PDF May 2019 The Savvy Retiree International Living's

[Pages:18]May 2019

Savvy Retiree The

International Living's

Your Guide to a Richer, More Rewarding Life

Launch Your Retirement with a Turnkey Business

By Jason Holland

From the Editor

Every Retirement Needs Its Ikigai

It was no surprise that Missouri native Dwight Stanford, 61, ended up in Italy. He always loved the country, so when he retired from a 25-year career as a general surgeon, that's where he moved. Then, in 2007, he partnered up with an Italian friend and together they bought a piece of land for a vineyard. "It just so happened that the land we wanted had a functioning B&B on it, so it gave us something to do for three years while we were waiting for the first harvest," says Dwight.

The B&B, Il Nascondiglio di Bacco, was a beautifully restored 500-year-old farmhouse with seven guest rooms on the hills of Le Marche. However, under its previous owner it had never been very successful. Dwight put this down to several weak points in the business. "First of all, their prices were double what everyone else was charging in the area. Their breakfast was awful--the cheapest cereal, jam, and milk. The tables, chairs, and the bathrooms d?cor were all plastic. My feeling was they ran out of money restoring the house and did the best they could after that, without any success. The website for the B&B was very basic and hard to navigate. And they also had some strange things like cut up shower curtains under the sheets to protect the mattresses," he recalls.

As off-putting as many of these things

IN THIS ISSUE

4 Here's How You Claim Thousands in Tax Deductions as a Travel Writer

5 Cashing in on the Trend for GlutenFree Food in Panama's Highlands

7 3 Strategies to Pocket $1000, a Month--and Upgrade Your Life

8 The Secret to Early Retirement: Cut Your Healthcare Costs

13 Enjoy a Cruise Experience at 50% Off the Rack Rate

were to guests, Dwight recognized that they could all be easily fixed without too much effort or investment. A few small changes could transform the struggling business from a burden into a potential moneymaker.

As soon as the purchase papers were signed, Dwight and his Italian business partner rolled up their sleeves and got to work reviving the B&B.

The prospect of starting a dream business in a beautiful location is often a driving factor for retirees planning to move abroad. After years of toiling away in a stressful career, opening a beach bar, vineyard, or a B&B, where you can enjoy the good life while bringing in an income, is an ideal scenario. But as tempting as it is to build from the ground up and bringing your vision to life one brick at a time, you're far more likely to find that perfect balance between dream lifestyle and business success if you buy turnkey.

In retirement Dwight Stanford moved to Italy and bought a plot of land with a B&B where he could start his own vineyard.

A turnkey business is one that's already established and functional. You can buy it one day and open for business the next. For expats looking to make the most of their retirement and avoid the stress of building from the ground up, this is by far the best option. Not only does it save you time, effort, and money, for those with a keen sense of how to improve a business, buying turnkey offers a real money-making opportunity, particularly in the tourism

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Aretirement plan, as it's commonly understood, rarely ever fulfils the goal it sets itself--which is, one might surmise, to plan a retirement. Like a bride who plans her wedding before she finds her groom, or a business startup that creates its branding before it decides what service it's going to provide, retirement plans that focus only on solving the issue of income are missing the essential ingredient.

On the Japanese island of Okinawa, a notable Blue Zone, where locals frequently live to be centenarians, one of the key concepts they believe accounts for their longevity is something they call ikigai. Roughly translated, ikigai means "the reason for being," or, if you like, the reason for getting out of bed in the morning. Hector Garcia, the co-author of Ikigai: The Japanese Secret to a Long and Happy Life says that ikigai is "the intersection of what you are good at and what you love doing," and it's an essential ingredient when it comes to living a long and fulfilling life.

You won't find any reference to ikigai in your income portfolio. Mention the term to your retirement planner and they'll give you a blank look. But nevertheless, you can't have a retirement without it.

Most people are out of the home for a minimum of 50 hours a week while working. This means that in retirement, you have an extra 50 hours to fill every week for the rest of your life. But guess what...with the right kind of ikigai, you'll cherish every minute of it.

