According to a recent GfK (Growth from Knowledge) custom research survey, almost half of the oldest baby boomers have already retired. Puerto Vallarta, Mexico is one of the most popular destinations for retirees to live full-time or part-time in the world. The city’s American and Canadian population tends to be over the age of 60.

According to the survey, those born in the mid-to-late 1940s left their jobs at an average age of 60 for men and 57 for women. Over a quarter retired between ages 56 and 61, and 20 percent retired at age 62. Just over a third say the main reason they retired was because they reached retirement age and wanted to be free. But about half of retired boomers report they retired earlier than they originally planned.

Baby boomers currently working expect to retire at an average age of 69, and over a third hope to retire in 2012 at age 66. Working baby boomers say they are planning to delay retirement for a variety of reasons, they need to continue receiving a salary to pay for day-to-day expenses, they enjoy working, or they want to stay active. Even if people retire and move to Puerto Vallarta, many pick-up some part-time work.

Ron Sitarski, a real estate agent with Ron Morgan Properties, says he works because it keeps him in tune with his environment and keeps him active. “At the age of 50, I started receiving mail from the Social Security office telling how much I was going to receive per month once I retired,” says Ron. “I found out that at age 62 I would hit the maximum and after that, the amount would always be the same no matter how many more years I worked.”

Ron spent 18 years in the Florida real estate market and it was not what it used to be during the late 90s. When Ron discovered he was maxed out on how much social security he would be receiving, he decided to retire at 62. “The real estate market was going to hell,” exclaims Ron. “I already had a place in Puerto Vallarta, so I and my significant other, Liz, decided to move to paradise.”

The cost of living in Puerto Vallarta is a lot lower than a major metropolitan area in the US. Ron says the real estate taxes are minuscule compared to Fort Lauderdale and the car insurance costs about 50 percent less. Your dollar goes a lot farther here.

However, it did not take Ron long to get kind of bored so he started looking for a job and ended up at Ron Morgan Properties. “I bring a great deal of experience and enthusiasm to the office,” says Ron. “Selling real estate in Mexico is vastly different than selling in the United States but I still enjoy it and learning the complexities of Mexican real estate.” Ron goes on to say that he now makes a little extra money and it makes him happy.

“Back in the day” there was a lot of talk about buying a second home at some great paradise location (like La Paz) and splitting time in retirement between a ‘principal’ residence at ‘home’ and the second home.

My, how the world has changed for so many baby boomers looking to retire to a comfortable lifestyle envisioned for so long. The economic abyss that has consumed such a large part of many folks’ nest eggs has forced us to re-evaluate our retirement plans.

We have started to re-analyze the cost of maintaining the lifestyle we had planned. What will it cost for health care, food, transportation, entertainment, travel and such? We are also reviewing the costs of home ownership – maintenance, mortgage, insurance, utilities and property taxes.

For many, after examining the numbers, buying a dream home in Mexico appeared as more of a mirage than clear vision. The numbers simply wouldn’t work.

Enter the New Math for Retirement.

For some, a revelation takes place after this financial “check up.” What about considering La Paz for the primary residence? If your dream was to live in “paradise” for 3 or 4 months… why not make La Paz your primary residence?

How much could your sell your current home for? What could you buy as a replacement in La Paz? Here, you can purchase a home or water view condos starting around $150,000 USD. By selling there and buying here you are applying the New Math and your depleted nest egg will begin to grow again. Throw in a mortgage, and your window opens wider.

Now, compare home ownership costs. Start with one element – property taxes. My friend, who owns a half million-dollar-La Paz-home, recently paid his 2012 property taxes – $325 USD. He sold his US home for $600,000. His annual property tax bill for that home was $6,500. The $500 per month saving works well for him in maintaining a comfortable retirement lifestyle.

Now compare other cost of living expenses. How about health care? Did you know that you can purchase an individual Mexican health insurance policy for less than $400 per year… not per month? The quality of health care in La Paz is very good. Recently, my friend, who just moved here and does not have insurance, got the flu and went to a local clinic. 45 minutes, English speaking doctor (cost $40 pesos – a little over $3 USD) and prescriptions filled next door ($97 pesos – $8 USD.) How does this compare to a visit to your doctor back in the US?

