Category Archives: Relocating in Retirement

The Most Affordable Places to Retire in the US

Relocating in Retirement,

This post was contributed to Leisure Freak by freelance writer Deborah Waters. 

Hundreds of thousands of Americans retire and move every year, saying goodbye to the working world and welcoming a new environment. They choose to retire in regions that offer great weather, a variety of activities, decent health care, and reasonable costs so that their retirement savings can last a more extended period. Even in the United States, you may be able to check all of those boxes. To help you decide whether or not to remain in the United States after retirement, we’ve compiled a list of some of the most affordable places to retire. For seniors looking for a comfortable, low-cost home close to all the conveniences of city life, here are some of the most affordable places to retire in the US.

A woman holding a savings jar for her retirement.
Image Source

Prescott, Arizona, might be your place to retire

Grand Canyon State’s retiree-friendly climate and natural beauty are likely to have piqued your interest. In addition, the tax situation is similarly appealing. Arizona is one of the most affordable places to retire in the US because of its low income taxes and lack of state taxes on social security. The cheap cost of living in Prescott, a town roughly 100 miles north of Phoenix, makes saving money with a big family easier. Bear in mind that the opposite of cheap isn’t dull. While Prescott has a thriving art and entertainment scene, it also has a wide range of outdoor activities like golfing and hiking. So you’ll never be bored!

Boise, Idaho, is a green and affordable retirement option

If you’re a lover of lush greenery, Boise is the place for you! Boise, Idaho, a mid-sized city on the Oregon Trail known as “the city of trees,” has a green and vibrant retirement community. And the best thing is, there’s plenty of help at hand if you want to move here from a distant location. Hiring long-distance movers Boise residents trust will make your relocation easy and stress-free. With reliable assistance nearby, you won’t have to worry about a thing. 

There are many options for shopping and dining in downtown Boise’s pedestrian-friendly area. Mountain climbing, canyoning, and whitewater rafting are all available in Southwest Idaho. But that’s not all! For all the curious types out there, Boise State University is a great place to keep your mind active as you become older. You can also get a membership in the Osher Lifelong Learning Institute. This allows you to take classes at the school, and it’s just $70 a year! As far as entertainment goes, Boise doesn’t disappoint. Musicians from around the world play at the Velma V. Morrison Center, which also offers dance events and Broadway productions. Boise is one of the comfiest and most affordable places to retire with low living costs!

Fargo, North Dakota, offers endless fun

For decades, North Dakota has been one of the finest places to retire because of its low prices and generous tax structure. If you’re planning to retire in the Peace Garden State, you’ll find it to be a smart financial move. For retirees, housing expenses in Fargo are 14.3% lower than the national average. This makes it an excellent option for those on a budget. And what’s better, early retirement doesn’t mean endless boredom when living in Fargo! North Dakota State University, which is located here, is one of several universities in the area that offer a wide range of amenities for people of all ages. Sports and cultural activities like concerts and plays are abundant. Along with being one of the most affordable places to retire in the US, Fargo will capture your heart with its lively and homey atmosphere.

Albuquerque, New Mexico, is a lively place to retire

In Albuquerque, you can look forward to a peaceful and sunny retirement. The city receives an average of 310 sunshine days per year, spanning all four seasons. This provides you with many options to explore the numerous hiking and bike trails in and around the city. You can also go hot air ballooning and play golf on any of the multiple courses in the surrounding area. As night falls, local casinos—which include music venues, restaurants, and other amenities in addition to table games, slots, and bingo—help revitalize the local nightlife. All of this is accompanied by lower-than-average costs. But if you still want to make some money before relocating, there are easy ways to do so! One of the simplest ways is selling your old furniture to make a quick buck. You will be earning money for your move and saving money because you’ll be moving fewer furniture pieces.

Lexington, Kentucky, is calling at the students at heart

As you might guess, the Bluegrass State has a lot to offer for horse enthusiasts and bourbon connoisseurs alike. However, retirees can explore a variety of other hobbies in Lexington. A 734-acre nature preserve with more than 10 miles of hiking trails is located here. Lexington contains more than 100 parks and six public golf courses! Inside the city, you can enjoy the several available galleries and theaters, including the Lexington Opera House. This opera house hosts ballets and other performances, including Broadway productions, comedy acts, and other events. 

Additionally, the University of Kentucky offers academic programs to meet your educational needs. The Osher Lifelong Learning Institute provides a variety of courses, forums, interest groups, trips, and events for adults 50 and older. Annual membership is $25 and includes access to all of the Institute’s programs. The Donovan Fellowship provides Kentucky citizens aged 65 and older with the opportunity to attend university classes for free. As a result of these and other factors, Lexington is considered one of our best college cities for retirement.

Final words

We hope that this guide has introduced you to some of the most affordable places to retire in the US. Your financial situation will determine the best retirement place for you. But, even if you’re on a low budget, you can still retire in a city with pleasant weather and excellent amenities if you choose wisely. We wish you an eventful retirement and a happy relocation!

 

Thank you Deborah Waters for contributing this informative post to Leisure Freak. Retirement is a time to explore new and exciting paths to take. Moving to a new location that meets a well earned freedom lifestyle is always something the untethered can happily think about.

The Most Affordable Places to Retire in the USAuthor bio:

Deborah Waters is an Idaho native that currently works as a freelance writer and blogger for peasleyboisemovers.com. In her free time, she enjoys the great outdoors, practicing yoga and long walks with her corgi named Chika.

 

Retire Abroad US Tax Guide

Relocating in Retirement, Retiring Overseas,

If you are thinking of retiring abroad, you’re not alone. In fact, just over 1 in 10 American workers are thinking of going overseas to retire, according to a 2020 survey by the Aegon Center for Longevity and Retirement. And if you do decide to move overseas, you will be joining over 430,000 retirees who are already enjoying retirement abroad.

But what makes retirement abroad an attractive idea for many? The main driver appears to be simple economics: The cost of living in the United States is rapidly increasing. Prices for housing, food, and gas are rising at the fastest rate in 10 years. For a retiree with limited savings and no fixed income, this could mean a massive lifestyle downgrade as the years go by.

Moving abroad allows people to make the most of their retirement savings by taking advantage of the lower cost of living in many countries. But before you start thinking about sipping cocktails in Mexico or Thailand, you first need to prepare for your tax obligations. American retirees are still required to file a U.S. tax return every year, even if they live abroad. Here’s a quick guide to get you started.

Retire Abroad US Tax GuideImage Source

Do I need to file taxes after retirement?

Just because you have moved to a different country does not mean that you no longer have tax obligations in the United States. The U.S. is one of the few countries to have adopted a citizenship-based tax system. This means that American citizens and permanent residents (also known as Green Card holders) are taxed on their worldwide income, even if they are based abroad. 

The same tax rules apply wherever you live. For tax year 2021, the minimum income threshold is $12,400 for single filers under the age of 65. If you are self-employed, you have to report income over $400.

You may also need to file a state tax return, depending on the tax rules of the state where you last lived. For instance, if you maintain homes or other real properties in the United States, you may still be considered a state tax resident even if you have moved abroad for retirement.

What counts as income

Employment and investments are not the only sources of income you need to report to the IRS. For retirees, income may also include pension distributions, Social Security payments, interest, and dividends.

Foreign asset reporting for expat retirees

You also need to report foreign accounts and assets to the IRS.

For instance, you are probably going to open a foreign bank account if you are planning to retire abroad. Having a foreign bank account will make your life easier, especially if you are planning on living abroad for a long time. If the total value of your foreign financial accounts (e.g. bank accounts, brokerage accounts) exceeds $10,000, you need to file a Report of Foreign Bank and Financial Accounts (FBAR).

If you own foreign financial assets such as houses and rental properties that are collectively worth over $200,000, you also need to declare them using Form 8938, or Statement of Specified Foreign Financial Assets. Your main residence is excluded from this requirement.

How to avoid double taxation?

If you decide to work or open a business abroad, you will need to pay income tax to your new host country. This could lead to a potential for double taxation since the United States taxes its citizens on their worldwide income. Here are a few ways to avoid this.

Foreign Earned Income Exclusion

One of the most popular ways to avoid double taxation is to use the Foreign Earned Income Exclusion (FEIE). The FEIE allows taxpayers to exclude income up to a certain threshold.

For tax year 2021, you can exclude up to $108,700 of earned income. That means income under that threshold is no longer subject to U.S. income tax. However, you still need to file a federal tax return even if your tax liability has been eliminated.

You must meet the physical presence test to claim this tax break. For starters, you need to physically live in a foreign country for at least 330 days in a 365-day period to claim the FEIE.

The FEIE only applies to earned income, or income derived from self-employment or a regular job. You cannot exclude pension income, capital gains, bank interest, annuities, and dividends using the FEIE.

Foreign Tax Credit

Another way to lower your tax liability is to take a foreign tax credit. You can claim an equivalent dollar value of income tax paid to a foreign government.

Income that has already been excluded under the FEIE is not eligible for a foreign tax credit. You can, however, take a tax credit on earned income that exceeds the FEIE threshold.

How to file an expat retiree tax return?

Retirement is meant to be a relaxing chapter of your life, but U.S. tax rules can make your time a lot less fun. You are expected to file a federal tax return every year, and staying on top of ever-changing IRS rules is the last thing you want to do. If you want to make the most of your retirement, your best option is to talk to tax professionals.

TFX has been preparing U.S. tax returns for Americans living abroad for over 25 years. Our team of experts can help you save time and energy and lower your tax liability. Having a tax expert process your return ensures that you have more time for the things that matter.

 

This extremely detailed and informative post comes to Leisure Freak from Veronica Rhodes at TFX.

TFX is a women-owned tax firm that offers all U.S. tax services — for both American citizens and non-citizens with U.S. tax filing requirements. From straightforward expat tax preparation to complex cases involving multiple factors — we’ve handled it all for over 25 years.

5 Benefits of Downsizing Your Home After Retirement

Relocating in Retirement,

 

This informative post was contributed to Leisure Freak by freelance writer Alison Smith. 

Your beautiful, spacious house with four bedrooms and three bathrooms was once a perfect home for you and your family. However, things change. Your kids fly out of the nest and start their own lives. They do come to visit, but the length of their stay doesn’t necessitate so much otherwise empty space. Also, large homes are expensive to maintain, and cleaning them is no easy feat. Especially once you retire, the reasons to stay in that house vanish one by one. And the reasons to move out begin to take their place. It has been your home for a long time. And it’s only natural that many fond memories make you hesitant to consider that maybe it’s time for another change. But if you think about it, there are many benefits of downsizing your home after retirement.