In this month's cover story you'll read about people who have taken their retirement plan into their own hands to create dream incomes that not only keep their bank accounts topped up but also give them a sense of fulfilment that no

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Continued from page 1

money can buy. Laura Diffendal and her husband, David, moved to the Caribbean country of Belize where they bought a small property with three run-down cabanas on it. Today, their small project has turned into a luxury boutique hotel, and their life in the Caribbean is a postcard picture come to life. Likewise, when Dwight Stanford retired from his career as a surgeon, he bought a piece of land in Italy to build his very own vineyard. Restoring a 500-year-old farmhouse that was on the property, he created a thriving B&B business, and now enjoys a laidback life in the hills of Le Marche.

Retirement is more than just a pension; it's a blank canvas waiting for you to add some color.

Lynne Martin found her ikigai with five years of travel and adventure that started on her 70th birthday. Without a permanent address, she's uncovered savvy ways to prolong her journey as much as possible, including a way to take luxury cruises for 50% off the price tag. She explains how in this issue (p.13).

And, if you're not one to wait for the starting gun, financial contrarian Jeff Opdyke will show you the best way to free up your income and take an early retirement (p.8).

There's no one-size-fits-all retirement plan, but within these pages, and in each issue of The Savvy Retiree, you'll find lots of inspiration to help you not only bankroll your retirement but fill it with ikigai too.

Paul O'Sullivan Managing Editor

SAVVY TIPS

Man cannot discover new oceans unless he has the courage to lose sight of the shore.--Andre Gide

My Travel

Did you know that you can recover much of the cost of a missed reservation, even if you've paid in full?

It happens to all of us sometimes. You've booked a weekend away in some quaint, country town, only to have something like a family obligation, work, emergency or illness intervene with your plans. When you call up the hotel to cancel your reservations, you find that it's nonrefundable.

However, you may have options.

Using sites like , Vacatia, and Roomer, you can list your non-refundable reservations at a slightly cheaper price, so somebody else can enjoy the hotel room you booked before life intervened, and you don't have to worry about losing money.

Of course, these sites go both ways. You can also book the rooms from people who can't make their reservation. If you're looking for a low-cost hotel room you'll find innumerable options all over the world at discounted prices.

Roomer displays the top deals for places near you, in case you don't want to venture too far; on Vacatia, you can rent a resort residence anywhere in the U.S.; and on you can rent a timeshare offered by someone who isn't able to fill their own allotted time. These are great options for nabbing heavily discounted vacations.

Planning to explore the U.S. this summer? If you do it with friends or family you can save up to 35%

on travel costs. This summer, Amtrak is offering massive discounts for group travelers. Their recently-announced Share Fares program will offer a discount on each additional ticket when you purchase as a group. The more people you add to the group, the greater the discount. So, while the first traveler pays full price, the second traveler will receive a 15% discount, the third will receive a 60% discount, and the fourth will get 70% off the base price of a ticket. That means the entire group gets 35% off if they split the cost of the tickets. The Share Fares discounts are valid for travel on the Amtrak Northeast Regional from Washington, D.C., to Boston, and on the national network on some of the most popular trains, including the California Zephyr, Capitol Limited, City of New Orleans, Cardinal, Empire Builder, Southwest Chief, Texas Eagle, Coast Starlight, Lake Shore Limited, Palmetto, Silver Star, Silver Meteor, and Crescent. The Share Fares offer is limited to four people per group and only available one way. Reservations must also be made three days in advance of the trip. To take advantage of the discount, visit Amtrak. com.

When booking a flight, it's next to impossible to tell whether you've got a good seat until it's too late to change it. But a website called

The

Savvy Retiree

May 2019



Publisher Jackie Flynn

Editorial Director Nazareen Heazle

Managing Editor Paul O'Sullivan

Copy Editor Jason Holland

Graphic Designer Rob McGrath

Photo Editor Hugo Ghiara

Advertising Helen Daly; Fax (353)51-304561; Email: advertising@

? Copyright 2019 by International Living Publishing Ltd. All Rights Reserved. Reproduction, copying, or redistribution (electronic or otherwise, including online) is strictly prohibited without the express written permission of the Publisher. The Savvy Retiree is published monthly. Copies of this e-newsletter are furnished directly by subscription only. Annual subscription is $59. To place an order or make an inquiry, see: about-il/customer-service. Send address changes to International Living's The Savvy Retiree, International Living Publishing Ltd., Woodlock House, Carrick Road, Portlaw, Co. Waterford, Ireland. For editorial inquiries, see: about-il/write-for-il. The Savvy Retiree presents information and research believed to be reliable, but its accuracy cannot be guaranteed. There may be dangers associated with international travel and investment, and readers should investigate any opportunity fully before committing to it.

