How Andrew Used His IRA for Golden Visa (And Preserved Cash for Early Retirement)

Meet Andrew from the Pacific Northwest of the United State. He wanted two things: a safety net (Plan B) and cash for early retirement. In just 6 months, they leveraged a self-directed IRA to invest €500,000 in a Portuguese fund—securing residency years before retirement. All while keeping their cash intact.

Curious how they did it? From research in January 2025 to filing, biometrics, and a residence card on the horizon, their strategy is a masterclass in smart, cash-preserving investing abroad.

Client Profile	Andrew & Jodi, Pacific Northwest, USA
Life Stage	Planning early retirement + Plan B simultaneously
Timeline	January 2025 (Research) → April 2025 (signed contract with The Golden Portugal) → June 2025 (Filed) → January 2026 (Biometric)
Total Duration	6 months from filing to biometric
Investment Type	Portuguese Fund (IRA-funded)
Investment Amount	€500,000
Unique Strategy	Self-directed IRA to preserve cash for early retirement years
Status	Biometric completed, residence card pending (90 days)
Key Challenge	Balancing early retirement cash needs with €500K investment
Result	✅ Plan B secured 2-3 years before retirement / ✅ $500K cash preserved / ✅ Residency ready when retirement begins

KEY CONTEXT: DUAL PLANNING STRATEGY

Andrew and his wife, Jodi, weren’t just getting a Portugal Golden Visa – they were orchestrating two major life transitions simultaneously:

1. Early Retirement: Planned for 2-3 years out, can’t relocate at the moment, and need cash to living expenses
2. Plan B (Portuguese Residency): Starting NOW so it’s ready when retirement begins

The challenge: How do you fund a €500,000 Golden Visa investment while preserving cash for early retirement living expenses?

The solution: Use IRA funds for Golden Visa (preserving US$540K cash) + Start 2-3 years early (so residency ready when needed)

Why Portugal worked: No residency requirement (only 14 days every 2 years) to citizenship = Could start the process years before actually needing it, while continuing to work in the US.

The Challenge

Planning Two Major Life Transitions Simultaneously

Andrew and his wife faced a unique situation: they were planning early retirement AND securing a Plan B (Portuguese residency leading to EU citizenship) at the same time. This dual planning created complex financial considerations.

Their dual timeline:

• Early retirement: Planned for 2-3 years out
• Golden Visa goal: Start process now so residency is ready when retirement begins, or as soon as possible
• Key insight: Portugal Golden Visa’s no-residency requirement to citizenship made it possible to start the Golden Visa process years before actually retiring

Why They Needed Both Plans Now

Like many Americans with substantial retirement savings, they had significant assets locked in 401k and IRA accounts, but wanted liquid cash for living expenses during their early retirement years.

The challenge: How do you secure your Plan B (Portuguese residency) while preserving the cash you’ll need for early retirement?

Their specific challenges:

1. Dual Timeline Management
   
   • Want to start the plan B (Portugal Golden Visa) process asap
   • Can’t afford delays that would misalign both timelines
2. Cash is Precious for Early Retirees
   
   • No pension access yet
   • No Social Security access yet
   • No IRA/401k access without penalties
   • Need liquid cash to live on during early retirement
3. The €500,000 Investment Dilemma
   
   • €500,000 investment required for Golden Visa (their Plan B)
   • Using cash would lock it away for 5 years minimum
   • That same cash needed for living expenses during early retirement
   • The core question: How to fund Plan B without depleting cash for early retirement?
4. Timing Was Critical
   
   • Starting now = residency ready when retirement begins
   • Delay = residency process NOT in hand when they need it
   • Earlier start = EU citizenship sooner

“So we’re planning on early retirement. When you retire early, you don’t have your pensions. You don’t have access to your IRA. You don’t have access to your 401k. You don’t have access to Social Security. So you need money to live. Your cash is precious.” — Andrew

The dual planning advantage:

Starting the Golden Visa process 2-3 years before retirement meant:

• Residency card ready when retirement begins
• 5-year citizenship pathway already started
• Plan B fully in place in case of any emergency issues
• Options and flexibility when they need it most

The Solution

The IRA Strategy

Andrew discovered he could use his wife’s retirement account (401k) to fund the Golden Visa investment, preserving their liquid cash for living expenses.