5 Benefits of Downsizing Your Home After Retirement

Photo Source

1- You can address possible accessibility issues

If you live in a multi-level house, going up and down the stairs can become difficult at one point. Even if you don’t struggle with mobility issues at the moment, you may develop them later. Therefore, downsizing your home after retirement will allow you to purchase a house that provides better accessibility. It is definitely a much better option than spending tremendous amounts of money on renovations to make your current home better suited for your needs.

Single-level houses are a great option as they have no or few stairs. Also, open floor plans should be on your priority list as they are much easier to maintain and move around. Speaking of moving around, look for homes that feature wide doorways.  

2- Easier maintenance

As we have already mentioned, a smaller home is way easier to keep clean and tidy. It will take you much less time to put everything in order, so you will be able to get the most out of your retirement and do the things you enjoy.

Just think about how much time and energy you have to spend mowing your lawn, weeding, and taking care of all the plants. Not many people enjoy having to do this, even when they are in full strength. A nice patio and a low-maintenance garden are all you need for a happy life. 

Furthermore, older homes tend to require more maintenance and repairs. This is both physically and financially draining. As you can expect, the most common issues in older homes have to do with plumbing, electrical installations, inadequate insulation, drafty windows, outdated appliances, and we won’t even mention possible structural issues and toxic materials. All of these are very costly to fix, and they tend to add up. So even if you don’t have any troubles now, downsizing to a smaller home will spare you a lot of headaches in the long run. 

3- You get the chance to lead a more active lifestyle

Lack of physical activity is prevalent in older adults and retirees. The problem is that this inactivity can lead to the development of chronic diseases, for instance, diabetes and heart disease. It can also lead to a shorter life span.

If you live in the suburbs, where you have to rely on your car to get around, leading an active lifestyle can be difficult. So, if your goal is to stay active after retirement, moving to a more walkable neighborhood is an excellent idea. You can find an area that offers better exercise opportunities, such as places to go for walks. Also, look for neighborhoods with good transportation options so you can quickly get to different parts of town. A condominium is an alternative, too, as there are buildings that offer amenities like a swimming pool or a gym.

Moreover, you can decide to move to a completely different state. Perhaps you have always wanted to live in a warm climate. You will be happy to know that the US has a lot of senior-friendly places. Just think about Florida. If this sounds like an interesting idea, Sunshine State is definitely worth considering. It has everything you could possibly need to lead a happy life: affordable housing, low cost of living, no income tax, stunning beaches, excellent senior communities, a great health care system, and, as the nickname suggests, lots of sunshine. All that will motivate you to get on your feet and join many other active retirees who saw the benefits of living in this state.

4- You can lower your monthly spending

Smaller homes equal lower utility bills. You waste considerable amounts of money on heating and cooling the unused space in your big old home. There is also electricity, gas, and water. So, the smaller the place, the less you will spend to make it comfortable for living. Also, bigger homes come with higher expenses on lawn care and cleaning if you have to use these services. And we have already talked about the repairs. 

Furthermore, larger spaces may require you to spend money on more furniture and other decor, just to fill up space. But if you downsize, you will get a chance to rid yourself of all the unnecessary junk and lead a simpler, clutter-free life. Moreover, if you move to a smaller home, you can earn some money by selling the stuff you no longer have space for. 

All the money you save on lower utility bills, maintenance, and repairs will let you spend more on yourself. You deserve a bit of pampering. And you can invest that money into a new hobby that will keep you active and connected with other people.

5- Downsizing your home after retirement is a chance at a new start

Downsizing to a new home is a new beginning. So, you can use this opportunity to declutter your home and let yourself have a fresh start. As with all the excess furniture, you can sell the items you no longer need. You can organize a yard sale, which is always good fun. Or your family can help you sell some things online. Another option is to donate some of your stuff to a charitable organization. 

The reason why decluttering is necessary is that you have most likely collected an endless collection of items over the decades you have lived in your house. So, if you want to have a pristine new home, this is how you begin. Although sifting through all those belongings can be hard and emotional, you will feel a massive burden lift off your shoulders once you decide what you will discard. Only then can you get your fresh start.

Enjoy your new life chapter!

As you can see, there are many benefits of downsizing your home after retirement. Most of them are concerning financial advantages that will allow you to have a better quality of life. Also, downsizing will help you choose a home in a location that will keep you active, happy, connected with your community instead of being invisible to the world. 

 

The world is certainly anxious to get back to normal and on the move. For some, retirement offers a chance to cash in on a currently high home appraisal and opportunity to move to a lower cost area. Thank you Alison for contributing this timely post that explains the benefits of downsizing your home after retirement.  

Author Bio: 

Alison Smith is a kindergarten teacher. She has always loved expressing her thoughts on various topics, and since writing is her passion, she has become a freelance content creator for different websites. She loves reading and is very proud of her book collection. 

How You Can Make Your New Place Pristine Before You Even Move In

Moving, Relocating in Retirement

This post was contributed to Leisure Freak by Curtis Fisher of Tradesbright. We’re all now ready to get back to a normal life. For those ready to make a move to a new home, Curtis offers tips to make the new place pristine. Tips that those of us staying put can also apply to our existing homes for better living. 