How about food – groceries and eating out? If you insist on brand names and top restaurants you will not experience a big savings. However, once you get to know La Paz you will find great local grocery stores and terrific, affordable restaurants. For example, my friend and I love shrimp tacos. So we go to Pepe’s on Prieto. We each have two shrimp tacos and a drink. Total bill – $76 pesos ($6 USD) for both of us.

As much as I disliked the New Math when going to school in the 60′s, I love the New Math as it applies to affordable cost of living in Mexico.

By the way, the rumors are true… summers get a little warm in La Paz. If you do need a break from the summer heat… take a “vacation.” Visit family and friends or travel to some other exotic location… after all, you can afford it… simply by applying the New Math.

Jim Donahoe – Linda Neil Properties

FIFA’s organizing committee announced on Monday that Great Britain, Spain, Brazil, and Mexico have been chosen to be the seeded teams for the London 2012 Olympics Men’s Soccer Tournament. These 4 teams will be kept apart for the draw—set that takes place today, Tuesday, April 24th, at Wembley Stadium.

The men’s tournament is comprised of 16 teams and is separated into four groups of four. Each qualified nation will enter a team of 18 national players under 23 years of age. Each team may invite three over-age players to be included in the 18 man roster.

Great Britain, with a men’s team at the Olympics for the first time since 1960, is seeded as hosts and will lead Group A.

Mexico, the top-ranked team among the qualifiers from Asia, Africa, Oceania, and their own CONCACAF region, are top seeded in Group B.

Brazil, the best men’s soccer team in Olympic history despite never winning the gold medal, is the seeded team in Group C.

World champion Spain will be the top seed in Group D.

After Tuesday’s draw, the men’s division shaped up like this:

• Group A: Britain, Senegal, UAE, Uruguay
• Group B: Mexico, S. Korea, Gabon, Switzerland
• Group C: Brazil, Egypt, Belarus, New Zealand
• Group D: Spain, Japan, Honduras, Morocco
Seeds for the 2012 Women’s Olympic Soccer Tournament were also announced on Monday. The women’s tournament is comprised of 12 teams separated into three groups of four. Although the rosters in the women’s tournament also must not exceed 18 national players, there are no age restrictions.

Britain, as the hosts, will be the top seed for group E; Japan, reigning world champions, are the seeded team for group F; and Team USA, the highest ranked and reigning Olympic champions, the top seed for group G.

After the draw, here is how the women’s groups shaped up:

• Group E: Britain, New Zealand, Cameroon, Brazil
• Group F: Japan, Canada, Sweden, South Africa
• Group G: USA, France, Colombia, North Korea

The 2012 edition of Tianguis Turistico Mexico, which was co-hosted by Puerto Vallarta, Jalisco and Riviera Nayarit in late March, was the most successful ever held in the tourism fair’s 37 year history.

The 65 million pesos ($5.1 million USD) that Jalisco and Nayarit invested to host the 2012 event seems to have paid off. With an increase of 24% over last year’s registered companies and participating travel professionals, and 2300 business appointments held, the economic overflow to the 2 states is estimated at $140 million pesos, or $11.2 million USD.

Over the 2 and 1/2 day tourism expo, Puerto Vallarta representatives attended 58 business meetings with national and international airlines and tour operators. As a result, Apple Vacations, Travelocity, Air Canada, Alaska Airlines, Transat, Best Day and Signature, among others, will actively participate in a concentrated publicity campaign designed by the Puerto Vallarta and Mexico Tourism Boards to increase the promotion of this popular beach destination throughout North America.

To extend the region’s reach in new markets, a special agenda was prepared for buyers from Paris, Beijing, Madrid and Brazil. Business meeting and wedding travel providers were also targeted through presentations that brought the city’s world-class services and infrastructure to light. Some of the airlines and travel providers that participated in these programs were Viajes El Corte Inglés, Iberia, Orizonia, and Viajes Barceló.

