Monday, March 31, 2008

Financial Advice for moving to Costa Rica from Patrick

For those of you thinking of moving to Costa Rica, be advised that financially it is getting harder to live here. First, the US dollar is falling as a currency across most other currencies including the Costa Rican Colon. Since the Costa Rican’s tie their money to the US dollar in hopes of keeping the Colon stable, they are buying the excess US dollars in circulation causing inflation here. The government is reporting about 11-12% annual inflation but on some items it is closer to 20%. Last but not least, if your invested money is in the US, which should offer more stability, you have seen a fall in your portfolio value or you are locked in at 2.5%. So there are three things working against you on your potential move: the falling US dollar, inflation in Costa Rica, and a lower return on your investment. All of these might affect your standard of living in Costa Rica. These things may eventually change, but in the short term it could be a big concern.

2 comments:

P & K Ashland said...

Wow! This is interesting. Haven't thought of it this way

Anonymous said...

As the saying goes. There are only two things certain in life: death and taxes. But I believe there are three - death, taxes and inflation.