Moving to a new house or apartment in retirement is, metaphorically speaking, a fresh start. The trouble with metaphors is that they don’t always translate to the concrete. If you want your new place to be truly fresh and clean from day one, you must take steps to ensure it is pristine before you move in. The Leisure Freak site offers some tips on how to make that happen from floor to surface to air. 

How You Can Make Your New Place Pristine Before You Even Move In

Photo by Unsplash

Making Your Old and New Place Pristine

Clean Up Your Old Place as Well

Naturally, you’re excited to get into your new place and get things set up. However, don’t forget that you can use the cleaning tricks found in this article before you bid farewell to your former home. Cleaning your apartment from top to bottom is a great way to leave a lasting impression on your former landlord, and it can help you get back your security deposit. However, when you clean up the home you’re selling, you can actually increase its value on the market, as well as help win over buyers who’ve taken an interest in the property. So, before you focus on the new place, make sure you’ve taken care of everything at your old place!

Breathe Easy

Houses and apartments, due to their confined nature, are better at breeding allergens and pollutants than outdoor spaces and larger public enclosures. While you will do what you can to control the air quality in your living space once you move in by changing your air filters regularly, vacuuming and dusting, and controlling pet hair and dander, there is plenty you can do before you move in to make it safe and ready for you and your family. 

First, install carbon monoxide and radon detectors. These gases can be present in homes and can lead to acute medical issues — even in small quantities. Open the windows and run the air conditioning to get allergens out of your home. Dusting and deep cleaning can remove dust mites and other insect byproducts. You can even run an air-purifying unit for a week or so before moving in to help rid the indoor air of pollutants. 

Finally, don’t forget to check for mold, which is one of the worst pollutants. The best way to prevent mold is to reduce the moisture in your home. Do this by running a dehumidifier and by fixing any leaky pipes (dark, wet areas are breeding grounds for mold). 

Deep Clean Like It’s Never Been Cleaned Before

Your new place may look pretty clean when you give it a gander, but you need to know this: It can always be cleaner. Taking a Saturday or Sunday to give your new home a truly deep clean will help remove allergens, dirt, and bacteria from the home’s many surfaces — floor to ceiling. So, what are the most important things to clean before you move in?

  • Appliances. These rarely get cleaned by previous occupiers. You should use sanitizing tablets for the washer, dryer, and dishwasher. Ovens and fridges can get really nasty, so a full-scale scrub down is warranted there. 
  • Carpets. Vacuuming isn’t enough. You should consider steam cleaning any carpet in your new home. 
  • Anywhere high up. Once again, often neglected. Tops of ceiling fans, tops of cabinets, air vents, and room corners are usually covered in dust and other particulates. 
  • Grout. Any caulk or grout in your bathrooms and kitchens will need chemical cleansing. 

Check out this checklist for more guidance on what you should deep clean before you move in. 

Hire Professionals

Even if you attempt to deep clean yourself, there’s a good chance you won’t do the best job. Many people don’t have the time or energy to truly deep clean an entire house. If either of these applies to you, it may be best to hire professional cleaners. You want your new place to be truly spotless, and working with a pro will ensure your home is cleaned from top to bottom. Finding solid cleaning services in your area can be tough, but luckily there are online resources available to make locating experienced professionals a little easier. 

We think our homes are the cleanest, pollutant-free places around. This can be true, but it’s usually not the case if you don’t take steps to make them pristine. So, purify the air and surfaces in your new place before you unpack to make your new home in retirement exactly where you want to be. 

Thank you Curtis Fisher for contributing this tip filled post to Leisure Freak. 

Author bio: “Curtis Fisher created Tradesbright to highlight the stories of tradesmen and women who have raised the bar by going above and beyond to help a fellow neighbor, community member, or someone they happened across while on the job. Big or small, the acts of kindness deserve to be recognized!”

How To Find the Perfect Home After Retirement Without Breaking the Bank

Relocating in Retirement,

 

This informative post was contributed to Leisure Freak by freelance writer Sierra Powell. 

Your life is probably pretty exciting right now if you’re thinking about buying a home. It’s a wonderful thing to buy a home, but you have to stay mindful of your budget, especially after you retire. You can still find an amazing home without breaking the bank. These are some things you can do to achieve that:

How To Find the Perfect Home After Retirement Without Breaking the Bank

Image Source: Pexels.com

Look for Homes That Have Been Sitting

One of the best ways to get a break on the price of the perfect home is to look for ones that have been sitting. These are homes that have not sold for some reason or another. They may not be bad homes at all. Maybe the prices were too high, and no one else was willing to pay what the owners wanted. Maybe something about the homes didn’t appeal to others but may still appeal to you. Either way, the sellers will be eager to make a deal on it. Make an offer if you find one of these that you like. Don’t forget to use your negotiation skills. You always have the power to negotiate to pay the price you want for a home.

Consider Searching for Foreclosure Homes

You may want to sign up with an organization that can help you to find foreclosure homes. You have a great chance of getting a house at a reasonable price if it’s in the middle of foreclosure. In some cases, you can get a 30 percent discount on such a home. Make sure that you understand the redemption period and where the home is in the process of foreclosure before you put your heart into the sale. You need to know that the home will be yours when it’s all said and done.

