(Photo via Pexels)
Many individuals who are approaching retirement make the decision to split their time between living in the United States and in another country. Whether they were born in the U.S. or moved to the country later on in life, there are plenty of advantages in having a dual residency in retirement However, because there are a lot of moving parts to this lifestyle, advanced planning is an absolute must. If you’ve decided to split your retirement between the United States and a second country, explore tips for success.
Settle your housing arrangements.
When spending your retirement years living between two countries, your housing arrangements may look vastly different. There is no right or wrong choice, and where you decide to reside is up to your circumstances, budget, and needs. If you have family in the U.S. and abroad, you may have the flexibility of living with them.
Alternatively, you may be planning on buying a home in both countries. However, before formally entering into retirement, settle on your housing arrangements. Don’t leave this decision until the last minute, and don’t simply “go with the flow” in your first few years of retirement. Why? It is crucial for you to make the most financially sound decision as early as possible. If you find out right away that you cannot afford the arrangements you previously anticipated, you’ll save yourself a lot of time and frustration. You may also find that buying a home, rather than staying in a hotel or in extended stay accommodations, is the most cost-efficient route.
Decide how to support family from afar.
Do you plan to provide continuing financial support to aging loved ones, grown children, or another family member when out of the country? To avoid any interruptions, be sure to have a plan in mind for how to send money, and find a trustworthy method of sending funds that won’t cost you a small fortune.
If, for example, you plan to divide your time between India and the U.S., you can safely and quickly send money through reliable transfer services like Remitly, which costs little to nothing — fees only go as high as $3.99 for transactions that are less than $1,000. This applies to both their express and economy services.
Speak with a financial advisor about your plans.
If you’ve been working with skilled financial advisors from Lifetime Retirement Partners to create a solid retirement portfolio, now is the time to inform them of your plans. Your financial advisor will be able to assess your planned expenses in both countries, including daily spending, annual costs, and the like. If you haven’t been working with a financial advisor, now is a great time to consider enlisting their expertise to maximize your investments.
Figure out your tax situation.
One of the trickiest aspects of living in two countries is your taxes. If you don’t research and plan in advance, you could end up with two massive tax bills. To avoid paying more than you need to, speak with a tax advisor. Sitting down with a tax professional will give you the clarity and understanding you need to have a concrete grasp on what to expect in both countries and how to avoid big penalties.
Research health care options.
Lastly, be sure to research your options for healthcare in both the U.S. and in the other country you’ll be living in. Because the healthcare system in the U.S. is so different from that of almost every other country, it is crucial that you know what types of insurance you’ll need, and if you will be eligible for a public healthcare system.
Once you’ve planned for your most critical needs, begin planning the fun you’ll have in retirement. From taking vacations to new destinations to the spots you plan to frequent, don’t forget to enjoy life in both countries of residency.
Lifetime Retirement Partners is committed to offering you dependable and objective retirement planning services to help you meet your financial goals. Call 800-971-2989 or complete this form to learn more.