Читать книгу The Global Expatriate's Guide to Investing - Hallam Andrew - Страница 13

Despite his 44 years, school psychologist Jeff Devens strikes an imposing figure against younger fighters on the jujitsu mat. A wrestler in college, he took a break from grappling until he was 40, when the Brazilian jujitsu bug bit him. Today, he battles opponents half his age. But that doesn't mean the Singapore-based American lives in a youthful Neverland. Jeff and his wife Nanette know the years creep up. Consequently, they are prepared for their retirement. They plan to be based in the United States.

The typical American retiree spent $31,365 in 2012. But Jeff and Nanette don't want to be average. By sidestepping expatitis, the Devenses are realistically poised to retire on $93,300 per year.

They started their expat careers in 1995, teaching at the International School of Beijing, China. “We came overseas after two years of marriage,” says Jeff, “with $25,000 of student loan debt. During our first year, we paid off our school loans and had enough money left over to put a down payment on a home in North Dakota.”

Jeff and Nanette are now mortgage free. Each June, they fly from Singapore to the United States to spend time at their lakeside home with their two children. “Purchasing the house was a lifestyle decision,” says Jeff. “It gives our family a place to spend seven weeks each summer. Paying off the mortgage also gave us peace of mind.”

The Devenses figure they'll spend most of their retirement time in North Dakota. “When we get closer to retirement, we'll likely buy or rent a second home in a warmer climate, giving us an escape from North Dakota's winter months.”

After researching medical insurance, Jeff realized it will cost them much more than it will for most stateside Americans. “We would have a high deductible because we haven't had enough years vested in any stateside school district, nor have we paid enough into Social Security to qualify for Medicare.”17

Americans are required to pay 10 years or 40 quarters in Medicare taxes to qualify.18 Career expatriates, like the Devenses, will pay higher insurance premiums if they can't accumulate the minimum requirements toward Social Security while living overseas.

Jeff and Nanette figure they can retire in 17 years. But if they want the equivalent buying power of $93,300 today, they'll need more money. If inflation averages 3.5 percent over the next 17 years, the Devenses will require $167,443 per year (see Figure 1.3).

Figure 1.3 Jeff and Nanette's Postinflation Adjustment

SOURCE: www.moneychimp.com.