropical paradise. Beautiful islands and beaches, cool mountain retreats, great food, a diverse and multiethnic culture, excellent shopping, and a low cost of living...Malaysia has it all. Plus, the infrastructure and health care are modern and efficient. English is widely spoken. Entertainment ranges from street celebrations to casino gambling, from amusement parks to mountain climbing, from jungle trekking to championship level golf, and from Formula 1 racing to world music festivals and philharmonic orchestra productions. World-renowned diving and snorkeling destinations are never more than a few hours away. And here's the cherry on top: The Malaysian government makes it surprisingly easy to live long-term in this hard-to-resist Shangri-la. Malaysia makes it easy Unlike other countries in Southeast Asia, Malaysia actively encourages foreign residents to relocate here. Excellent incentives are available if you qualify for the Malaysia My Second Home Program. And, even without attaining this special immigration status, Malaysia is an easy country to live in less permanently. Most westerners arriving in Malaysia receive a Social Visit Stamp upon entry. www.liveandinvestoverseas.com

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This is not technically a visa, but it permits you to remain in the country for up to 90 days. To stay in Malaysia longer than 90 days, you could, as many people do, take a short trip into a neighboring country for a day, then return that afternoon, receiving a brand-new 90-day Social Visit Stamp upon reentry. Many foreigners have lived in Malaysia this way for years. Here's your better option: Apply for the government-sponsored initiative called the Malaysia My Second Home Program, or MM2H. About 12,000 foreign residents are already participating and enjoying the benefits. Unlike in many Asian countries, Malaysia's MM2H program is available to foreigners of all ages. It gives you a multiple-entry visa good for up to 10 years, allows your spouse, children, and parents to reside in Malaysia along with you, and, under certain conditions, even allows you to hold part-time employment or to have a business in the country. Perhaps the biggest benefit of MM2H status is the tax status it gives you. As a MM2H resident in Malaysia, all your foreignsource income, including pension, interest, and dividend income, as well as foreign earned income, is exempt from Malaysian taxes. Note, though, that income from employment or business within Malaysia is taxable. Kuala Lumpur—steeped in history and tradition Life in Kuala Lumpur is different than it is in the West. Unlike so many places in Asia, foreigners are genuinely welcomed in Kuala Lumpur. Language isn’t a problem—almost everyone speaks adequate English. It is taught in the schools and is the primary spoken language for many Malaysians. In some Asian cities, it’s easy for a foreigner to feel something akin to a walking wallet. Not so in KL. Here, foreigners pay the same prices as the locals. People want to know you. Health care is first-rate, public transportation is modern and efficient, and the tap water is safe enough to drink. Beautiful beaches are just a short drive or flight away, cool mountain retreats can be reached in less than an hour, and the thriving city-state of Singapore is easily accessible in a few hours by car, train, and bus or an hour by plane. It’s an easy city to stay in www.liveandinvestoverseas.com

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for a few weeks…or even a lifetime. Although KL is more expensive than rural Malaysia, it is marvelously inexpensive by Western standards. You can realistically expect to cut your living expenses by a third and still enjoy a lifestyle comparable to what you are accustomed to now. Kuala Lumpur is one of the most affordable, modern cities in the world. Regardless of your interests, you can always find something fun to do in Kuala Lumpur. As the cultural, financial, and political center of Malaysia, KL attracts ambitious and creative people and enterprises from throughout the region. Galleries, concerts, and museums abound. Parks are carefully planned and maintained. Sports and athletic venues, both indoor and outdoor, are scattered liberally throughout the city and many more attractions can be found within a short drive of the city limits. KL is a gastronomic nirvana. From cutting-edge fusion cooking to centuries-old traditional fare, you could eat at a different—highly regarded—place every day and never get to the end of the list. If you live in KL, be assured you won’t run out of things to see, eat or do. Kuala Lumpur has seven golf courses and several more in the near vicinity. The upscale KL Golf and Country Club offers excellent golfing for members and nonmembers alike. Senior members can enjoy nine holes for around US$25, and younger non-members will pay about US$67 during the weekdays. The many markets throughout the Klang Valley can’t be missed. Indoor flea markets offer almost every item imaginable, from kitschy statues of Mao Tse Tung to old LP record albums and collector comic books. The indoor (and airconditioned) Pasar Seni (Central Market) offers wide selections of handicrafts, food, and art. The discerning shopper with good bargaining skills can pick up prized items at very reasonable prices. Outdoor markets are part of the KL experience, too. A visit to the huge Chow Kit Market or one of the dozens of smaller morning and evening markets are great opportunities to purchase good-value produce, meat, fish, household items, and clothing. Unlike many other Asian countries, the sheer diversity of Malaysian culture guarantees that there is a very good selection of food for all tastes. Hundreds of restaurants catering to local tastes offer up a delicious array of Malay, Chinese, and Indian food. You can eat very well in KL on a very low budget, with meals at these restaurants generally costing under US$3.

