Becoming an expat is now being considered by retirees and young families too

by Mike Kravinsky

There's a lot of talk these days, particularly among retiring boomers in the United States, about moving to another country. They are not necessarily looking to live like royalty. Many just can't afford to retire at all. "Typically now, it's someone in their fifties or sixties," says expatriate Kathleen Peddicord, author of the book How To Retire Overseas.  Financial investments have dwindled. Children are in college. It's becoming clear that they may have to stay in their jobs for years beyond what they expected. "They look around and say 'geez, I don't think I can afford to have the retirement I thought I was going to have in the States…maybe in Panama or Mexico or a dozen other places, I can afford it."  For these reasons, the exploration begins.

Becoming an expat is a huge decision. You leave the life and routine that you've followed for decades, move far away from children and grandchildren, and live in a foreign culture that's difficult to understand and perhaps adapt to. Starting over as an expat can be stressful and frightening.

That's one way of looking at it. Here's another: Becoming an expat is a huge decision. The whole thing can be a great adventure. You can make new friends, explore new cultures and ideas, and taste new foods. It may give you a new, refreshed, reinvigorated outlook on life. Starting over as an expat can be fun and exciting.

"These things can terrify you," says Peddicord, "Or they can excite you." Forty-something Peddicord lives with her family and runs her business Live and Invest Overseas in Panama.  She believes that new routines are invigorating and reward the expat with a new lease on life.  She says that if you're considering moving overseas either as a retiree or as a young family starting a new life; do your homework first.

Peddicord became an American expat thirteen years ago at age thirty three. The Baltimore, Maryland native had been working in publishing for ten years. When she was offered an opportunity to transfer to Waterford, Ireland; she, her husband Lief, and eight year old daughter packed their bags and moved.  For the next seven years she worked in Ireland, where her daughter attended elementary school and her son was born.

At the end of her assignment; instead of returning to the U.S., she packed up her family again - to a new assignment in Paris, where they lived for over four years. At that point, her daughter was in high school. Her son, a U.S. and Irish dual citizen, attended a French school. He now speaks better French than English and sees Ireland as home.

After twenty three years at the publishing firm, Peddicord decided it was time to take her years of international living experience and form a business with husband Lief. Instead of returning to the United States; they moved to Panama with their son. Her daughter was then entering college and is now attending school in New York.

Her years in international living provided experiences that she believes can benefit others. She has traveled to fifty countries, invested in real estate in seventeen of them, established businesses in seven, renovated historic properties in six, and educated her children in four.

There are many aspects to becoming an expat that Peddicord thinks are important to address. One is culture. The cultural differences between the U.S. and other countries can be daunting for some. "What about when I get to this place? The language is different; the people are different; the way they do everything is different," she quotes.

She offers one small example relating to paying an electric bill in Panama. There, you can't just write a check or go on-line. Electric customers actually have to go down to the electric company office, wait in line and pay the bill in person to a teller. "I'm not going to come and change how Panamanians pay their bills," she says. "In other words, I'm not going to change the culture here in Panama. I'm going to adjust to it or I'm going to be unhappy."

Small routines like weekly grocery shopping an be different; and the way Christmas is celebrated may not be how you expect. "It comes down... to what kind of person you are," says Peddicord. "If these things are something that's terrifying, then being an expat may not be an option." For those that are excited by the prospect of a new adventure in living; being an expat is something to consider. 

Peddicord also warns of expectations commonly held by prospective expatriates. People think they're moving to a paradise. "The truth is there's no such thing, there's no such place, no place is perfect, everywhere has plusses and minuses," she says. She suggests making a list, making sure to involve any partner or spouse in the picture. "Identify the most important things on the list and don't compromise on them," she emphasizes.

No one should invest in real estate until renting and living in the country for at least six to twelve months, according to Peddicord. "If you invest in a house or a condo... then you're really committed," she says. "You're less flexible, you're less mobile, it's harder to change your mind." She also notes that you may like the country that you've chosen, but realize that the neighborhood isn't what you want. If expats choose a quiet area, they may realize later that they prefer a more active neighborhood; or vice versa. "If you've already bought an apartment, it's not so easy."

Peddicord chose Panama to launch her business because of its favorable business climate.  The country offers fifteen different ways to gain residency. It is also a tax haven. "We're able to run an international publishing business here, virtually tax free," she says.

She receives inquiries from non- retirees as well. "I get more and more questions from readers now asking, 'I'm not anywhere near retirement age, I'm 35...40 and I have small children... can you recommend a place that makes sense?'" She observes that more people are moving to another country to start a business. The internet made that possible. "There are so many portable professions," she says. "All you need is a laptop and an internet connection."

Americans who consider moving to another country for work or retirement want to stay in locations closer to the U.S.  "Accessibility is a big thing," Peddicord notes. Expats do go to far-away places like Asia; but most tend to move to more nearby places that can be accessed via easy non-stop flights to and from the U.S.

Peddicord believes that individuals who thrive as expats have a sense of adventure and can adapt to change. "When you live someplace new, everyday is new… You don't know where it leads," she says. She never imagined when she first left Baltimore thirteen years ago that she would end up in Panama owning a business. She can't imagine not living this lifestyle now.

Peddicord's websites:

http://www.liveandinvestoverseas.com

http://www.kathleenpeddicord.com/

photos from Live and Invest Overseas