retiring overseas

How to Do a Reconnaissance Trip Before Retiring Overseas

Nick Wharton — Tue, 18 Sep 2018 08:00:11 +0000

Making the decision to retire abroad is a huge step for anyone, even if you're a seasoned world traveler. Perhaps you've spent significant periods of your life overseas exploring various locations, but making the move to another country is entirely different. It can be a daunting prospect, but you should do thorough research rather than making this kind of decision on a whim.

There are several steps you'll need to take to get ready for your big move, but one of the most important steps is to schedule at least one reconnaissance trip to your chosen country. This will enable you to make a fully informed decision as to whether or not that location is right for you. Here's what you need to do, and the info you should gather while you're in your desired retirement location. (See also: 5 Countries Where You Can Retire for $1,000 a Month)

Meet as many people as you can

The best place to start on your reconnaissance mission is to get the lowdown from people in the know. People who live and work in your potential destination can provide you with personal accounts of the important aspects of everyday life.

Expats

Some of the most insightful people to arrange to meet prior to arriving will be expats. Ideally they'll be from the same country as you, and also retired. This way, they'll know exactly what you need to do before you leave, and once you arrive. You'll also learn the pros and cons of that particular area, which will help you make your decision.

An easy way to find expats is to search on Facebook or other community sites for expat and retirement groups in that location. You can request to join these groups, and tell the members that you want to meet up while you're there. Expats tend to be a friendly bunch who are eager to meet new arrivals and help them out. It may also help if you offer to buy them a coffee or a cocktail in exchange for racking their brains. (See also: How to Get the Most Out of Your Overseas Retirement)

Locals

While it may be more difficult to set up these meetings in advance, it should be very easy to meet locals when you arrive. This will mean taking the lead and striking up conversations with people wherever you go. Locals might even provide you with alternative views to the expats you meet and mention aspects of living abroad you haven't yet considered.

If you don't speak the local language, you'll be relying on meeting locals who speak English. Visit places that are likely to attract tourists, as most locals who work within this area will speak English. Bars, restaurants, cafes, and shopping centers are all good options.

Ask the right questions

Meeting the right people is only half of it, because you're also going to have to ask the right questions. What you ask will be personal to you and the destination you're scoping out, but here a few questions to get started:

"What is the quality of the healthcare system like, and how does it work?"
"What's the one thing you like least about living here?"
"What do you wish you knew before making the move yourself?"
"Is it necessary to speak the language, or can you get by with some basics?"
"What do you miss most about home?"

Spend some time writing down a list of details that you want to find out before you leave, so you don't forget while you're there. (See also: 13 Financial Steps to Take Before Retiring Abroad)

Check out the property market

One of the most important things to get right when you move overseas is to find the right place to call home, so meeting with a few realtors should be a top priority. Keep in mind there's only so much research you can do online, and it could turn out to be a costly mistake if you purchase or rent a place without seeing it in person beforehand.

Narrow your search down to a few neighborhoods you're considering. Google Street View is a useful tool to help you get a visual idea of what the areas are like. It's essential to remain open-minded when you're looking for property overseas, because depending on where you are, it might be very different than what you're used to at home.

Once you arrive, arrange some viewings for properties that meet your criteria so you can see exactly what you'll get for your money. Ask the realtors to explain the process for renting or buying, and write down everything you'll need to do to complete a transaction. (See also: 9 Things to Know Before Retiring Abroad)

Treat it as research, not a vacation

Though there's no set time frame for a reconnaissance visit, you should really stay as long as you can. Between one to three months would be a solid test run for living there, but clearly not everyone will be in a position to do that. Just know that a one-week trip probably isn't going to be enough time to see everything you need to see, and the less it feels like a vacation, the more you'll understand what living there is truly like.

Use Airbnb to find a local home for your recon trip, similar to what you might expect when you move there. Staying in a hotel is fine, but it won't feel like you're living there, and probably won't give you the option to cook your own meals. A short-term rental, on the other hand, will most likely have a kitchen, and that way you'll get a better idea of the cost of groceries. (See also: The 14 Best Ways to Cut Food Costs While Traveling)

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get the Most Out of Your Overseas Retirement

Nick Wharton — Mon, 08 Jan 2018 09:30:15 +0000

Retiring abroad can be a wonderful and enriching experience for those with an adventurous spirit and a desire to try something new. But some people find being away from everything that's familiar to be challenging, exhausting, and even alienating. Many factors contribute to the experience you have when retiring overseas, but the best way to create a smooth transition is to plan extensively and thoroughly. (See also: 7 Smart Reasons to Retire Abroad)