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If you really want to eat “on the cheap,” try one of the many excellent vendors selling food in the outdoor markets. Here, fresh char kway teow (a noodle and shrimp dish similar to Pad Thai) is prepared as you watch, stirfried in a hot wok and served steaming hot for about US$1. A chicken drumstick served with rice, green beans, peanuts, and soup will cost around US$1.25, and a plate of delicious fresh curry puffs will cost US$1 or less. KL supermarkets are well stocked with both local and imported goods, all at reasonable prices. When you first move to Malaysia, or to any foreign country for that matter, it’s advisable to rent for six months to a year before you purchase property. English-language newspapers, such as The Star and the New Straits Times, have large classified sections with many rental listings. Since English is widely spoken throughout Malaysia, English-speaking foreigners can often simply call the property owner and make a viewing appointment. Rent in KL is surprisingly affordable. Unfurnished two-bedroom condominiums of 1,000 square feet and larger, in attractive parts of town, start around 750 RM per month (currency converter). If you prefer a fully furnished condominium, expect prices to begin at around 1,500 RM per month. Modern, two- bedroom and three-bedroom fully furnished condominiums in upscale neighborhoods will generally start in the neighborhood of 2,500 RM. People who love living in the city but can’t afford the price tag that generally comes with an urban lifestyle will want to consider living in Kuala Lumpur. With so much to do in the city, and its convenience as a transportation hub to almost every place in Asia, active retirees will find more than enough opportunities to experience the wonders of this part of the world. People hoping to live cheaply, yet still enjoy modern conveniences and products from their country of origin will be pleasantly surprised with KL. Malaysia’s welcoming immigration policies makes living long-term here easy. Exceptional health care, widespread use of English, and advanced infrastructure makes life easy. From mountains to beaches, busy malls to tranquil parks, fine imported foods to tasty street cooking, it’s easy to see why so many people find that KL has it all. Further Reading For more nitty-gritty details on living, investing, and doing business in Malaysia, access our country reports here and the Country Page on our website. For specific opportunities, remember to stay tuned to your daily edition of the Overseas Opportunity Letter.

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Recommended Resources For more information on the Malaysia My Second Home residency program, go here now. Mike Soo, our trusted residency and real estate resource in Malaysia, can answer all your questions about living, retiring, and investing in this country. Get in touch with him here. Malaysia is one of the countries we feature in our How To Retire Overseas Kit, a brand-new first-ever two-part kit to help you, first, consider all the world's current top options at once (20 destinations in total), while arming you with the practical support you'll need to make your retirement dreams come true as easy and hassle-free as possible. Get in touch here for more information.

www.liveandinvestoverseas.com

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Cheapest Place To Retire #4: Cuenca, Ecuador
Monthly budget: US$1,300 Monthly rent: US$500

