Pulling up stakes in retirement

Posted By: Robert Martino, CFP®, CRPC®

Have you ever dreamt of living somewhere else? Retirement may bring many possibilities for a new place to call home. If you’re intrigued by the notion of living somewhere new, there are myriad possibilities. Every year new lists of retirement hot spots are released across the country to pitch their charms and woo potential senior citizens. Before you jump on the wagon, take a personal inventory of the circumstances you believe will best satisfy your wanderlust.

 

Be clear about your motivation

 

Start by considering a geographical location. Are you drawn to cultural activities or interested in lifelong learning? Then nearness to a city or university might fit the bill. Do you crave a warmer climate? If so, weather needs to factor in your decision. Do you just want to be closer to your grandkids?

 

Fair weather friend

 

Droves of retirees regularly flee our nation’s colder climates for permanent resettlement in balmier states like Texas, Florida or Arizona. Ask yourself how important weather is to your mental and physical health as you age. Can you tolerate temperatures that exceed 100 degrees in the summer months to forgo frigid winters? Are you prepared to deal with water shortages and potential hurricanes or tornadoes in exchange for extra sunshine?  Year-round warmth is not for everyone, and you may be willing to risk frostbite rather than miss the change of seasons, so be clear on your preferences.

 

Family matters

 

What will the rest of the family say when you opt for a permanent change of scenery? Proximity may affect how involved you can be in your adult children’s lives when you move far away. However, technology makes staying in touch easier than ever. Take into account that travel can become more difficult as you age. On the other hand, if you’re moving to get nearer to your kin, think through both the potential pleasures and drawbacks of closer proximity. For example, will you be an eager or reticent go-to babysitter?

 

Make sense of the dollars involved

 

Give serious thought to what you can afford when choosing your new destination. You could pay a premium to live in your idea of paradise, near great healthcare facilities and an exciting metropolis. Investigate cost of living, comparison shop and see where you net out. It may be worth every penny to retire where you’ll be happiest if you can swing it.

 

Plot your escape

 

If you are contemplating a move in retirement, do your homework to make it work. A financial planner may help you get a grip on how your retirement finances will be impacted by a move, and your accountant can weigh in on the tax implications of relocation. Making yourself at home in a new region of the country in your twilight years can be a delightful journey if you choose your destination wisely.