2 The Savvy Retiree | May 2019

 is trying to change that. Listing 1,154 aircrafts, they can offer you great advice--on most aircraft seats. For instance, they'll tell you what seats are close to the toilets. They will also let you know if a seat does not recline or which seats have the most legroom. Pro tip: If traveling as a couple, book an aisle and a window seat. If the flight is not full they will usually leave the middle seat empty. If it is assigned to a fellow passenger, simply ask if you can swap seats. No one ever chooses the middle seat.

My Money

You might be due unclaimed money! State treasuries throughout the U.S. have more than $43 billion in unclaimed funds, according to The New York Times. This money is just sitting around, waiting for the right people to come along and collect it. In case you're wondering, this isn't money you might have dropped on the street. The money you could be due comes from unclaimed property in bank accounts and safe deposit boxs, stocks, mutual funds, bonds, dividends, uncashed checks and wages, insurance policies, CD's, trust funds, utility deposits, and escrow accounts. There are multiple websites where you can find out if you've any unclaimed money coming to you, including the National Association of Unclaimed Property and . It only takes a minute to check.

There is a new internet browser in town and it will pay you to surf the web. Positioning itself as a strong competitor to Google's Chrome browser, the Brave browser launched earlier this year with a very intriguing business model. They are offering users who volunteer to see ads, 70% of the revenue the ads generate. This means that for every ad

that pops up on the side of your screen, you could be making a small profit. Even without changing your browsing habits, this could really add up over time.

However, users will not be paid in cash, but in BATs (Basic Attention Tokens,) the cryptocurrency designed to integrate with the browser. BATs are not yet exchangable for cash, but they soon will be. You will also be able to exchange them for perks and rewards such as vouchers and gift cards.

Brave looks and feels similar to Chrome, it's fast, and it also blocks ads that aren't a part of its new reward system. But before you get too excited about being paid to be on the internet, keep in mind that this service is still in its infancy, meaning they won't have many ads for you to look at just yet.

You can download the Brave browser and try it for yourself right here.

My Health

It's not all about what you eat, when you eat may be nearly as important.

Studies have found that eating your meals earlier in the day, ideally between 8 a.m. and 2 p.m., lowers high blood pressure and causes a decrease in triglycerides and LDL ("bad" cholesterol) and an increase in beneficial HDL cholesterol.

According to scientists, your diet should align with your body's circadian rhythms--which dictate your waking and sleep cycle. The time-specific, daily release of hormones determines when you get hungry and how much you eat, as well as your body's metabolism--how efficiently you utilize fats, carbohydrates, and other nutrients.

Most people get hungriest at night. But the best time to eat most of your daily calories is before 2 p.m. The reason being, the body's cells respond more readily to insulin early in the day-- important for food metabolism and healthy weight maintenance, as well as preventing diabetes.

Because insulin resistance (the reduced ability of insulin to transport glucose into cells) is higher at night than during the daylight hours, eating most of your daily food intake late can cause serious health problems, increasing the risk for diabetes,

SAVVY TIPS

obesity, and even heart disease, cancer, and dementia. Not only can eating earlier improve your blood pressure, it will also reduce the whole-body inflammation that can cause a gradual impairment of kidney function. Medicare has unveiled a new app that tells you what services are covered. If you're not certain whether Medicare will pay for a particular test or medical procedure that you doctor recommends, you can now find the answer on your phone. The Centers for Medicare and Medicaid Services (CMS) recently released What's Covered, which is available on both GooglePlay and the AppleApp Store. The new app will answer your Medicare coverage questions, provide information about your costs, and inform you of free preventative services. If you're looking for a particular service or test, the app makes it easy to navigate to what you need. It also lets you call the Medicare hotline (800-633-4227) and links you to the website. We all need motivation to lose weight and get fit, but sometimes we need a little more than words. And what better way to get fit than to make money while doing it? An app called HealthyWage allows people to place "bets" on their weight loss and earn as much as $10,000 if they meet their goals. You simply choose how many pounds you want to lose, how long you need, and how much money you want to bet. If you meet your goal on time, HealthyWage will pay for your winnings. Additional prizes are available for keeping those pounds off long-term. However, it's not all free money. If you don't meet your goal, you lose the money you wagered. Then again, the prospect of losing money can be just as motivating as winning it!

