For The Americans On The Forum, Retirement Options

[Mr Lee]

Some additional retirement options. Given some of these options, some may decide to do as my wife and I do, split time between the US and the Philippines, thus possibly having the best of both worlds, or just moving to another state which will be much less expensive to live for some. One must remember, while there are no taxes on income derived from another country, we all pay 20% Value Added Tax on most things we buy or use while in the Philippines, so that can and does make things much more expensive than years ago when I first started spending vacations in the Philippines. No one choice is right for everyone, but having options and balancing them out is important IMHO, so I bring these items to your attention. 10 Tax-Friendly States For Retirees 2011

Where's the best state for you to retire? Here's a good place to start your search: These ten impose the lowest taxes on retirees in the contiguous U.S., according to our research. All these retiree tax heavens exempt Social Security benefits from state income taxes. Many of them exclude government and military pensions from income taxes, too, or offer blanket exclusions up to a specific dollar amount for a wide variety of retirement income.

Although relocating to an income-tax-free state such as Florida or Texas may sound appealing, sometimes the best retirement destination is a state that imposes an income tax but offers generous exemptions for retirement income.Once you narrow your search to a few key states, zero in on local taxes. Municipalities can impose hefty property taxes or other assessments, or they may layer local sales taxes on top of statewide levies. Federal taxes? If you claim the standard deduction, they'll be the same no matter where you live. But if you itemize your deductions, you'll be able to write off real estate taxes and state income taxes, reducing your federal tax bill and easing some of the pain.

[Art2ro]

Everything centers around on how much money one has coming in every month from pensions and or from semi-gainful or self employment. When one can not afford to retire, one is forced to continue to work until his or her retirement plan is adequate enough to retire on. It's getting to a point where the majority of people from around the world can not afford to retire and have to continue to work beyond their average retirement age! Some of those who recently retired found themselves requiring to go back to work in order to make ends meet due to financial hardships and or they got screwed over by their employers who can no longer pay out pensions as promised, because the company went broke and are no longer around! So, the only people who have adequate income are the only ones who can truly comfortably manage their lifestyle and where ever one may desire to live, either from one country or two! It's just all about economics and "always a matter of money"! In this day and age, one has to do what one has to do in order to acquire and maintain a secure, safe and comfortable lifestyle!

[scott h]

You plan sounds good Mr. Lee, however like Art refers to that is really not an option for us due to finacial reasons. Even though we still play the lottery ;) we really only have two options. 1) move to a lower cost of living state as you suggest, perhaps get a part time job to make ends met etc. or 2) Move to the Philippines and make a go of it there. I believe my pension will allow us to live in the relative comfort that we are used to. Plus my Asawa has followed me around for 20 years, its time to reward her by being close to her family and friends for awhile. Having said all that, we do have the rudiments of an "exit" plan if everything goes to ****

[JJReyes]

I have been thinking about your suggestion of asking the Philippine government to include a six months visa waiver program for retirees who purchase a condominium or other types of property permissable under Philippine law. It would be really nice if the government was to offer a 190 days visa waiver program or 190 days special visa.The worldwide income of US citizens is taxable under federal law. There is no escape. State income tax depends on your declared residency. There are no state income taxes for Nevada, Texas, Florida, etc. Unfortunately for me, Hawaii happens to be one of the highest. One criteria for determining residency is length of stay. If you are in the Philippines 180+ days a year, you can legally claim Philippine residency. Other "evidences" include property ownership, driver's license and where you vote.The Philippine real estate market has peaked. If Middle East and European employers don't renew Overseas Filipino Workers (OFW) contracts, the real estate bubble will burst. Some of the largest and most influential property developers like Ayala & SM are getting very nervous. They are looking for new customers to replace any loss from OFWs. American retirees might be a new market for them.JJR

Edited January 20, 2012 by JJR

[Mr Lee]

You plan sounds good Mr. Lee, however like Art refers to that is really not an option for us due to finacial reasons. Even though we still play the lottery ;) we really only have two options. 1) move to a lower cost of living state as you suggest, perhaps get a part time job to make ends met etc. or 2) Move to the Philippines and make a go of it there. I believe my pension will allow us to live in the relative comfort that we are used to. Plus my Asawa has followed me around for 20 years, its time to reward her by being close to her family and friends for awhile. Having said all that, we do have the rudiments of an "exit" plan if everything goes to ****

