Q. I wonder if you could advise me regarding visiting Nicaragua. I have never been there, but I heard there is the potential of cheap investment and a low cost of living. I'm about to retire and am looking for safe and inexpensive way to live in the Caribbean or in Central America.

Please give me some advice and information sources.

A. I found a company that offers tours for potential retirees or people looking for vacation homes or investment opportunities. And I learned about a helpful program offered by the Central American nation's consulate.

Nicaragua, Costa Rica and Honduras have growing colonies of American retirees, with an estimated 10,000 now living in Nicaragua, according to USA Today (and 25,000 in Costa Rica). They are drawn there by the climate, the low cost of living and free-market economies that encourage investment. U.S. News and World Report ranks Nicaragua in the top 10 retirement places worldwide.

The Consulate of Nicaragua, 3550 Wilshire Blvd., Suite 200, Los Angeles, CA 90010-2314, (213) 252-1170, helps prospective retirees with paperwork and advice.

I talked to Telma Prego of the Nicaraguan Consulate in Miami.Prego explained that the retiree-to-be needs to obtain a 90-day visa. He or she must be older than 40 and have an authenticated document saying that he or she has a pension or other guaranteed income of at least $400 per month, plus an additional $100 for each dependent.

Also needed: A certified health statement, a document specifying police record or lack of it, and an authenticated first page of a U.S. passport. After the consulate receives all the required paperwork and issues the 90-day temporary visa, the retiree-to-be travels to Nicaragua, where he or she visits the Tourism Institute to apply for a retirement visa.

Prego said that for people living far from a consulate, the process can be done by mail, including the affidavits by police, health officials and so on, and payment to the Consulate of Nicaragua of $25 per document. Enclose a self-addressed stamped envelope for return of the documents.

Americans interested in investments can contact the Nicaragua-American Chamber of Commerce in Miami, (305) 599-2737.

Nicaragua has no tourist offices in the United States.

If you want to check it out before starting the visa process, Barbara Periello at Discovery Tours and Agora Travel in Delray Beach, Fla., takes groups on discovery tours to Nicaragua, Panama and Honduras to explore options for retirement, vacation sites and investments.

Michelle Sedita, Periello's assistant, said "two or three" trips a year are organized for groups of 15 to 30 people to check out one, two or all three countries. Most are Americans or Canadians. On a recent trip, Sedita said, "Quite a few" in the group bought land or homes, most on Nicaragua's Pacific coast. Not all are retirees. The age range, she said, is 20 to 80: "They are mostly looking to invest – the younger ones might be looking for vacation houses.

"Retirement cost depends on lifestyle, what they're looking for," Sedita said. Among Nicaragua, Honduras and Costa Rica, "property is probably cheapest in Nicaragua. The cost of living is low." Various reports estimate that American retirees can live in Nicaragua for $1,300 to $1,500 a month.

Sedita believes that Nicaragua "is pretty safe; it is conservative and business-friendly, with low taxes." Investors are encouraged to start tourism- related businesses including fast-food franchises.

Boosters of Nicaragua development point out that the Sandinistas have been gone for more than 10 years and that rapid development is improving the infrastructure along the Pacific coast, with better roads, utilities and other services.

A Web site that has a selection of books on Nicaragua is www.bluejeweltravel.com. Some are guidebooks and one is titled "Investing in the New Nicaragua," written by Christopher Howard, an American who lives in Costa Rica. Some reviewers think the book paints too rosy a picture of conditions in Nicaragua.

Another good Web site, www.internationalliving .com/nicaragua, discusses tax incentives and the procedure required to qualify for retirement. On home ownership, it says that a spacious two-bedroom home with air conditioning can be built for about $60,000.