We have a client at the firm who has been planning for years to retire to Costa Rica. Another client has moved to Mexico where she enjoys the fruits of her labor from a little house surrounded by, well, fruit. As the snow piles up every February here in Boston, the whole idea of escaping to another life sounds more appealing. Even those of us who can't imagine not having some sort of work during retirement are tempted by the idea of retiring to a whole new adventure. And in some cases, moving to another part of the world promises a better standard of living. So what are the practicalities of a retirement outside your home country?

Moving Money

Retiring abroad almost always means having financial transactions going on in two countries. Fortunately, our global banking systems have made this significantly easier than it once was. Like most immigrants/expats, you will want to do some careful planning with your cash flow. Start by keeping a U.S. bank account open to receive your social security checks (in most cases, you are still eligible while living abroad), pension checks or any other income. The same account can automatically pay any expenses you have left in U.S. dollars—these might be related to insurance policies, properties you own in the U.S., cash support for family still in the states, or just having your favorite U.S. peanut butter shipped over once a month.

Keeping all of that income and expense in the same (U.S.) currency saves you the added expense of currency exchange—and that can be a big savings. On the other side of the financial border, figure out what your monthly budget will be in your adopted country and have that automatically deposited in a local account once a month (but be sure to account, again, for the exchange rate and any bank fees).

Living Expenses

Speaking of your monthly expenses, expect the unexpected in your new life. On one of our family's first trips to Singapore, we plunked ourselves down for lunch at a cafe designed for tourists on the island of Pulau Ubin. After giving three rambunctious children and four hungry, tired adults license to order anything and everything they wanted, we ended up with two tables overflowing with food and specialty drinks...all for a tab of about $14 bucks.

On the other hand, owning a little tin can of a car in Singapore will cost you a small kingdom. My point? Look carefully at what is and isn't expensive in your new home. Your housing or groceries might be ridiculously cheap compared to what you had at home, but your utility bills or transportation might be higher than you ever dreamed possible. And as an aside, don't expect to find cheap food in Singapore anymore—inflation can happen anywhere.

Health Care

This one has been a big factor for U.S. citizens. In fact, our astronomical insurance premiums and health care costs in this country have made it almost inevitable that Americans save money on health care by going just about anywhere else in the world (why this hasn't been a red flag for us, I don't know). And the quality of health care in other countries hasn't been much of a compromise either. But you do need to know what the arrangements are in your new country before you move. Keep in mind that Medicare will not cover you abroad.

Some nations let immigrants participate in the national health system; others offer private health alternatives (often still cheaper than what we have here). Make sure you look into eligibility requirements and take into account your particular health care needs when choosing where in the country you will live; as is the case here, cities often offer more sophisticated care. And if you still need more coverage, look into international health insurance, which will cover you just about anywhere in the world (with the frequent exception of—you guessed it—the U.S.).

Taxes

Surely this is the least appealing part of retiring abroad! If you are a U.S. Citizen, you will almost certainly need to keep filing a U.S. tax return, even if you don't owe anything. And you will have local taxes to think about. If your new home country has a tax treaty with the U.S., you might be able to avoid paying income taxes in both countries simultaneously. But there are all sorts of taxes to think about. For those in retirement who are buying property in their adopted nation, estate taxes are likely to be a concern. And if you have more than $10,000 during the year in almost any sort of account abroad, including an insurance policy, make sure to file an FBAR (Report of Foreign Bank and Financial Accounts). Even if you were one of those people comfortable doing her own tax returns and estate planning before, taking on the taxes and procedures of two national treasuries will probably require some professional help.

An Extra Seat At The Table

Ready to start planning your second life as an immigrant to some charming foreign nation? Research thoroughly, plan carefully and most of all, be flexible. And one more thing, make sure there's extra seat at the table for friends and family visiting from back home. After all, it gets pretty cold here in February.

The Secretary of State's Bureau of Consular Affairs has a web page to guide you through the basics of planning a retirement abroad.