Talk Directly to Your Real Estate Agent

You could talk directly to your real estate agent to ensure that you get an affordable home. Let the real estate agent know your budgeting boundaries and tell him or her that you will not budge. That way, the agent will only look for homes that match the price you want to pay or cost less.

Think About Buying a Fixer-Upper

Another idea to get the perfect home without breaking the bank is to look for fixer-upper homes. Fixer-upper homes are properties that need a little bit of work on them. Maybe the home needs new carpeting, or it has a few electrical issues. Perhaps it needs to be painted or the walls need some work. You can take advantage of an opportunity like that if you’re handy with tools and you want to save money. You could even find a fairly-priced handy person to help you to fix up your project home.

Don’t ever pass up a fixer-upper because it might be perfect for you. If your fixer-upper seems like it might need some bigger ticket items replaced down the road like a roof, appliances, garage doors, etc it might be worth picking up a home warranty plan to help you with replacing these items.

Look for Some Short Sales

You can also consider grabbing a short sale. Sometimes, sellers just want to get out of a house deal and move on with their lives. You can purchase such a house if their bank agrees to let them make a short sale. You’ll save money because you’ll be able to buy the home for less than it’s worth.

Explore Some Other Areas

Another way you can find a cheaper house is to look at some of the less expensive areas near you. There might be a nearby town within 10 miles where the cost of living is less than it is where you live. That’s quite common in places that are known tourist attractions. Take a drive one day and do some research to find the most affordable houses. This is possible even in Southern California. You can obtain a home with a slightly lower value and still stay within the VA loan limits in San Bernardino.

Again, don’t forget to negotiate when you find the home you want. You don’t have to pay the price that’s on the listing. Home prices are usually up for negotiations. Take a chance and make an offer on something you like. Maybe you won’t have to break the bank after all.

Find Your Dream Home Now

You now know a few secrets that will help you get a new home without breaking yourself. Try them all and then choose the home that best meets your needs. You’ll be glad you did.

Thank you Sierra for contributing this tip filled article to Leisure Freak. One of the best aspects of retirement is having the freedom to live anywhere without the tethering of employment. Retirement should include living where we are happiest. 

freelance writer Sierra Powell Author Bio: Sierra Powell graduated from the University of Oklahoma with a major in Mass Communications and a minor in Writing. When she’s not writing, she loves to cook, sew, and go hiking with her dogs.

Six Tips for Pursuing Homesteading in Retirement

Early Retirement Lifestyle, Relocating in Retirement,

Homesteading in retirement

Photo via Rawpixel

Homesteading makes an excellent hobby, no matter your age. But for retirees, it offers a perfect opportunity to slow down, connect with friends and family, and enjoy a sprawling property instead of spending your golden years in a stuffy condo. Here are six tips you need to know to make the most of your homesteading experience.

   1. Plan Early (And Revisit Often)

Knowing where you want to be in five years is essential no matter your age. But when you’re approaching retirement, it’s even more crucial. Planning for your homestead years in advance is a smart way to approach this significant life change.

Of course, a conventional retirement at age 67 (or older) may not be for you – and that’s understandable. For advice on retiring early, visit Leisure Freak for expert opinions and perspective. You might find that your dream of retiring to a homestead in your younger years is more realistic than you expected.

   2. Choose the Right Size Home

Downsizing is a common trend among seniors these days. But that doesn’t mean you have to follow the crowd. Many retirees are also “rightsizing,” a housing trend where they choose the property type and size that’s right for their future.

With homesteading, ensuring you have room for your hobbies and passions is more important than a square footage measurement. Selecting an amount of acreage involves knowing what you plan to grow (or raise), too. Estimates range from three acres to 13 or more – all depending on the type of animals, crops, and house you want.

   3. Know Your Home Loans

Perhaps you’ll be cashing out retirement or pension money to land your ideal homestead. If not, you’ll need to determine how much of a payment you can afford and the available mortgage options.

For example, choosing a conventional mortgage means low costs and variable down payment options. Referencing PennyMac current rates can give you an idea of your loan’s cost, whether it’s adjustable- or fixed-rate.

   4. Recognize Your Limits

Your budget may be one limit, but your personal preferences and physical capabilities can also be a help or hindrance. You want a home you can afford, but you may not want a property that needs a lot of work.

Knowing when to enlist help with moving house is another instance when recognizing your limits is vital. Injuring yourself while moving is totally avoidable – though many retirees are reluctant to hire help. On a homestead, there may also be tasks you can’t DIY, and planning for those instances is prudent.

   5. Adjust Your Vision

When you imagine homesteading, you might picture a rustic property complete with a barn and free-range chickens. But homesteading is (and looks) different for everyone, so learning how to start depends on a variety of factors. You can even homestead while living in a city – so it’s not all about location.

Think about what you hope to accomplish while homesteading. Greater financial and economic independence may be a priority. Or time – and space – to spread out with the grandkids might top your list of must-haves.

   6. Prepare Your Finances

Financial planning is essential whether you’re aiming for retirement or a working homestead. But some financials will change once you move to your new property.

For example, as Smart Asset explains, you may qualify for a homestead tax exemption when filing your taxes. Additional deductions may apply, too, especially if you’re growing or making commercial products.