Scott, my post was to let members know they do have options, those options might not be for you and your wife and I fully understand you wish to make your wife happy, that is why we have our condo in Cebu and live there a few months a year, to make my wife happy and I realize I am probably lucky to be able to afford to do that, so I also understand not everyone can, but if it were not for her heritage and family, then there are many much better and equally inexpensive places to live IMHO, with some states in the US being some of them. So to address your cost of living concern, all things being equal, my opinion is that cost to live here in Florida without cutting corners is about what it cost us to live in Cebu City without cutting corners, but the province should be less expensive but at a cost of convenience IMO, living with family should be less expensive and rents in the provinces would be less expensive but remember, I said all things being equal, so a one bedroom apartment in the Philippines is not equal to a house in the US in the city or outskirts, and a house in the provinces where a person has to travel an hour of two to find a real place to shop, is not equal to many places in the US where shopping is much closer and with much better roads to get to it.Here in Florida I have seen mother daughter type houses and or efficiency units that rent for $500 to $600 a month, and in less populated areas I have seen whole houses for rent for about the same, so apples and apples. In Florida electric is half of what it is in Cebu per KWH but cable is much higher but more selection of channels, but the big difference I find is shopping here in Florida most times will beat shopping in Cebu by thousands of dollars yearly on almost all items needed to live, so my wife and I have figured out our costs for an equal lifestyle in Cebu City verses our lifestyle in Florida and it cost us about the same if we take out property taxes and homeowners insurance we have in Florida, so if we rented in the US instead of owned, then it would be a lot closer, and riding a cycle in the US would be a heck of a lot safer, and I had done that for many years in the past and never even came close to a real accident. So again, apples and apples. Of course if I wish to pay for the convenience of owning a vehicle, then I have to add that to the equation in the US and then come out closer to equal in costs overall because the savings in shopping is then wiped out.So IMHO and from personal experience, with the giant stores here such as Super Target, Super Walmart, Costco etc, it cost us the same to live in either place, so people should not rule out living in the US because they think it is less expensive to live in the Philippines. It may or may not be if all things are equal. Here I see guys giving up a house and moving to a two bedroom apartment in the Philippines and telling me it is less expensive, and in the US they always ran their aircon but in the Philippines they say they can do without it, yeah right, they do without it to stay within their budget and not because they do not like aircon and I cannot blame them or judge them for that, but again apples and apples. While it may be less expensive to live in some parts of the Philippines than where a person now lives within the US, moving half way around the world is much harder than moving across our own country, so again IMHO a person needs to chart out actual costs and use real expectations and only while comparing apples and apples because there is no question in my mind that the infrastructure of the Philippines does not hold a candle to the US, and a lot of the things we have to put up with there, we do not have to put up with here, maybe different bs to deal with here, but the same we have dealt with our whole lives, so we are sort of used to it by now. There is no question that having a maid or house help there will cost less, but my wife and I do not have that here or there and do not care to, and it always amazes me how a wife can sit home and play on the computer or go out with friends all the time while a stranger will raise their children and know all about their personal life, so that is not for me and never will be, but others may feel differently and I do not judge them if they do.To each his or her own, just everyone should be sure to do their homework and with the internet and chart out actual expenses in both places and equal if giving up in one, then they must also give up the same in the other, no cable, no cable, but a person can do without cable in many parts of the US and still have a lot to watch but not in many parts of the Philippines.

[Mr Lee]

I have been thinking about your suggestion of asking the Philippine government to include a six months visa waiver program for retirees who purchase a condominium or other types of property permissable under Philippine law. It would be really nice if the government was to offer a 190 days visa waiver program or 190 days special visa.The worldwide income of US citizens is taxable under federal law. There is no escape. State income tax depends on your declared residency. There are no state income taxes for Nevada, Texas, Florida, etc. Unfortunately for me, Hawaii happens to be one of the highest. One criteria for determining residency is length of stay. If you are in the Philippines 180+ days a year, you can legally claim Philippine residency. Other "evidences" include property ownership, driver's license and where you vote.The Philippine real estate market has peaked. If Middle East and European employers don't renew Overseas Filipino Workers (OFW) contracts, the real estate bubble will burst. Some of the largest and most influential property developers like Ayala & SM are getting very nervous. They are looking for new customers to replace any loss from OFWs. American retirees might be a new market for them.JJR

Go for it, I hope they listen to you. I personally think it would help more people to stay if they offered longer visas even if they were at the same cost, so even the option of paying for six months or one year at a time and visa free stay for ownership I am sure would work in their favor.Often when people go to the Philippines and compare costs, they do not figure in the cost of visas and inconvenience of having to get them every 59 days, and cost to have someone do it for them, or inconvenience for them to go to BI and do it themselves, so just the convenience of not having to go all the time might make some feel like buying condos, thus helping the economy and creating more money spent monthly while they are there. I know if it were not for the balikbayan program, my wife and I would never have bothered to buy our condo because I am the kind of person who does not wish to be bothered bimonthly having to go places, be it the BI or even doctors on a regular schedule, but at least a person can usually cancel a doctors appointment and not get seriously penalized.Known's and unknowns and not everyone who is retired is all about being on a schedule etc. I know some days I wake up and just cannot get out of bed that day and surely would not wish to be bothered going to the BI.It has been my belief that income from the US is not taxable in the Philippines, so a person who has investments in the US or SS or pension coming from the US does not pay taxes in the Philippines on that income (am I wrong? I would rather pay US taxes than Philippine taxes) yet they do end up paying VAT on top of their US taxes and again most people do not figure that into the equation when they compare living in the Philippines or living in their own country. In Florida, sales tax is 6 to 8% so a hell of a lot less than 20% VAT.Good luck and let us know what the outcome might be. Edited January 20, 2012 by Mr. Lee

