This week I’m going into the GCC Inbox to answer a question I’ve received several times over the years.
GCC
Thanks to your blog my wife and I will be retiring early next year. We are Americans and want to move abroad for a few years, in part for the adventure but also to minimize our taxes in the early years. This should help with sequence of return risk. Most of our retirement income will come from qualified dividends and long term capital gains, same as you.
We like the idea of being in one place most of the time. Are there any countries you think would be good to use as a base?
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Oops, I did it again.
For the 3rd year in a row we are headed to Europe and the United States for the summer.
For the 3rd year in a row, we will be circumnavigating the globe.
And for the 3rd year in a row, a substantial portion of our transportation costs will be zero.
Time… is on our side, yes it is (Musee d’Orsay, Paris, France)
A common way of thinking is that world travel is something only for the childless and empty nesters. “I would love to do what you do, but I have kids” is something we heard once or twice before becoming parents ourselves. Responsibility for a small human is absolutely life changing, yes, but in a way that opens new doors.
Two year old GCCJr has already been to 28 countries. Since he first boarded an airplane at 5 months old after we figured out how to pack our favourite baby gates up for the various hotels and AirBNBs, he has been putting his 2 passports to heavy use. He has already circumnavigated the globe twice, and enjoyed visits to large swaths of Asia, Western Europe, and North America.
Whether at home or in a far away land, The World through the eyes of a little one is an opportunity not be be missed.
A great number of world travelers utilize the Foreign Earned Income Exclusion to keep up to $102,100 in income out of the paws of the IRS (2017 tax year.)
For those who aren’t bonafide residents of another (non-US) country, this requires passing the Physical Presence Test (PPT) by being in a foreign country or countries for at least 330 days.
2017 is the first year we tried to pass the PPT, and getting it wrong by even one day could cost $20k or more in tax. Needless to say I wanted to get it right.
Happy Holidays everyone! I wish you all a joyful and well deserved holiday season.
We had another adventurous year, circumnavigating the globe and visiting 15 countries. France, Luxembourg, Belgium, Netherlands, Greece, Hungary, Austria, Italy, Switzerland, Croatia, Bosnia & Herzegovina, Montenegro, United States (but less than 35 days), Japan, and Taiwan.
(GCC: Ever since I read Bill Bryson’s A Walk in the Woods, it has been a dream of mine to hike the Appalachian Trail. It’s also a popular idea for those early stages of Early Retirement, when the psychological transition from earning to spending is underway. Fresh air, physical exertion, and low prices are a great cure all. Plus an accomplishment as great as this one can bring a whole new perspective to life. Just ask Joe, today’s guest post author. )
Me (after returning from a three day hike in the Smokies): Hey, uhh…Katie?
