I last mentioned Geoarbitrage as one of the options for early retirement. Different geographic locations have different cost of living. Geoarbitrage refers to taking advantage of these differences. Such strategy can be a powerful tool during one’s wealth building years and it can make one’s money last longer in retirement.
There are many avenue of global geoarbitrage which allows early retirements in locations such as Argentina, Panama, Thailand, Poland etc. Quality of life and cost of living is low in these places compared to Singapore. I list Chiang Miang in Thailand as the first choice of my geoarbitrage locations.
Geoarbitrage is most critical when one consider his/her wants and there is a need to build an appropriate plan. The plan may include the following:
- Identify the stage of life one is in and preference on the type of life one will want to lead during the geoarbitrage.
- The amount of money one is currently spending.
- Housing – this is one of essential factor. One will need to consider whether to purchase or rent a property. If one prefers to be a nomad, I am of view that renting will be a better option.
- Earning – It is impossible for one to sit around and do nothing during the geoarbitrage period. Doing some form of work which generate some form of earnings, will go to the great extent in reducing the reliance on the investment portfolio.
- Cut down on Belongings – It makes sense to remove everything one does not activities.
- Minimalism – I prefer to reduce my belongings to a few checked bags. This will lead to me not wanting to buy anything now.
One need to plan slowly and carefully before embarking on the geoarbitrage dream.