Now I get why a lot of Americans come to Mexico to retire, sure we have a lot of problems over here, but with that amount you will be able to live in a good and beautiful town, maybe next to a beach or in a traditional town like San Miguel de Allende [1] (a lot of old Americans go to retire there), maybe you won't live like a king, but you won't have housing or food problems at all.
[1]
http://cdn-image.travelandleisure.com/sites/default/files/st...