For most people, this planning process consists of crossing off all the practical steps required to make their dream a reality. Things like sorting out finances, finding affordable and comfortable accommodations, and setting up quality health insurance are priorities, but retirees sometimes neglect to consider what their day-to-day lives will look like. It pays to also have a plan in place for how you're going to settle into your new home and how to maximize the benefits of living abroad. Here's how to make the most of your overseas retirement. (See also: How to Choose the Perfect Country to Retire In)

1. Integrate into your new culture

When you set off for your new life abroad, you're probably also leaving behind many established relationships. These could be with family members, a circle of friends, next door neighbors, or even the friendly server at the local restaurant where you regularly eat. Though you may not appreciate it at the time, that familiarity breeds a feeling of security that will disappear overnight.

The very best way to build up new relationships is to make the effort to integrate into your new community as quickly as possible. If you're moving to a country where you don't speak the language, learn it, otherwise this will always set you apart as an outsider. Introduce yourself to your new neighbors, speak to people in your local shops and cafes, and find out about any community events or activities that you could get involved in. (See also: You Can Learn a New Language — Just Use One of These 3 Apps)

Another great way to get to know the local culture is to join the local Facebook communities. In my experience, there are a mix of English and local-language posts in most of the groups, and Facebook does a pretty good job of translating the latter so that you can absorb information. To join the groups and communities on Facebook, simply Google: "[your desired city] Facebook community," click the most relevant results, and request to join the groups. Meetup.com also has clubs for all kinds of interests around the world. (See also: 5 Countries That Welcome American Retirees)

2. Seek out other expats

Meeting other expats is a great way to connect with like-minded people who already have experience moving away from home and integrating into your new community. You'll be able to use their accumulated knowledge to learn more about your new home — from the best restaurants in town, to where you can buy the home comforts you crave.

To speed up the process of making new friends, try joining the local expat communities on Facebook. There you can communicate with other retirees and expats to ask questions and learn more about your new area. I do this every time I live in a new country for an extended period of time, and it has proved invaluable for me.

There's often a misconception that expat groups are very insular and network only within themselves to the exclusion of local residents. Though this is undoubtedly true of some people, many expats you meet will already be fully integrated and heavily involved in the local community. They can be an invaluable source of support for when times get tough. (See also: 5 Amazing, Cheap Places to Live as an Expat)

3. Build new routines

Going from working full-time to having a free schedule can be a daunting prospect and it's fair to say that many people find it difficult to adapt. Building new routines is a necessary step for any retiree, but it becomes particularly important when you retire abroad, as there are even more changes to get used to. Though the first few weeks and potentially months will be exciting and invigorating, once the initial thrill of the new lifestyle has died down, you'll need to develop a new groove.

Think of it as an opportunity to spend more time doing the things that you really love, but struggled to find time for previously. Beyond joining the clubs previously mentioned, consider volunteering with a local group. Volunteering can also be a fulfilling way to get involved and feel purposeful. Also check Trip Advisor for the top rated experiences near your new home, and locate local beach clubs, gyms or yoga studios. Once you sign up for a few passes to these clubs, you'll likely meet many other expats and locals who will be full of great ideas for other activities to add to your routine.

Build up your schedule until you've got enough structure and activities to fill your time in a meaningful way. (See also: 9 Things to Know Before Retiring Abroad)

4. Treat yourself

Moving abroad in retirement is usually partly prompted by a desire to reap the financial benefits of living in a country where your dollar goes a lot further than at home. If that's the case, then it's important to make sure you take full advantage of it and treat yourself from time to time. (See also: 5 Countries Where You Can Retire for $1,000 a Month)

What that treat is will be different for every person. But whether it's a weekly massage, a monthly shopping session, or a daily coffee in your favorite cafe, it's important to make these little pick-me-ups a regular part of your routine. Being kind to yourself in this way will keep you mentally energized, and will become a little source of comfort to get you through the transition.

A great way to find out what living expenses are cheaper and where you'll likely be able to splurge in your new destination is to try the cost of living comparison at Numbeo. Type in your current city and the one you plan to move to, and Numbeo will show a list of many popular expenses with a "difference" percentage to show you how much you'll save (or lose) in your new city.

5. Stay healthy

Health is a big concern for any retiree, and you need to make sure that you maintain yours in order to be able to get the most out of your retirement. That means staying physically active, eating well, and getting enough rest. But you don't need to be hitting the gym everyday for hours on end to achieve this.