Most Americans don't grow up haggling in marketplaces, and that's probably a real disadvantage for us. It means that we tend to go into salary negotiations with the idea that the price and terms are already set before we get there. Occasionally that is true, but with most jobs you should assume there is some room to make the salary, terms or both work better. And getting off to a good start means your career (and your finances) progress that much faster. Here are five quick points for getting the best terms for your new job:

1. Do your research.

Anyone who has tried haggling at a market stall knows that one of the best opening lines is "I could get it for less down the road." In a job negotiation, that concept should translate to something like, "I am really interested in working for your company, but I am not sure that I am willing to take the lower salary that you are offering me." You could bluff, of course, but this strategy plays out much better if you know what compensation ranges look like in your industry and even better, what the people who are already employed with this company are making.

2. Never say "yes" on the spot.

I've made this mistake myself. You are fumbling along in the middle of your day when the phone rings and someone offers you a job right there and then. They throw in a salary number pretty close to what you were hoping for. Assuming you're interested in this job, your instinct is probably to say "yes" right then and there. Don't.

Instead tell the person on the line how excited you are to get the offer and ask for some time to consider your options. If they don't offer up a timeline, ask when they need to have answer. Hang up the phone, have a little spontaneous celebration, and then sit on your answer a bit while you move on to points 3 through 5...

3. It's not about you; it's about them.

I know you have financial needs; you know you have financial needs, but focusing on how much you need (for housing, food, transportation, etc...) takes the negotiation away from the more important topic—how much you are worth to this company. It's alright to throw out the old "I'm going to need X dollars to make this work" line, but otherwise always bring the conversation (and the thoughts in your head!) back to how much the company needs you.

Not usually your style? Focus your thoughts on the company's challenges. Are they struggling to get the job done because they don't have someone with the right skills? Are they hoping for someone who can make the existing team work better? Do they need someone with enough energy to get things started? Your ability to solve these challenges is what they are going to pay for. Highlight that value to yourself and say out loud to them how excited you are to bring those abilities to the new job—but only if they can make it worthwhile, of course.

4. Attack the problem from all angles.

One of the best tricks of talented negotiators is finding those creative ways to get more. Let's say you've already brought up the fact that you'd like a higher salary (and could possibly get a better one from a competitor), only to learn that the company has a policy or a financial constraint that makes the higher salary impossible.

Remember, the person doing the hiring went through a good bit of effort to get to this point with you—she or he has every incentive to find a way to make it work. This is why managers often use perks and benefits beyond salary to sweeten an offer to a good candidate. But you often need to prompt them. Here are some extra perks that often get thrown in to improve a job offer:

A better job title (even if it doesn't come with more pay, it sets you up for better lateral moves)
Moving expenses
More paid leave time (this can be vacation time, sick leave, sabbatical, etc...)
Allowance or reimbursement for parking or transportation
Housing subsidy
Flex time
Full or partial work from home schedule
Tuition reimbursement for further education
Wardrobe allowance
Signing or sign-on bonus
Options or performance bonus

Obviously, not all of these will make sense to your job. But at least some of them will. Someone expected to host events probably should have a wardrobe allowance; housing subsidies are used to lure great candidates to more expensive cities; signing or performance-based bonuses are a common way for employers salary level policies; and further education can benefit both you and your boss if you are in the early stages of your career.

What all of these perks have in common is that they either 1. make it easier for you to progress in your career, or 2. allow you to put more of your salary toward you own savings. Some of them do both.

How do you make your move? Keep your tone firm, confident and friendly. Approach the employer with no more than two of these "perks," choosing options that make sense for the job and for the employer: "I understand that the company can't offer more salary, but I would really like the chance to work with you. Would the company commit to at the end of the year if I meet X targets?/ include a wardrobe allowance to help cover the costs of running these events/be willing to offer more vacation time until finances are better?"

5. Get It In Writing

This may be the last item on the list, but that doesn't make it any less important. The employer should be proving you with a written job offer and job description anyway. But make sure they do with a polite request: "I think this is a great offer. I will call you back with a firm answer after I've received the written offer and job description."

There are guarantees that a new job is going to be everything you hoped it would be, but going through a strong negotiation process in the beginning is a great way for both you and the employer to establish a level of professionalism that sets the tone going forward.

Still feeling anxious about asking for more? Remember you aren't just improving your terms; you are proving that you have the confidence and skills to be a successful negotiator for their business.

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Retirement Abroad