Key Financial Planning Steps for those Planning to Retire to Australia

In this webinar, Arete Wealth Strategists Australia Founder/Principal Ashley Murphy, GFP (USA/AUS) CFP®, AIF® will reviewed;

1. The steps to take well in advance of your move such as constructing a household balance sheet, conducting an analysis of your financial independence trajectory, and formulating a plan for where you plan to live and whether you’ll buy or rent once back in Australia. It will be time to confirm the U.S. and Australian immigration status for all family Members and think about what U.S. status you’ll want to maintain, if any, once back in Australia.

2. The steps to take shortly before your departure which include creating a budget for your moving related cash expenses (e.g. flights, new passports, shipping, lease deposits, new insurance policies, new cars), preparing a budget to determine what your Australian living expenses will be as well as conducting an income and tax projection to determine your savings potential. Your real estate plans should be developed by now, so perhaps you’re planning on renting and buying once in country or perhaps you plan on using your U.S. income to qualify for a mortgage and buy before you leave. You’ll be getting ready to move bank, and investment account and might even rollover existing IRA accounts if you have no ongoing U.S. ties. You’ll think about where/how to conduct foreign exchange. The next step will be conducting a risk management review to see what U.S. issued coverage you can keep vs what you’ll need to reapply for in Australia. Lastly, you should decide what items to sell/ship, choose a shipping method, before reviewing a supplemental checklist to make sure you have all your documents organized.

3. Shortly upon arriving in Australia you’ll want to obtain and/or transfer insurance policies to ensure adequate health, life, disability, auto, renter’s/home owner’s coverages. You’ll want to revisit your low-basis U.S. investments to rebalance and/ harvest what gains you can as tax efficiently as possible. Next, look into whether a 'Separation of Service' notice will be provided from the U.S. employer to enable you to transfer your retirement accounts. Lastly, consider whether any local Australian investment holdings you have might be deemed PFICs (Passive Foreign Investment Company) by the U.S., if you’re still a U.S. citizen or green card holder.

4. The actions to take in the first twelve months or so upon arrival to Australia include deciding which or how much of what asset to redomesticate, updating your estate planning documents in light of your repositioned assets, transitioning your primary advisors so you're getting the best advice, and lastly, make sure your U.S. tax filings are made to main compliance.

Addressing these steps will contribute to a successful transition and financial planning for retirement in Australia.