Logistics To Plan When Retiring In Another Location
If you plan to retire, you know that you will need different investment types as well as a plan for living. One of the things that can throw a wrench into airtight plans is living in another location after retirement. It can sometimes be prudent to move to another location after you retire, especially if your money is able to stretch further due to the exchange rate and your income. Here are some logistics that you will need to work through if you are making a plan to retire in another country.
Look at the exchange rate history
If you are still at least one decade out from retirement, there is a high likelihood that the exchange rates will be different than their current amounts. Get together with your financial planner and go over the exchange rates for the country and the United States over the course of history. Looking at long-term exchange rates can give you a good idea of just what type of income you may be looking at and how long money will stretch.
Work on property purchase immediately
If you wish to retire in a country different than your home country, you may have to jump through hoops to purchase real estate. Instead of waiting, you should start meeting the proper country standards in order to make a real estate purchase. You should consider the purchase of your home to be a part of retirement investing. This being purchased and paid off will make retiring much easier.
Figure out where you should hold money
Depending on which country you move to, you may want to have a bank in the country or you may want to continue to utilize your bank in the United States and just use cash and cards in your new country. Determine how and if you will lose money due to the exchange rate when holding your money in the country versus the United States. To preserve your hard worked for retirement gains, keep the money where it will stretch the furthest.
Consider two investment firms
No one knows the landscape of a country's economy better than the finance people who live there. Consider having two investment portfolios, one in the country where you will retire and another in the country that you currently live. If diversification gives a better chance of success, diversifying in two countries will give you an even bigger chance of more retirement funds.
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