Sifting through information to include in this blog as well as stories from clients who are planning their retirement provides extensive insight into the topic.
Retirement planning is a significant part of estate planning and relocation affects an Estate Plan.
Articles on my website offer advice about how to plan to retire in a foreign country (becoming expatriates) and the financial considerations of leaving the United States.
One very excellent article from MONEY magazine piqued our interest since it dealt with the topic of retirees who decided to leave their idyllic location to return to the United States.
The article is titled “Retiring in Paradise? Before You Move, Make a Plan B” by Suzanne McGee (MONEY magazine December 2018)
The subtitle to the article is --- (One couple followed their dreams to Mexico. Here’s what no one told them about starting a new life abroad.)
Clearly, repatriation (or the term “boomeranging”) is difficult and time consuming. Besides the physical move back to the U.S., there exist sometimes overwhelming financial considerations to deal with.
Some excellent points to consider:
Differentiate between a ‘vacation’ time adventure in the country and the aspects of living there permanently, with different language, lifestyle, cultural differences, etc.
Don’t cut your ties to back home!
If possible - Don’t sell your house in the U.S. immediately (if you require income, consider renting your property for a year or more until you are certain of your decision to relocate to a foreign country.)
Take time to investigate all aspects of the new country, including legal; healthcare; property rights/home ownership; visas; inheritance laws; banking regulations; and taxation – to name just a few.
Anticipate the on-going costs of travel back to the U.S.- for example – traveling to visit family and friends. Factor those costs into your retirement planning.
Consider renting rather than buying in the new country for at least a year.
**** Keep your finances based in the United States in case you decide to repatriate.
If you think you will need a job to maintain your lifestyle in a foreign country, investigate the job market there and what skills you have to offer. How will your earnings abroad be taxed?
For retirees living abroad, or considering such a move, the best advice is to take the time to investigate and whenever possible, talk with expatriates living in the country to get their true insights.
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