What Avnet Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Avnet's healthcare provider is typically managed through Aetna, offering comprehensive health benefits to its employees. As the year 2026 approaches, significant challenges loom over healthcare costs. The expiration of enhanced federal subsidies for the Affordable Care Act (ACA) is anticipated to trigger premium hikes that could exceed 60% in some states, placing financial strain on millions of enrollees. With medical costs continuously rising and projections indicating a general cost increase of approximately 7.5% for individual plans, consumers may face alarming out-of-pocket expenses, significantly impacting access to healthcare services. The confluence of these factors necessitates proactive planning for both employers and employees to mitigate the potential financial burden ahead. Click here to learn more

For example, Avnet employees planning on moving overseas need to have a clear plan of action to overcome the challenges of acquiring residency and citizenship in another country,' according to Brent Wolf from The Retirement Group at Wealth Enhancement Group.

Kevin Landis of The Retirement Group, a division of Wealth Enhancement Group, explains why detailed planning is crucial for Avnet employees who intend to retire abroad. However,

In this article we will discuss:

1. The complexity of obtaining residency or citizenship abroad: Discussing the legal, financial, and cultural issues that are involved in moving overseas for Avnet employees.

2. The necessity of professional advice and planning: Emphasizing the importance of thorough preparation and professional advice to ensure a smooth transition to retiring abroad.

3. Tax advantages and financial planning for retirees: Explaining the possible tax advantages that are available through international treaties and the strategic financial planning that needs to be done for the retirement savings of Avnet employees.

Simply for political, economic, and social reasons, many Avnet employees are looking to secure citizenship or residency in other countries if the United States is not as attractive as it once was. But, getting residency in another country and, perhaps, citizenship is not as simple as just buying a plane ticket and setting an itinerary.

This is because there are many processes that may take a few years to accomplish at times. The more people who are considering these options, the more difficult these choices become. It is therefore crucial to identify the legal, financial, and cultural implications that arise in order to ensure a smooth transition to a new home overseas before embarking on this journey.

Without a proper plan and some professional advice, it can be quite a challenge to switch gears and retire during your tenure at Avnet.

The impact of potential tax advantages when retiring abroad will definitely affect your financial position. Many countries, including the United States, have tax treaties that prevent income from being taxed twice. For instance, pensioners are attracted to Portugal by the Non-Habitual Resident (NHR) regime that offers special tax concessions for up to 10 years.

You can enhance your retirement benefits by taking advantage of these perks and seeking the advice of a tax specialist. The IRS notes that because these treaties can be very different it is important to research and seek the advice of a professional (IRS, 2023). These advantages must be used by Avnet employees to enhance their retirement.

Expatriating and retiring is a process of planning a long and beautiful road trip. Just as you would not travel without a map, a well-maintained car, and knowledge of your location, Avnet employees who are retiring abroad need to plan carefully.

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Step by step, you will be guided on how to make your transition to your new home easier, from explaining cultural differences and tax benefits to helping you understand the legal and financial environment. Just as a road trip opens new views and experiences, retirement abroad presents a world of possibilities for a happy and comfortable retirement.

Sources:

1. The Warren Street Wealth Advisors Team. 'Avnet and Large Company Employees.' Warren Street Wealth Advisors, 3 Feb. 2025, Accessed from warrenstreetwealth.com.

2. 'US Taxes for Americans Retiring Abroad in 2025.' MyExpatTaxes, 20 Nov. 2024, Accessed 3 Feb. 2025 from myexpattaxes.com.

3. Toms, Mary, CPA, MBA, MS. 'US Tax Implications of Retiring Abroad: What You Need to Know.' PBMares, 10 Dec. 2024, Accessed 3 Feb. 2025 from pbmares.com.

4. 'Financial Planning for US Expatriates.' The Expat Financial, Accessed 3 Feb. 2025 from expatfinancial.com.

5. 'Retiring Overseas: What You Need to Know About Your US Taxes and Financial Planning.' Expat CPA, Accessed 3 Feb. 2025 from expatcpa.com.

   What is the Avnet 401k plan?

   The Avnet 401k plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for their financial future.

   How can I enroll in the Avnet 401k plan?

   To enroll in the Avnet 401k plan, employees can log into the employee portal and follow the enrollment instructions or contact the HR department for assistance.

   Does Avnet offer matching contributions to the 401k plan?

   Yes, Avnet offers matching contributions to the 401k plan, which means the company will match a certain percentage of your contributions, helping you save more for retirement.

   What types of investments are available in the Avnet 401k plan?

   The Avnet 401k plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance and retirement goals.

   When can I start contributing to the Avnet 401k plan?

   Employees at Avnet can start contributing to the 401k plan as soon as they are eligible, typically after completing a certain period of employment.

   Is there a vesting schedule for Avnet’s 401k matching contributions?

   Yes, Avnet has a vesting schedule for its matching contributions, which means employees must work for a certain number of years before they fully own the matched funds.

   Can I take a loan from my Avnet 401k plan?

   Yes, Avnet allows employees to take loans from their 401k plan, subject to certain terms and conditions outlined in the plan documents.

   What happens to my Avnet 401k if I leave the company?

   If you leave Avnet, you have several options for your 401k, including rolling it over to a new employer’s plan, transferring it to an IRA, or cashing it out, though penalties may apply.

   How often can I change my contribution amount for the Avnet 401k plan?

   Employees can change their contribution amount to the Avnet 401k plan at any time, but changes may take effect in the next pay period.

   Are there any fees associated with the Avnet 401k plan?

   Yes, there may be administrative fees or investment-related fees associated with the Avnet 401k plan, which are disclosed in the plan documents.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Avnet announced a restructuring plan to reduce its global workforce by 10% in response to decreased demand and economic uncertainty. The company is also adjusting its benefit offerings to better align with its reduced workforce.