Saturday, June 18, 2011

Why Ecuador???

The number one reaction to my last blog was:  Why did you move to Ecuador???  Several of my friends had no idea we had moved, much less moved to Ecuador.


The bottom line is basically the cost of healthcare.  This past year the cost (health insurance premiums, co-pays and deductibles for my family of 4) was close to $40,000.  Next year, the costs would have exceeded $45,000.  I have six years before being eligible for Medicare (assuming Medicare will still be around).  Due to family health issues, being without health insurance in the US is not an option.  So, the search for alternatives began.  During the process, I came across an article in which Cuenca, Ecuador had been rated the number 1 retirement haven in the world (see http://internationalliving.com/2010/04/cuenca-ecuador%e2%80%94il%e2%80%99s-no-1-retirement-haven/).  Much of the reason for the high rating was the low cost of living, the moderate weather, and the availability of good healthcare. 


I began researching the city, which included developing friendships with bloggers who had moved to Cuenca.  I also developed an Internet friendship with an Ecuadorian CPA (for those who don’t know, I am a CPA).  After about 8 months of questioning my Internet friends, Karen and I decided to take an exploratory trip.  In mid-November 2010, we left Florida for a 30 day visit.   


What we found was a city of approximately 450,000 people in the Andes Mountains at approximately 8,300 feet above sea level.  The Spanish speaking people were very friendly and helpful in making us feel welcome.  We investigated the cost of living and the medical community.  After researching these things, we estimated that we could live quite well on less than $24,000 per year (including healthcare and some exploratory trips around South America).  Some expats tell me they live on less, while others say they can live on more.  It is a matter of budgeting and lifestyle desires.  Even if we doubled the $24,000 estimate, it is still less than the annual healthcare costs we would have to pay in the US until we are old enough for Medicare (if it still exists when I am eligible).


We decided to make the move prior to the July 1 health insurance premium rate increase.  We listed our Jacksonville condo with a property manager to lease; we put our truck up for sale and packed some personal items in storage.  On May 30, 2011, we caught a plane out of Jacksonville, through Houston, and on to Quito to spend the night.  Next morning, we headed to Cuenca.


O.K., enough ‘factual data’…..the next blog will have pictures and stories of our activity down here.

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