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“We watched our friends struggle. Not fully eligible for Medicare
they were spending 50% of their income on health care.
And because we got a late start planning
for our own retirement, we were in even worse shape.”
Over late-night glasses of wine on their California patio,
Steve Johnson and Linda Murdock talked about moving to a place
where they could stretch their money further.
Now, three years later, they say…
“In Panama, the Future’s So Bright
You Gotta Wear Shades”
- Panama boasts stunning tropical beaches and perfect weather, while also being Latin America’s most modern and sophisticated country.
Steve and Linda’s story isn’t unique. They’d enjoyed successful careers and were living the ‘good life’ in Aromas, California. In 2002, just about to turn 57, Steve was a corporate executive, and Linda, 51, owned a successful specialty dog-food business.
They lived in a nice home and were starting to think about retiring. Problem was, they’d gotten a late start on their retirement planning. They didn’t have as much equity built up in their home as they would’ve liked. They had watched their friends struggle in retirement with rising taxes and runaway health care costs. And these were friends who were better off than they were…
Steve and Linda were pretty sure they wouldn’t be able to maintain their current standard of living once they retired. To do that, they knew they’d need to move somewhere with a lower cost of living. They joked that they’d have to retire to an outpost in the Mojave Desert, with summers in excess of 100 degrees and winters that can dip below freezing.
Over late-night glasses of wine on their patio, they talked about their options. Linda had taken up surfing on her 50th birthday, and she wasn’t ready to give that up. Steve wanted to be in a place where the cost of living was low since his pension would amount to 40% of his pre-retirement income of $150,000.
They made a checklist of all the things they were looking for in a retirement destination, and they started doing the research.
One place stood out. Panama.
It’s affordable, it’s politically stable and safe, and because of the American influence in the former Canal Zone, it is, arguably, the most modern and sophisticated country in Latin America.
In fact, Panama meets all the criteria on most anyone’s checklist:
- Close to the U.S. (just a 2 ½ hour flight from Miami )
- Political stability and very low crime rates
- Excellent weather, with a climate for everyone, from tropical beaches to temperate mountains
- Top-quality health care—the gleaming new Punta Pacifica Hospital is the only Latin American facility affiliated with Baltimore’s renowned Johns Hopkins Hospital
- No income taxes on foreign-earned income
Now, it’s true that a lot of the things I’ve just mentioned can be found in other Latin American countries, too. Some are even closer to the U.S. (but not by much). And many have democratically elected governments. (Although few are as stable and safe as Panama.)
But there are some things that are unique to Panama that you may not be aware of:
- You can drink the tap water
- No property taxes on homes or condos constructed in the last 20 years
- The U.S. dollar is the official currency
- A built-in community of English-speaking locals and expats
- No hurricanes…ever
- The world’s best retirement incentive program, and…
- It’s affordable, affordable, affordable—live well on as little as $979 a month!
We’ll tell you more about all that Panama has to offer, and especially about how inexpensive it is to live here in a moment. But first, the rest of Steve and Linda’s story.
In 2003, Steve and Linda traveled to an International Living conference in Panama and decided, “This place looks pretty promising. ”
Just outside Panama City, they toured likely beach towns where Linda tried out the surfing. They were hooked.
“We bought a spacious three-bedroom house with a nicely landscaped yard for $100,000 in a little town called San Carlos, ” Steve says, and on later trips while he was still working, Linda bought all the furniture and did all the decorating.
They rented the house in San Carlos to other expats and went back to their lives in California. Three years later, Linda sold her business and Steve retired.
“We moved to Panama with a dog, a cat, and our suitcases, “he says. And they’re more than happy. “Panama may not be the end of the rainbow, but it’s pretty close.”