How To Retire Rich--Even If You're Not

For many people in their 50s and 60s, their dreams of retirement have been postponed: squashed by the realities of higher living expenses, deflated investment portfolios and perhaps even job layoffs–thanks to the economic downturn.

But there’s a government voice promising luxury on a relative shoestring. It’s suggesting that you might have enough money already, to live a retirement beyond your wildest expectations. It’s calling to you: suggesting that you may not ever have to work again.

You’re dreaming if you think that government voice is coming from the U.S., Canada, or a European country. Listen carefully and check this out. It’s coming from Malaysia. And what this voice is suggesting might really open your eyes to something marvelous.

Malaysia

If you’re interested in retiring in a South East Asian country where the government is stable, where 90% of the population speaks English, where you can buy your own home, while offered government hand-holding to help you get settled, then Malaysia might be what you’re looking for.

Attempting to usurp its Thai competitors to the north as the region’s premier retirement destination, Malaysia offers everything from world renowned golf courses to first class shopping in Kuala Lumpur. In Borneo, there’s an impressive eco-tourism industry where you can climb Mt. Kinabalu, view Pygmy elephants in the wild, and watch the human-like Proboscis monkeys swinging from vines in the jungle as you head down the river in a small boat.

Malayasia also offers some of the world’s most beautiful islands and beaches—perfect for snorkeling, diving or just soaking up the sun. And you can enjoy a perpetual summer–based on its 200km distance from the equator.

The government initiated organization called Malaysia My Second Home started with a few hundred expatriate retirees in 1997. And the numbers have rapidly swelled to more than 13,000 to date—with the vast majority coming from the UK. There are also large retiree numbers from China, Japan, Australia and Singapore.

Joining the program costs a one-time fee of $3000, which includes assistance with acquiring a 10 year visa. They also help you find a medical insurance policy, they help set up a fixed deposit bank account for you, and they can guide you through the acquisition of a car and housing.

Peter Burstow first discovered Malaysia in 1965 when he was traveling there from the UK. Eventually retiring there, he enjoys the warm, year-round weather, eating out 4 days a week and claims that the costs of living are 75% less than what he was paying in England.

The Malaysia My Second Home program allows foreigners to buy homes ranging in price from roughly $75,000 to $150,000. Robert Harrison, from the UK, first visited Malaysia in 1999, and decided to recently buy a home and then renovate it. The former architect bought a 5 bedroom, 3 bathroom home for less than $120,000.

In the popular vacation destination of Penang, you can buy a luxurious 3 bedroom, 2 bathroom condominium with a beautiful pool and a weight room facility, including tennis courts, for just $100,000.

Or you can settle into a 2 storey, 4 bedroom townhouse with 3 bathrooms for less than $110,000.

And if you choose to rent, prices in Malaysia are comparable to those in Thailand.

But if you’re thinking of trading in your snow blower for a surfboard, and heading off to warmer pastures, you’ll need to be aware of certain restrictions. According to Adrian Lim, a representative from Malaysia My Second Home, you’d be required to take out a Malaysian medical insurance policy which—for the average 50 year old retiree—costs roughly $300 a year. And, like Thailand, there are certain financial restrictions placed on your residency.

For starters, if you’re aged 50 or above, you’d need to deposit a minimum of $47,000 into a Malaysian fixed deposit account, or demonstrate a retirement income of roughly $3000 per month.

Changes to some of the rules appear to be what frustrate expatriate retirees the most, claims Lim. If, for example, you bought a home a year ago in Malaysia, you were restricted to properties costing between $75,000 and $110,000. But the maximum price you can now pay has risen to $156,000—upsetting some of the people who could have waited to buy a larger or more luxurious home than what they initially settled for.

But then, if you want to live like royalty, there’s no limit to what you could pay for a palatial rental property.

Most expatriate retirees are focused around the capital city of Kuala Lumpur—near the country’s top medical centers and first class shopping areas. Rental costs for 3 bedroom, 2 bathroom luxury condominiums with a swimming pool, weight room and tennis courts start at roughly $700 a month.

Regardless of where you end up, retiring in Malaysia can make you feel like a King or Queen—even on a middle class income.

Malaysia – More Info

Malaysia My Second Home’s financial requirements:
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