NEW YORK, Aug 16 (Reuters) - Do you dream about living

overseas when you retire? My husband and I like to talk about

our ideal retirement spot. We both like the idea of a beach with

mountains nearby.

Oh, and he needs good sushi.

I want culture and community.

My friend Jill's latest retirement obsession, meanwhile, is

a small town in Spain. (I can't tell you the name because she

doesn't want her secret to get out.)

It's easy to dream. But moving to another country is no

small step. Yet it is one that many have already taken: At least

5.4 million Americans lived abroad in 2023, according to the

Association of Americans Resident Overseas.

The magazine "International Living" recently released its

2024 Global Retirement Index, ranking locales around the world

according to a variety of criteria. Costa Rica is first on the

list while Portugal, Mexico, Panama and Spain round out the top

five.

One big reason for such a move: The strength of the U.S.

dollar in foreign countries. Most Americans are far behind on

retirement savings, so if they can find a location with a much

lower cost of living, the math changes immediately.

Here are tips for anyone considering locales abroad for

their retirement years. Also, it's fun to fill out this Expatsi

survey which suggests places to retire.

Where do you fantasize about living in retirement and why?

If it's in another zip code or even on another continent, have

you taken a test-drive yet? Write to me about the experience at

[email protected].

LIFE AND LEGACY

Every day I log onto Facebook and it feels like someone I

know has lost a person dear to them: A parent, a grandparent, a

sibling, a friend, a colleague. I look at those posts carefully

because I am interested in other peoples' lives. (I guess that's

why I'm a journalist.)

While I never met former Google executive Susan Wojcicki,

I've read enough about her since her death at age 56 to know she

was a force. Many people I respect have shared the kindest words

about her legacy as a leader, mentor and innovator. She was a

working parent (with five kids!) who made family a priority.

My favorite tribute post is from a former Reuters reporter,

Aaron Pressman. The human side of technology is often lost in

the rush for fame and fortune, Pressman writes in this

magnificent reflection, which I implore you to read.

The memory of Susan Wojcicki should remind us to be our

authentic selves.

WHAT I'M READING AND WATCHING

Foreign tourism to Portugal has best first half ever

How to avoid online scams and what to do if you become a

victim

Stonehenge's hefty Altar Stone came all the way from

Scotland

The dramatic turnaround in millennials' finances

Shrinking cash cushions may pinch US consumer spending

What we lose when we lose a pet

US expects billions in savings from Medicare drug price cuts

of up to 79%

VIDEO OF THE WEEK

AI Weekly: Google's Pixel power up. From Google's AI power-up to

Elon Musk's EU data dispute, this is AI Weekly. Watch here.

THE PROBLEM WITH 401(K) MATCHING CONTRIBUTIONS

When you are saving for retirement in a 401(k) account, the

standard advice is to put aside enough to capture your

employer's matching contribution. That makes sense, since the

contribution represents a risk-free 100% return on every dollar

you save.

The match is intended to be an incentive that encourages

saving - but recent research shows there are better ways to get

people to sock away their money. In many cases, the current

structure of matching programs actually contributes to pay

inequity - and they are not the most powerful incentives

available to employers.

"When we first created an employer match, we thought that

was the carrot - the incentive that would get people to

participate," said Fiona Greig, global head of investor research

and policy at Vanguard and co-author of a recent research brief

on matching contributions. "But now we have a much heavier

hammer."

That hammer, she said, includes the rise of plan features

like automatic enrollment, auto escalation of contribution rates

and higher initial default contribution rates.

The problem is that employer contributions tend to benefit

higher-income earners.

Here are some ideas to level the playing field for

retirement savers. Do you agree or disagree? Let me know your

thoughts at [email protected].

EXPERT ADVICE FOR NERVOUS INVESTORS

Things have calmed down, but some of you may still be

worried about your portfolio amid recent market volatility. If

you are still queasy, the best advice I can offer is: Keep calm

and do nothing ... with a few caveats.

Yes, the markets have seen wild swings in the past month on

recession fears, an AI correction, the Japanese yen, the U.S.

election and basically anything else investors can find to

blame.

Research shows that reacting to short-term market moves

never works out well for investors. And that's why I simply do

not look at my accounts whenever the market takes a dive. During

the pandemic, I swear I did not peek at my retirement money for

more than a year!

Here are four worthwhile links to calm your nerves and

provide insight:

As always, personal finance expert Ron Lieber offers up

words of wisdom about market mayhem and bad investment

decisions. (The comments are quite, er, interesting!)

And while the U.S. Federal Reserve cut interest rates amid

stock swoons in the past, my colleagues Ann Saphir and Dan Burns

look into the chance of a rate cut happening now. (Spoiler

alert: Unlikely, they say.)

Suzanne McGee writes about the ETFs that offer investors the

chance to swap some stock market upside for downside protection.

Obviously, some folks might see a downturn as a buying

opportunity or a time to take advantage of tax-loss harvesting.

There are always exceptions to staying put.

The bottom line? Think carefully before you make any big

financial moves.

A$K LAUREN

Do you need to refinance your mortgage? Are you in the

market for a new car? Send your money questions to

[email protected], and I'll tap my extensive source

network and braintrust for expert advice.

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share it with a friend!

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