Ecuador is one of the most affordable places in the world to retire. Also to buy or rent a home. It‘s very accessible from the U.S.—you can fly direct from both Quito and Guayaquil to Miami, Atlanta, Houston, New York, and Atlanta. Temperatures are constant yearround, as is the length of each day. In Ecuador you can count on 12 hours of daylight 365 days a year. In the mountains, temperatures are cool and comfortable, spring-like, 12 months a year, in the range of 50 degrees Fahrenheit in the evenings, to 70 degrees in the daytime. Health care is excellent in the cities, particularly in Quito and Cuenca, which boast hospitals with state-of-the-art equipment and specialists in all fields. A visit to the doctor can cost just US$20; a specialist charges US$25. An added bonus: Ecuadorian doctors spend 30 to 45 minutes with each patient. As a general rule, health care costs are 10% to 25% of those in the U.S., and local in-country health insurance is available for a fraction the cost in the States. Enjoy Special Benefits if You Are a Foreign Retiree Foreign retirees in Ecuador are eligible for discounts: • • • 50% off all public transportation 50% off national and international airfares 50% off all cultural, sports, artistic, and recreational events

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• •

50% off electricity, water, and telephone service A special discount on property tax

As a foreign retiree you also receive relief from Ecuadorian income tax and, best of all, you never have to stand in line; seniors always go to the front. Cuenca and its colonial splendor Cuenca‘s large colonial historic center lies just a short distance from the airport. I‘m always impressed by its wealth of colonial homes, their interior courtyards, thick adobe walls, and iron-railed terraces looking down onto the street. Residents and visitors alike enjoy the beautiful plazas, magnificent churches, and cobblestoned streets, whose first traffic pre-dated the arrival of the Incas. But expat retirees want more. Besides treasuring the city‘s rich culture and colonial charm, they want to take advantage of a cost of living that‘s among the lowest in Latin America...real estate prices that are unheard-of in a city with such a rich quality of life... an unbeatable retiree benefit package...and a thriving expat community surrounded by a warm and welcoming people who make you feel like you really belong. If you‘re coming to “try Cuenca on for size,” you‘ll need a furnished rental. There‘s no better preview of what it‘s like to be a resident. You can expect a modern, luxury furnished rental to cost between US$500 and US$850 per month, varying with the size, location, and length of stay. In this case, I would plan on spending around US$1,200 per month. However, you could live in Cuenca for less. You could rent a “local-style” apartment for about US$100 a month. For this, you’d get maybe 600 square feet in an older building with no doorman or garage. Alternatively, invest in a home of your own in Cuenca, an apartment or one of the charming colonial houses the city is known for, and you can live on a monthly budget of US$700.

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The Spanish spoken in Cuenca is crisp, clear, and relatively formal, making it a great place to learn the language. In fact, language- learning is a thriving business in Cuenca, with international students in residence all year. If you‘re not already a fluent Spanish-speaker, I‘d strongly recommend attending one of the excellent language schools in town, such as the renowned CEDEI or Abraham Lincoln cultural centers. If you don‘t learn Spanish, you‘ll be able to get by. But you‘ll be confined to (and dependent on) a small circle of English-speakers and miss much of the rich, cultural experience that the Spanish-speaking expats enjoy every day. When you consider all that Cuenca has to offer the overseas retiree—and what it costs to live here—you‘ll agree that, for many, there‘s no better deal out there. Plan a trip, have a look, and get ready for an exciting life in the Andes. Further reading We published a full report on this little Andean gem, which includes an overview of the real estate market and comprehensive information on what to do in the city and how much the cost of living is. You can access it here. For maps, photos, and general demographic, tax, and government information, check out our Ecuador Page on the Live and Invest Overseas website. Also, for ongoing coverage of Cuenca and elsewhere in Ecuador, be sure to read the daily Overseas Opportunity Letter by Kathleen Peddicord. Recommended resources For help with legal issues you can contact George Horowitz, while our correspondents Mike Sager (e-mail: [email protected]) and David Morrill (e-mail: [email protected]) are on call for anything real estate-related. For Americans interested in how to connect their tax obligations in the United States with those in Ecuador, we recommend tax attorney Chris Rusch, whom you can contact through this page.