 

 Homesteading as a retiree is much different than starting out with a young family or as a single person. Fortunately, there are just as many benefits as there are drawbacks – as long as you know what to expect. With these tips, you can better prepare for the adventure before heading out.

 

This informative article was contributed for Leisure Freak readers by Bob Shannon

Bob Shannon created SeniorsMeet along with his wife, Mary. Their goal is to create an online meeting place for seniors like themselves who thrive in the community. The site offers information and resources that are helpful to seniors as well as ways to keep in touch.

 

What You Need to Know About Retiring in a Foreign Country

Relocating in Retirement,

The number of people who choose to retire outside of their home countries is significant. Consider these statistics. According to the U.S. State Department, around 8.7 million Americans live overseas, and more than half a million continue receiving payments from the Social Security Administration. Further, while around 247,000 British citizens aged over the age of 65 live in other EU countries, around 85,000 EU citizens from the same age group live in the UK.

If you wish to retire in a foreign land, it is important that you plan your finances well in advance. Fortunately, access to a range of online resources tools helps simplify the process.

What You Need to Know About Retiring in a Foreign Country

Image Source

Do You Receive State Pension?

Whether or not you may qualify to receive pension payments in a foreign country depends on where you have lived and worked through your life. Residents of the United States may qualify to receive their social security payments in foreign countries once they spend at least 30 days outside the U.S. The department provides an online tool that lets you determine if you qualify.

Citizens of the United Kingdom stand to receive their state pension payments in most countries the world over, unless the country in question does not have a formal social security agreement with the UK. Some of the nations that do not make the cut include Australia, Canada, India, New Zealand, Pakistan, and South Africa. You may view the complete list online.

 

Is Receiving State Pension in a Foreign Country a Good Idea?

When you receive pension payments in a foreign country, there is a good chance that you will lose some money during the process. This is especially the case if a bank is involved in the process, where you have to deal with unfavorable exchange rates and steep fees.

In such a scenario, you might be better off continuing receiving your pension payments in a local bank account. Then, you may use the services of specialist money transfer companies to carry out more cost effective international money transfers. Some of the market leaders from this realm include TransferWise, XE Money Transfer, OFX, and WorldFirst.

 

What About the Cost of Living?

One of the main reasons behind people wanting to retire in foreign countries is the lure of living a good life, especially when it involves countries with typically low costs of living. Calculating just how much you might need over time based on this factor is vital, because you don’t want to run short of funds somewhere down the line. To determine costs of living in different places, you may turn to websites such as Numbeo and WorldData.

 

Have You Saved Enough?

Don’t even think about moving to a foreign country if you don’t have enough money to get you through the first year comfortably. Account for costs such as rental deposits, money involved in setting up your new home, shipping fees, and legal fees. You may continue keeping a large chunk of your savings in a bank account in your home country, especially if you’re worried about the absence of federal protection. You can then keep transferring money to yourself as and when you need it, by using the services of specialist money transfer companies.

 

Conclusion

There is more to retiring in a foreign country than having your finances in order. For instance, you need to determine how good you’re at dealing with cultural differences or different types of cuisines. Some countries have strict guidelines when it comes to the purchase of property by foreigners, so this aspect requires your attention too. All in all, moving overseas to retire requires that you do your groundwork ahead of time.

 

This informative article was contributed to Leisure Freak by Gavan Smythe.

About the Author

Gavan Smythe is the founder of iCompareFX. You may use this online platform to compare the world’s best international money transfer companies across offered services and features. When he’s not working, Gav likes spending time with his family.

The Way To Afford A Retirement Abroad

Affordable Retirement Abroad, Relocating in Retirement

The thought of retiring abroad is an exciting one, but it’s definitely not a jump you should make with your eyes closed. You need a plan of action so that you can enjoy your retired years in luxury. For that, you’ll need financial backing. Of course, moving to a new country can be expensive, but once you’re there you can stretch your retirement savings. Retiring at home is costly enough, so you need to be prepared if you want to afford a retirement abroad. Still, there are ways to make this possible if you’re frugal and smart when it comes to cutting costs. The following advice will help you out.

 

 

Choose the right place to retire.

One of the most important aspects of retiring abroad cheaply is to choose the right place to live. You need to think about life in the long-term. There’s no point in choosing a place because you found a cheap deal there on a certain property; think about the difference in the overall cost of living. You might want to choose a country with a cheaper cost of living so that your money can be stretched further. As we’ve listed before, there are many cheap places to retire if you do your research.

 

Obviously, you need to weigh up other factors too. You need to think about whether you’ll like the place to which you’re moving (the heat, the culture, the cuisine, and so on). You’ll also need to think about the attitude of locals towards immigrants. It’s important that you feel welcome in your new home. The language barrier is something to consider too. Either you should move to a place in which a high number of the local population speaks your native language, or you should learn the native language of the country in question.

 

Think about the finer details of a new citizenship.

It’s important to consider the cost of living when moving abroad, but there are lots of other costs to consider before you can even become a citizen of a new country. Obviously, if you’re retiring abroad then you’re most likely planning to do so for an extended period of time if not permanently. That means you’ll need to gain the proper citizenship for the country in question. The application process can be costly, but you can save money if you do your research. You might want to check out ushpmed.com if you need a cheap option for your immigration medical examination. Of course, this is only one such procedure you’ll face during the immigration process. Do your research into the costs before you start applying to move.

