Should You Invest Your Retirement Funds Abroad?

Retirees examining the possibility of retiringestate boom in the U.S. in the 1980s was fueled
overseas not only have to consider the benefitsby the infusion of foreign capital. The government
and lack of benefits to making that move inhad created a financial environment in which even
general, they have to be concerned withthe most naive investors stood a good chance of
preserving their capital. No one wants to run outmultiplying their capital. Interest rates were high (a
of assets in their "golden years", especially whilegood return on investment) and real estate values
living abroad.were rapidly increasing due to the increased
The question then arises as how best to managedemand, much of it coming from abroad. The
your assets in this circumstance. Do you keepincreased investment capital in turn created a
your assets in your home country? Do you movedemand that fed the trend.
them to your new country? Do you move themSo, I guess the question you have to answer is
to a third or fourth country, or do you use awhether your destination country has adequate
combination of these choices? The answer is notsafeguards in place so that you can have a
a simple one and one answer can not be tailoredreasonable expectation of not losing your funds if
to fit all circumstances.invested there. Safety of principal is as important
I am not an economist nor an investment advisor.as return on investment.
My major concern is holding on to the smallSome of the questions that you need to answer
retirement income I have and stretching it as farare:
as possible. So, the questions I have posed are- What are the economic and investment trends
questions that I myself am constantly seeking toin your destination country?
answer. If your funds are unlimited, none of this is- Does the country have a secure and
relevant; but to most retirees, one of the reasonsprosperous banking system?
for considering expatriate living is to maximize a- Is the government investing in future
limited supply of income. Making it stretch fartherinfrastructure projects like roads and airports?
is frequently easier in some expatriate- Is the country politically stable?
destinations. Couple that advantage with the spiritThere is never a 100% certainty with any
of adventure in living abroad, and you have aninvestments, but the less risk you take with your
increasing number of retirees moving overseas.retirement funds, the more likely you are to have
Investment money always flows towardthem when you need them.
opportunities. For example, much of the real