RETIREMENT
Y
ou’re finally ready to realize your
dream of retiring outside the U.S.
But before you give in to the lure of
sunny beaches, a rich culture, family ties or
the low cost of living in a new country,
you’ll need to brush up on the nitty-gritty
of managing your money as an expat.
Retiring abroad will likely make your
financial life more complex, especially
when it comes to taxes and your invest-
ment and bank accounts. But with some
foresight—and help from a financial
adviser and tax professional—you can
overcome the challenges. “When you
get overseas, you realize it’s not as diffi-
cult as you thought it was going to be,”
says Jeff Opdyke, an American citizen
currently living in Prague and editor of
The Savvy Retiree, a publication from
International Living magazine.BANKING AND CREDIT
You may be able to get by without open-
ing a bank account in your country of resi-
dence, but there are good reasons to do
so. It’s usually the most practical way
to pay for rent, utilities and other local
services. And if you use your U.S.-based
debit card to make ATM withdrawals
overseas, you’ll likely be hit with foreign-
transaction fees and charges for using
out-of-network machines. To choose
a bank, ask locals which institutions
they recommend, suggests Opdyke. He
settled on a bank that offers an English-
language mobile app.
Maintaining an account in the U.S. is
usually a good idea, too. You can use it
on visits stateside, and it may be the best
way to pay taxes or deposit retirement-
account distributions and Social SecurityMoney Management
Advice for Expats
You need to take extra steps to handle everything from
banking to health care. BY LISA GERSTNER54 KIPLINGER’S PERSONAL FINANCE^ 04/2020GETTY IMAGES