My September issue of International Living arrived in the mail a couple weeks ago and this is the one that has their annual ranking of the Top Retirement Havens in the world. As usual, Latin America dominates the rankings, with 4 of the top 5 and 7 of the top 10.

A list like this is always going to be a bit subjective, but they take into account 8 different factors when tallying up the scores, like special benefits, cost of living, infrastructure, and safety, for example.

At the top this year was Ecuador, combining bargain prices with an excellent climate and a good quality of life. Beaches, mountains, jungles, and the U.S. dollar as the currency—what’s not to like? See our Ecuador luxury travel section for more on this attractive country.

Next up was Mexico, where I probably spend more of my time than anywhere else. Besides it being close and easy to get to, the country has an excellent variety of real estate options, a decent health care system, good roads, and a reasonable cost of living outside a few gringo hotspots. See more in our Mexico luxury travel section.

Panama and Uruguay were the next two in line, edging out Italy at #5. See stories on both in our Latin America real estate section.

Other Latin American countries making the top-10 in this retirement index were Brazil (good beachfront prices), Argentina (still good deals on Buenos Aires apartments and Mendoza vineyards), and Costa Rica.

Belize, Chile, Nicaragua, Colombia, and Honduras were further down the list, but remember that there’s only one list that really matters when it’s time to buy: yours.

Lots of interesting news recently from Latin America that relates to travelers.

Mexico just decriminalized possession of small amounts of drugs so they can focus on the big boys moving serious quantities. Smoking a doob on the beach is fine now if you don’t have more than five grams on you.

Mexico City is offering free health insurance for visitors. And it’s not just for swine flu—it covers whatever ails you while you are in the city and you just have to ask at your hotel.

Costa Rica tourism is down 13% and both Mexico and Honduras have been struggling this year, but some destinations are making out fine. Nicaragua saw visitor numbers increase 11% the first five months of this year and Panama tourism has been up as well.

2008 was a good year for Latin America. Latin Trade magazine’s LT500 saw an increase in sales and profits: “Latin America’s biggest publicly traded companies, in aggregate, saw net sales jump 1 percent and net income rise 202 percent in 2008 compared to the 12 months prior.”

The W Santiago just opened in Chile. We hope to get someone in there to review it this fall.

You don’t read a whole lot about Lima, Peru in the travel press and historically there’s been a good reason for that: most people don’t stick around. Despite the Peruvian government’s not-so-subtle efforts to make every tourist pass through the capital on the way to Cusco or elsewhere, few spend more than a night or two there on purpose.

Nicholas Gill, who has reviewed several hotels for us (including the Cliffs Preserve in Chile) thinks the city’s reputation is behind the times. His article, “Lima on the Upswing” is in the September issue of National Geographic Traveler. See the online version here.

I personally think more effort is required to help the historic center reach its potential. Witness the major turnaround in Quito over the past five years and the one going on right now in a big way in Mexico City. Lima needs that kind of ambition to change travelers’ perceptions.

But it gets better all the time and I could easily spend a few days eating and drinking my way around Miraflores, where I spent a couple nights in December at the Casa Andina Private Collection hotel there, near all the action.

One’s thing’s for sure: Lima has some fantastic restaurants. Peruvian food is finally getting its due, but they’ve been making great meals here for a long time. I had some of the best ceviche ever last time I was there and pretty much every meal was a treat. (The wine still needs some work though.)

See our Luxury Hotels in Peru section for the best places to spend the night in Lima. Unfortunately, there are no luxury hotels in the center…yet. The Sheraton there is nice enough and the rooms are excellent, but it’s a big hulking convention hotel and casino.

Most travelers heading to Central America and South America are not doing it just to lie on a beach every day or putter around museums. So if there’s an element of nature or adventure in your itinerary, make sure you’ve got some decent travel gear before taking off. If what you’re packing is 10 years old, that stuff is probably far heavier and less durable than what you can get today.

Historically late August and September have been the best time to buy travel clothing and gadgets on sale. Retailers both real and virtual need to move out the warm-weather inventory and move in the fall/winter gear. When you add in a slumping economy and fewer people traveling, it’s a bonanza out there for the savvy shopper.

Here are a few great sales going on right now. Most of them are only going on for a few weeks, so go browsing now instead of putting it off.

Semi-Annual Sale: Up to 70% Off 12,000 Items at Backcountry.com

Find Sale and Clearance items at REI.com!

Teva sandals and shoes on sale now for men! 40-80% off for a limited time!

Clearance Sale Up to 50% at RockCreek.com

Extra 10% OFF + Free Shipping over $50 at eBags.com

Magellan’s Web Specials

Swiss Army Watch Closeouts – All 50% Off!

ExOfficio.com Sale – Up to 70% off the original price

Now through September 2nd at Sierra Trading Post: Spend $100 – Get $30 gift card Use Code: ALAUGUST9 at Checkout.

In Europe? Click here for huge discounts at WildDay.com

We were honored to be among the first batch of guests at Banyan Tree’s first hotel in the Americas. The president of Mexico had just been a guest at the opening ceremony two weeks before we arrived, kicking off what is (for now) the most impressive resort in a region full of impressive resorts. Where do we go from here?

Who knows, but for now check out the Luxury Latin America review of Banyan Tree Mayakoba in Mexico.