Ahh, retirement. The word itself exudes relaxation and rest; it makes you want to find a summer home or take a nap on a beach somewhere.
Managing wealth is one of the first things I think of when I hear the word ‘retirement’ and the next is ‘moving’. Many of us just decide we’re tired of cold weather or just want a new adventure and choose to live in another state to enjoy our retirement. But what should you consider or be prepared for when making a big move? Of course, each situation is unique but here’s a general list of tips you should consider when relocating:
1. Consider overall cost of living
When retiring in another state, it’s important to think about how different living costs will be. Two words for you: Geographical Pricing. It’s a pain to acclimate to, but necessary. Nebraska-grown beef is double the price in coastal areas while a California avocado is double the price in Nebraska. Housing and other expenses differ across the nation and it’s important to be aware of how much more you might be spending on cost of living.
2. Research tax-friendly states
Retirees will likely be paying property taxes and sales taxes so it makes the sense to consider states based on their overall tax burden. While it may not be the most crucial step in retirement planning, it’s another way to get the biggest bang for your retirement buck!
3. Determine what environment appeals to you
Of course, the environment you prefer is a personal preference, but I’m not just talking about the weather. Many people in retirement want to work on keeping their mind and body sharp. A real popular thing that people think about in retirement is self-growth and learning. Often times retirees will choose to live in a college town where audit classes are offered for the free or very low cost to keep their minds active and to stay socially integrated and connected.
4. Think about quality of long-term care nearby
Do some research on the quality of medical care offered in the location you’re considering. Many of us have to consider assisted living or retirement communities as we age. Check out some of the facilities in the area so you have an idea if that time comes.
5. Talk with your attorney about an Estate Plan
Planning your estate can be the best way to protect your legacy and save your family expenses, delays and the overall frustration of managing your estate. Getting this taken care of now will allow you to enjoy your retirement without worrying.
6. Find recommendations for service providers
If you’re at retirement age, you’ve probably established a great relationship with some of the people that provide you with medical, lawn care or even plumbing and such. Consider the cost differences and different people you’ll be working with if you retire in another state. If you know someone who lives there currently, give them a call and ask for their recommendations.
7. Moving Essentials
Don’t forget to speak to your doctors and have them transfer medical records. Forward your mail and inform all companies that you receive and send important information of your address change. Also, get a final check up on your vehicle to be sure it can make the drive. Tying up these odds and ends will make the big move much easier on you.
Retiring is a big step and trying to choose a place to live is an important decision. Hopefully, these steps will smooth your transition and provide a happy and sound future in an enjoyable and exhilarating new place. If you are wondering what to expect when it’s your financial advisor that’s retiring, you can check out our article “Does your Financial Advisor have an Exit Strategy?” to learn more about what to expect.