Core Insights - The article discusses how relocating to Portugal has allowed a former lawyer, Alex Trias, to grow his net worth despite retiring early at age 41, highlighting the financial benefits of living in a country with a lower cost of living compared to Washington, D.C. [4][6] Cost of Living and Savings - Washington, D.C. ranks fifth among the most expensive U.S. cities, with a median income of $71,552 for workers aged 45-54 and $67,704 for those aged 55-64 [1][3] - Trias and his wife save approximately $74,000 annually by reducing costs in property taxes ($14,000), state income taxes ($15,000), health insurance ($25,000), and daily expenses ($20,000) [2] Retirement Strategy - Trias and his wife initially expected to deplete their retirement savings but instead found their net worth increasing due to lower living costs in Portugal [2][3] - They maintain a strategy of living below their means, reinvesting savings, and allowing compounding to enhance their wealth [6] Considerations for Retiring Abroad - The article notes that while some countries like Switzerland and Norway are expensive for American retirees, others like Mexico and Poland are more affordable [8] - Tax implications are significant when retiring abroad, as U.S. citizens must file tax returns regardless of residency, and some retirement accounts may not have the same tax benefits outside the U.S. [9][10][11] Health Care and Insurance - Health care costs can vary significantly, and retirees will need international health insurance since Medicare does not cover services abroad [14] - In some cases, health care may be cheaper in the new country, allowing retirees to pay out of pocket [14] Financial Planning - The article suggests consulting with a financial adviser specializing in international retirement to navigate potential costs and tax implications effectively [15]