The Savvy Retiree | May 2019 3

PORTABLE INCOME

Here's How You Claim Thousands in Tax Deductions as a Travel Writer

By Terri Marshall

The life of a freelancer is a life without bosses, a life without regimented schedules, and, if you're a freelance travel writer, it's a life filled with trips all over the world. But what most people don't know is that it's also a life of tax deductions. And while that doesn't sound as exciting as the other perks, it's a very important benefit.

For the past 12 years I've been a freelance travel writer visiting more than 30 countries across five continents, with well over 1,000 articles published. Before that I was a tax accountant. It wasn't nearly as much as fun as jetting around the world discovering exotic locales, but it taught me some valuable lessons about making the most of tax deductions.

As a freelance travel writer, I can now write off a significant portion of my income every year. In fact, last year I wrote off over $25,000 in expenses.

However, there is a silver lining. It turns out there are many deductions available for freelance businesses--even if that business is a dream job like travel writing. Here are a few examples of ways you can reduce the amount of taxes you pay each year.

Use the Schedule Strategy

While many of your travel expenses are paid for you when you're a travel writer, sometimes it's nice to mix business with pleasure and get some writing done on a personal trip. For example, I travel at least once a year with my grandkids. It's one of the highlights of the year for me, and I think it's a highlight for them too. Since I write about multi-generational travel, I use a portion of the time we spend traveling together for articles--which makes it a business trip.

By scheduling the "work" portion of the trip at the beginning and end of my time with the grandkids, I can write off the entire trip as a business expense. It's just a simple scheduling strategy,

but it nearly doubles the length of my time with the grandkids, giving us more opportunities to make those priceless memories. I can deduct everything from the extra nights at the hotel, to the extra days with the rental car, to food, you name it.

Deductions for the Tools of the Trade

Travel expenses aren't the only thing deductible for freelancers. We all need a laptop, right? What about an internet connection for article research? And you're certainly going to need a cell phone. All of those expenses are deductible. Some--like the cost of your laptop--are 100% deductible. Others are a percentage based on the portion used for work and the portion used for personal matters.

For instance, your camera might be deductible. Even if you consider yourself a writer and not a photographer, if you use any of your photos for your articles, that camera is a deductible expense. If you have a website to showcase your work, you can deduct the expense of the website designer and the hosting service. The same deductions apply to your entire freelancing inventory.

Perks Beyond Pajamas

Working from home is a gift. I love not setting an alarm clock. I love not having to get dressed and put on make-up every day. But wearing pajamas all day and avoiding the New York subway isn't the only perk of working from home. Your home office is a tax-deductible expense, too.

The simplified method for this deduction is based on the square footage of your office compared to the total square footage of your house. Comparing those numbers will give you the percentage of household expenses that are deductible as a home office expense. That includes utilities, insurance, and more. This works even if you're renting an apartment. There are rules and

limitations, of course, but if you have a room exclusively used as an office, this is a deduction you'll want to take advantage of.

Keep Networking and Learning...and

Deducting the Cost

Networking and business development is a big part of having a vital freelance business. Most of the editors I work with are people I've met at networking events in New York or at conferences for travel writing groups I belong to. For example, I'm a member of NATJA (North American Travel Journalist Association) and SATW (Society for American Travel Writers). For each I pay an annual membership fee and a fee to attend the conference. And I deduct every cent of those fees on my tax returns. It's the best version of an almost free education you can get in the U.S.

