Texas independent financial adviser, Richard Blair of Wealth Solutions says one in three Americans are not ready for retirement, and even worse, nearly half of today’s households have no nest egg at all. This is why more and more retirees are choosing to live abroad.
Eucador, Thailand, Spain, and Mexico are just a few of the foreign places pensioners are moving to. “Many people dream of living where others spend their holidays,” says Blair. The biggest hurdle is clarifying any foreign tax restrictions, and for the most part, pensions are not taxed abroad, but you are still responsible for paying taxes in the U.S. if you retain citizenship. Even so, just about every one retiring abroad say they spend less than half of what they would living in the United States.
Many former clients are now living a wealthier lifestyle with mind-blowing views, and it’s not penny pinching, says Richard Blair. For those who can barely sustain in the U.S., retiring overseas is a 180-degree turn. The bottom line is residing in a less expensive area can significantly prolong your retirement fund.
Make time your ally. Someone who earns just $50,000 a year at age 30, and puts away 14 percent of pay, will have nearly $500,000 saved by age 60. Yet saving aggressively can be a tall order at any age. Blair says power saving during your twenties and thirties can get you closer to the one million dollar mark.
Blair strongly recommends resisting the urge to borrow from your retirement savings. Almost 7 percent of savers tend to borrow against their 401k plans. It’s tempting to hit up your retirement account, like the 401k, for a big-ticket item,such as buying a home. Trouble is, you may shortchange your future. There are no do-overs in retirement, says Blair.
Another problem is when you switch jobs. Surveys find that nearly 42 percent of people who leave their jobs cash out their 401k, instead of a rollover. Not only does this trigger a penalty, but you also get stung by taxes. Blair recommends rolling over your 401k to a new plan. He also says keep the faith in stocks. Millionaires take reasonable risks, so check your tolerance and diversify to get the best advantage.
No matter where you plan on retiring, whether in the U.S. or abroad, you still should be smart about investing.
Richard Blair is a graduate of the University of Houston where he graduated with a Bachelor’s Degree in Finance. Throughout his 20 year career, Blair has helped clients with estate, investment, and retirement planning. He’s a dual licensed adviser with several professional certifications including, CAS, CES, CFS, CIS, CTS, RICP. Blair continues to expand his so he can always help clients navigate today’s challenging financial environments.
Through client career changes, marriages, divorce, births and deaths, Richard Blair strives to ensure their investment and financial strategy is tailored to their lifestyle requirements. In addition to his commitment to financial planning, Blair enjoys spending quality time with his wife, Joanne, and three kids.
To learn more, visit http://www.wealthsolutionsria.com/.