Think Before You Act: Retiring Out of the Country
A sizeable section of seniors citizens are choosing to retire outside the US. That’s because many foreign countries offer a lower cost of living to retirees, apart from the excitement of living in an exotic new locale. A lower cost of living, though important, should not be the only parameter to be considered when making such a life-changing move. Here are a few tips:
Is this for you? Consider the change that comes with living in a new place. The familiarity, the services and convenience you enjoy in American cities may not be available where you are planning to move. You have to be okay with that. If you are not fascinated with new cultures and like familiarity, then maybe moving out of the US may not be the right option for you and you should look into investment property in Phoenix AZ.
Make your money go farther. Several Latin American countries can offer incentives to retirees that make relocating a very attractive option. Panama, for instance, has pension programs which offer discounts on utilities, airline tickets, doctor bills, hotel stays, and even movie tickets and cultural events. You need a fixed pension of $1,000 a month for an individual, plus an additional $250 a month per dependent, Social Security checks included.
Do your homework. Information gathering about the place you are considering is indispensable. Talk to experts and expats. Look through online resources. Visit the place you have chosen during its various seasons to understand the weather. If you have chosen a city, rent and stay in various areas before choosing.
Work out the logistics. Taxes, budgets, investments, and documents are some things that can be challenge to handle from outside the US. Employ the services of a professional to sort out tax work, especially in your first couple of years abroad.
Rethink your finances. Maintain two bank accounts. A new bank account in the new country to be used for day-to-day transactions. And the old one in the States to handle to bill payments for your home there and for federal income taxes.
Maintaining a US address (with something like Phoenix investment property) helps you keep a U.S. bank account. Your Social Security checks too can be deposited into a U.S. bank account and can be accessed from outside. Save on the conversion fees by getting yourself a Visa or MasterCard in your new country.
Protect your health. Research your health-insurance options. In some countries you can save a lot of money through inexpensive and accessible government-sponsored health care.
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