Maximize Your Tax Deductions in 8 Steps

1. Keep all travel receipts, including hotels, meals, airfare, train tickets, etc.

2. Make notes on your receipts describing the nature of the expense.

3. Keep a mileage log in your vehicle to track miles used for business.

4. Set up a spreadsheet to track all of your expenses and income.

5. To be eligible for the home office deduction, designate a space in your home that is used exclusively for your business.

6. Keep receipts for all office supplies including computer software, printer cartridges, paper, pens, etc.

7. Don't forget to keep track of your self-employment health insurance premiums--those are also deductible.

8. Contributions to retirement accounts can provide additional tax deductions. Consult a tax or financial advisor to determine how much of your contributions are deductible.

4 The Savvy Retiree | May 2019

BRICK-AND-MORTAR BUSINESS

Cashing in on the Trend for Gluten-Free Food in Panama's Highlands

By Beth Abrahams

The life of a chef and baker in Alberta, Canada was a hard one. Coleen Hunt used to drive three hours through the extreme cold to sell her gluten-free food at area farmers' markets. As she was on the road at a pre-dawn 5 a.m., often in temperatures of -40 to -50 F, the snowplows had not cleared the roads, making her journey all the more treacherous. And this was only after she had prepared all her food for the day.

"I canned 8,000 to 10,000 quarts per year of 100 different varieties of glutenfree foodstuffs, went through a thousand pounds of rhubarb, and cooked over 100 varieties of gluten-free frozen meals and `you bake it' breads, working long hours in adverse working conditions," says Coleen.

"Eventually I grew tired of the harsh conditions and unholy hours under which I functioned and began to look outside of Canada for a place to relocate myself, my mom, and my business. I realized that, with my drive, my talent, and my recipes, I can live and work anywhere in the world where people need, or just want, a gluten-free diet."

Now well established as more than just a fad, the past decade has seen gluten-free food options become a staple of most supermarkets across North America and Europe. For those who suffer from celiac disease, going gluten-free is a necessity. But the diet has found a cult-like following beyond its target consumer, with many celebrities and athletes self-diagnosing their gluten sensitivity, including Gwyneth Paltrow, Russell Crowe, Kim Kardashian, and Novak Djokovic. The result is a demand for gluten-free food options that well outstrips the variety available. As gluten is present in most foods, it means that there is almost infinite opportunity to create gluten-free alternatives. If you can make a product that people like, finding people to buy it is rarely an issue.

Coleen's ability to create good gluten-free food meant that she could set

When Coleen Hunt moved to Boquete, Panama, she found immediate success selling her gluten-free food at the Tuesday expat market.

up shop anywhere in the world where the diet had grown in popularity. Soon after she made this discovery, she started researching possible destinations. An article on the "10 Best Places to Retire" inspired her to look at Panama, and it quickly rose to the top of her list.

I was one of only 10 gluten-free suppliers in

all of Panama.

"At first it was all about climate," says Coleen. "I had lived for so many years in a frigid, inhospitable environment, so I needed a change. "However, there were many other compelling reasons to consider Panama. One consideration was the cost of starting a business. Panama was more than affordable and offered a welcoming business community, as well as a clientele that was knowledgeable about my product and able to pay the prices--gluten-free goods are a bit higher in price than traditional baked goods.

"Also, I discovered I would be filling the same void in the marketplace that I filled in Canada, as I could potentially

be the only gluten-free resource from the Costa Rican border to Panama City.Taking all these reasons into account, I felt a road trip was in order."

Coleen traveled throughout the Panama, from Pedas? to El Valle, David to Las Tablas but didn't find a town that gave her that "I'm home feeling."

She knew that when she found the perfect place it would elicit a gut reaction, and that is exactly what happened when she drove down the hill that brought her into the town of Boquete.

A cool-weather mountain retreat in Panama's highlands, Boquete is surrounded on all sides by flowers, fruit trees, coffee farms, and brightly colored songbirds. A fine, refreshing mist (known as bajareque) creates almost-daily rainbows and keeps the residents cool and happy.

It's this beauty, plus the comfortable and temperate climate, that makes Boquete such a popular choice for expat living.

