Planning to Move Abroad? 6 Financial Questions to Ask Before You Go

Article Summary

• More women are choosing to move abroad and if you are among them, there are a few things to consider before packing your bags. 
• The financial aspects of an international move can be complex, from cost of living to taxes, which is why many women feel more confident about their options when they work with a financial advisor.
• Things to consider include retirement goals, investment accounts, estate planning and the implications of international earnings.

Planning To Move Abroad? 6 Financial Questions To Ask Before You Go

Becoming an expat is trending. While an international move generally has more staying power than a fashion fad, data suggests that more women are either moving abroad or considering relocating to a new country. 

The reasons for this are varied, and inevitably for each individual they are personal. Some women inheriting wealth may choose to embark on a new adventure. Other women moving abroad may be looking for greater work-life balance. Regardless of the inspiration for the move, similarities exist in the considerations that are made before deciding on such a significant change of scenery.

Some women feel more confident with their decision to make an international destination their new home when they make time for financial planning before moving abroad. While there is a lot to consider, six main topics stand out from the rest.

Financial Planning For Expats

Less than two percent of U.S. women live abroad as expatriates, but an increasing number are interested in the idea. For the women who do move abroad, the complexity of the decision is weighty regardless of how many others are doing it. 

There are a number of emotional factors to consider, when it comes to distance from family, friends and colleagues. Sometimes those factors take up the bulk of the mental space available when considering an international relocation. The financial factors might be just as important. Women choosing to make an international move may consider one or all of the following questions.

How will the move affect taxes? Each country has its own tax laws, and U.S. citizens may still be required to file taxes in the U.S. even if they are living in a different country. Many people believe that living abroad may cost less in retirement due to a lower cost of living, but sometimes a higher tax burden may overwrite any savings benefits. The point is, taxes are complex.

Will banking and investment accounts still work? For many women, finances are one of the main reasons an international move is considered. Generally speaking, women who move abroad are choosing to use the wealth they have built or they may also be looking to live more simply in a location with a lower cost of living. Many women feel most confident in making that choice when they have a clear understanding of where their finances are at and what kind of life they can support. Other things to consider, when it comes to accounts and investments, are the ease and cost of international transfers and the gain or loss that comes with currency exchange.

How does the cost of living compare? The cost of living encompasses a whole host of variables, from housing to entertainment to food, transportation and beyond. It is not uncommon to be lulled into a rhythm of understanding what life costs in a place you have lived for years, but nothing shakes that up like moving to a new community. A new country has the potential to exaggerate that change. Having a good understanding of what life costs in a new country may create a greater sense of comfort. 

What does moving abroad mean for retirement goals? Women building wealth and women inheriting wealth may have retirement goals in mind. Those goals may need to be analyzed against new expenses associated with an international move. In addition, professional women who choose to move abroad while still contributing to the workforce may learn that their international earnings do not contribute to their Social Security balance. Receiving a foreign pension may also complicate anticipated Social Security payouts. 

When was your estate plan last updated? Major life changes often serve as good milemarkers to review documents that aren’t referenced regularly. Financial planning for expats often includes time spent reviewing estate plans to make sure that wills and beneficiary designations are up to date. 

Do you have the right financial team? Changing zip codes can be complicated. Changing country codes may come with even more considerations. Many women feel more confident moving abroad when they receive guidance from a financial advisor. Finding the right financial advisor for you, who understands the nuances that come with financial planning for women, does not have to be an arduous process. 

At Svvy®, a service built by women for women, we have simplified the process of finding a female-vetted financial advisor. We have seen that wealth management for women is most beneficial when women match with a financial advisor, which is why we developed a financial advisor matching quiz. It is designed to help you find a professional who is right for you. 

To get connected with a financial expert who can help you with financial planning before moving abroad, get matched with a Svvy® expert today. 

Disclosure:This content is provided for general educational purposes only and does not constitute individualized investment, legal, or tax advice. Svvy® acts solely as a solicitor and connects and matches individuals with independent third-party financial professionals through a quiz-based matching process on the Svvy® Network. Matching is based on information provided through Svvy’s platform and does not constitute any advice. Any advice, recommendations, and services are provided only by the independent professional you choose to engage.