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7 Overseas Retirement Spots With Favorable Exchange Rates

By U.S. News & World Report

If you’re shopping the world map, trying to choose where to live, retire or invest in a second home overseas, you don’t want to make your decision based entirely on currency exchange rates. However, you do want to pay attention to them. The U.S. dollar is now so strong against currencies in some of the world’s most appealing retirement and vacation home destinations that real estate in these places is trading at a discount too great to ignore.

The dollar has been moving up against some currencies since 2010, but the most dramatic gains have been over the past year. The dollar began rising notably against many currencies in mid-2014, and it continues moving up today. Here’s a summary of U.S. dollar activity versus currencies in key overseas retirement and property havens:

Ecuador. These exchange rate movements are resulting in some surprising market twists. For example, Ecuador has long been a benchmark for real estate values. It has offered top value for the money for the past decade and a half. In Cuenca, Ecuador’s most popular city for expat retirees, real estate is selling for around $1,200 per square meter. That’s only $112 per square foot, a bargain for city life anywhere.

Colombia. Thanks to the current exchange rate between the Colombian peso and the U.S. dollar, the average cost of property in Medellín, Colombia, another top city choice for expat retirees, with its cosmopolitan lifestyle, pleasant year-round climate and luxury housing options, is down to $1,000 per square meter in that city’s most expensive neighborhood, El Poblado. That’s just $93 per square foot, which is cheaper than in Cuenca.

Brazil. Brazil is an even better example. Real estate in Fortaleza’s upscale Aldeota neighborhood is currently trading for $1,164 per square meter ($108 per square foot) on average. The average cost in this part of this appealing coastal city was $2,400 per square meter in 2010. Thanks to the exchange rate, prices have fallen by half for U.S. dollar holders.

Chile. Prices are down 30 percent in Chile in the past five years thanks to the dollar’s strength versus the Chilean peso. And the dollar’s surge against the euro makes property prices in any country where real estate trades in euros 26 percent more affordable for U.S. dollar holders today than in 2010.

Portugal. Worth highlighting in Europe is Portugal, Live and Invest Overseas’ 2015 pick for the world’s top retirement haven. Recessed markets coupled with the dollar’s strength mean you could own a seaside home of your own in Portugal’s sunny Algarve region for as little as $150,000.

Canada and Mexico. The dollar is up nicely against the currencies of its two nearest neighbors. The U.S. dollar is 27 percent stronger versus the Canadian dollar than it was in 2010 and 28 percent stronger versus the Mexican peso than five years ago, making both these markets more interesting for American retirees. Canada isn’t generally thought of as a top retirement choice, but Ontario offers appealing lifestyle options, especially for part-year living. Escape south during Canadian winter, maybe to Mexico, a well-established snowbird option. Today’s surging greenback makes that kind of dual retirement haven strategy more reasonable and possible than ever.

I don’t usually recommend following exchange rates as a method for choosing where to live or retire overseas or when to time the purchase of property in another country. However, currency discounts like the ones U.S. dollar holders are enjoying in key markets are too big and far-reaching to ignore. Before taking the plunge into a U.S. dollar-based country (such as Ecuador or Panama), make sure one of the currency-discounted countries won’t fit the bill for you. It could save you a lot of money and enable you to buy amenities, a standard of living and even a level of luxury that might otherwise be unaffordable.

Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.

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7 Overseas Retirement Spots With Favorable Exchange Rates originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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