While Coleen knew to trust her gut, as it had never let her down, she was a seasoned businessperson and wanted to confirm her instinct by doing her due diligence. What she discovered was

The Savvy Retiree | May 2019 5

BRICK-AND-MORTAR BUSINESS

that the demographics of Boquete were perfect for what she wanted to offer. The community was made up of expats from all over the world, as well as affluent Panamanians with a knowledge of, and need for, gluten-free foods.

While there are many Panamanian bakeries and two gourmet expat establishments in the town, none catered to the health needs of people with celiac disease. "As in Canada, I was able to approximate that one person out of 100 suffers from celiac disease. Other customers simply preferred a gluten-free diet, and in doing my research, I didn't find a single business catering to this need. I learned that many people were not even aware they had the disease; it was only through the advent of testing that their condition came to light."

After she moved to Boquete in August 2015, Coleen cooked from her apartment in Baja Boquete--which cost her half the price of a comparable apartment in Canada. With limited space, she started out by limiting her offerings to breads, desserts, rolls, and dessert trays.

At first, she sold only at the Tuesday expat market. But as her business grew so did the need for a bigger space to house her burgeoning store of equipment and supplies, which had grown with the expansion of her menu. On top of that, many people were not able to adjust their schedules to meet the three-hour window of the market, so she realized she needed to secure a different, more accessible location. "As a result, I made the decision to move forward on my own and open a brick-and-mortar bakery in Boquete," says Coleen.

She did not have to search very hard for suitable premises. Seeing an empty storefront, she said to herself, "I think I will just go in and see what happens," and what happened is that she signed a lease. "I signed the lease in February of 2017 and everything was in place to open up by August."

Her landlord was most accommodating, charging her a very fair rent, both for the size of the space and for the charming patio area and parking spaces. While she is located just outside of town, which accounts for the affordable rent, Coleen still gets daily

The town of Boquete, located in the Panama highlands, brims with lush colors year-round. It's elevation gives it a cooler climate, making it very popular with expats.

foot traffic.

To advertize her new enterprise, she handed out cards and pamphlets to everyone she met and to her existing clients at the Tuesday market, where her mom still mans a table. She also tried creating a mailing list but that didn't produce results. Except for Tuesdays, Coleen runs the bakery with both her mom and an assistant.

If you can make a product that people like,

people will to buy it.

In the first two months after opening, Coleen created hundreds of different varieties of baked goods and became successful immediately. "By following my passion, I discovered my purpose on earth: that I could do gluten-free that is tasty. My gift is that I am a fantastic gluten-free cook."

From start to finish, it took Coleen 18 months to open the doors to her bakery.

First, she needed to find a lawyer to help her secure her Friendly Nations visa. That completed, she was able to apply for a work permit. The Ministry of Health then needed to make an appointment to approve the design of the facility. Once approved, she needed to work with that department again to acquire two health

cards, one of which must be renewed yearly. Seven months later she threw a grand opening party.

"The hardest thing about this business was getting people to know we're here," says Coleen. "Social media, Facebook, and Instagram helped, and by January 2018 I acquired approximately 1,200 new customers." Her business, Gluten-free Gold, is one of only 10 gluten-free suppliers in all of Panama, and the only one outside of Panama City. In fact, she calculates that 50% of her clients are Panamanian, coming to her from Panama City for their food.

"By far, my clients are my best promoters," says Coleen. Through friends, she has developed important contacts in the city including "Women Entrepreneurs of Panama."

Her marketing has included a visit to Panama City to attend the Celiac Awareness Day of Panama (Fundacion Celiacos de Panama) held in the Dom del Parque Omar where she had a table.

Still a hard worker, Coleen starts her day at about 3:30 a.m. by getting her breads and rolls in the ovens. Her assistant arrives by 7:30 a.m. to help handle the breakfast rush.

Though the baking life is still a challenge, her new, glorious surroundings, the perfect Panamanian climate, and wonderful friends, all create a balance better than any she had struck back in Canada.

6 The Savvy Retiree | May 2019

SOLUTIONS

3 Strategies to Pocket $1,000 a Month-- and Upgrade Your Life

By Jodie Burnham

If you had an extra $1,000 every month, what would you do with it?

Would you travel more, take up a new hobby, invest it? Or would an extra $1,000 simply make life more comfortable, allowing you to enjoy more dinners out or trips to the theater?