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Ecuador is one of the countries we feature in our How To Retire Overseas Kit, a brand-new first-ever two-part kit to help you, first, consider all the world's current top options at once (20 destinations in total), while arming you with the practical support you'll need to make your retirement dreams come true as easy and hassle-free as possible. Get in touch here for more information.

www.liveandinvestoverseas.com

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Cheapest Place To Retire #5: Chiang Mai, Thailand
Monthly budget: US$1,100 Monthly rent: US$400 Thailand is arguably the cheapest place on earth to live well. Our friends Paul and Vicki, on-and-off residents of the country for more than two decades, have long been teasing and tempting us with tales of US$1 Pad Thai lunches and US$11-a-night hotels (including breakfast and free WiFi)… Thailand has three very distinctive areas. The capital, Bangkok, located roughly in the center of the country, is the largest city. Fascinating in many ways, it‘s worth seeing at least once—if you‘re traveling to Thailand, you‘ll almost certainly have to pass through its airport. Farther south, extending for nearly 600 miles along a narrow peninsula, lay hundreds of idyllic beaches, dense vegetation, and tropical islands. Many foreigners choose to make central or southern Thailand their home, but probably more people end up settling around Thailand‘s “third country,” Chiang Mai. Across Thailand, the standard of medical care is very high and costs are extremely reasonable. This has helped to make the country a popular destination for medical tourists, who find it much less expensive to fly to Thailand and receive treatment there, than it would be to have the same procedure done in their home country. Exotic living on a budget—Chiang Mai The city of Chiang Mai, with a current population of nearly 240,000, has existed for over 700 years. The heart of Chiang Mai lies within its old city walls. Here, dozens of ancient and modern Buddhist temples coexist with public and international schools, residential and commercial neighborhoods.

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Street markets and festivals occur almost nightly, and a huge array of restaurants catering to all tastes can be found within walking distance of almost anywhere in the Old City. Chiang Mai has grown beyond the ancient walls, though, and extends for several miles in every direction. Large shopping complexes are located along the superhighway, a multi-laned, controlledaccess ring road that circles the outskirts of the city. Several “mega-malls” and huge multi-national grocery and department stores line the access roads to the Superhighway. Chiang Mai is an inexpensive place to live by almost any standard. With housing prices so low, it‘s no wonder so many expats have chosen to make Thailand their permanent home. Unlike some cities, foreigners here are more likely to integrate with the locals and live in any area in and around Chiang Mai. One popular area is the neighborhood near the trendy Nimminhemin Road. Upscale condominiums are conveniently located near excellent restaurants and a good foreigner infrastructure, close to English-speaking dentists, internationally accredited hospitals, and within a short walk of the Old City. With an abundance of restaurants, offering a huge array of Thai, Oriental, and Western cuisines, you won‘t go hungry around Chiang Mai. Along the main streets of the Old City are rows of mainly inexpensive restaurants catering to Western palates. Everything from fine Italian food to Greek gyros, fresh sushi, vegetarian wraps, Indian food, German cuisine and English fishand-chips are easily found, as well as excellent Thai and Chinese food. Along the banks of the Mae Ping River, not far from the Wororot Market and just across the Nawarat Bridge, are many higher-end restaurants with loyal expat followings. Scattered throughout the city and shopping areas are restaurants in all price ranges, many serving fine international cuisines. You can buy a comfortable expat-standard house in Chiang Mai for as little as US$100,000; however, as a foreigner, you cannot hold title to the land, only to the construction. Alternatively, you can rent a furnished house in the city www.liveandinvestoverseas.com

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for around US$400/month. If you own your place, the estimated monthly expenses you’ll incur will be of around US$650, and of US$940 if you rent. For a long time, the Thai city of Chiang Mai has been luring expats from the West. Some come for the weather; others are attracted to the low cost of living. High-quality health care and health-related services are important draws for retirees. Housing prices are very affordable, and foreigners rarely have problems purchasing condominiums or, in some cases, real property. Whatever the reason, at least 17,000 foreigners have chosen Chiang Mai as their home. Could you be next?... Further reading We’ve published a full report on Chang Mai, which includes an overview of the real estate market and comprehensive information including cost of living and activities. The report is available here. For maps, photos, and general demographic, tax, and government information, check out our Thailand Page on the Live and Invest Overseas website. Thailand, as well as other top destinations in Asia, are covered in our Around Asia package, available here. Recommended Resources Real Estate Chiang Mai Properties (sales and rentals) Tel. (Gai) +66(0)89700 2261; e-mail: [email protected] Tel. (Nai) +66(0)89700 1368; e-mail: [email protected] Chiang Mai House (sales and rentals) 2/7 Serm Suk Road, T. Chang Puek, A. Muang, Tel. Office: +66(0)5340 4035 Mobile: +66(0)89756 8137 Satihoga-Tropical Homes (sales and rentals) 79/157 Moo 2, Chiang Mai-Doi Saket Rd. T. Taladkhuan, A. Doi Saket; Tel. +66(0)89953 4981 An attorney we recommend is Rene-Philippe Dubout, whom you can www.liveandinvestoverseas.com

