2014 was our 2nd full year of Early Retirement and International Intrigue
We began the year by slipping into Cuba, experiencing a country lost in time. And none too soon. Based on recent statements by President Obama, the Cold War may finally gasp its last breath. Cuba will never be the same
Back in the modern world, we jetted across the Pacific on a secret mission that would change our lives forever. Thanks to the miracle of modern medicine and In-vitro Fertilization (IVF), we were able to create a little human boy, due April 15th, 2015 (Ironic, no?) Going to Taiwan for Medical Tourism saved us 80% off US prices
Our intentions were to undergo IVF treatment, travel throughout SE Asia, then head to Europe for a Destination Birth. But even with infinite flexibility, things didn’t go as planned. A little scare and a brief period of Doctor mandated bed rest convinced us to stay in Taiwan throughout the pregnancy. We explored a bit, visiting Taroko Gorge and the islands of Penghu, and I road a bike 900 km all the way around Taiwan
In Taipei, we found some great accommodations and spent our day hours pursuing artistic endeavors. Winnie studied water painting, oil painting, calligraphy, and the flute. I am 3.5 semesters into an intensive Chinese language program, and continue to play guitar daily.
Life is good
Total Expenses
How much did this life of (re)productivity cost?
| Details | 2014 Annual Expenses | Notes |
|---|---|---|
| Housing | $13,707 | ~$38/day |
| Healthcare | $621 | ~$2/day |
| Transportation | $3,669 | ~$10/day |
| Groceries | $3,366 | ~$9/day |
| Dining Out | $10,288 | ~$28/day |
| Alcohol | $270 | ~$1/day |
| Entertainment | $4,087 | ~$11/day |
| Misc | $9,535 | ~$26/day |
| Total | $45,542 | ~$125/day |
Over the course of the year, the miscellaneous category took on a life of its own. A more detailed breakdown is probably warranted going forward. The table below summarizes expenses of more than $1/day
| Misc Expenses | Notes | |
|---|---|---|
| Chinese | $3,766 | Tuition and books |
| W Clothing | $1,057 | 2/3 of this is pregnancy related |
| House cleaning | $578 | ~$35/week for 4 hours of cleaning. Hired after Dr mandated bed rest |
| J clothing | $540 | whole new wardrobe |
| Visa and Gov't related | $492 | Cuba travel fees, Taiwan visa paperwork |
| Amortized housing | $447 | sofa, table, water filter, Ikea, etc... |
Similarly, for Entertainment we spent more than $1/day on Flute lessons ($1,178), Art classes and supplies ($645), and my bike trip around Taiwan ($834)
In addition, we had several atypical or non-recurring expenses that we broke out separately. These are expenses that we assumed would be abnormal for other travelers, or something better amortized over a longer period of time. Of all visitors to Taiwan, those coming to have a baby are probably in the minority…
| Other Expenses | Atypical and Nonrecurring expenses | |
|---|---|---|
| IVF and Baby Related Medical | $8,509 | Unlikely to be a regular expense |
| Handmade flute | $2,968 | Will last a life time |
| New iPhone 5s (x2) | $1,537 | ~$1/phone/day over 2 yrs |
| Family | $531 | Help out the family |
| Total 2014 "Other" | $13,544 | |
| Total 2014 Spending | $59,086 | ~$162/day |
Our 2014 core cost of living came in just over $45,500, roughly $3,800/month or $125/day. For early retirees, a portfolio of $1.15 million would suffice. Add some cash to pay for a round of IVF therapy and you are in good shape
Questions? Check out our expenses summary, detailed monthly expense reports, or ask in the Comments
Cost vs Value
Few people would consider our 2014 cost of living to be inexpensive, ourselves included. With core cost of living of over $45k and total expenses of almost $60k, we spent substantially more than we did in 2013 (~$21k more!)