Reaching a financial goal of $1,000 a month isn't a difficult task, but this added income can enrich your lifestyle well beyond what you'd ever imagine-- whether you want to fund full-time travel or just top up your retirement budget. And you can have a lot of fun achieving it, using your existing skills, knowledge, and interests.

Our friends Pete and Betsy Wuebker turned their creative talents into an income that enabled their early retirement, and has sustained them ever since. Using Zazzle, an online print-ondemand store, they were able to upload their graphic designs so they could be printed onto a whole range of products-- such as t-shirts, mugs, picture frames, and even shoes--and then sold.

Neither of them are designers by trade, nor do they own any of the stock being sold. They simply create and upload designs, like funny quotes and photos. From there, Zazzle does the rest, while Pete and Betsy watch the paychecks roll in.

How you decide to make your $1,000 a month is up to you, but there are many creative ways you can go about it so that it doesn't ever feel like work or impact your desired lifestyle. Here are the three main income types to consider, each requiring varying time inputs and commitment levels:

Active Income

An active income is the one you're probably most familiar with. It basically means trading your time for money.

If you've been an employee during your working life, you might not be too enthused about creating another active income in retirement. However,

employment is just one route you can take for this type of income. There are much better options available that can give you more control over when you work, where you work, how much time you put in it, and how much fun you have.

By becoming a freelancer, you can regain control over you active income. And there's hardly any limit to the freelance opportunities out there. If you're creative, why not try your hand at article writing, design and layout, video editing, or recording voiceovers? If you're detail orientated, try proofreading, editing, research, or book-keeping. If you enjoy interacting with people, there's always work available in customer service, consultative selling, social media management, or teaching English online.

Sharon Bowater is a freelance transcriptionist who travels the world full-time. She has two clients and works 25 hours a week to make $1,000 a week, giving her plenty of time to explore any location she desires to experience.

To become a freelancer, all you need is a laptop and internet connection, so you probably already have everything you need to get started.

Leveraged Income

With a leveraged income, you redeploy your working hours more creatively, substituting an hourly rate for income with no upper limit.

Coaching and consulting are great examples of how you can move from an active income into a leveraged income using your skill set and accumulated knowledge.

Hosting one-on-one sessions, coaches and consultants are limited by their available hours. However, by valuing their time and lifestyle more, the same amount of income made in one day can be earned in just one hour by holding group sessions, or hosting weekend workshops or retreats.

Using the same "economy of scale,"

a coach or consultant can multiply their income and reach more people globally by recording one of their weekend workshops and selling it as a digital version of the program or as an online course.

Anyone can create a digital information course or how-to guide by using their knowledge and skillsets. Hannah Dixon was a virtual assistant, working for an hourly rate. Then she made her own course, creating a leveraged income teaching others how to become virtual assistants themselves.

Another example of leveraged income is being an affiliate promoter for services or products. This is basically a form of advertising through recommendations. If you have a blog or reasonably popular social media accounts, you can get paid to use your platform to promote affiliates.

Passive or Residual Income

This is the holy grail of incomes: earning over and over from a one-time activity, with no extra work.

Remember Pete and Betsy? Their print-on-demand shop is also a great example of a passive income. Once they upload their designs, their products can sell repeatedly for years, with no extra work needed. Other examples of passive incomes include earning royalties from books you publish on Amazon, or selling photographs or video clips through stock photography websites.

Of course, with the internet, there are virtually unlimited ways to earn an extra $1,000 a month. And it doesn't all have to come from the same source. You might decide to freelance for just one day a week, upload stock photos for a passive income, or leverage your skills and teach a course online. Doing what you enjoy, you can create a fantastic retirement without sacrificing the easy-going lifestyle that goes with it.

The Savvy Retiree | May 2019 7

COMMONSENSE NUMBERS

The Secret to Early Retirement: Cut Your Healthcare Costs

By Jeff Opdyke

It's quite telling that in today's world, the fear we get from visiting a doctor or a dentist isn't so much from the potential medical issues they might discover but from the costs we might have to pay as a result.

