Location, Location, Location

One of the key factors in planning your retirement lifestyle is picturing where you will be living. Nothing is more disheartening than to hear people say they wish they could have moved closer to their family or to a warmer climate but did not do so or were disappointed when they got there. Where you will settle down to live once you retire is very significant.

While many people will have suggestions on where you can soak up the sun or play golf, one of the most popular choices is to simply stay right where you are. By their mid-50s, most people are well established in their communities and have long-standing friendships and family nearby. Many of them have turned children’s bedrooms into special interest or hobby rooms. However, the big question is this: can you afford to stay in your home? If mortgage payments ate up a large portion of your paycheck while you were working, it may take some creative financing to ensure that your house doesn’t overburden your retirement resources. If you want to remain in your house, you may want to take steps to pay off your mortgage before you retire. If you’ve been comfortable in your home for 20 or 30 years, you may not realize how attached you are to it. You may wish to sell your house and buy something smaller.

After all, why do you need such a big house? Why? Because it’s your big house, complete with memories and emotions. It is the result of years of toiling to pay off that mortgage. Moving from your home is a decision you should make emotionally and not on the basis of saving money, unless you simply have not planned well and can no longer afford to stay there. When people come in and talk about their house as equity, we wonder if it’s the client talking or words from some article they’ve read. Most people do not think of a house as equity but as a home for their families. Therefore, we generally do not like to include home equity as part of a retirement plan. We prefer they think more about where they really want to go before they think of selling their home. People don’t realize it’s not always easy to just pack up and move. That it may not even save them any money if they want to continue to enjoy the lifestyle to which they have become accustomed. Popular retirement areas are often more costly because there is a greater demand for homes in these locations.

The bottom line is that people should be heading toward a place where they really want to be and not simply selling a home for retirement money.

Moving on to a great new place

Those who do want to pick up and find a new destination are often looking at Arizona or Florida. They’ve seen the brochures, like the warm weather and have heard good things. We recommend they spend some time experiencing the lifestyle. It takes more than a weeklong vacation to feel confident that you will enjoy living in any new community. We also recommend they should first rent before buying. You should consider the various factors involved with settling in a new location. For example:

• What type of climate would you most enjoy?
• Have you had enough of the cold winters?
• Would you be comfortable in a retirement community with people of your own age?
• Would you be more comfortable in a vibrant city with cultural attractions and more activities?
• Would you be comfortable in an intellectually and culturally stimulating university town?
• Or, do you want to be closer to your family (where climate or culture are of less concern)?

These questions may take some time to answer. Every year there’s a new “Best Places to Retire” list. However, for you, the most important criteria should focus on what makes you happy. Consider living briefly in one of your potential spots, or visit during different seasons. Of course, some people want to jump in an RV and travel from state to state or country to country to their hearts’ content. There is a growing number of retirement communities springing up in northern states for people who care less about the weather and more about being near their families or exploring the culture and enjoying the ambiance of cities like Chicago, Boston, or Seattle. Several factors need to be considered before making a major move. No matter where you choose to settle, moving takes time and careful consideration.

Explore your options carefully. We often suggest our clients wait a year to adjust to their “retirement lifestyle.” Then, if they have a destination that appeals to them, we urge them to spend some time in the new location before they make the decision to move.

If you are exploring the possibility of moving to a new location during your retirement, you might want to explore these resources: www.retirenet.com allows you to visit retirement communities. You’ll also find rentals, which is an important feature if you are not yet ready to commit to a new location. www.virtual-retirement.com has retirement locations and assisted-living facilities. www.seniorresource.com is an e-cyclopedia of retirement housing options and information such as articles which discuss moving, relocating, and reasons to stay put. You can look up resources by state, find legal and financial information and enjoy a bit of humor on this comprehensive site.