Retirement Fidel-Style

After six decades Cuba's ailing, cigar-loving el presidente is taking a breather. Fidel Castro, 81, announced his retirement as the governing leader of Cuba in a letter dated Monday, February 18, 2008 and posted this week in the online version of the Communist Party’s Granma newspaper.

By trading in his famous military fatigues for a retiree’s uniform of track suits and Rockport walking shoes, Castro, whom Forbes once estimated to be worth $900 million, presumably can now sit back and enjoy his island's breeze. And while the U.S. embargo prevents Cuba from being a legal destination for American retirees, there are many other Caribbean islands and destinations around the world where you can spend your golden years. Before you pack up your bags for a place with a peso budget, however, get to know the country where you want to retire first, says Neil Elmouchi, president of San Ramon, California-based Summit Financial Consultants.

“You want to make the distinction between what it costs to vacation there and what it costs to live there," says Elmouchi. “You’ll stop going to the touristy places and find out what the cost would be for living there on a daily basis.” To learn more, check the U.S. Department of State web site for the per diem rate of the living expense of the city, says Janet Wan, an advisor with Roseville, California’s Sierra Financial Planners. 

“Talk to local realtors and financial advisors about finding housing and apartments at a level you can afford," says Wan. She advises buying the real estate abroad before the physical move. That way a rental income comes in while the retirees are still living in the US and they can establish a local bank account for the rent.