March 6, 2022
A Guide to Retiring for Expats and Immigrants
Retirement planning requires careful consideration. This is especially the case if you plan to retire early, want to retire in another country, or plan to split your time between two countries. Fortunately, you can make your life easier with online banking and wise investments.
Utilize Mobile Banking
Mobile banking allows you to access your money anywhere in the world as long as you’re logged into your bank account. Many banks offer the option of a banking app, which you can load via your phone.
Consider Travelers Insurance
No matter where you’re spending most of your time, you’re likely to travel via plane or ship. In this case, you can benefit from purchasing travelers insurance when planning these trips. These policies provide compensation if you need to cancel or delay your trip. You can also add coverage for your medical care in another country.
Know Tax Laws
Once you retire, your taxes may vary based on your income. Those who earn higher amounts of social security will need to pay taxes, while those who earn less won’t have to pay any money in taxes. If you take out your 401(k), work, or receive any money from investments, you may need to pay taxes. Keep in mind that even if you spend time in another country, you’ll need to pay taxes in the U.S.
Additionally, if you spend more than six months in another country, you may owe their government money, too.
Pick the Right Part-Time Work
If you’re in need of additional income after retiring from your full-time job, picking up part-time work could offer some financial security. The great news here is that there are plenty of options for earning a side income that don’t feel like work at all. For example, if you’re an animal lover, walking dogs is a great way to earn money and fit some exercise into your week. As another option, if you’re retiring in an area where concerts, conferences, or sports games are frequent occurrences, you might enjoy picking up shifts as an event worker.
Choose Where You Reside Carefully
As you select where you’d like to retire, make sure you research the cost of living, both where you live in the U.S. and the other country.
For instance, Nepal’s cost of living is an average of 59.84% lower than in the U.S. If you choose to rent there, the average rent is 90.63% less than in the U.S. While the average home sale price has risen about 14% in the past year, there are still affordable places to live in the U.S. that have a lot to offer retirees. For example, El Paso has lots of beautiful homes for sale and for rent, and it ranks as one of the cities with the lowest cost of living. Specifically, the cost to rent there is less than in other U.S. cities. When you find locations where the cost of living is low, you’ll have more money to enjoy life.
Invest Smartly
Stocks aren’t a good idea for most people looking to invest after they retire. They’re risky, and you may not recover financially as easily as you did when you were younger. You might want to consider continuing to add to your 401(k) or roll it over into an IRA. These aren’t as risky, and you receive tax advantages compared to other investments.
Planning Makes All the Difference
If you plan carefully, you can retire between the U.S. and another country and make it worth your while. Let BrightRates help you invest before retirement or keep investing during retirement.
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