Retire Abroad or Right at Home?
Thinking of retiring abroad with $1.3 million in your IRA and a house paid off? You’re not alone. We dig deep into real-life retirement questions—from overseas cost-of-living to Roth IRA rules—and walk through what it takes to retire securely in 2025 and beyond.
One listener shared a detailed scenario: semi-retired, with $1.3 million in IRAs, $25,000 in a brokerage account, $80,000 in emergency savings, and $50,000 in an HSA. They’re debt-free and own a $400,000 home, plus earn $1,600 a month in rental income. The goal? Retire abroad in Asia on $120,000/year and claim $4,300/month in Social Security at age 70. Big Al says it’s doable if the spouse works until 65. But if both retire early? The 6.7% withdrawal rate might raise eyebrows.
I recommend “boots on the ground” visit the country you’re moving to. Online research is one thing. Real-world medical systems, insurance, and inflation are another.
Another hot topic: spousal Roth IRA contributions. If you’re retired but your spouse earns income, you can contribute to a Roth IRA. Just remember pension income doesn’t count as “earned income.”
One listener asked if they could fund both an employer Roth and a personal Roth IRA. Absolutely. The 2025 contribution limit is $30,000 for a 403(b) plan and $8,000 for an IRA—two separate buckets, both worth filling.
Roth conversions got their own spotlight. Joe and Big Al emphasized staying under the 22% tax bracket (around $200,000 in taxable income) and using brokerage funds to pay the conversion taxes. And if you’re doing this, make a multi-year plan—don’t wing it year-to-year.
Another caller, Ricochet Jay, had $285,000 saved, $10,000 in a brokerage, and $800,000 in rental property equity. Could she retire in her late 50s or early 60s? Not yet. Joe and Big Al estimate she’ll need $1.5 million to support her $96K lifestyle. They advised saving aggressively, maxing out a Solo 401(k) for her husband, and keeping her stock-heavy allocation because her pension and rental income create a solid foundation.
Barney and Betty, another couple, came in with $5 million in assets $3M pretax, $450K in 457 accounts, $1.5M Roth, and $2M in brokerage. Spending $22K/month, they’ll need $8.8M to sustain that at a 3% withdrawal rate. But if they cut spending to $17K/month in five years? Game-changer. The advice: don’t move money from brokerage to retirement accounts if it triggers a tax bomb—focus on Roth conversions instead.
On lifestyle: the show had a lighter moment with travel stories, ocean swims, Airstream dreams, and even naming vehicles. Joe prefers New Zealand Sauvignon Blanc, while Big Al leans Kentucky bourbon.
When it comes to asset allocation, Ricochet Jay’s aggressive stock exposure was endorsed she’s got stable income from her pension and rentals. Joe and Big Al love low-cost index funds and long-term strategy, especially for younger retirees.
Barney also asked about withdrawal rates when to shift from 3% to 4%. They laid out a flexible rule of thumb:
- 3% from ages 50–55
- 3.5% from 60–64
- 4% at 65+
Finally, Joe and Big Al reminded everyone: financial planning software is your friend. It helps you stress-test scenarios, including Social Security timing and spending needs. Retirement isn’t a set-it-and-forget-it moment. It’s a journey plan accordingly.
Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.
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• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.
• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
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• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