The main areas we spent more are housing ($16/day more), dining out ($5/day more), and miscellaneous ($19/day more, mostly on Chinese class & baby related (clothes, pregnancy pillow
, etc…)), while spending less on healthcare and alcohol. And of course on the baby
But I’d be hard pressed to significantly reduce our spending, and have no desire to do so. We could spend $300/month instead of $1400/month on rent if we moved 30 minutes out on the subway line. We could eat out twice a week instead of twice a day. I could be that guy that spends a whole year in a foreign country and never even tries to speak the local language…
One area in which we could have saved with better planning is on visa runs. I flew to Hong Kong 3 times this year. Had we known we would stay in Taiwan this long, I could have applied for a resident visa while we were still in Mexico and saved the $820 we spent on flights and Ubers to the airport.
So could we have done better? Certainly. But considering that we saved $30k or more by pursuing IVF in Taiwan instead of the United States, the rest is secondary
Conclusions and Projections
By the only measure that matters, 2014 was a great success: we are going to be parents!
Our life in Taipei cost more than our life in Mexico and Guatemala in 2013, but was still good value. I expect our core cost of living in Taiwan in 2015 will be similar, with total expenses coming in lower.
As first time parents, a baby will probably be enough entertainment for quite some time. Parenting will have its own expenses, but we don’t expect GCCjr to significantly impact our total expenses other than the cost of birth
In October 2015, when GCCjr is 6 months old, we would like to get back on the open road. We are discussing travel to Thailand, RV’ing around Australia or New Zealand, or returning to Mexico… in other words, we have no idea.
What would you recommend? Where should we go next?
Thank you for reading and for your support
Jeremy & Winnie
Go Curry Cracker!
Thanks for the breakdown of expenses for 2014, it helps me to realistically see how much is needed and what that amount can buy. I think your spending was pretty darn good for the luxuries that you have such as extensive travel, fertility treatments, and eating out. It so nice to see everything you can afford for so much less than what it would cost in America. Mr. Bug and I are very similar that we would probably eat out more than cook so that definitely helps me to plan how much we will need once we quit working. Thanks for sharing!
Hi Mrs Bug
The cost of everyday living is definitely lower than many places in the US. We certainly push the limit, and spend much more than locals do.
The price of eating out is definitely agreeable though :)
Happy New Year
Jeremy
Every time I read your post, the same sentence kept coming to my mind: “Life is good”. Your blog is very real, which makes it very inspiring and addictive. Yours, along with MadFientist, JimCollins, RootofGood, motivated me to battle my struggle between luxury goods and saving. I am still on my way to find peace between them. But reading your post certainly makes the journey easier.
Thank you LF. Indeed, life is good
The battle between luxury goods and saving is a good one. I wish you the best of luck.
These days if we aren’t eating it or planning to eat it, we probably aren’t buying it :)
Thank you very much for your kind comment.
Happy New Year!
Jeremy
Happy new year! Thank you so much for stopping by my blog.
Unfortunately, I still occasionally fall into the trap thinking that shopping provides spiritual food and I can skip my real food for that. :)
Love that pillow–so do our cats. There is regularly a pile of cats sleeping within its confines, when i’m not using it.
We don’t have cats, so when Winnie isn’t using there is regularly a pile of me :)
I can’t wait to see how the travel will change with the baby. I hope to travel some with ours one day, but they will be 8 and 10 by that point. Travelling with a baby is its own experience that is hard to describe (especially when stuck in airports or in cars/buses).
I really enjoy reading about your lifestyle. It inspires me!
Hi Vawt
It will be a new experience for sure, we aren’t really sure what to expect
I can see a typical 1 to 2 week vacation being a challenging experience, and hope that slow travel has some benefits. Can’t escape the plane trip though
Thank you kindly!
Jeremy
Recently found your blog based on the Radical Personal Finance Podcast. Can you clarify the comment “For early retirees, a portfolio of $1.15 million would suffice. “. What is the rate of return and other assumptions. Or is there is already a blog post on Early retirement which is an area I am interested in.