One great way to keep yourself fit and active is to pick an activity that you enjoy doing and find a buddy to do it with. Whether it's a game of tennis, a round of golf, or just getting out into the great outdoors and going for a walk, do it often as part of your new routine. Doing it with someone else will keep you motivated, and you'll get more enjoyment out of it at the same time. (See also: 8 Easy Health and Fitness Tricks for Travelers)

6. Make a bucket list

One of the reasons you considered retiring abroad in the first place was probably for the adventure it would provide you with. Though it's important to build new routines, it's easy to get swept along in them and lose that sense of excitement that you'd hoped for when moving abroad. A great way to maintain that spark is to make yourself a bucket list full of things that you want to see, do, achieve, and experience.

Resolve to tick just a few items off the list each year and focus on those that will really push you out of your comfort zone. It will ensure that you carry on doing the things that you set your heart on. (See also: 5 Incredible Places to Retire Abroad That Anyone Can Afford)

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Things Your Financial Planner Isn't Telling You About Retirement

Nick Wharton — Tue, 10 Jan 2017 11:00:09 +0000

Personal finances can get complicated fast, which is why many people seek the assistance of a financial adviser. Especially when considering your retirement, it can give you extra confidence to know that a professional is helping ensure you make the best decisions for your future.

It may therefore come as a surprise to know that historically, financial advisers haven't been required to put your best interests first. But in April 2016, the Labor Department finalized a new rule that requires financial advisers who deal with retirement accounts to respect what's known as the fiduciary standard, meaning they have to put the client's interests first.

Before, financial advisers just had to follow the suitability standard, which meant they were only required by law to provide clients a "suitable" plan, which might satisfy your basic requirements but isn't necessarily the best plan for you.

When they're doing their job well, a financial adviser can help you invest your money wisely and plan for retirement. But it's always important to do your own research and stay informed. When it comes to retirement, here are some things your financial planner may not have brought to the table.

1. Fees May Grow With Your Assets

Financial advisers often charge based on a percentage of the assets they are managing for you. Unfortunately, the fees compound over time, just as your returns do. By the time you're ready to retire, that could mean you're paying thousands of dollars a year in fees.

As your nest egg grows, keep an eye on your fees and renegotiate your rates, so you don't end up paying too much for their services.

2. Retiring Abroad Can Halve Living Costs

If you're feeling tight on funds for retirement and you're not sure how to make your money go further, there's an important alternative that you should be considering. Retiring abroad can cut your retirement costs in half. (See also: 4 Exciting World Cities You Can Afford to Retire In)

However, many U.S.-based financial advisers are entirely focused on domestic retirement and that's what they'll help you plan for. Plus, it may be in their interest to keep you close so you don't decide to move your funds elsewhere.

If retiring abroad is something you want to truly consider, seek an expert who brings that specialty expertise to the table. You should also do your own research, including finding online forums for expatriates to answer your questions about retiring abroad. (See also: 5 Incredible Places to Retire)

3. Travel and Retirement Go Hand in Hand

If you've written off the idea of traveling as being too expensive, and these views are being reaffirmed by a conservative financial planner, it's time to re-evaluate. Retirement affords you great flexibility and the price of travel may be within closer reach than you realize.

Costs in many countries are often much lower than at home, and if you plan carefully — especially if you're able to start socking away money early in your career — your monthly budget may be able to absorb the extra expense of plane tickets, accommodations abroad, food, and entertainment. Rewards credit cards can help you earn free travel, too.

4. An HSA Could Lower Your Health Care Costs

If you have a high-deductible health insurance plan, you may be eligible for a Health Savings Account. As with an IRA, HSA contributions are tax-free and they grow tax-free. You can leave money in the account for years and if you withdraw the funds to pay for qualified health care costs, you will still not pay taxes on the money. If you have a balance at age 65 and want to use it for nonmedical expenses, you can, but the withdrawals will be taxable. (See also: How an HSA Saves You Money.)

Keep in mind that only people enrolled in qualifying high-deductible health care plans are eligible. But if you're one of them, an HSA could be an important part in reducing your health expenses during retirement.

5. You May Be Able to Ditch Your Life Insurance

Having a life insurance policy is useful if someone else will be financially hurt when you die. However, depending on your particular situation, you may no longer have dependents after you retire. Or you may have investments and pensions that pay 100% to the surviving spouse. In that case, your spouse won't suffer financially from your death and you probably don't need life insurance.

There are a lot of variables to consider when planning for retirement, and a financial planner can clarify your options. But while a financial planner can be a helpful resource, they aren't the ultimate authority on what's best for you. Stay informed and choose what's best for you and your family.

