A growing number of people are hoping to cash in on their retirement dreams by living abroad. Many retirees even keep their U.S. bank accounts and simply set up plans to live abroad, and retiring in another country and help to significantly reduce retirement expenses. In some cases, retirees may even be able to live abroad on just $25,000 a year.
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You’ll need to be prepared to set up a new bank account abroad so that you can meet routine expenses. It’s also a very wise move to check out what link you’ll be using to transfer funds from U.S. accounts. Without doing your research, you might find that you’re hit with extremely high fees for transferring to another bank and especially into another currency. You must be prepared with a strategy to monitor currency risk, since whether it makes sense to convert assets over or keep them in your home currency largely depends on the market.
You also want to factor in taxes. You’ll have to keep filing a U.S. tax return and probably another one in your new country. The IRS will generally give you credit for taxes that you have paid abroad, but that is not true for all cases. You’ll want to set up a personalized meeting with an estate planning specialist before banking on paying foreign taxes only.
Finally, plan for healthcare. Many retirees look for a location that has access to quality and affordable healthcare. Locations far out from medical services can be a hassle for retirees, who are more likely to need routine care. Talk more about your plans to live abroad with an estate planning attorney so that you are prepared to go when it’s time. To get started fleshing out your overseas retirement dreams, contact us at 732-521-9455 or email us at info@lawesq.net