What is the average cost of a nomadic retirement?

The average cost of a nomadic retirement varies significantly based on lifestyle, chosen countries, and personal spending habits. However, many nomadic retirees report living comfortably on $1,500 to $3,000 per month, often including housing, food, and local travel, especially in countries like Thailand, Mexico, or Portugal. This is often considerably less than living in many Western countries.

How do I handle healthcare if I'm constantly moving between countries?

Handling healthcare involves securing comprehensive international health insurance that covers you worldwide, including emergency evacuation. You may also consider purchasing local health insurance in countries where you establish longer-term residency. It's crucial to research the quality of healthcare and availability of English-speaking doctors in your target destinations.

Can I still receive Social Security benefits while living abroad?

Yes, U.S. citizens can generally receive Social Security benefits while living abroad. The Social Security Administration (SSA) sends payments to most countries. However, there are some restrictions for certain countries, and you must inform the SSA of your foreign address. It's advisable to have direct deposit set up for easier access to funds.

What are the tax implications of geo-arbitrage for U.S. citizens?

U.S. citizens are taxed on their worldwide income, regardless of where they live. This means you must still file U.S. tax returns annually. However, you may be able to utilize the Foreign Earned Income Exclusion (FEIE) if you work abroad, or the Foreign Tax Credit (FTC) to offset taxes paid to a foreign government. Consulting an international tax specialist is essential to navigate these complexities.

Is nomadic retirement only for the wealthy?

No, nomadic retirement is not exclusively for the wealthy. In fact, geo-arbitrage is often a strategy employed by individuals with more modest retirement savings to make their money last longer and afford a higher quality of life than they could achieve in their home country. The key is careful financial planning and choosing destinations with a significantly lower cost of living.

How do I maintain connections with family and friends back home?

Maintaining connections is crucial. Utilize technology such as video calls (Zoom, FaceTime, WhatsApp), social media, and email to stay in touch regularly. Plan visits back home or invite family and friends to visit you abroad. Many nomadic retirees also find community by joining expat groups and engaging in local activities in their host countries.

What are the biggest challenges of nomadic retirement?

The biggest challenges often include navigating complex visa and residency requirements, adapting to new cultures and languages, managing healthcare logistics, and sometimes dealing with feelings of loneliness or isolation. Practical issues like managing mail, banking across borders, and staying compliant with tax laws also require careful attention.

Nomadic Retirement & Geo-Arbitrage: Retire Globally | One…