The Ultimate Adventure: Retirement Abroad

Submitted by John Strassman−

You’ve worked hard, planned carefully, and now it’s time to retire. Many people simply opt to downsize and stay in their current city; however, these days retiring abroad is a not only a viable option, but it can offer a genuine lifestyle upgrade.

Of course, there are always considerations. The United States offers many of the following perks:

fall scents for your home

Community: Social interaction is integral when retiring and having a network in place limits the threat of isolation. Most likely, if you remain stateside, you are closer to family and friends. You have established personal and professional communities.

Health: You already have your medical professionals in place. You’re familiar with the climate so any environmental or weather considerations have already been tested.

Familiarity: You know the place. Everything from the breakfast special at the diner around the corner to the operating hours of the local farmers market is innate. You don’t have to consult a map or add an event to your calendar.

Here are the downsides:

  • The United States can be expensive for retirees,
  • Heathcare costs continue to rise, and
  • All that familiarity may not be in your best interest. Often, the happiest retirees are those who continue to learn, grow and experience new things.

Moving abroad may sound daunting, but take it step by step. Rather than approaching it from a worst-case scenario, first, sit down with your loved ones. Next, discuss your priorities in terms of climate, cost of living, proximity to an airport, etc.

Retirees who perceive retirement as the next exciting chapter tend to have greater life satisfaction than their counterparts. By moving overseas, you are certainly guaranteed NEW. A NEW place, NEW people, a NEW home, and NEW experiences. NEW is often connected to FUN—an essential ingredient for healthy aging.

Here are a few incentives for a potential move oversees:

Lower Cost of Living: Many resort-like destinations have a modest cost-of-living price tag. As you’re thinking about the possibilities, investigate this article in the U.S. News & World Report about affordability, showcasing the top 9 places to retire abroad.

Improved lifestyle: To intensify affordability, some countries even offer retiree incentives. In some places, the current exchange rate also affects a lower cost of living. You’ve worked hard to maximize your retirement income. How would you like to make your dollar go even further? Having your money work for you during retirement contributes to enjoyment levels; here’s the The Motley Fool’s list of the best happy and affordable countries.

Reasonable, quality health care: As prices for healthcare continue to increase, living somewhere with high-quality healthcare that doesn’t break the bank becomes not only a necessity, but it is essential quality of life. International Living published two first-hand accounts of retirees benefiting from stellar and inexpensive healthcare choices in both Thailand and Ecuador respectively.

Climate: As we get older, a cold, humid climate can wreak havoc on the joints. It can also make it more difficult to stay active. The combination is dangerous when it starts to negatively impact your outlook and mood. Beachfront living in the United States is pricey, but a warm, dry climate is accessible (and cost-attractive) in Mexico and Costa Rica. Mexico is also an interesting choice because it is, in some cases, just a relatively easy direct flight to and from the United States. So, it’s a little bit like summer camp. You get to branch out and expand, but you’re also not too far away from home.

It’s not flawless. You may find the language and cultural differences incredibly frustrating. Something as simple as lack of ice in your “iced” tea may make you homesick. With some countries, you could be faced with double taxation. Consult with your financial advisor, CPA, and/or tax attorney to investigate the specifics when contemplating a move abroad.

One potential compromise is dual citizenship as you make the transition. Spend the winter abroad and then come back to the United States before you make a permanent leap. After all, according to The Guardian, spending your golden years in the United States is still one of your best options.

 

John Strassman, CFPhas been registered and practicing as an Investment Consultant since 1987. What makes John’s approach distinctive is his conviction that you deserve a Personal Financial Advocate grounded in his commitment to protect your family’s future by growing your living legacy. As his client, you receive a professional confidant to share your aspirations and concerns, and a long-term relationship that becomes increasingly attuned to your interests. The insights on investment options and strategies are aimed at preserving and growing your wealth. His goal is that you will gain a sense of comfort and the security of control over your financial legacy and future, regardless of market conditions and economic cycles. Let’s Connect & Start Building Your Legacy! www.yourlegacymatters.com

Investing involves risk, including loss of principal. Securities offered through LPL Financial, Member FINRA/SIPC. Financial Planning and Investment Advice is offered through Financial Advocates Investment Management, a Registered Investment Advisor, DBA Strassman and Associates Wealth Management and a separate entity from LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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The Ultimate Adventure: Retirement Abroad
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