In addition to the travel and tourism professionals from more than 30 countries who participated in this year’s Mexico tourism expo, (an increase of 30% over last year) Puerto Vallarta’s International Convention Center welcomed more than 1000 visitors, including members of the world-wide press.

Vallarta took full advantage of the world-wide attention by hosting events that showcased all of the amenities that the Banderas Bay region offers. Wining and dining gave visitors ‘A Taste of Nayarit,’ as well as special editions of Vallarta Wine Fest and Restaurant Week; golf tournaments offered the opportunity to play on championship courses; and live entertainment, including concerts, dance performances, and spectacular firework displays, offered a glimpse of Mexico’s rich culture.

The 2011-2012 tourist season had already shown an increase in numbers before the tourism expo was held here. The undeniable success of this year’s Tianguis Turístico is sure to boost the number of people who plan to visit Puerto Vallarta in years to come.

Source: Puerto Vallarta Convention and Visitors Bureau

Authorities in Mexico plan to launch an online destination tool called the Atlas Turístico de México, an interactive website featuring the country’s 85 main tourist destinations and information to help visitors plan their travels to every corner of the country.

During this week’s Tianguis Turístico México 2012 tourism fair in Puerto Vallarta, Tourism Secretary Gloria Guevara told listeners that “the interactive atlas will provide a abundance of information on travel destinations at the national level, with maps, photos, and information about the main attractions at each destination.”

Some of the things the online atlas will include will be information on Mexico’s 13,617 hotels, 198,538 restaurants, more than 5,000 travel agencies, 70 airports, 106 bus terminals, 117 museums, 184 archaeological sites, 31 World Heritage Sites, as well as many other support services for the tourist industry.

“The data will serve as a national inventory of all of our tourist assets,” Guevara said.

“Any national or international tourist is going to be able to enter the web site and find the Routes of Mexico, the locations of the 52 Magic Towns (small towns or villages in Mexico with historic or cultural significance), the the Mayan World Route, packages tied to the Mundo Mayo celebrations that are happening later this year, and the Treasures of Mexico Program that has had so much success,” Guevara stated.

Guevara added that the atlas will be live later this month in English and Spanish via a link on VisitMexico.com, and in a second phase, plans to include these sites of interest on Google Maps. The atlas will also be available as a downloadable app for iPhones and iPads.

See the video here: http://www.banderasnews.com/1203/to-touristatlasofmexico.htm

Richard Fisher, President of the Federal Reserve Bank of Dallas, said on Wednesday in a speech at the Bolsa Mexicana de Valores (the Mexican Stock Exchange) that, “Mexico is actually doing better than the United States in many macroeconomic areas, thanks to the soundness of its economy.”

The US Congress, and its presidential candidates, he said, should “take a chapter from Mexico’s book about implementing real fiscal reform. They might well benefit by broadening their perspective on Mexico; from focusing solely on illegal immigration and drug and gun trafficking, as important as those issues are.”

“Mexico,” he continued, “is taking the right measures to solve the microeconomic problems preventing economic growth.” Making a comparison of the two countries, he pointed out that Mexico has low levels of debt and fiscal deficit as well as a balanced budget, while the US Senate hasn’t managed to pass a budget in three years.

“Mexico’s 2011 budget deficit was 2.5 percent of its gross domestic product (GDP),” he said, “while the US’s deficit was 8.7 percent. Mexico’s national debt is about 27 percent of its GDP; the US’s debt-to-GDP ratio, on the other hand, was 99 percent in 2011, and is expected to hit 116 percent in 2012,” he said.

Fisher said that the fiscal reforms Mexico has passed in the last decade have had a significant impact, while in the US, “American politicians and policy makers have proven incapable of fiscal reform.”

Mexico received $19.44 billion in foreign direct investment (FDI) last year, an increase of 9.7 percent over 2010, the economy ministry said on Monday.

The US accounted for 55 percent of the figure, and Spain contributed 15 percent, with the remainder coming from the Netherlands, Switzerland, Canada, and other countries.

