Early Retirement to Slow Travel
Can You Retire In Your Early 50s?
It Really Comes Down to What You Value…
When people hear we’re planning to retire early and spend our days exploring the globe, the usual reaction is disbelief. How can we afford to do that? Aren’t we worried about running out of money? What about health care? The truth is, early retirement and Slow Travel require careful planning, but it’s absolutely doable—and in many cases, it’s more affordable than a traditional retirement. Here's how we're making it happen and how you can too.
We’re Brian and Allison, a married couple in our early 50s and 40s, respectively, with no children. We love traveling, don’t mind living minimally, and are lucky to have good health (a key factor for this lifestyle). Our financial plan is solid, allowing us to live well on less than $35,000 per year until our retirement accounts and Social Security benefits kick in.
We’ve downsized our lives to what fits in a carry-on suitcase and one checked bag each, which makes long-term travel seamless. With family in the U.S., we plan to visit once a year, but otherwise, the world is our home.
Investments and Withdrawals
To retire early and sustain Slow Travel, you'll need a solid investment strategy that allows you to withdraw funds gradually while preserving your portfolio for the long term. Here’s how we approached it—and how you can too:
Ballpark Investment Goals
Your total savings and investments should comfortably cover your annual living expenses for at least the next 30 years, adjusted for inflation. For example:
Living Expenses: If you plan to live on $35,000/year, aim for $1 million in investments. This amount follows the 4% rule, which suggests you can withdraw 4% of your portfolio annually while keeping it intact over decades.
Emergency Savings: Keep a separate cash reserve of at least 6 months' worth of expenses for emergencies or market downturns.
Investment Strategy
Taxable Brokerage Accounts: These are ideal for early retirees because they allow penalty-free withdrawals before retirement age. A mix of stock and bond index funds (e.g., 80% stocks, 20% bonds) provides growth while managing risk.
Retirement Accounts (401(k), IRAs): Build these for later years. You can tap into them penalty-free at 59½ or earlier through strategies like Roth IRA conversions or the SEPP (Substantially Equal Periodic Payments) rule.
Cash or Savings Accounts: Use high-yield savings accounts to hold short-term funds for immediate expenses and emergencies.
Withdrawal Approach
Strategic Withdrawals: Pull just enough from your investments each year to stay in a lower tax bracket. If you plan to spend $35,000 annually, include taxes in this figure and withdraw accordingly.
Rebalancing: Revisit your portfolio annually to adjust for market shifts, ensuring your mix of stocks and bonds aligns with your goals.
Tax Considerations
Capital Gains: Withdraw from taxable accounts strategically to minimize long-term capital gains taxes.
Roth Conversions: If you're in a lower tax bracket during early retirement, consider converting traditional retirement funds to Roth IRAs. This lets you pay lower taxes now and withdraw tax-free later.
Tax-Advantaged Investments: Municipal bonds or other tax-efficient options can reduce your tax burden while generating income.
By combining diversified investments, thoughtful withdrawals, and tax efficiency, you can create a sustainable income stream that supports your travel dreams without touching retirement accounts too early.
Health Care Abroad: What We’ve Learned
Access to quality healthcare is a pivotal consideration for early retirees embracing a slow travel lifestyle. Fortunately, numerous countries offer high-standard medical services at costs significantly lower than those in the United States. Here's an overview of healthcare options, associated expenses, and examples of countries where out-of-pocket medical care is both accessible and affordable.
1. International Health Insurance
While global health insurance plans from providers like Cigna or IMG are available, they can be expensive and may offer more coverage than necessary for certain travelers. An alternative approach is to utilize local healthcare services in the countries you visit, paying out-of-pocket for routine and minor medical needs. This strategy is particularly cost-effective in countries with affordable healthcare systems.
2. Routine and Preventive Care
In many countries, routine medical services such as doctor visits, dental check-ups, and basic procedures are available at a fraction of U.S. prices. For instance, in Portugal, a routine bone density test costs around €100, whereas in the U.S., it ranges from $300 to $1,200.
Similarly, X-rays in Portugal cost between €25 and €100, compared to $100 to $1,000 in the U.S.
3. Emergency and Specialized Care
For more serious medical issues, private hospitals in countries like Thailand offer high-quality care at lower costs. Thailand is renowned for medical tourism, with procedures costing up to 80% less than in the U.S.
For example, a surgery that might cost $20,000 in the U.S. could be as low as $4,000 in Thailand.
4. Country-Specific Healthcare Insights
Mexico: Healthcare costs are approximately 60% lower than in the U.S.
Expats can access both public and private healthcare systems, with private insurance costing between $1,000 and $5,000 annually, depending on coverage and personal factors.
Portugal: The National Health Service (SNS) provides universal healthcare, free for children under 18 and people over 65. Others can access subsidized medical services at low rates.
Private health insurance is also available, offering shorter wait times and a broader range of services.
Thailand: Known for its excellent healthcare system, Thailand offers affordable medical services, making it a top destination for medical tourism.