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Incredible Places to Retire Abroad That Anyone Can Afford

Chris McMurphy — Mon, 19 May 2014 08:12:20 +0000

The idea of retiring to some far-flung locale replete with warm weather, ample shoreline, and a favorable exchange rate is an attractive notion to many people. Indeed, searching for the hot new country in which to buy retirement property has become something of a sport for many folks in their golden years. It seems that on an almost annual basis, some previously unheralded nation pops up that looks like an attractive option to relocate to. And with the economy squeezing the retirement dollar of a large portion of the U.S. middle-class, there are many who simply have no other option than to retire in another country.

So for those intrepid retirees looking to plant the flag abroad, here are five attractive nations in which to do so. (See also: Best Travel Rewards Credit Cards)

Turkey

This picturesque Mediterranean country sits on the doorstep to Asia and provides many of the features expats look for in a new home, namely a rich culture, beautiful beaches, stunning landscapes, and that aforementioned attractive exchange rate. The Turkish currency remains the lira, and those from the U.S. can enjoy a nearly 2-1 exchange rate. Some estimates even place the cost of living for those from the U.S. at one-third of what it is back home. (See also: 5 Amazing, Cheap Places to Live as an Expat)

This translates into low prices on real estate as well. Even in the capital city of Istanbul, it is possible to find an apartment for sale between $20,000-$40,000 and a house for between $100,000-$200,000 dollars. Prices are often even less in the smaller towns and villages that dot Turkey's landscape. So between the cost of living, a favorable exchange rate, and bargain real estate prices, many retirees should be able to purchase a home in Turkey.

Ecuador

For the last few years, Panama has been on many older folks' radar as a retirement destination. But what it has in terms of natural beauty and a low cost of living is at least matched in Ecuador. This South American gem offers everything from volcanoes and jungles to beaches and even the Galapagos Islands (although you can't actually retire there). From the capital city of Quito to the expansive beaches of Guayaquil, there are a number of prime spots in which to find retirement property in this little country.

As for the economy, Ecuador adopted the U.S. dollar as its official currency, so expats needn't worry about currency exchange issues. And with estimates putting Ecuador's inflation below 4%, things should remain stable for the foreseeable future. Those who do relocate here will find that they can live on a pittance, often finding that their budget doesn't need to exceed $300-$400 per week.

Thailand

Those who don't mind a bit of a jaunt to their retirement destination (Thailand is about an 18-hour flight from New York) can choose this country to kick back in. Visitors from Europe and Australia have long touted the affordability of this Southeast Asian hotspot, and it's about time Americans learned about these virtues, too. A person (or even a couple) can get by on a budget of about $1,800 per month including rent, and that even allows for splurging and the occasional beach getaway.

There are a number of destinations within Thailand, but most folks choose to hang their hats in either the capital city of Bangkok or the more relaxed environs of Chiang Mi. In Bangkok, residents can take advantage of rich street food for less than $1 or dine at many four-star restaurants even while adhering to a strict budget. Those with medical needs can rest easy knowing that the country has a superb health care system that is also inexpensive, and folks here can see a specialist for about $50 per visit. On the other hand, Chiang Mai is only a few hours drive from the capital, but it may as well be a different world. Noted for its lush mountainous landscapes peppered with the occasional Buddhist temple, residents can take advantage of the temperate climate and laid-back lifestyle while still enjoying cheap prices.

Colombia

Right next door to Ecuador sits this lush Caribbean country, and more and more foreigners are discovering it each and every year. That's because Colombia no longer enjoys the reputation for violence that plagued it in decades past. That's good news for tourists and retirees alike. Those who want a second home here have many attractive real estate options to choose from. And considering the average monthly salary in the country is around US $300, expats can easily get by on less than $2,000 per month and live high on the hog in doing so.

Malaysia

If Thailand doesn't strike a chord, retirees can opt for another Southeast Asian expat haven — Malaysia. Consistently ranked in International Living's annual Global Retirement Index, this country offers the affordability of Thailand (folks can live a pseudo-luxurious lifestyle for around $1,700 per month) as well as the stellar health care system. And since the most of the country's doctors have studied in Europe, England, or the States, it's no problem finding an English-speaking physician. Emigres can even import their vehicles and furniture into the country duty free. One other incentive to move here is called Malaysia My Second Home, a 10-year resident visa that can be acquired by making a down payment and proving a certain income per month.

Have you considering retiring abroad? Where?

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This article is from Chris McMurphy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: