Whether you have a Traditional or Roth IRA, or a Self-Directed plan, you know that you should contribute to your retirement, make regular payments, and have a solid goal in mind. Do you have a goal to retire around the world, but don’t know where to begin? Time to think about what you want to do (and how to do it) when you don’t have to do anything.
Retire Around the World
Traveling around the world is a legitimate goal for many people, especially once retirement kicks in and the daily grind no longer beckons. But living a nomadic life, or one where you’re away more than you’re home comes with unique challenges.
So how do you plan for it?
1. Know Your Retirement Goal
Do you want to travel around the whole world, or just part of it? Seeing everywhere in the United States is the goal of a lifetime, so decide if you want to see highlights at home or abroad. Painted desert, big city buildings, fog rolling in on the bay? All of these are possible if you plan early enough and put away enough money.
Or do you want to travel and see castles in Europe? Ireland, Romania, Germany? Or travel on your taste buds to treat your taste buds to every continent?
Get a sense of what you’re looking to experience, so you can plan to have your money last as long as your sense of adventure.
Is there a particular country you want to live in during retirement? Here’s a little tip: use your retirement funds to invest in a property in your dream country, and generate a steady income by renting it out. By the time you reach retirement age, you can finally live in that property! Just make sure you know of the potential tax consequences, particularly UBIT tax.
2. Know Your Interests
Are you looking forward to buying an RV and driving up and down the coasts? Or are you looking forward to traveling by 4×4 on a wildlife photography safari?
Planning your travel is more than just picking cities on a map, and planning your retirement adventures has to be more than just wishful thinking. As you’re planning travel for the rest of your life, or a significant portion of it, it pays to pay attention to your tastes so you can really map out where you want to go and what you want to do.
3. Know Your Preferences
Do you like to stay in a bed & breakfast when you travel? Is your idea of travel incomplete without a five-star hotel experience? If you’re taking in castles, will you want to stay in them? If you’re seeing small villages, will they be day trips from your hotel, or will you be experiencing life as a local?
Again, if you know what your preferences are, you can plan out your retirement journey to coincide with your tastes. You can also decide where you’ll want to save money or splurge.
4. Know your Options
It’s important to know what you need to do to get where you want to be. If you hate flying, but really want to travel the world, it might behoove you to get over your fears. If you want to see the world but only want to travel by cruise ship, you’ll need to know what your itinerary can look like.
5. Know your Expenses
If you have big dreams, talk to a financial advisor or do your own research, and put money towards your dream. No one wants to get to retirement and have a five-star dream but a living-in-your-car reality. If you plan on retiring around the world, it makes sense to start planning early. A life on the go is very different from a week-long trip, and brings its own challenges. You’ll have to look into health care, lodging, communication options for anyone left back home. It’s a lot to think about, and a lot to consider. But saving regularly can help you reach your goal.
Let your IRA work for you through the power of tax-deferral and through the lucrative investments you make over the years. Investing with your retirement funds may seem intimidating, but when you establish an IRA that is self-directed, you can make investments you actually understand, not just the investments within Wall Street. For example, if you’re a savvy real estate investor, why not use your retirement funds to invest in an Air BNB property?
Retirement is the start of a new chapter – so make it the best. Take advantage of these moments to plan for your future. Even if you’re a Millennial and retirement seems like a lifetime away, planning now will make those Golden Years the best of your life.