Retiring to an exotic place isn't a fantasy if you choose the right location. You can have an oceanfront view and the comforts of home all while spending less money than you would in the States.

A couple can live on less than $2,000 a month in the top seven places ranked by Live and Invest Overseas. The study considered the cost of living and real estate, entertainment options, the strength of local expat communities, healthcare and the logistics of relocating.

The Algarve region of Portugal tops the list for the second year in a row. It's great for beach bums and golfers, with 35 different courses in the area. You can easily get by speaking English. Plus, there's more than 100,000 expats in the area who have fostered a well-stocked book exchange, as well as active tennis and volunteer groups.