Private health insurance is recommended for expats to cover potential high costs in private hospitals.
5. Out-of-Pocket Payments
In countries with affordable healthcare systems, paying out-of-pocket for medical services can be a viable option. Routine doctor visits may cost as little as $25 to $50, and even specialized treatments are more affordable than in the U.S. This approach eliminates the need for expensive international insurance plans, especially for those in good health.
6. Emergency Funds
Maintaining an emergency fund is crucial to cover unexpected medical expenses or emergencies. This fund acts as a financial safety net, ensuring that you can access necessary care without financial strain.
7. Considerations for Slow Travelers
Research Local Healthcare: Before moving to a new country, research the local healthcare system, quality of care, and costs.
Language Barriers: Consider potential language barriers in medical settings and seek out facilities with English-speaking staff if necessary.
Vaccinations and Medications: Ensure you have necessary vaccinations and understand the availability of required medications in each country.
By strategically choosing destinations with affordable and quality healthcare, and by planning accordingly, you can maintain your health and well-being throughout your slow travel retirement.
The 90-Day Shuffle: Making It Work for Slow Travel
One of the most intriguing aspects of Slow Travel is the necessity to abide by visa rules, which often allow 90-day stays on a tourist visa. While this might seem restrictive at first, it’s actually a blessing in disguise for those of us who love variety and value staying in milder climates year-round. Let’s dive into how this works, potential pitfalls, and why it’s a perfect fit for long-term travel.
What Is the 90-Day Rule?
Most countries allow tourists to stay for up to 90 days within a set period, often 180 days. For example:
Schengen Zone (Europe): You can spend up to 90 days within a 180-day rolling period in the 27 countries of the Schengen Area.
Southeast Asia: Countries like Thailand, Vietnam, and Malaysia allow 30 to 90 days, with options to extend or renew.
The Americas: Many countries in Central and South America offer 90-day stays with simple renewal options.
This means you’ll typically need to move every three months, either to another country or by renewing your visa.
Why This Works Perfectly for Slow Travel
Built-In Variety
The 90-day limit encourages you to move just as you’ve explored a country thoroughly. By planning your stays around regions and climates, you can avoid overstaying in one spot and experience the best seasons year-round.Example: Spend spring in Portugal, summer in Japan, and winter in Thailand, chasing mild weather and avoiding extreme heat or cold.
Cost-Effective Living
Many of the countries with 90-day tourist visas are also Slow Travel favorites due to their low cost of living. Southeast Asia and parts of South America, in particular, let you stretch your budget without sacrificing quality of life.Health and Safety Benefits
Moving regularly allows you to take advantage of top-notch, affordable healthcare systems worldwide (e.g., Thailand, Mexico, or Portugal) while reducing the likelihood of visa-related penalties.
Potential Penalties and Why They’re Not a Big Deal
Overstaying your visa is a serious issue, but it’s easy to avoid with proper planning. Here’s what could happen if you don’t leave on time:
Fines: Most countries impose daily fines for overstays. In Thailand, for example, the fee is around $16/day, capped at $600.
Bans: Repeated overstays can lead to temporary or permanent bans from entering that country.
Stress at Border Crossings: Overstays could complicate future travel plans when you need a new visa or re-enter a region.
Why It’s Not a Big Deal
Planning is Key: The penalties are entirely avoidable with proper research and time management. Set reminders for visa deadlines and book your onward travel in advance.
Freedom to Explore: Moving every 90 days keeps your experience fresh and exciting, turning visa requirements into an opportunity to discover new destinations.
How to Navigate the 90-Day Shuffle
1. Research Visa Options in Advance
Some countries offer visas that allow stays longer than 90 days. A little planning can help extend your time in a region. Examples:
Thailand: Apply for a retirement visa or extend your tourist visa for an additional 30 days.
Portugal: The D7 visa is perfect for retirees or those with passive income.
Malaysia: The Malaysia My Second Home (MM2H) program allows long-term residency for qualified applicants.
2. Plan Border Runs Strategically
A border run involves exiting a country before your visa expires and then returning to reset your stay. While not an option everywhere, Southeast Asia is particularly friendly for this. For example:
Fly from Thailand to Laos for a weekend getaway, then return with a fresh visa.
Spend 90 days in Malaysia, then hop over to Vietnam for your next stay.
3. Track Your Schengen Time
For Europe, the Schengen Area’s 90-days-in-180-days rule requires careful tracking. Use apps or travel planners to monitor your time and avoid overstaying. Alternate stays in non-Schengen countries like Croatia, Turkey, or the U.K. with your Schengen visits.
How We Use the 90-Day Rule to Our Advantage
We’ve embraced the 90-day shuffle as part of our Slow Travel rhythm. It’s allowed us to:
Chase Perfect Climates: Three months in Portugal’s mild spring, followed by summer in South Korea, and then winter in the warmth of Thailand.
Dive Deep into Cultures: Three months is just enough time to feel like a local without the pressure to cram everything into a whirlwind trip.
