One practical key to making a success of a retirement adventure overseas is being able to manage administrative and financial tasks virtually. You don’t want to have to worry about not being able to access an account to get cash, move money where you need it or pay a bill. You want these critical functions to be hassle-free, not a distraction in your new life in paradise.
To manage your administrative and financial life you will need a bank account. You will probably need two accounts — one account back home in the place where you’re moving from and a new account in your chosen retirement spot. You can use the new account to pay local bills and expenses.
[Read: The 10 Best Places to Retire Overseas in 2018.]
First, consider your existing account where you live now. You probably already have internet banking set up to check account balances and pay bills online. If not, that’s the first step. Go to your bank’s website and follow the instructions. If you find that your bank doesn’t offer all the services you need online, switch banks. You don’t want to relocate to another country without the ability to do your banking transactions online.
Here are the functions your bank should provide:
— Online account access so that you can check account balances anytime from anywhere.
— The ability to move money from one account to another electronically.
— The ability to send a wire transfer without appearing at a bank branch. How are you going to stop in at your bank in Des Moines to initiate a wire transfer if you’re living on the coast of Belize?
— Online bill paying capability. Look for the ability to write and issue checks electronically that the bank then puts in the mail for you.
Next, you need a new account in the country where you’re planning to relocate. Like everything else in your new life overseas, opening a bank account is not going to be accomplished the way it is in the United States.
In the U.S., to open a checking account at your neighborhood bank, you walk in, sit down with an account representative, answer a few questions, fill out some forms and, in no time, you’ve got a bank account.
That’s not how it works in the rest of the world. Banks worldwide have to comply with more onerous “know your client” standards. In addition, many countries view opening a bank account not as a right, but as a privilege.
[Read: The 3 Best Places to Retire on the Beach.]
Every country’s requirements are different, and every bank processes the requirements in its own way. But the bottom line is that you’re going to have to jump through some hoops. Depending on the jurisdiction, the process can take weeks or longer. Don’t let this deter or frustrate you. It’s just paperwork.
Here’s what you will need to open a bank account in a foreign country:
— Two banking references. If you have only one bank account currently, you might be able to substitute a letter from a credit card company for the second bank reference.
— At least one professional reference. Your professional reference could be from an attorney or accountant in the country. The attorney helping with your residency visa or the purchase of your home should be happy to help.
— Two forms of photo identification. This is typically your passport and a second ID, such as a driver’s license.
— Proof of address. Most banks prefer a utility bill in your name.
[See: The Best Places to Retire in 2018.]
After you’ve compiled these documents, set a time to meet with a bank representative. You are likely to need an appointment. An introduction or personal referral from someone already doing business with the bank is ideal. During your meeting, you will be asked some questions intended to help the bank prepare for the account activity you’re planning:
— Why are you opening this account?
— How much money will you be depositing initially?
— Where will that money be coming from?
— How much money do you expect to receive into the account on an ongoing basis?
— What will be the source of those funds?
— How much will you be withdrawing from the account each month?
This is all part of creating your file. Don’t let this dampen your enthusiasm about relocating overseas. Moving to a new country for retirement comes with hassles — such as opening a local bank account — but the upsides more than compensate.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.
More from U.S. News
How Retirees Can Take Advantage of Higher Interest Rates
4 Overseas Retirement Spots That Use the U.S. Dollar
10 Places to Retire on a Social Security Budget
How to Open a Bank Account Overseas originally appeared on usnews.com
