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Retirement is what you make it, and the possibilities are endless. For many Americans, that has meant selling their possessions, packing up what they have left, and moving abroad. In some cases, an international retirement can be more affordable and provide better health care options. Plus, the opportunity to explore a new region is enticing. Others worry about being away from family, navigating foreign rules, and dealing with language and cultural barriers. If these obstacles don’t scare you away, an international retirement may work. Here’s how to prepare for it. Consider the monetary challenges. In many cases, retiring abroad can be preferable due to lower costs of living and affordable health care. Plus, you can receive and deposit Social Security overseas. However, there are a few hurdles. For instance, you could end up paying taxes to the U.S. and your new country, which means a double tax. You will also have to transition to a completely digital banking system and understand how your new residence may impact your American-based assets. Review your wants versus your needs. Who doesn’t love a tropical vacation, but do you really want to live there permanently? Tropical spots also include hurricanes, bugs, humidity, and lots of sand and water. Rather than packing up and moving to a new country outright, spend a few months in the place you want to call your new home. If you can live with the good and the bad, it’s the spot for you! If not, try somewhere else until it feels right. Say ‘Ciao!’ to Traditional Retirement THINGS TO KNOW BEFORE SPENDING YOUR GOLDEN YEARS ABROAD
A common but misguided belief is that only the old or sick need an estate plan. It’s simply not true. Everyone benefits from having an estate plan. It doesn’t matter how much money you have or whether you have kids — creating an estate plan will make things so much better if the unexpected ever does occur. Interestingly enough, the pandemic actually prompted many millennials to start creating their own estate plans. According to Care.com’s 2021 Wills and Estate Planning Study, only 16% of Americans aged 18–34 reported having a will or another estate planning document in 2020. That number rose to 26% in 2021. And 45% of those surveyed said they were motivated to start an estate plan because of the pandemic. Millennials and other young adults should create an estate plan for many reasons. One of the most important is that an individual can become vulnerable if they become incapacitated. Without an estate plan, your family will have to petition the court to appoint a guardian or conservator to take care of your legal, financial, and medical affairs, a lengthy and expensive process. Even then, the court may pick a family member you don’t want taking care of your affairs. Creating an estate plan allows all of your wishes to be honored if you ever become incapacitated. An estate plan will also allow you to name who inherits your assets in the instance of your untimely death. Again, without an estate plan, the court will make that decision. In some cases, your assets can even go to the state, which is not ideal for anyone. Having a plan will also help your family avoid probate and the infighting that can come from that time-consuming and stressful process. If you haven’t created an estate plan yet, what are you waiting for? Give our office a call and we’ll help you put together a plan that will take care of all of your potential needs. 2 LittlejohnLawLLC.com YOU’RE NEVER TOO YOUNG TO HAVE AN ESTATE PLAN
Monitor your comfort level. It’s difficult to ask your neighbor for flour when you don’t speak the same language. While it’s true that many countries have numerous English speakers, you may run into situations where communication or customs are difficult. You should learn the basics of your new country’s language and be prepared to be more independent. Until you find a community in your locale, you may not have the same support you have back in the states.
As with all your plans for retirement, consult with a professional to determine if an international retirement is right for you. And if it is, then bon voyage!
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