Planning to move abroad and live off interest

Briggo

Hi All!

Pretty new to all this so please bear with me!

I was wondering if there was somewhere I could get advise on how to invest for income (and inflation proofing!) should I sell all and move abroad.

I really need to be able to work out how much income would be generated etc. and what to put aside to cope with inflation along with any other considerations!

Thanks in advance!

atush

For a start, Where are you going? What will you do with healthcare? After you've been gone 6 months, your free NHS will go. Second, wiull you be drawing a state pension? If you are abroad, it will be frozen and won't go up in the future in many countries.

NSI ilscs would be a good idea, but you can only hold 15K, 30K joint. So unless you go for shares, I don't see how you can inflation proof. How much will you have to invest?

Briggo

atush wrote: »

For a start, Where are you going? What will you do with healthcare? After you've been gone 6 months, your free NHS will go. Second, wiull you be drawing a state pension? If you are abroad, it will be frozen and won't go up in the future in many countries.

NSI ilscs would be a good idea, but you can only hold 15K, 30K joint. So unless you go for shares, I don't see how you can inflation proof. How much will you have to invest?

Hi atush,

We were thinking of Spain (not the British areas tho'!) and would have to take out some sort of basic private healthcare plan I would have thought. A quick look suggests that we may be able to get this for around £120 a month for the pair of us.

We won't be drawing a state pension as we haven't reached that age yet (and the way it keeps getting increased might struggle to! :D)

I would like to think that, by the time we have bought somewhere to live, we would have around £250K to invest.

Ark_Welder

Two drawbacks of NSI IL-Certs in this case: they are linked to UK inflation and not that in Spain; there is currency risk involved because they are denominated in Sterling and not Euros.

atush

Do you have an 'exit' strategy? A small rental property in the UK maybe?

If you move to Spain and want to come back, you could get stuck. Lots there can't seem to sell up so can't afford to move back to the UK. And with the economic storm looming, the property market there could very well get worse. I'd rent if going soon, and buy later.

Do you speak spanish? If not, join a class now.

kidmugsy

I'd have thought that £250k isn't enough to support two people below pension age until their deaths. Have you got estimates of what your (British) State Pensions are going to be?

In your shoes, I might rent to begin with until I was certain of things, or even until my State Pensions began.

nearlyretired2004

Hi

To the OP - you might like to read my thread 'How much do you REALLY need to retire?'

Its (currently) on page 6 of the board about 4 threads down .....

May give you some food for thought (we also plan to move abroad eventually) and also some great comments and things to think about from other posters ......

Briggo

atush wrote: »

Do you have an 'exit' strategy? A small rental property in the UK maybe?

If you move to Spain and want to come back, you could get stuck. Lots there can't seem to sell up so can't afford to move back to the UK. And with the economic storm looming, the property market there could very well get worse. I'd rent if going soon, and buy later.

Do you speak spanish? If not, join a class now.

Still really at the 'thinking of it' stage at the moment - just trying to get as much advise as possible. Certainly not planning to move tomorrow!!

Not a Spanish speaker yet but would definitely learn enough to get by on before going then concentrate on it when out there

ChiefGrasscutter

Moving to a foreign country unless you already have contacts/relatives there is more difficult than one might think - it's not like having an extended holiday there.
It's those little things that cause the difficulties. Here in the UK you know how 'the system works', who to contact for what etc. In a foreign country with no one to tell you what to do, what not to do, and how you must do something..... etc it all becomes very difficult.

missile

IMHO, there is no way to protect your capital against inflation AND generate an income.

You might want to do more research. It is not so cheap to live in spain as it once was. There are many brits who find spain expensive and are returning "home".

As others have said learn spanish and do your homework. One can get by on the Costas but if you venture off the beaten track you will need more than a basic grasp of the languauge. You will have very few opportunities to earn a living in spain and none in non Brit areas if you cannot habla espanoil.

I would suggest you join one of the expat forums where you will get good advice for free.

chrissawyer21

could you not just purchase a holiday home out there? and once you retire spend long periods in Spain.. that way there is far less risk?


or am i completely wrong?