Hi John, welcome!
This is based on the 4% Rule / Trinity Study / Safe Withdrawal Rate, which in a nutshell says that a retiree could spend 4% of their invested portfolio and have confidence that their portfolio would outlive them
So 46k this year is 4% of $1.15 million
Jim Collins explains: http://jlcollinsnh.com/2012/12/07/stocks-part-xiii-withdrawal-rates-how-much-can-i-spend-anyway/
You may also enjoy this post: https://gocurrycracker.com/10-years-and-a-day/
I have several posts coming on this topic. Please sign up for the mailing list if you are interested in seeing our take on it
All the best
Jeremy
Haha, I have the same question when reading. thanks for clarifications. However, my next question would be, how to save $1.15 million before early retirement? Payroll in Asia is not as high as States. I assume you have good investment strategy to increase your savings significantly?!!
Look forward to your further sharing!!
Payroll in Asia is not as high as the states, in most cases. Yet Winnie still saved 60% of her income and invested in stocks. Just add time
Wow,you had an action packed 2014. I’ll wager you a shot of the finest Mexican tequila that the baby will slow you down a bit. ;)
I’d vote you head to Mexico. It’s pretty awesome and an immensely good value. And we might end up down there sometime in 2015 or summer of 2016 so we could meet up.
You are extremely “lucky” in that your assets are in USD and that buys more foreign currency almost everywhere these days. Australia is way cheaper. Mexico is way cheaper. The world is really your playground. Looking forward to finding out where your journeys take you in 2015 and beyond.
We do like Mexico… we almost bought a house in SMA. Might still happen
A strong dollar is nice. I’m waiting for Greece to pull out of the Euro, and then Europe will definitely be on sale. That is my Black Friday
With baby in tow, I’m pretty sure we are going to need more than 1 shot of tequila ;)
I have a whole bottle with your name on it. As long as you are “Jose” or “Cuervo”. I picked up 3 liters of the cuervo on our last cruise to Mexico. Cheaper than water (Fiji water anyway).
Cuervo is my… middle name
Salud!
You should visit Australia since exchange rate is favorable and close from where you are now. Thailand sounds good to me too.
I went to Australia in 2002 (I think) when the rate was 2x as good as it is now. At current rates Australia still seems expensive
It’s in the Top 3 though
A great writeup for a great year. Congratulations on the new baby boy. The Frugal Buckeye house is expecting a boy at the end of March and I agree with RoG up there that the baby might slow you down a little bit. It’s amazing how so much energy can fit into such a small package. We aren’t traveling and still tend to be plenty worn out by the end of the day with our oldest.
I look forward to reading about what places you decide to visit in 2015. Good Luck!
Congratulations to you as well, Frugal Buckeye! Exciting times
We went to my sister’s for Christmas 2 years ago. After a week with her 3 boys, 5,3, and 1, we were absolutely exhausted. I hope having just the 1 is easier :)
Ah, ha ha. One is easy peasy compared to three.
The first year is definitely overwhelming and exhausting. But it will be so much easier with two parents not working. I can’t wait to meet gccjr, maybe in Mexico? Are you ready for four little boys running around together?
We can leave the 4 boys with Grandma and go get some margaritas
ps: Go Big Ten!
Yeah! Since you’ve blogged about Washington I figured you were PAC 10/12/16ers. It was good to see the B1G do well this year in bowl season, especially the vaunted SEC.
I was born and raised in Minnesota so I still appreciate real sports teams ;)
Is Africa ever going to be on your list? I LOVED Morocco when I visited and I don’t remember it being ultra expensive. It was also pretty developed – more so in some ways than Eastern Europe. Sub-Saharan Africa is of course very cheap.
Africa is definitely on the list. I’ve only been to Mauritius which probably doesnt count
Where to go…Dominican or Costa Rica or Panama? I watch those places on the House Hunters International show and have them on my to be seen list.
All of the above :)