ARI BAUM CFP®
WHAT IF YOU COULD BLINK AND SUDDENLY BE LIVING THE RETIREMENT OF YOUR DREAMS? WHAT WOULD THAT LOOK LIKE? WOULD YOU BE RELAXING BY A WHITE SANDY BEACH? WOULD YOU BE ON AN ADVENTURE IN THE GREAT OUTDOORS? OR MAYBE YOU’D BE ENJOYING MORE TIME AROUND YOUR FAVORITE STOMPING GROUNDS.
Whatever you imagine — and no matter when you retire or what you want to do with all your new free time — where you live in retirement matters.
It can affect everything from your day-to-day expenses and how you get around, to your relationships and your quality of life. All of that can cost you or pay off in a BIG way, depending on where you choose to live. So how can you get it right and figure out your ideal spot?
FACTOR #1: COST OF LIVING
How much are groceries, gas, and average utilities where you want to retire or live as a retiree? What’s it going to cost you to dine out, golf, see a movie, or even live month to month in one place versus the next?
Look for that sweet spot where you can access the things you like, enjoy the good life, and still stretch your dollars far.
Tip: Research the latest cost of living data online, or take a trip to experience different places firsthand. Visiting as a tourist, you’ll really get a feel for what it costs to get around.
FACTOR #2: CLIMATE
Will you have to deal with dramatic temperatures or seasonal changes in certain retirement locations? How could that restrict your activities, create extra work, or present new risks for getting around?
Weather and climate year-round can shift wildly, depending on where you want to be. That could mean anything from more tourists and traffic to weather-related risks.
Tip: Rent for at least six months in your chosen retirement spot before taking the plunge to buy a house. That could uncover climate-related issues, like more bugs in the summer or freezing temperatures in the winter, that could be deal breakers for you.
FACTOR #3: ACCESS TO HEALTHCARE
What doctors, dentists, and/or specialists are available in different retirement hotspots? What type of access would you have to pharmacies and emergency healthcare in one area versus another? How easy or difficult will it be to get the medical equipment or supplies you need?
Even if your health is stellar right now, there’s no telling what tomorrow will bring — and it’s no secret that age can open up the door to more health issues. That could be avoided by simply thinking about healthcare needs before making a move in retirement.
Tip: Consider telemedicine, medication subscriptions, and/or medical supply delivery options. That can eliminate the need to travel at all for some of your healthcare. Also, if you’re considering moving abroad in retirement, remember, Medicare does not cover the healthcare you receive overseas.
FACTOR #4: INFLATION
The higher prices that come with inflation can put the squeeze on retirement savings. And not every area is hit the same when inflation rears its ugly head. In fact, some areas can be hit much harder, seeing prices skyrocket, while others are more insulated.
Tip: Check out food prices for a quick and easy gauge of local prices and the impact of inflation. Also, think about whether you’re open to working part-time in retirement if inflation drains your savings. Having a backup plan and knowing when to put that in play can give you some priceless peace of mind.
FINANCIAL LESSON
How to Make Better Plans For Tomorrow’s
Life In Retirement
What do you automatically consider when you’re thinking about where to live in retirement? What tends to be an afterthought — or what have you never considered before?
However you respond to those questions, the truth is you may never want to move once you retire. Does that make sense (or cents) for you?
Do you think you will end up moving at some point after you retire? There are no cookie cutter answers or solutions here, and what makes sense for your friends or your loved ones may not be realistic for you. Plus, what fits for you now may not work in 10, 20, or even 25 years as your family and your health change.
Beyond your situation and your preferences, it’s also crucial to think about the bigger picture. After all, shifts in the economy, changes in local culture, and general tech advancements can open up new possibilities. That can mean today’s plans don’t pan out to the life you want to live tomorrow. It can also mean that changing gears puts your dream retirement and a brighter future in closer reach, as long as you’re able to stay flexible and reasonably weigh out what matters most.
That’s just one piece of the puzzle. Another one is staying connected to the folks you trust and getting a fresh perspective as you make those big decisions.
The content is developed from sources believed to be providing accurate information. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. This information is not intended to be a substitute for specific individualized tax advice. Consult with your financial professional regarding your specific situation.
Ari Baum, CFP® is the founder and CEO of Endurance Wealth Partners, with over 25 years of experience in the Financial Services industry. He brings his in-depth experience to Conceive. Believe. Achieve. for his clients.
Securities and Advisory services offered through Prospera Financial Services Inc. Member FINRA/SIPC.
Brokerage and Advisory accounts carried by Wells Fargo Clearing Services, LLC.