Plan Future Adventures: Knowing we’ll move in three months keeps our wanderlust alive, with every destination offering new possibilities.
Make the 90-Day Rule Work for You
The 90-day shuffle may sound like a logistical hurdle, but with the right mindset and a bit of preparation, it’s a perfect way to structure a Slow Travel lifestyle. By embracing the variety and freedom it offers, you’ll enjoy year-round mild weather, new cultures, and an ever-evolving sense of adventure—all while staying within the rules.
Downsizing for Slow Travel: From a House to Two Bags
Embracing a Slow Travel lifestyle means leaving behind the weight—both literal and figurative—of a traditional home. Downsizing from a house or apartment to just two bags may sound intimidating, but it’s liberating once you’ve done it. Here’s how to make the transition, what you’ll actually need, and why it doesn’t matter that you leave most of your belongings behind.
Step 1: Shift Your Mindset
The first step to downsizing is letting go of the idea that you need “stuff” to be happy. Think about the things you use every day—those are the only items that truly add value to your life. The rest? It’s just clutter.
Focus on Experiences, Not Things: Instead of holding onto items for “someday,” think about the experiences Slow Travel will offer—new cuisines, breathtaking landscapes, and cultural adventures.
Minimalism as Freedom: Owning less means less to clean, organize, and worry about. Plus, you’ll never have to lug around a heavy suitcase.
Step 2: Start with the Big Stuff
If you’re transitioning from a house or apartment, the first items to go are the things you simply can’t take with you:
Sell or Donate Large Items:
Furniture, appliances, and bulky decor are obvious things to sell or donate. Platforms like Facebook Marketplace or Craigslist can help you sell locally.
Donate items to Goodwill, Habitat for Humanity, or local charities that accept household goods.
Digitize What You Can:
Scan important documents and store them in a secure cloud service like Google Drive or Dropbox.
Digitize sentimental items like photos, letters, or journals. You’ll always have them without the physical bulk.
Gift Keepsakes to Loved Ones:
Items with emotional value can be given to family and friends who will appreciate them. This way, they stay in your life indirectly.
Step 3: Pare Down Your Wardrobe
Clothing is one of the biggest space hogs, but you really don’t need much. A thoughtfully curated wardrobe can handle all climates and occasions.
Focus on Versatility:
Stick to neutral colors that mix and match easily.
Choose multi-functional items, like a jacket that’s water-resistant but stylish enough for city outings.
Pack for Layers, Not Bulk:
Base layers (tank tops, t-shirts) for warmth and versatility.
Mid-layers (light sweaters, fleece) for cooler weather.
Outer layers (a compact rain jacket or packable down jacket) for protection.
Shoes: Limit yourself to three pairs:
Comfortable walking shoes for daily wear.
Lightweight sandals for warm weather or casual outings.
A pair of versatile dressier shoes for formal occasions.
Step 4: Streamline Essentials
Electronics:
A lightweight laptop or tablet for work and entertainment.
A universal travel adapter.
A compact power bank for charging on the go.
Toiletries:
Stick to travel-sized items you can refill along the way.
Many countries offer affordable, high-quality personal care products, so you don’t need to overpack.
Documents:
Carry only the essentials: passport, driver’s license, travel insurance, and copies of important documents.
Miscellaneous:
A compact first-aid kit.
A reusable water bottle.
Packing cubes to keep your bags organized.
Step 5: Practice with a Trial Run
Before committing to full-time travel, test your downsized life. Pack only what you think you’ll need and live out of those bags for a week or two. You’ll quickly discover what’s unnecessary and what’s missing.
What You’ll Need (and Why It’s Enough)
When you’re living out of two bags, every item earns its place. Here’s why it’s enough:
Your Essentials Cover All Situations: You’ll have clothes for various climates, basic toiletries, and the electronics you need to stay connected.
Buy Locally When Needed: If you discover you need something, you can likely buy it abroad for less than what it costs to haul extras.
Less Is Truly More: Without the burden of extra possessions, you’ll have more time and energy to focus on what really matters—experiencing the world.
Why Leaving Stuff Behind Doesn’t Matter
Most of What You Own Is Replaceable
You don’t need to hang onto dozens of kitchen gadgets, books, or decor—you can find what you need on the road, often at a fraction of the cost.Memories Over Material Things
Instead of storing items to remember a time or place, you’ll be living those experiences directly. Take photos, keep a travel journal, or buy small souvenirs if you must—but you don’t need to hold onto every object.True Freedom Lies in Simplicity
By cutting down to the essentials, you’re free to focus on what really matters: experiencing new places, meeting new people, and living on your own terms.
Final Thought: Downsizing as a Gift
The process of letting go can feel emotional, but it’s also an opportunity to simplify and rediscover what you truly value. When everything you own fits into two bags, you’re free to roam the world, unburdened and ready for adventure.
For more tips on preparing for Slow Travel, follow our journey at Roaming Rostas!