Living and Retiring Offshore

... Panamanian Style

My favorite song from Porgy and Bess was "Summertime .. and the living is easy!"

For Panama it is always summertime AND surprisingly it is NOT nearly as boring as many "four season" lovers would suggest. Quite frankly, I don't miss the four seasons.

Panama does NOT really have a "rainy season" as many people think except in certain areas. although every 2-3 days it rains for an hour or so particularly from September through to mid-December. A full day of cloudy, overcast weather is rathere rare. On most days there are at least 3-4 hours of sunshine and often many more. In truth, I actually prefer the so-called "rainy season".

The official Panamanian "summer season" coincides with the North American winter season probably for marketing purposes.  

As a Canadian, the weather in Panama suits me just fine with average daytime temperatures in the mid to high 80s (occasional 90's) and night time lows in the mid to high 70s. 

The average ocean water temperature at Playa Serena beach in Coronado is 80 F with a variance of 79 to 82. It would be impossible to guess the month of the year by going swimming in the ocean or in our pool for example. This is definitely not true in Canada or in southern Florda  

As I note in my book you can enjoy a millionaire lifestyle in Panama on 33% of your expected retirement budget in North America or Europe and live outdoors pretty much every day of the year in sandals, shorts and a t-shirt.

Everything is Better Than Expected

Almost everything is "better than expected" in Panama. 

Yes ... there are some disappointments and surprises. There is more poverty than you might expect but it is not quite as bad as you think. Roads are not as good as "up north" (particularly in Coronado). Customer service is often less than desired but in general the surprises are generally on the upside. 

When was the last time you could honestly say that? 

I have visited some serious slums and run down districts in virtually every city in the world including London, Montreal, New York, Paris and Singapore. Panama is not all that different. 

The roads in Panama are rather good in general. Road systems in and around New York City are nothing one should be proud of.

Most of the food in Panama tastes much better than you would have expected. It is not shipped thousands of miles before it hits your kitchen table as in most parts of the USA. If you live in Iowa, for example, the "Great American Food Basket", the average food item on your table was shipped 1500 miles.

Panamanians are genuinely much friendlier than expected, work gets done faster than you might have thought possible at much much lower cost. Serious crime is lower than expected if you avoid the "red zones" and stay out of the drug or money lending business. There are many fewer serious accidents on the highways than you might expect given the driving style. The number of $60,000+ luxury SUVs on the roadways is almost impossible to believe.

The quality of legal services for real estate and incorporation is much better and much less expensive than expected and I have used a lot of lawyers in my life.

My book explores these differences. It compares the Panama lifestyle with living standards in Canada, the USA, Mexico, Puerto Rico, France, Switzerland, the UK, Thailand and Singapore.

These are all places where we have actually lived. 

A Lifestyle Insurance Policy

Everyone should have a "contingency plan" or "lifestyle insurance policy"  for a rainy day but particularly for retirement planning purposes. Hopefully you will never have to use it.

For example, identify a low cost friendly country where you could maintain your standard of living on one third of your "up-north" budget" if the need arises. That gives you an adequate cushion for a really bad turn of events ... such as the recent housing and stock market crash. 

For some, such a country could be Mexico, Nicaragua, Croatia, Thailand or perhaps even a small burg in Central Florida (although I doubt if one could really live on 33% anywhere in the USA and retain the same lifestyle).

For us it was Panama and after five years, Panama is like the gift that keeps on giving ....