[Jake]

OK gentlemen (Lee and MikeB),I don't know how the other members are reacting reading the back and forth bickering between you two.To me, it's becoming more obvious and defeats the whole purpose of this OP (retirement option) beingwritten in the first place. Please refrain from using your emotions and submit something else for othermembers' to learn about retirement options. I felt uneasy to say the least........Although we have not met personally, you are both considered friendly, courteous and kind. Please,I ask......no beg of you two to chill out for awhile. I really don't care who started or who's at fault.Respectfully -- Jake

Edited January 22, 2012 by Jollygoodfellow
- removed quotes

[Mr Lee]

OK gentlemen (Lee and MikeB),I don't know how the other members are reacting reading the back and forth bickering between you two.To me, it's becoming more obvious and defeats the whole purpose of this OP (retirement option) beingwritten in the first place. Please refrain from using your emotions and submit something else for othermembers' to learn about retirement options. I felt uneasy to say the least........Although we have not met personally, you are both considered friendly, courteous and kind. Please,I ask......no beg of you two to chill out for awhile. I really don't care who started or who's at fault.Respectfully -- Jake

My topic is to give members an additional choice due to my personal experience of having met lots of members who tell me exactly what I had posted in the op, that they moved to the Philippines to save money yet had to cut corners to accomplish that, so IMHO could have possibly moved within their own country to save money, well at least the American members. Members tend to compare apples and oranges and then say it is less expensive, so my point to my topic is for members to compare apples and apples but if they wish to meet a nice lady, then there is no question that IMHO it is more possible in the Philippines than possibly in our home countries, so then that is a different situation entirely and I say go for it, but always leave themselves other options if the need arises.Florida is less expensive than say California or Hawaii, yet Alabama is less expensive than Florida, so many of us Americans do have other options and I feel it is important members know those options and do not just throw caution to the wind and burn their bridges, and as you always say, make sure they have an exit plan or they could end up trapped in a country where little help will be offered to one of us if we should fall on hard times or even end up needing blood and not have a forum to help them, that and other types of help would not be the case in our own country. Jake and others believe it or not I do love the Philippines and especially most Filipino people, but at the same time I am a realist and realize that little has changed to make life better for those of us who visit or live within the PHL. There is much that could change if only the government actually wanted us there, but it has been proven to me time and time again that higher up government type people do not, and have shown it in many of their interviews.I would hope other Americans might add positives and negatives to living in the Philippines verses the US. :th_thholysheep: Edited January 22, 2012 by Jollygoodfellow
Wont tolerate personal attacks by anyone

[JJReyes]

My wife and I prefer to remain in Hawaii during our retirement years as active, independent seniors. The Philippines is our retirement option in the event our health deteriorates and we need assisted living.Medicare does not reimburse the cost for what they refer to as, "custodial care." You pay for it. A recent estimate is $10 to $15 per hour for a full time trained caregiver. In addition, the employer pays Social Security, Medicare and Unemployment Insurance taxes. Some states also require the employer to provide an employee with medical insurance, which might be another $300 a month.In the event that either of us needs caregiver services during our retirement years, one option is to relocate to the Philippines where we can hire a highly qualified professional caregiver for $500 or P20,000 to P25,000 a month. (While this may sound high, we prefer to pay premium to attract top candidates.) Mr. Lee as a Floridian has a second retirement option. Everyone is just waiting for Fidel Castro to pass away. Once more cordial relationships are established with Cuba, that sucking sound you will hear are American retirees moving further south. Raul Castro is eager to patch things up, but first generation Cuban Americans won't allow it while Fidel is still alive. It will be like saying to Fidel, "You won." The hatred is personal and deep rooted. What I find interesting is the primary economic beneficiaries when the relationship is more normal between the United States and Cuba are the 2nd and 3rd generation Cuban Americans.

Edited January 22, 2012 by JJR

[Jake]

This is in reference to other posts (currently invisible) that appears to escalate the situation......This CHIT is getting too deep. This whole thread "Retirement Options" is lost in space. And now the other members,especially the new ones we just welcome to this "wonderful forum" are thinking we're a bunch of immature cry babies,just like the other forums. I am really embarrassed about all this and deeply apologize to our new members.I for one simply cannot understand how some people think there is no other life or responsible outside the forum. Onceagain......I beg for all parties concern to just step away from the keyboard and chill out. Please......Respectfully -- Jake

Edited January 22, 2012 by JAKE
added opening remark