Money Management Advice for Expat Retirees

You're finally ready to realize your dream of retiring outside the U.S. But before you give in to the lure of sunny beaches, a rich culture, family ties or the low cost of living in a new country, you'll need to brush up on the nitty-gritty of managing your money as an expat.

Retiring abroad will likely make your financial life more complex, especially when it comes to taxes and your investment and bank accounts. But with some foresight--and help from a financial adviser and tax professional--you can overcome the challenges. "When you get overseas, you realize it's not as difficult as you thought it was going to be," says Jeff Opdyke, an American citizen currently living in Prague and editor of The Savvy Retiree, a publication from International Living magazine.

Banking and credit

You may be able to get by without opening a bank account in your country of residence, but there are good reasons to do so. It's usually the most practical way to pay for rent, utilities and other local services. And if you use your U.S.-based debit card to make ATM withdrawals overseas, you'll likely be hit with foreign-transaction fees and charges for using out-of-network machines. To choose a bank, ask locals which institutions they recommend, suggests Opdyke. He settled on a bank that offers an English-language mobile app.

Maintaining an account in the U.S. is usually a good idea, too. You can use it on visits stateside, and it may be