Last year’s results brought Mexico’s total FDI for the 2007-2011 period to $113.8 billion, the ministry stated.

Just over 44 percent of last year’s FDI went into manufacturing, while finance and insurance took 18 percent, 9.5 percent was channeled into the retail sector and 5.7 percent flowed to mass media.

According to the economy ministry, more than 41 percent of the 2011 FDI was in the form of “new investments” and 39.3 percent consisted of re-invested profits.

Mexico took in nearly 49 percent more FDI in the fourth quarter of 2011 than in the same period of the previous year.

Gross domestic product (GDP) grew 3.9 percent last year, Mexico’s state-run National Institute of Statistics and Geography reported last Thursday.

Mexico, Latin America’s second-biggest economy, saw its GDP expand by 5.5 percent in 2010 over the previous year, when the country was just beginning to emerge from its worst slump since the 1930s.

Despite economic crisis abroad, drug violence at home, and US government warnings against travel south of the border, Mexico saw an uptick in tourism in 2011.

Mexico welcomed 190 million tourists in 2011, surpassing the 2008 record of 185.7 million visitors – the year previously considered “the most important in the sector’s history,” according to a statement from the Secretary of Tourism, or Sectur. The number of tourists last year rose 3.7% from 2010.

With the US economy in the doldrums, and the European debt crisis dragging on, Mexico has increasingly targeted visitors from up-and-coming economies in Latin America and Asia. The number of tourists from Brazil jumped by two-thirds in 2011, the number of Peruvian visitors rose 37%, while visitors from Russia and China rose 55% and 30%, respectively.

Those who came spent more. International tourists spent an average of $157.70 during their stay, a 7% increase from the prior year, which was also a record for spending.

But American travelers, at least to Cancun and the Riviera Maya, opted for economy. Tourist groups (a measure of 2.7 tourists on average) spent just $300 total for a seven-day vacation, according to Cancun-based Marketing Consultants. By comparison, Brazilian and Argentine groups spent roughly $600 on average.

“More often than not, Americans didn’t leave their hotels and reported not spending much money,” said Jaime Herranz, project director for Cancun and the Mayan Riviera. Marketing consultants surveyed visitors at airports upon their departure.

“They didn’t spend in restaurants, in nightclubs, or on shopping,” he said, adding that, by contrast, “Mexicans and South Americans spent like crazy.”

The US State Department updated its travel warning for Mexico earlier this month, which recommends deferring “non-essential travel” to more than half of Mexican states because of drug violence. While there is no warning for popular beach destinations such as Puerto Vallarta, Cancun, and the Mayan Riviera, the warning recommends exercising caution in the beach towns of Mazatlan and Puerto Peñasco and the port cities of Veracruz and Acapulco as drug-related murders, criminal highway roadblocks, and violence have been on the rise.

More than 47,000 people have died in drug-related violence since December 2006 when President Felipe Calderón launched a war on criminal organizations. The death toll, reported by Mexico’s attorney general’s office, covers the period through September 2011.

Mexico Interior Secretary Alejandro Poiré characterized the State Department’s travel warnings as “ridiculous” in a press conference this week.

“It seems to me frankly out of proportion,” Poiré said, adding that “these alerts overstate or mis-state the standards and security situation that exists in our country.”

Ellen and Garrett Smith of Atlanta each made a trip to Cancun last year for their respective bachelorette and bachelor parties before they married. And while both took reasonable precautions, neither was worried about safety. They also said that they didn’t hold back on spending, either.

The women took taxis sponsored by the resort to stay safe, Ellen said, and they spent money at bars, restaurants, and on souvenirs. Garrett said he and his friends dined out, drank at bars, and even chartered a boat to go snorkeling in the clear Caribbean waters.

“It was a quick, out-of-the-country, tropical place to visit for a fairly short vacation getaway,” Garrett said. “As long as you don’t venture off alone at night or put yourself in unsafe situations or places, it seems fairly safe there.”