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contact by e-mail at [email protected]. Thailand is one of the countries we feature in our How To Retire Overseas Kit, a brand-new first-ever two-part kit to help you, first, consider all the world's current top options at once (20 destinations in total), while arming you with the practical support you'll need to make your retirement dreams come true as easy and hassle-free as possible. Get in touch here for more information.

www.liveandinvestoverseas.com

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Cheapest Place To Retire #6: León, Nicaragua
Monthly budget: US$1,300 Monthly rent: US$500 Nicaragua is a beautiful country with loads of sunshine and two long coasts. It is a land of lakes and volcanoes, of cloud forests and tropical jungles, of cattle ranches and Spanish colonial cities, of rare orchids and white-faced capuchin monkeys. It is also very affordable, not to mention safe. You‘ll find most goods and services in Nicaragua cost significantly less than in your hometown. Regular public transportation (buses and taxis) amounts to about US$20 a month. Eating out twice a week (and avoiding the Dom Perignon) will dent the wallet approximately US$100 a month. A furnished one- or two-bedroom house rents for about US$500 a month; water charges are US$7; and it‘s US$2 for garbage removal. Allow US$100 for basic food staples...and your reasonable budget adds up to US$877 a month. For maid service, add another US$60. Special legislation benefiting retirees In August 2009, Nicaragua became an even more enticing destination for the foreign retiree. The Nicaraguan government passed a new residency law (Law #694) that increased the tax exemptions and other benefits for foreign retirees. Specifically, the new law allows foreign residents to bring up to US$20,000 worth of household goods and personal belongings into the country duty-free; to pay no duty when importing a car valued up to US$25,000; a tax exemption of US$50,000 of the VAT (value-added tax) of construction materials to build a house to live in; and to pay no taxes on out-of country earnings. The minimum age for eligibility is 45. The minimum income requirement to qualify for the resident program is US$600 for www.liveandinvestoverseas.com

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retirees and US$750 for people with private incomes (income from investments, stocks, rents, etc.). Add US$150 for each dependent. Leon—Granada’s sister colonial city If you’ve read about Nicaragua as a retirement haven, you’ve probably read about colonial Granada, sometimes referred to as the country’s “jewel” and certainly its best-known city. I’m a big fan of Granada, with its largely renovated and colonial center, centuries-old churches, markets, restaurants, and established expat community. It’s probably my favorite city in this part of the world. However, if budget is your primary concern, look to Granada’s sister colonial city, León, instead. Granada, as I said, is home to hundreds of expat retirees, from North America and Europe, who’ve been at work fixing up the city’s old haciendas and opening taverns and eateries in the town center for the past dozen years. They’ve added a new and appealing dimension to life in Granada, and, as a result, the cost of living in this city has risen. In León, Nicaraguans go about their business blissfully separate from the bustle (and the inflated economy) of expat retiree life in Granada. León is one of the oldest cities in the Americas (founded in 1524), and life here remains simple and sweet, relaxed and unhurried. How much to live here? All things considered, a budget of US$1,200 to US$1,400 per month should keep you nicely, including rent of about US$500, which should be enough to afford you a comfortable, high-end home. HOA fees are not commonly paid by apartment renters, as they are in Ecuador. This would buy you an expat-standard life; as anywhere you could live like a local for considerably less.

