Financial Advisor Jill Fletcher Discusses Nomadic Retirement with Investopedia

A growing number of Americans envision a nomadic retirement, living on the road full- or part-time either domestically or abroad; however, doing so requires thoughtful financial and logistical planning. Key considerations include deciding whether to sell or downsize a home, budgeting for unpredictable travel costs, managing healthcare coverage – especially for international travel – and ensuring steady retirement income through careful cash flow and withdrawal strategies. Social Security benefits can often be collected overseas, but there are exceptions, and retirees must still comply with U.S. tax laws regardless of location. 

Cary Street Partners Financial Advisor, Jill Fletcher, shares important financial planning tips for those considering a nomadic retirement in a recent Investopedia article:

“There are many considerations that need to be accounted for on the saving and planning side if someone wants to travel a significant amount of time during their retirement,” says Jill Fletcher, certified financial planner and a financial advisor with Cary Street Partners. “An important consideration is healthcare, especially if you will be traveling internationally. Another consideration is your housing situation and deciding if you will keep a home base.”

Fletcher says that managing cash flow and withdrawal strategies for your retirement income will be more complicated if you are pursuing a nomadic retirement. If your living situation is constantly changing, your fixed expenses will be less fixed, and your variable expenses will be more variable. You will also have to take exchange rates into account if you are traveling internationally.

A good goal for retirement savings is generally 15% of your income. However, “I recommend working towards the goal of 20% of gross income,” Fletcher says. This higher savings rate can be particularly important if you plan on traveling for a large portion of your retirement.

Create a savings plan that takes all these variables into account, including emergencies, taxes, insurance, and other surprise expenses.

Read the full article for more tips on how you can plan for a nomadic retirement