Perhaps one of the most enjoyable issues to discuss with clients is to what scenic shores they might consider retiring. Here are some of the most popular destinations according to fellow financial advisors:
PANAMA
"I have a client that has 'semi-retired' in Panama, which has a very low cost of living," says Linda Lubitz Boone of Lubitz Financial Group in Miami, Fla. "In fact, he is so enamored with Panama that he is trying to get Americans to come down and invest in real estate and retire there."
SOUTH OF FRANCE (PROVENCE)
“Healthcare is great," says Cary Carbonaro, a managing director at United Capital Financial Advisers in the Paramus, N.J. office. "The cost of living is on the expensive side compared to many other places overseas, but clients look forward to a nice lifestyle and good food.”
MEXICO
“Many of my clients prefer Cancun along with other parts of Mexico," Carbonaro says. "They like it for its low cost of living. The country has also invested a lot in the tourism industry, with expensive luxury condos for example. Cancun is a popular place for second homes.”
BERMUDA
“It’s close but still outside of the U.S.," Carbonaro notes. "My clients like that it’s quiet, with more moderate temperatures.”
HAWAII
“If clients are going to stay in the U.S., one of the most popular, exotic areas for a second home is Hawaii, with sunshine and a high quality of life,” says Shari Burns, a managing director of Paragon Investment Management, a division of United Capital Financial Advisers, in Seattle, Wash.
COSTA RICA
“There’s been a big push to have Americans buy luxury waterfront properties,” says Carbonaro.
STAYING LOCAL
“None of our clients want to or ever has wanted to retire overseas," says Carolyn McClanahan of Life Planning Partners in Jacksonville, Fla.
She says:
Remember, we live in heaven in Florida and there is no state income tax. In fact, we pick up clients who are moving here when they retire. People usually retire to other countries for two things – better climate and better cost of living. Of course, there are many hoops to jump through when living in other countries, so it can be a trade off on benefit versus hassle. North Florida on the Atlantic Coast actually has great climate, good cost of living compared to the U.S. and no state income tax. People think more about South Florida for retirees, but more people realize North Florida is nice in that there are still slight ‘seasons’ and it definitely is less crowded and less expensive.
REALITY CHECK
“Many clients talk about this, but few actually do it, says Jude Boudreaux, founder of Upperline Financial Planning in New Orleans, La.
He adds:
I always advise to do a trial run and move just for a few months. Most get disillusioned. They usually choose tropical places, but living in those places is very different than vacationing. Car repairs, groceries, etc. are harder in a second language. Costa Rica does seem really popular these days, but clients quickly get disillusioned with infrastructure.
To view a slideshow with photos of these locales, check out Top Retirement Destinations Overseas.