Looking for something just exciting enough but also certain to provide you all the amenities and comfort you’ll want for retirement? Why not take a page from many U.S. migrant retirees that are making points south of the border their retirement destinations!
Two of the most appealing aspects of retiring in Panama are the 15 year stay on property taxes and the lack of tax on foreign income as U.S. citizens! Keeping in mind you will still have to pay U.S. taxes, moving down south still represents a multi-tiered solution to many common retirement queries. Looking for discount programs on prescription drugs, airplane tickets and even recreational activities like dining out and going to the movies? They are available for relocating retirees! The lower average cost of living in such foreign countries as Mexico, Panama and Costa Rica mean real, tangible savings in your pocket immediately. Factor in a favorable exchange rate and you could be looking at two ways to stretch your retirement dollars.
Retiring south of the border could mean doing all the things you normally enjoy doing: golf, fine dining, attending shows, exploring and traveling locally, but with a little warmer weather and less bustle depending upon the home state you’re comparing it to. Some expatriate retirees even continue working part time to retain some income or just to keep practicing their favorite trade or service. Make sure the type of visa you plan on retaining will allow you to work and collect foreign income if you are planning to make part time work or owning a business part of your retirement.
Not without potential hiccups, a well thought out and planned foreign retirement can provide excitement, comfort and financial benefits all at once. However, many experts, financial and otherwise, strongly recommend people do not pack up their usual lives in the states, sell off their house and property and close down their family business to head for more exotic climes without first testing the waters. Try a vacation (or three) in your potential region of retirement before taking any irreversible steps toward your retirement dreams. While many Latin American locations, for example, are rapidly improving their utility and communications infrastructure and service sectors in response to the influx of so many foreign retirees, some gaps in road maintenance or cell phone coverage, for instance, do still exist. A little research up front into the area you are scoping out can pay great dividends down the road after your move is completed.
It’s also very important to consider long term and comprehensive health care before your big move, since benefit programs like Medicare don’t extend beyond the country for expat retirees! It’s also possible your prior company’s health plan won’t continue to cover you and your family once you move.
Did you know there are so many expat retirees now that some communities, like Luma, an upscale American-style community development located in Puerta Vallarta, Mexico, are catering specifically to folks looking to find some of the comfort and familiarity of American living abroad? Many such communities are comprised mostly of American and Canadian expats and might even offer affordable financing plans if you are over 50 years old and otherwise financially qualified.
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