The Self-Directed IRA Approach:

Step 1: Identify the Right Account

• Andrew still working → His 401k locked (can only invest in employer’s fund options)
• Jodi retired → Her 401k could be converted to IRA

Step 2: Convert to Self-Directed IRA

• Standard IRAs (Fidelity, Schwab) don’t allow alternative investments
• Moved assets to self-directed IRA company
• Self-directed IRA acts as custodian, verifies investments are legitimate
• Handles annual US government filings

Step 3: Fund the Investment

• Jodi’s 401k didn’t cover full €500,000 alone
• Used IRA for bulk + supplemented with other sources
• Wired funds directly to Portuguese fund

Step 4: Cut Out Banking Delays

• Traditional route: Open Portuguese bank → transfer money → long KYC process
• IRA route: Wire directly from self-directed IRA company → Portuguese fund
• Saved 4-6 weeks in timeline

“We didn’t quite have enough from the 401k alone to be able to make the investment. And so we had to make up funds from another source. This was a beautiful thing about funds – you can come from multiple sources into the fund to make up the total. So it doesn’t all have to come from your 401k.” — Andrew

Timeline Breakdown

January 2025: Research Phase

• Considered multiple countries (Greece, Portugal, others)
• Portugal’s no-residency requirement = could start years before retirement
• Researched 3-4 agencies

March-April 2025: Decision & Engagement

• Selected The Golden Portugal (fee-based model)
• Began gathering documents
• Set up self-directed IRA

June 2025: Application Submitted

• 2 months from contract signing to application submission
• Avoided bank setup delays by using IRA direct wire
• All documents prepared with guidance from The Golden Portugal

October 2025: Biometric Scheduled (Surprise!)

• Expected 12 months wait
• Scheduled in just 6 months
• “I was actually shocked when we were scheduled back in October”

January 2026: Biometric Completed

• Smooth appointment in Cascais
• Under 1 hour total time
• Payment processed with WISE card (no Portuguese bank needed)
• Residence card pending (90-day processing)

Key Insights and Lessons

Financial Strategy

1. IRA vs Cash Decision Matrix

Option	Pros	Cons	Best For
Use Cash	Simple, no IRA conversion needed	Locks away liquid funds for 5 years, depletes cash reserves	People with significant liquid assets beyond retirement needs
Use IRA	Preserves cash for living, unlocks retirement funds	Requires self-directed IRA setup, more paperwork	Early retirees, people needing cash flow

2. Self-Directed IRA Requirements

• Must be retired OR spouse is retired (if using their account)
• Can’t use employer 401k while still employed (locked to employer’s options)
• Can combine IRA funds + other sources to reach €500,000

3. Cash Preservation Impact

• Scenario A (Using Cash):
  • €500K Golden Visa investment = $540K USD cash
  • Living expenses = $60K/year × 5 years = $300K needed
  • Total liquid cash needed = $840K

• Scenario B (Using IRA):
  • €500K from IRA (tax-advantaged funds)
  • Living expenses = $60K/year × 5 years = $300K cash needed  
  • Total liquid cash needed = $300K
  • Savings: $540K cash preserved

Process & Timeline

1. The 2-Month Achievement

“Our total timeline from start to finish was two months-ish. From essentially signing the contract with you to having our paperwork in. And I think that was possible primarily because we cut the bank out of the loop.”

What Made It Possible:

• No Portuguese bank setup (saved 4-6 weeks)
• IRA provider wire directly to fund
• All documents prepared upfront
• The Golden Portugal coordination with fund manager

2. Bank vs No-Bank Timeline Comparison

Milestone	With Bank Setup	With IRA Direct Wire
Contract signed	Day 0	Day 0
Open Portuguese bank	Week 1-6	Not needed
Fund Subscription	Week 7-10	Week 3-6
Complete investment	Week 10-11	Week 6-7
Submit application	Week 11-12	Week 7-8
Total	9-11 weeks	7-8 weeks

Agency Selection

Why Andrew Chose The Golden Portugal (After Researching 3-4 Agencies):

❌ Agencies He Ruled Out:

• Connected intimately with investment options
• Incentives might align with their investments, not client’s interests
• Complex investment structures hard to understand
• Commission-based model raised conflict of interest concerns

✅ Why The Golden Portugal Won:

Fee-Based Model

“What I really liked about The Golden Portugal was that it was a fee-based organization. I could pay the fee and then I could trust the advice.” – Andrew

Investment Independence

• Not tied to specific funds
• Could research funds independently
• Fund options familiar (listed on exchanges)
• Transparent asset backing

Simplicity

• Funds = familiar investment vehicle for someone with retirement accounts
• Can see what assets funds hold
• Liquid (not tied to illiquid property)

Professional Documentation

• Well-informed online resources
• Clear process descriptions
• Educational approach

Biometric Experience

• Location:
  • Cascais, Portugal
• Duration:
  • Under 1 hour
• Process:
  • Smooth and efficient

What Happened:

• Payment processed smoothly (used WISE card, no Portuguese bank needed)
• Paperwork all prepared by The Golden Portugal
• Tips: Needed boarding passes showing entry to country if you entre the Schengen area via another country
• No follow-up information needed
• In and out efficiently

Payment Solution:

• Brought 3 different bank cards as backup
• Used WISE (TransferWise) account
• Pre-converted USD to EUR at favorable rates
• Worked just like regular Visa card
• No transaction fees
• Can time currency conversion for best rates

Portugal’s Constitutional Review

The Policy Change That Increased Confidence:

During Andrew’s application process, Portugal proposed immigration law changes. Many applicants worried, but Andrew’s confidence actually increased.

Why?