 

 

Start saving.

At the end of the day, the best way to afford a retirement abroad is to start saving up your money as early as possible. If you have a healthy amount of savings in your bank account then you’ll be able to cover the many move related expenses involved. Of course, it’s a price worth paying when it comes to retiring in luxury, something retiring abroad can make more affordable. As explained over at roadjunky.com, the cost of your retirement in a new country all depends on the place to which you move and the type of lifestyle you want to lead. We’ve discussed potential options for saving money along the way, but the rest of it is up to you.

 

Move to Indonesia for a Comfortable Retirement

Early Retirement Lifestyle, Relocating in Retirement, Retiring Abroad, Saving Money,

We work most of our lives to ensure that we have a good quality of living and can look after ourselves when we’re older. The norm is to settle into a certain space and stay there for the rest of your days once you’ve retired. But why settle for average? You’ve spent enough time in the same spot. It’s time to focus on yourself a little: mix things up a bit, seek adventure, explore the world. A great place to start your retirement could be Indonesia. This unitary sovereign state and transcontinental country is located mostly in Southeast Asia, however it does have some territories in Oceania.

If stretching your retirement savings and getting variety in the bargain is what you want, then this might be the place for you. It has over seventeen thousand islands! So there’s bound to be somewhere within its realms that will cater to you, your wants, and your needs absolutely perfectly. Here’s everything you need to know about getting the funds together for a comfortable lifestyle in this beautiful overseas location.

Indonesia for a Comfortable Retirement

Properties

One thing to bear in mind if you are considering renting a property for the long-term in Indonesia, the total cost may be charged up front. This may be undesirable as you might find that you don’t gel well with the location, the given property has issues, or you simply want to move somewhere else. However, this rental policy is understandable, as landlords don’t want to let other opportunities slip should you hand in your notice to leave unexpectedly.

If you have savings set aside and are considering moving to Indonesia more permanently you could sell up your current home and use the proceeds towards investing in a property of your own. Of course, prices will differ according to the area you choose to buy in and the quality of the property you show an interest in. That’s a given, but you’ll be surprised how far your money can take you there. For an example, just take a look at some of the properties on https://rumahdijual.com/bekasi/rumah-murah or realtor.com-Indonesia.

The variety is astounding too. Regardless of what you have in mind in terms of design, size, or stories, there will be something for you. The exact location of your property will have an impact on its price. The following cities tend to have varied costs, so from most expensive to least expensive, good options are: Jakarta, Bandung, Denpasar (Bali), Bengkulu, Surabaya, and Yogyakarta. Take a look around. Remember to always first visit and understand all the rules/laws about owning real estate before putting an offer in. It’s always important to be absolutely certain.

 

Cost of Living

While Indonesia boasts some of the most expensive hotels in the world, the cost of living in the region is one of the lowest in Southeast Asia. People are drawn by its stunning landscapes, beautiful beaches, and it’s friendly people.

Indonesia for a Comfortable Retirement on budget

Dining

As with pretty much anywhere in the world, cooking for yourself is going to save you a lot more money than if you decide to dine out for every meal. However, when it comes to dining out in Indonesia, you may actually be able to afford it! Street food and local restaurants produce brilliant quality snacks and meals at an unbelievably low price. Street food can generally be sourced for one or two dollars and a meal in a cheap restaurant will often range from three to four dollars.

Just remember to avoid international chains where possible, such as Mcdonalds and Starbucks, as prices are just as high as they would be anywhere else. There’s such better quality and value elsewhere that you can’t help but spurn fast food options, opting instead for local cuisines.

Also bear in mind that imported food will always cost more too. So opt for local brands in the supermarkets. Just be careful if you have allergies, it’s good to have someone at hand who can help to translate ingredients for you.

 

Transportation

You’re going to want to get out and about to explore the local area, places further afield, and generally go about your day-to-day business. So how much can you expect to fork out for transportation? Well, public transportation in Indonesia tends to be very affordable. The bus can generally be taken for less than a dollar and taxis will charge around thirty cents a mile. Bargain!

If you want a little more independence, you could hire a scooter. These are, again, cheap and can generally be rented for a few dollars each day. This is great if you’re simply using them on an as-needed basis. Just be sure to have the necessary documentation to ride them. You might like to practice a little, or travel on public transportation for a while before taking to the roads yourself. This allows you to get used to the local style of driving, as well as picking up on road signs, road markings, and other things that will help you to improve your handling of the road once you’re on it  yourself. If you want to drive your own car, gasoline is around seventy cents a litre ($2.65 a gallon), which is again pretty affordable. In terms of getting from A to B, you’ve got it pretty good in Indonesia!

 

Entertainment

Now, besides exploring and taking in the astounding scenery, you’re going to want to do something that will keep you entertained and occupied now and then. So, if you’re searching for something different to a meal out, what can you expect to spend? Well, there are plenty of local bars and nightclubs too. So if you’re into that kind of thing, you’re well catered to. Alcohol isn’t cheap and you can generally expect to pay an entry fee to clubs, but that’s pretty similar wherever you go in the world. However, if treated as an occasional treat, it won’t hit you in the wallet too hard.

