Moving and Retirement
“Should I stay or should I go?”
Retirement is a daunting thought for some. It is also an exciting time of your life. Now that retirement is here, you may be thinking, should we sell our home and move out of the area or stay where we are comfortable. There are two different decisions that should be considered when relocating during retirement.
The first decision is an emotional one, should I leave my friends, family, and memories behind. If your friends have also started retiring, many may also move away to warmer or more tax friendly states. Your kids may have relocated for work. So, for many, moving to a warmer more tax friendly environment is welcomed. Once you’ve decided you are able to move on, it’s all about the numbers.
It is also important you find a place you enjoy and feel comfortable. The quantitative decision to make is whether it is the right financial decision. When the paychecks stop, every penny seems to matter a little bit more. So, while you were working, paying $10,000 per year in taxes wasn’t the end of the world. Now that your savings will be providing the lion share of your income, you may want to move to a state where the property taxes are less of a burden.
Recently, one of my clients sold their home in New Jersey. They had been looking at properties in Florida where some of their friends had moved. Not only will their taxes be 1/3 of what they were paying. My clients found a beautiful home on a golf course where all they need to do is close the door behind them. The home also has a great layout if mobility ever became an issue for them. This will save them over $2,000 per month and allow them to spend more of their resources on the things they love to do.
Relocating is not for everyone. Family and friends are important. Many of my clients retire to spend more time with their children, grandchildren, and friends. For some people looking to retire, relocating can help make your retirement dreams a reality.
Here is a quick video summary of what Social Security actually is!