I was musing on this dread of healthcare costs while attending an appointment with a dentist in Prague during my first month living as an expat in the Czech Republic. I've had company-sponsored insurance nearly all my adult life. And, until the fall of 2018, I lived my entire life in the U.S., where, as you well know, the healthcare system is madly out of whack with the financial reality of the average American family. So, as an expat with a temporary travelinsurance plan that provided no dental coverage, I approached the door to the clinic with serious financial trepidation. Had the pain in my wisdom tooth not been so horrific, I would have retreated.

I'm not the only one who has such fears. Healthcare costs are one of the biggest worries Americans harbor. In fact, U.S. brokerage firm TD Waterhouse recently released research indicating that for well over half of Americans, the greatest impediment to our desire to retire early is the cost of healthcare. These are people who have a certain level of wealth--at least $250,000 in investable assets--so we're not talking about folks who are struggling.

The fear of healthcare costs is wellfounded. HealthView Services, a leading provider of cost-projection software for the healthcare industry, notes in its 2018 Retirement HealthCare Costs Data Report that retiree healthcare expenses are projected to rise at an annual pace of more than 4.2%, well above the U.S. inflation rate (currently less than 2%) and well above Social Security's cost-ofliving adjustments, which have averaged less than 1.4% a year for the past decade. Moreover, when even a routine check-up or an initial consultation with a doctor easily costs hundreds of dollars, it's no wonder so many American families

would struggle to afford much beyond some aspirin and a few Band-Aids if not for our insurance plans.

But an obvious solution presents itself. As you might recognize, these statistics are entirely U.S.-based. Travel beyond U.S. borders and healthcare isn't the financial ball and chain we've come to expect. If you desire to retire early, and if healthcare costs are your biggest concern, then retiring overseas is a nobrainer.

High-Quality, Affordable Care

My dental fears were misplaced. That Prague dentist--fully Westerntrained and operating in a suite that looked identical to my last dentist in Los Angeles--cost me less than $40. The potential extraction of a wisdom tooth (ultimately not necessary) was going to cost me less than $80. Who cares about insurance when high-quality healthcare is so affordable out of pocket?

Expats who have lived overseas for any amount of time already know this fact, but the reality of life abroad is that healthcare outside the U.S. is highquality and affordable.

Healthcare costs are one of the biggest worries Americans harbor.

We generally have high-quality healthcare in the U.S., for sure (though the U.S. ranks dead last among the world's developed-economy healthcare systems). What we don't have is affordability. And that's where getting away from U.S. shores can make a lot of sense if retiring early is your dream.

Consider the experience of Curt Noe, a former New Jersey traffic engineer who retired to Medell?n, Colombia, arriving with pre-existing cancer. While he expected problems getting health

insurance in a foreign land, he says, "I was pleasantly surprised that I was completely covered by the national health plan after only a six-month waiting period." Better still, Curt says that after flying back and forth to the U.S. for second opinions, he realized he didn't need to. "My U.S. doctors said that the care I am receiving in Medell?n is on par with what they would do."

Nancy Kiernan, a former healthcare executive who also retired to Medell?n, had a similarly positive experience. Nancy has had various lab tests, a mammogram, tests for cervical cancer, and a biopsy, and in each case, she says, "The process was quick, the facilities were state-of-the-art, and most of the results were available online within a day or two. I know what I'm talking about when I say the quality of care for expats in Colombia is excellent."

How I Built My Health Coverage in Prague

As I was prepping back in Los Angeles for my new life as an expat, I was researching oodles of international insurance plans, and I really began to see just how wacky health insurance is in the U.S. Take, for instance, the GeoBlue Xplorer health plan with unlimited benefits and a $5,000 deductible. It costs $333 a month for someone between the ages of 50 and 54, that is, if the U.S. is excluded from coverage. Toss U.S. coverage into the mix, however, and suddenly the monthly premium soars to more than $600 because medical costs in the U.S. are detached from reality.

I'm not advocating for the GeoBlue plan. It's just one of many possible examples to prove a point: that healthcare doesn't have to be a worry.

In fact, even $333 a month is way more than you need to spend if you gain residence in a country and apply for local health insurance.

Like I said, I now live in Prague and with my long-term residence visa

8 The Savvy Retiree | May 2019

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