RETIRE IN STYLE 3 PLACES TO RETIRE INTERNATIONALLY
Even if you’ve always planned for a comfortable retirement in the United States, choosing to live internationally could be a smart alternative to improve your standard of living in retirement. International Living Magazine’s Retirement Index has tracked objective retirement metrics — like the cost of living, democratic stability, and health care — for the last 40 years. They also take into account reports of correspondents actively living abroad. Here are some of their top picks for international retirement destinations. PANAMA Panama ranks No. 2 in International Living Magazine’s list of best places to retire internationally. With its tropical climate, proximity to the United States, excellent health care, and low tax burden, it’s easy
to see why. In Panama City, you can expect to pay at least $2,600 a month in living expenses, but housing costs are substantially lower outside of major metropolitan markets. Panama also offers excellent discounts, up to 25% off of things like airline tickets, hotels, and energy costs through its Pensionado program. COSTA RICA If it’s a textbook paradise you’re looking for, look no further than Costa Rica. Thanks to a 1948 decision to abolish their military and direct all of those funds to health care and education, Costa Rica is often referred to as the “Switzerland of Central America.” Known for its stable democracy, safety, and socialized health care that’s only available once you’ve obtained residency, Costa Rica also offers climates for just about everybody
— from the lush jungles of the south to the hot, dry beaches of Guanacaste in the northwest. Expect to find large communities of expats to help you acclimate. MEXICO The first things that come to mind for most people when you mention Mexico are margaritas and beach umbrellas, but this country offers a lot more than that. For starters, Mexico features an enticingly low cost of living. International Living estimates a couple could live in Mexico on anywhere from $1,500–$3,000 per month, depending on location, including health care expenses. Once you’ve obtained residency status, you can sign up for national health care plans that offer full coverage for just a few hundred dollars annually.
WHAT DOES THE SECURE ACT MEAN TO YOU? UNDERSTANDING THE MOST SIGNIFICANT RETIREMENT LEGISLATION IN DECADES
The SECURE Act is one of the most significant changes to happen to retirement legislation in at least a decade, and it went into effect Jan. 1, 2020. There are many changes in the SECURE Act, but one of the changes that will most directly impact our clients at Patriot Wealth is what is being called the death of the stretch IRA. This change will have the largest impact on people who have nonspouse beneficiaries who want to take precautions to protect their assets at the time of inheritance. Prior to the passage of the SECURE Act, if you inherited a lump sum, you could take disbursements from the account
over the long term, meaning that, if so desired, you could continue to benefit from the tax advantages of an IRA. However, the SECURE Act has changed this. Now, nonspouse beneficiaries have just 10 years to withdraw — and pay taxes on — the full value of the account within 10 years. Without proper plan adjustments, the rollout of the SECURE Act could lead to large scale, inter- generational losses of familial wealth. But the SECURE Act has sweeping implications for retirement planning beyond just how the inheritance you leave will be taxed. The legislation also raises the age for when people are required to start taking disbursements
from retirement accounts from 70 1/2 to 72 years of age, includes provisions that make it easier for employers to offer annuities, and includes legislation aimed at making it easier for more businesses to offer retirement accounts to more people. The most reliable way to ensure your retirement plan is optimized around the new regulation put into place by the SECURE Act is to meet with a planner and explore your specific scenario. Visit PatriotWealthNC.com to learn more about how we can help assure your family’s wealth will be protected for many generations to come.
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