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León has most of what you’d need right in town, and it’s a city laid out for walking. You could live here without investing in a car. For longer distances, buses and taxis are easy to come by and cheap. Here’s how an average budget for retired life in León would break down: US$500 a month for rent; US$50 a month for transportation; US$20 a month for gas (used for hot water and cooking); US$20 a month for telephone; US$30 a month for Internet and cable TV (which come bundled); US$360 for food; and US$200 for entertainment. Add US$180 a month for full-time houshold help if you want it. If you invest in your own home, you won’t have rent, but you will have an HOA fee (if you buy into a private residential community; count on about US$75 a month), property taxes (US$50 for a large house in the city), and the expense of homeowner’s insurance (US$95 for that same property). Your budget overall as a homeowner would amount to about US$900 a month. Again, add US$180 a month for full-time household help. Nicaragua is another place where it can be affordable to keep a car. You’ll pay US$12 a month for your registration; US$70 a month for insurance; US$50 a month for maintenance; and US$60 a month for fuel (depending on use). Note that, while Ecuador uses the U.S. dollar as its currency, Nicaragua has its own córdoba, which normall underperforms the greenback. So, while a falling dollar can erode the buying power of the U.S. expat abroad, the faster-falling córdoba can normally be counted on to offset that in Nicaragua. Further reading You can access full reports on Nicaragua and other retirement havens here. For maps, budgets, photos, and general demographic, tax, and government information, check out the Nicaragua Country Page of the Live and Invest Overseas website. Nicaragua is one of the countries we feature in our How To Retire Overseas Kit, a brand-new first-ever two-part kit to help you, first, consider all the www.liveandinvestoverseas.com

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world's current top options at once (20 destinations in total), while arming you with the practical support you'll need to make your retirement dreams come true as easy and hassle-free as possible. Get in touch here for more information.

www.liveandinvestoverseas.com

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Further Live and Invest Overseas Resources Overseas Retirement Letter
Top 2011 Retire Overseas Options Revealed In Full Cheapest, safest, friendliest...best weather, best infrastructure, best health care...most tax-advantaged and most foreign resident-friendly... Plus most beautiful, romantic, exotic, historic, and adventure-filled. Find out more here: http://www.on2url.com/app/adtrack.asp?MerchantID=1 48072&AdID=551168

Overseas Retirement Circle Membership
Members of our Overseas Retirement Circle are part of an inner circle working together, with full support from us and complete access to our extensive Live and Invest Overseas resources. Find out more here: http://www.on2url.com/app/adtrack.asp?MerchantID= 148072&AdID=551173

44 Things You Must Know Before You Relocate, Retire, Or Invest Offshore
The nuts-and-bolts support you need to live, retire, and invest overseas with confidence. Find more here: http://www.on2url.com/app/adtrack.asp?MerchantID= 148072&AdID=551179

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Top Health Insurance Options For The Retiree Abroad
Health insurance is a top priority for anyone considering a move overseas. Within the pages of this two-manual kit, learn the difference between local insurance and international policies. Find more here: http://www.on2url.com/app/adtrack.asp?MerchantID= 148072&AdID=551189

Global Property Investor's Marketwatch
As founder of International Living's Global Real Estate Investor, Lief led his readers to a number of remarkably profitable investments in markets from Croatia to Mexico...from Argentina to the coast of Spain...from Romania to Honduras... Now he shares his unique and extensive experience with members of his Global Property Investor's Marketwatch. Before you take off for your new life in Paradise overseas, let us show you...find here more: http://www.on2url.com/app/adtrack.asp?MerchantID =148072&AdID=551193

Live and Invest Overseas Live Events
The best way to consider the best options for your new life overseas. Our live events introduce you not only to our key overseas experts for each country, including local attorneys, insurance providers, bankers, real estate professionals, tax advisors, residency consultants, and more, but also to expats and friends who’ve already launched new lives in the world’s top havens…and who can tell you, from firsthand experience, of the advantages and the disadvantages, the pluses and the minuses, the distresses and the delights…and why they’ve never looked back! Go here now to review our entire calendar of events: http://www.on2url.com/app/adtrack.asp?MerchantID=148072&AdID =551194

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A Publication of Live and Invest Overseas

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