1. Presidential Review
   
   • President required to review before signing
   • “We need to see whether or not this is constitutional”
2. Parliamentary Scrutiny
   
   • Parliament kicked law back for review before even president’s action
   • Multiple layers of checks and balances
3. Constitutional Court Ruling
   
   • Generally said: “We can’t change these things because they change certain rules on people that you just can’t change mid-life”

“All of this, to me, speaks to stability. The stability of a rules-based society and organization. This sort of society that cares about not changing the rules on people. So that actually increased my faith, even if it might have increased our timetable.” — Andrew

Lesson: Portugal’s legal system protects is a rules-based society, and non-constitutional changes can’t get thru, demonstrating institutional stability – crucial when planning your Plan B years in advance.

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Why Portugal vs Other Countries

Portugal Golden Visa’s No-Residency Requirement Path to Citizenship = Perfect for Dual Planning

“Portugal’s not needing to reside allowed us to kick off the process way earlier than we would be able to kick off the process if we waited until my retirement. My retirement is a couple of years away but we wanted to get that process started so that we could have the Portuguese residency ready to go the minute that our retirement wrapped up.” — Andrew

Why this mattered for dual planning:

• Start Golden Visa process 2-3 years before retirement
• Residency ready when retirement begins (not years after)
• 5-year citizenship pathway already started when you retire
• Can continue working in US while process runs
• Plan B secured without disrupting current life

“Being able to start the process essentially a couple, three years earlier, and then be that much closer to being able to have citizenship and unlocking being able to reside anywhere in the EU was extremely attractive, so that’s what settled us in Portugal.” — Andrew

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The Results

Immediate Outcomes

✅ Application Filed: June 2025 (2 months from engagement)
✅ Biometric Scheduled: October 2025 (4 months after filing, not 12!)
✅ Biometric Completed: January 2026
✅ Residence Card: Expected April 2026 (90 days from biometric)

Dual Planning Success

Plan B (Portuguese Residency):
✅ Residency will be ready when retirement begins – No waiting after retiring
✅ 5-year citizenship pathway already underway – Earlier than if waited
✅ EU mobility options secured – Future flexibility achieved

Early Retirement Preparation: 

✅ Cash Preserved: ~$540K liquid cash retained for living expenses
✅ IRA Utilized: Unlocked retirement funds for productive use
✅ No disruption to current employment – Continued working while process ran
✅ Financial plan intact – Both major life goals funded without compromise

Peace of Mind

“I couldn’t be more happy that we started when we did, that we pulled the trigger and got things moving. If I hadn’t started, I would want to start now in order to get things moving.” — Andrew

The Not-At-Peace Reality:

“I’m not yet at peace, because there are always pieces you’re watching, right? Until you’re done, done, you’re always anticipating that next step. But I couldn’t be happier that we started when we did.” — Andrew

Even with success, Andrew acknowledges the natural anxiety of managing two major life transitions. But starting early meant:

• Time to adjust to the process
• Margin for any unexpected delays
• Confidence that both goals will align
• No rush or panic decisions

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ADVICE FOR OTHERS

The Dual Planning Strategy

Andrew’s situation is increasingly common: Planning major life transitions (retirement, relocation, Plan B) simultaneously requires coordinated financial and timeline strategy.

Key insight: Portugal Golden Visa’s no-residency requirement makes it uniquely suited for people planning ahead because you can:

• Start the process years before you actually need it
• Secure your Plan B while continuing current life
• Align residency timeline with other life transitions
• Preserve cash for immediate needs while using retirement funds for long-term investment

Andrew’s Tips for Prospective Applicants

• 1. On Dual Planning:
  • “We wanted to get that process started so that we could have the Portuguese residency ready to go the minute that our retirement wrapped up.”

Key takeaway: Start your Plan B process before you actually need it. Portugal’s flexibility allows this.

• 2. On Using IRA:
  • “Taking your cash and putting that into a five-year investment locks it away for those five years. We need money to live on for those five years. So we didn’t want to use our cash. We wanted to use our IRAs, and that’s one of the reasons why it mattered so much.”

Key takeaway: If you’re planning early retirement, preserve liquid cash. Use IRA if possible.

• 3. On Timeline:
  • “Until you’re done, done, you’re always anticipating that next step and watching very closely. But I couldn’t be more happy that we started when we did.”

Key takeaway: Process takes time. Start earlier than you think you need to.

• 4. On Agency Selection:
  • “I didn’t want to engage an organization that was tied up with the investments, because it made me worry maybe not intentionally, but their incentives might align more with their investment options than with me.”
    

Key takeaway: Look for fee-based agencies with no conflict of interest.

• 5. On Portugal’s Stability:
  • “The stability of a rules-based society and organization… that actually increased my faith.”
    

Key takeaway: Pay attention to how a country handles policy changes. Portugal’s institutional checks impressed Andrew.

• 6. On Starting the Process:
  • “And I think if I hadn’t started, I would want to start now in order to get things moving.”
    

Key takeaway: Don’t wait for “perfect timing.” Start now to have options ready when you need them.

FREQUENTLY ASKED QUESTIONS