Ariel Cano Cuevas, the Director General of Vivienda, Mexico’s national
housing agency, delivered the key note speech at the recent Mexican Association
of Real Estate Professionals (AMPI) Toma de Protesta (Inauguration) in Mexico
City.

During the presentation, Cuevas announced new initiatives for two social
housing agencies, INFONAVIT and FOVISSTE. He concluded his remarks by predicting
the housing industry in this country will remain strong throughout 2012.
Sharing the Presidium with Ariel were: Adan Laracilla from Pueblo, the
outgoing President of AMPI; Sergio Gomez Rabago, AMPI’s new President from the
State of Mexico; Guillermo Salgada, AMPI’s new Vice President from Cuernavaca;
Alfredo Rabell Manaon, Supervisor of Mortgages for INFONAVIT; Javier Gonzalez
Rubio, Director General of FONATUR (the economic arm of Mexico’s tourism
industry) and Joao Teadora de Silva, the President of Brazil’s Federal Council
of Real Estate Agents.

Several real estate officials from outside Mexico attended the event. These
included Joao Teadora da Silva, Katia Cubel, Frederico Mendonca, Jucelia Silva
and Marta Mendonca – all from Brazil. Among U.S. representatives at the TOMA
were, Jennifer Wiziarde, Coordinator for Latin America for the National
Association of Realtors (NAR) and Alston Boyd, who came from Austin, Texas. Boyd
is the International Chair of the Texas Association of Realtors, and is also
NAR’s Presidential Liaison for Central America. Thijs Stoffer, C.E.O. of the
International Consortium of Real Estate Associations, came form Switzerland to
attend the TOMA.

Ariel Cano Cuevas officiated at the inauguration ceremony. Those being sworn
in were AMPI’s new President, Vice President, and ten new members of AMPI’s
National Advisory Board. Linda Neil of AMPI La Paz/Los Cabos was among those
taking the oath. She will head up AMPI’s International Commission. As well, Neil
has been named NAR’s Presidential Liaison to Mexico. John Glaab of AMPI La Paz
has been appointed Sub-Director of AMPI’s Seniors Real Estate Section (SRE)
program.

Other events during the week included a breakfast of Past Presidents and a
one day leadership class. Attending were members of the Advisory Council,
Regional Coordinators and the Presidents of AMPI’s 75 Sections.

AMPI’s forty first years Annual Conference will be held November 1-3 in
Guadalajara.

Mexico City, Mexico – Despite the severe economic crisis in Europe, French companies will continue with expansion plans, mainly in emerging countries like Mexico, where there is a great opportunity for growth, said the Minister of Economy, Finance and Industry of France, Pierre Lellouche.

Meeting with the media, the European official said that 400 companies in France have invested 13 billion Euros in Mexico, with sales of one billion Euros. Additionally, these investments have generated 90,000 jobs in the country.

He added that the European Union’s concern focuses more on the slow growth that companies have internally, so that Mexico should take its’ expansion plans to boost development.

“Large investment groups of French, Germans, and Koreans, among others are looking to Mexico as a market opportunity, not only for this country but to reach out to other nations of Latin America,” he explained.

Bruno Ferrari, Minister of Economy, said that from January to November 2011, $157,000,000 was invested by the French in Mexico, an increase of 57 percent over the same period in 2010.

“The current global economic situation is a time for Mexico to take advantage of selective investments made by the European nations, making it an important business opportunity,” he said.

In presenting the national award for innovation, the official stressed that a venture capital fund will be investing 500 million pesos in Mexican companies developing technology. He added that over the last three years French investors have supported more than 5,000 new products and services in Mexico.

Meanwhile, Rodolfo Tuiran, Undersecretary of Higher Education of the Ministry of Education, said that in Mexico there are 3.2 million undergraduate students, which exceeds the 1.2 million calculated in 2006. But, this represents only 31 percent of the total population aged between 18 and 19 years.

Therefore, he said, it is necessary to boost education to create new innovative minds and support the development of the economy. He added that only 15 percent of students are engaged in branches of biology, mathematics, and other areas of applied science, so the need for scientists in these areas is urgent.

Translated by the Banderas News Team