Americans Flee America

I need to be clear up front: Today’s dispatch is not political commentary.

But I have to use a news item tied to politics to explain my message…

Over the weekend, I was catching up on news stories I’d set aside because the headline grabbed me as I was scrolling through my newsfeed.

This is one headline that I’d set aside:

Millions Of Americans Are Considering A Mass Exodus If Donald Trump Wins Again, Says Report

As I said, this is not political commentary.

It is, instead, a call to action…

That story is exactly what you assume it to be… though I will say it’s very unlikely that “millions” actually will leave.

The number is based on an analysis of Gallup Poll surveys over the years, in which the polling firm asked Americans if they would move to another country permanently if they could.

As the story noted:

At the end of George W. Bush’s presidency, for instance, 11% said yes. During Barack Obama’s presidency, the figure was at 10%. Under Trump, it rose to 16%, indicating that 40 million Americans considered leaving the country for good.

I track this stuff as part of my job and as part of my personal interest as an American expat living, working, and aiming to retire in Europe.

And I can assure you that 40 million Americans have not decamped recently for a life abroad.

Nor did 28 million when Baby Bush was president.

That said, the Atlas of Migration indicates that the U.S. of A. has the world’s largest number of emigrants—some 51 million Americans live outside America’s borders.

That represents about 18% of all the migrants in the world.

That’s an impressive number.

I don’t know if it’s right, however, since the US State Department says about nine million Americans live abroad as of last year.

The top three destinations by region: North America (so Canada, Mexico, the Caribbean); Europe; South/Central America (yes, I know Central America is part of North America, but that’s how the researchers divided it…)

Whatever the number, the reality is that Americans are increasingly fleeing their homeland as economic, lifestyle, and political refugees.

And if the headline that prompted this dispatch reflects true intentions, then a Trump win in November would see a tsunami of Yanks packing up their tents to find a more comforting life overseas.

Which is where my real message today comes in…

I am one of the loudest advocates you’ll find for building a Plan B into your life. An escape hatch. An ejection-seat lever.

Based on the emails I get from readers and the conversations I have with Americans, the folks who see value in this very often don’t know where to look.

They’ve visited various countries on vacation, and loved some particular place, but they’re not sure if that’s the place to go or if there are better destinations.

And, more important, they’re not sure how to start the search.

My two cents: The places you love for vacation can be fine, but very often aren’t. Vacation mode is not daily-living mode. You’re in a different atmosphere when you’re in a hotel at the beach or in the center of Paris or Bogota or wherever.

Instead, I suggest you go about this process in a more practical fashion…

1. Are you looking to retire overseas or work aboard?

That answer plays into your tax situation, which plays into the lifestyle you can afford overseas.

Retirees are pulling in passive income, workers are pulling in earned income. Various countries tax each bucket of income differently. Moreover, some countries offer big tax breaks on retiree/passive income, while others offer huge tax incentives to foreign workers. Italy’s  Regime Impatriati is a good example. Depending on where you choose to live and work, you can exempt as much as 90% of your earned income from Italian taxes.

(By the way, if you want to drill down more into taxes for Americans abroad, International Living’s global diversification expert, Ted Baumann, has a highly informative seminar coming up. You should check that out.)

Start your Plan B process by determining the type of income you’ll live on… and then looking for the countries that treat that income most favorably.

That will allow you to spend less money living overseas and, thus, pursue a richer, more fulfilling lifestyle.

2. Where can you get a residence visa, or where can you afford to buy residency and/or a passport?

You might love Scotland. I do.

But good luck getting a retiree visa, or a work visa unless you’re hired by a local firm.

Where you can obtain the right residency documents, and at a price you can afford, will go a long way in shaping your choices.

3. Beach, city, or mountains?

What really makes you happiest?

In moving to Cascais, Portugal, my wife and I really thought returning to the seashore would agree with us. And it does… to a degree.

But we’ve come to realize that a smaller beach city is not the lifestyle we truly love. We’re urban folk. Parks, museums, cafes, shopping at your fingertips.

So, we’re looking to relocate now to the heart of Lisbon.

4. What kind of weather do you like?

If you truly want sun 365 days a year, then you can write off most of Europe, except the southern-most reaches of Spain, Malta, and some of the southern Greek islands.

The rest of the continent, including southern Portugal, gets its fair share of rain and some cold weather.

If you want four seasons, then you’re going to want to avoid all those southern European places I just mentioned, as well as all of Latin America and Southeast Asia.

By knowing what you’re really looking for, you can begin to whittle down your choices to places with your kind of weather, with your kind of environment.

And by doing your research early, you’ll know if they have residency documents you can obtain relatively easily… and a tax situation that enhances your lifestyle.

But start doing the homework now…

If that headline is even remotely accurate, you might find long lines of Americans ahead of you… all waiting to file overseas visa and second-passport applications.