6 Steps to Planning an Exit Strategy

Things you can do now to make a future exit easier

More and more Americans, especially older ones, or those with health needs, modest incomes, or simply a low tolerance for political chaos, are interested in considering how they might leave the US if they feel they have to at some point. These aren’t doomsday preppers or conspiracy theorists, but practical people who have been watching the warning signs and worried about the future. And as I’ve written numerous times, there is tremendous psychological value in creating an exit strategy that you may intend to never use. Having an exit plan brings you a sense of peace, control, and autonomy, which can, in turn, give you strength to keep fighting the political wave of authoritarianism. It’s like buying fire insurance for your house: It helps you sleep at night and you hope you’ll never need it.

What is an “exit strategy”?

It is simply preparing options for long stays abroad that you can enact quickly if and when it was ever needed. Here’s how to start building such a strategy even as you continue your regular life in the US.

Step 1: Know What Kind of Exit to Plan

An exit strategy isn’t one-size-fits-all as there are many types of exits. So before you do anything else, get clear on what you actually want, or more accurately, what you might need in the future. Although you should be open to allowing your plan to evolve over time, having a baseline goal is a good first place to start. Here are some examples:

• Emergency Refuge: A place you would go quickly if things go south (even temporarily).

• Snowbird lifestyle: Spend part of the year abroad to escape US politics.

• Permanent move: A full relocation, with the goal of settling elsewhere permanently.

• Family strategy: A plan to protect your kids, grandkids, or vulnerable family members (especially those who might be targeted under future regimes).

  

  Photo by Jan Canty on Unsplash

Step 2: Obtain Your Key Documents

If you had to apply for a visa, passport, or residency abroad tomorrow, would you have the needed documentation? If not, these documents can take time to obtain so apply for them now. Democracies-turned-authoritarian regimes very often eventually limit the ability of its residents to leave, and one common method is slowing or blocking access to needed government records, such as passports.

Below are the documents most often requested from other countries you seek to get a visa for:

• Birth certificate (long-form)

• Passport (valid for at least 6 months)

• Marriage or divorce certificates

• Bank and income statements

• Proof of health insurance

• Vaccination records (especially post-COVID)

Get physical and digital copies. Store them in a cloud folder and on an encrypted USB stick. Make sure someone you trust knows how to access them.

Step 3: Learn the Basics of Leaving

Take into account some general issues that you’ll want to consider when looking at various potential exit locations. Go to immigration consultant websites and government websites for answers to these questions about your country(ies) of interest:

• How long can you legally stay as a visitor without a visa?

• What visas are available to Americans such as yourself. For example, retirees, income-based, ancestry, student.

• Tax implications. As an US citizen, you’ll always file US taxes, but does your country of interest have a tax treaty (so that you aren’t double taxed), and what are the implications of it for your income sources?

• How might the location and time period of your exit have implications for your benefits such as medicare, Social Security, SSD and such?

Pro Tip: For those interested in Canada, you can hire a Canadian certified immigration consultant for a zoom call to discuss whether you have the ability to come to Canada and through which pathways. Such a consultation costs about $125 to $300. Quite likely other countries offer similar services that are only a google search away.

Step 4: Clean Up & Diversify Your Finances

How liquid are your assets if something were to happen, such as currency shifts, banks freezing funds, or travel restrictions implemented? Experts recommend these actions:

• Where possible, reduce debt and liabilities. This is ideal advice at the best of times, but in this context, the less you are tied down by debt, the better.

• Consider diversifying. Consider moving some funds to US based international banks or institutions with a global presence. Examples might include HSBC or Citibank International. You can open multi-currency accounts or offshore accounts while in the US. Consult with your financial advisor about best possibilities as well as any tax implications.

• Create a “go” fund: Even if you can’t move now, having $5k–$10k in a separate, accessible account can make all the difference in an emergency.

• Consider income sources abroad: Can you work remotely? Collect retirement abroad? Do you have skills that transfer across borders?

Step 5: Choose a “Test Country” and Visit

You don’t need to know exactly where you might go. But you should pick one or two countries and start building familiarity. Maybe it’s Canada and Portugal or Uruguay and Mexico. Depending upon your ability, try to visit for a few weeks or months. Test the basics:

• Can you get by with your language skills?

• Is the cost of living within your budget?

• Would you be able to access healthcare easily & in a way that meets your medical needs?

• How do you feel: Connected? Safe? Respected?

Every country has pros and cons, so visiting helps move it from abstract and opinions online, to something more tangible and relevant to you specifically. And even if you cannot travel now, you can explore remotely: read local news from that country, join expat forums, or follow region-specific YouTube channels.

Step 6: Build Lifestyle Flexibility

You don’t have to go “full expat”, but you can enact small decisions that increase your ability to depart if ever needed. The goal is to build flexibility. If and when you want to go somewhere for 3 months, 6 months or even longer, what can you do now to make it less disruptive and difficult later on? Here are some examples to get you thinking along the right lines:

• Cancel subscriptions tied to one address or region

• Downsize: Reduce your possessions. Digitize records. Sell or donate things you wouldn’t take with you.

• Sign up for a virtual or remote mailbox service. A virtual mailbox service can provide a US address to receive your physical mail and packages. These services scan mail, allowing you to view it digitally, and also offer options to forward physical mail and packages to your preferred location for a fee.

• Reduce U.S. location dependence. Can you put off buying a property and continue to rent? Look at making your home rentable if you were to leave? Can you switch to a bank that is accessible outside the US?

Final Thoughts: Don’t Wait Until It’s Urgent

There are a host of psychological reasons why we tend to underestimate the speed of the march toward authoritarianism. From history we know that most people assumed they had more time than they did. Things day to day may look and feel normal, we may not want to ever think of leaving the country we love, and moving is a hugely disruptive consideration. However, very important big changes can happen quickly. One day you can awake and the headlines tell you there is a new travel ban for residents, or a new law that makes living in the US too risky for you or your loved ones, and you may not have time to plan any options.

Your exit strategy doesn’t have to be dramatic and it most definitely doesn’t mean you will actually exit. You may quite likely feel you would never leave. However, having a plan gives you some sense of security in a changing and scary political landscape.

Thanks for reading!
Canada Resists