Are you are looking to spend your golden years in another country? Here are 5 quick and dirty tips that’ll ensure your retirement gets off to a great start. Guest author Daniel Abrahams explains how to retire overseas.
If you are looking to spend your golden years in another country, there are 5 things that you should consider which could save you time and money and ensure that your retirement gets off to a great start:
Tip #1: Can You Afford to Move?
Before you start paying for visits to another country to find out if it is the right fit for your retirement, think about whether you can actually afford to move. Many countries will ask you to prove that you have the financial resources available to support yourself rather than being dependent on that country’s welfare system. You may need to supply proof of pensions and any other savings and investments you have put away.
You may also be required to take out health insurance and this could set you back a fair amount of money. Be as prepared as you can be and sit down with a financial advisor to go over every inch of your finances. After all, you want your retirement to be as stress free and as relaxing as possible.
Tip #2: Consider a Temporary Stay
If you find that you cannot afford to emigrate to the country of your dreams on a permanent basis, why not consider a stay of a shorter period? Most countries will allow you to stay for 6 months and you might want to consider investing in a property in another country and spending 6 months of the year there.
This can be a great idea if you have family that you do not want to leave permanently. You could also rent out your accommodation when you are not there, helping you to bring in an additional income.
Tip #3: What to Do With Your Financial Assets
Emigrating to another country means considering what to do with the financial assets back home. For example, you might want to transfer your savings to your new country of residence or you might choose to leave it in your home country if your money is earning an impressive savings rate.
You also need to take care when transferring your pension, if you are looking to transfer it. It could shrink considerably if you transfer it or you could find it is frozen from the date you start drawing it. Again, a good financial advisor will be able to help you with your finances and any business assets you are not sure what to do with.
Tip #4: Choose the Right Time and Rate for Exchanging Currency
Long before you move, you should start to look into currency transfers at the best rate. Many money transfer companies and FCA regulated foreign exchange brokers can provide you with a fixed rate if you are going to be making regular transfers. These are known as “forward contracts” and they could allow you to secure a good exchange rate for up to two years in advance.
Forget moving money around through your bank. The best deals by far are the ones you can find by using a currency exchange specialist. Banks often apply markups of up to 5% from the real exchange rate. In real money terms, this means you could lose up to $5,000 on every $100,000 being exchanged. It pays to shop around on international payments, try to obtain multiple quotes on each and every trade.
Tip #5: Choose the Right Expert Advice
Before you choose a property, move any investments or decide how to arrange money transfers, it’s a good idea to get solid financial advice. Speak to people that have already made the move through online forums or if you get a chance, visit an expat community and get some real world answers from people that are already living the dream. If you choose a financial advisor, make sure they are regulated and that they have a good track record. Ask for references and previous clients.
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Daniel Abrahams is a personal finance blogger, startup mentor at ABC Startup, and Co-Founder of MyCurrencyTransfer.com and MyTravelMoney.co.uk an OPP award winning foreign exchange comparison brand.