Then there are things like the cinema. Cinema tickets are much cheaper than home, coming in at around four dollars a ticket. There’s plenty of free entertainment to be taken advantage of too. On warm days, head down to the nearest beach, bask in the sun’s rays, lounge on the sand and take a dip in the ocean. Visit world-renowned monuments. Climb the base of Mount Bromo. Visit Tanah Lot water temple with its expansive water views. Explore Borobudur, an iconic historic Buddhist temple. The list goes on and on. With so many options of things to do, you won’t have a dull day for years to come. There will always be something to get you up and out of the house and keeping active, both in body and mind. What more could you possibly want from the place that you live?

Consider Indonesia for a Comfortable Retirement?

All in all, Indonesia could prove to be the ideal place to head for your retirement. Sure, it might be pretty far from your current location. But that’s half of the beauty of it. You get an escape, an adventure. You’re thrown out of your comfort zone and forced to be brave and boost your confidence. You will be immersed in an entirely new culture, tasting new foods, listening to new music, and seeing new sights. You will learn another language, meet people you’d never have met under any other circumstances, and revel in some of the most astounding scenery that the world has to offer.

When people pay a fortune just to visit this place, why not move on a more permanent basis? The fact that it’s affordable is an extra added bonus! So, start doing your research, scour the property market, learn a few basic bits of the local language, and pay it a visit. You could be calling this wonderful place home sooner than you think!

What To Do If Retiring With a Mortgage

Budgeting, Relocating in Retirement, ,

It’s hard enough to save for retirement let alone pay off the mortgage too. Most of us end up retiring with a mortgage. I sure did, our parents did, and frankly almost everyone I knew did. At the time of my first early retirement we had been in our home 14 years. The mortgage was paid down 40% from when we bought the home. Here is the strategy I used and considered to help us manage our housing costs in retirement.  

Four Strategies To Consider When Retiring With a Mortgage

#1- Refinance to Lower Your Monthly Payments

Obviously if someone is considering retiring with a mortgage the numbers have got to line up.  Simply running our budget numbers including the monthly mortgage payment through a retirement calculator like FIRECalc can provide some assurance.  I retired early and certainly made sure that I could afford to retire with my mortgage payment.

My strategy was to reduce my monthly mortgage payment to allow for more cushion in my retirement budget. I prefer 30 year mortgage loans with a lower monthly obligation and then making extra payments when I can.

We bought our home in 1995 with an 8% interest rate and a $1185 monthly payment. We did refinance a couple of times to take advantage of lower rates over the years. Each refinance was for the existing mortgage balance and pushing it out again for 30 years with the lower interest rate. This always resulted in a reduced monthly payment.

I used this same strategy the month before I retired to lower the payment again. With our last mortgage refinance our interest rate was 3.75% with a monthly payment of $744. This made retiring with a mortgage much easier on my retirement budget.

By refinancing your mortgage before retiring the refinancing process is smoother. The bank was able to easily perform my employment verification and verify my income. I did not mention my intention to soon retire, nor did they ask.

#2- Downsize to Reduce Housing Costs

Retiring With a MortgageOur plan was that we stay in our existing 2 story empty nest for several years and then later sell and downsize. Retiring with a mortgage doesn’t mean it has to be with us the rest of our lives. The plan was to later buy something with our equity for a mortgage free or almost mortgage free final home. A smaller home should also provide lower utility costs, taxes, insurance, etc., to give even more retirement budget cushion.

For some with a large mortgage payment, completing this move would be highly considered before retiring. In our case we still enjoyed where we lived and could manage the mortgage payment in retirement. That is why this is part of our delayed strategic moves and I am glad we waited.

We have recognized that our views on housing have changed. I believe they will change even more as time goes by with our aging. When I retired the only thing we considered was buying a smaller ranch home. Now we are opening up to RV, Condo, and even just renting. It is important to have a long term view and plan. But recognize that things may change over time. I keep our options open.

#3- Move to a Less Costly State, City, or Town

This strategic step is also part of our delayed retiring with a mortgage housing strategy. We will consider relocating somewhere less expensive if and when the time comes to sell our existing home. The town we live in is beautiful and with lots to do. Because of that it is sought after and has become a higher cost area.

Not knowing the future, we keep this as a strategic consideration. A lot will depend on the cost of living and our budget at the time. We keep an open mind to moving  to a State that has no or lower income tax, a different town, or even a different retiree welcoming country.

#4- Pay Off the Mortgage with Retirement Job Income

I had always planned on retiring early and often.  Meaning I would always remain open to opportunities that I had passion for or was interested in learning and doing in my retirement. My retiring with a mortgage allowed for my retirement funding to cover it in my budget. That means that any income I earn is extra. With this strategy I am able to divert all my retirement job income to the mortgage.

I did put this strategy into action after landing a sweet retirement gig. I paid off the mortgage within 18 months. Even if a retirement job didn’t pay enough to clear the mortgage, all money paid towards the mortgage would be like an investment. Where it enhances the benefits provided in our delayed retirement housing strategy moves of downsizing and/or relocation later on.

Last Words

Now that I am in my 2nd early retirement it is nice to be mortgage free. However, our strategies for downsizing and relocation are still fully in play.

The strategic goal is having a plan that manages our retirement housing by offering us financial flexibility. It’s all about looking for ways to stretch our retirement dollars in the best way possible in a place we WANT to call home.