This week’s theme on the Retirement Quick Tips Podcast is: 10 Things You Must Do Before Retirement - Part 2

Today, I’m talking about deciding where you’ll live in retirement. 

Why before? Not necessary of course, and a lot might depend on what happens with the housing market, but I have a client who just bought their snowbird home. They are still a few years away from retirement. Both work remotely since Covid, and they’re in their peak earning years, so it made more sense for them to purchase a home now, so they started wintering in AZ this year, and will eventually move there full-time in retirement. 

I liked this plan, because they are still working and their income can easily support both mortgages now, and although they needed to take out a mortgage now, they bought the house when rates were still low, and they will be able to pay it off once they retire and sell their other house. 

By wintering in a warmer state, it also makes working longer more palatable, so they can extend their working years. (Not realistic for every one, but that’s why I think it’s important to at least DECIDE where you want to live before you retire, while not necessarily buying a home there yet).

The considerations for moving are multi-faceted - weather, cost of living, estate taxes, housing (palm springs 55+), would you live there full time or part time? How much time would you spend there? If not more than a few months a year, would it make more sense to just rent a place for a month or 2 out of the year? 

It’s important to work out where you’ll live long-term in retirement BEFORE you retire, since you have more options available to you while you’re still working and before you make any permanent decisions like transitioning into retirement. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance