From WSJ.com

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Retirees Head Overseas
In Search of Shangri-La

by Jeff D. Opdyke
From The Wall Street Journal Online
February 06, 2008
As the first wave of baby boomers hits retirement age, life overseas beckons. But be warned: Retiring abroad can have its logistical headaches.

Many of today’s graying expatriates are heading permanently offshore to stretch their nest egg. Jon and Gretchen Nickel, formerly of Portland, Ore., settled in Panama, where they say they can live like the rich without needing a big bankroll. Lee Harrison and Julie Lowrey, from Vermont, moved to Uruguay because the lower living costs allowed them to retire years early. Other expat retirees are seeking foreign adventure, cultural experiences and exotic travel, without having to board an airplane.

Jon and Gretchen Nickel retired to Panama, where they remodeled their oceanview apartment.

But retiring to a foreign land can present a number of challenges, from opening a local bank account to avoiding being gouged for services. And while many countries, from Belize to South Africa, offer inducements to attract foreign retirees, making sure you’ve got health insurance can be a big problem.Moving abroad also means leaving behind family and friends, though Internet communications can shorten the distances. There can also be safety and security concerns, depending on where you end up.

“People go on a vacation and love the place and say ‘I want to live here.’ But that’s very different than living there day to day and buying groceries and dealing with your finances,” says Hugh Bromma, chief executive of Entrust Group, a financial-services firm that caters to many expat retirees.

Vacation Finance lends in Mexico to second home buyers.