Do you know more than 6,000,000 Americans live abroad?
There are many reasons for wanting to live abroad or even own property in another country.
- To facilitate business needs
- Reduce living expenses in retirement
- To invest in property overseas
- To own a vacation home in another country and renting it when not in use
- As a way to protect themselves and their families during troubled political, religious, or economic times
Getting clarity on your purpose for wanting to live abroad is important, as it will affect various decisions you will need to make. These decisions include, but are not limited to the following considerations:
- Choosing a country and a location within the country
- Determining type of housing: free-standing houses, cottages, cabins, townhomes, apartments
- Financial analysis
- Home country tax and financial planning effect
- Purchase fees and taxes
- Sell U.S. residence?
- Financing housing purchases
- Rules and regulations regarding purchasing, ownership, transfer of interests
- Factors affecting renting in a foreign country
- Passport, visa, and residency requirements
- Banking and investment options
- Establishing foreign investment accounts
- Starting a business
- Transferring funds – foreign exchange rate issues
- Expat rules
- What to do with U.S. based hard assets – house, cars, personal property
- Finding realtors, attorneys, bankers, tax specialists, and financial planners
Building a New Life
- Establishing social networks – friendships
- Learning new languages
As exciting the prospect of moving to another country may be, there are many traps to be wary of and reason to be very cautious. The process will likely take upwards of six months to a year or more to complete and will be reasonably expensive as it may necessitate lengthy trips abroad and the engagement of professionals to assist. Before going down this road, make sure it is something you really want to do and have the resources to do it.
As exciting the prospect of moving to another country may be, there are many traps to be wary of and reason to be very cautious.
3 Questions To Consider
A great place to start is with your financial planner #aspyrewealth #masterwhatsnext
- How does the ownership of a home in a foreign country and the costs associated with that home affect your overall financial plan?
- How does living abroad affect your current cash flows – and the effect of how owning a second or third home here or abroad affects your retirement plans?
- Have you evaluated renting rather than buying? Renting could be an effective interim way to checkout countries and regions you have an interest in before choosing where to buy, if at all.
If you have an idea that you may be interested in considering living abroad whether temporarily or permanently then look for future articles from me as I explore and elaborate on the above issues.
Stewart S. Koesten, M.S.F.S., CFP®, CIMA®. is Executive Chairman of Aspyre Wealth Partners with more than 35 years of experience as a wealth management advisor. For help with your specific situation contact Stewart Koesten at (913) 345-1881 or visit our website at AspyreWealth.com. We help successful people Master What’s Next® – whatever phase of life they are in. You can follow along by subscribing to our blog above on the right, or reach out and we will forward new information.