Skip to main content

As retirement approaches, many couples start thinking about moving. Nearly two-thirds say they plan to move or will move when they retire1. Retirees consider moving for several reasons, including the financial benefits (smaller house) and to be closer to family (grandchildren, in particular). However, moving can get expensive and complicated.

Here are some tips to consider before deciding.

1. Analyze the cost of living at your destination.

Moving to another city or state isn’t as simple as it may initially sound. Financial considerations should play a large part in your decision-making. Cost of living, for example, can significantly alter long-range financial plans and require you to make changes to your retirement strategies.

Carefully research the area where your children and grandchildren live to see if you can reasonably afford to make the transition. It might be nice to live close to your grandchildren, but if real estate, taxes, public services, and other living expenses are beyond your budget, you might want to examine other options. Affordability, unfortunately, must play a major factor in your retirement decisions.2

2. Consider renting for the short term before moving.

You’ve done the financial analyses. However, your grandchildren are just too darned adorable to not be provided the privilege of spoiling by doting grandparents. While the new area may be a little more costly, you think you might be able to manage the financial load. You’ve weighed both sides on the scales (emotions vs. budget), and you’re ready to test the waters. You know it’s a risk, so instead of taking the leap, how about renting first? That way you can experience the area without actually making the investment.

By renting, you’ll be able to visit your family and your grandchildren and get acquainted with the new neighborhood. You may discover you absolutely love it. On the other hand, you may learn you’d rather stay put and make the long trips. Renting underscores the financial risk.3

3. Identify your budget and ability to afford moving.

This step gives you the ability to do some additional cost analyses for moving and, if you decide to rent, a little time. While gauging moving expenses and the physical efforts it will require to make the transition may not be the largest factor in your decision making, it does require careful thought. Moving isn’t as simple as it sounds. Costs can rise over $6,000 in some cases.4 In the end, you’re putting the emotional tug of wanting to be near your grandchildren on the scale with a retirement that could last a quarter century. The hard truth is: The decision to move isn’t easy. It requires brutal honesty and likely some sacrifices.5

4. Determine whether you need to work to support your new area’s cost of living.

In a worst-case scenario, if you do decide to move and the cost of living is higher in your new neighborhood, you do have an option to make up the difference. A part-time job can fill the financial gap and help fill in the time in a newly retired lifestyle. It may also help you connect with other people—establishing that social network—which makes the transition smoother and easier.6

It’s a complicated decision that involves weighing several factors, including your retirement goals, your financial needs, and the lifestyle you want to pursue. Think long and hard before making such a permanent and life-changing decision as selling your home and moving. If you have considered all your options and believe that moving is the right decision, consider trying out your new neighborhood with a short- term lease before making the move permanent.

If you have questions about moving during your retirement or would like help calculating the costs and benefits of a move, give us a call at 303-741-9772. We would be happy to assist you in making the most of this important decision.

1 http://time.com/money/4778999/when-to-relocate-in-retirement/
2 http://www.nasdaq.com/article/moving-to-be-near-the-grandkids-cm771226
3 http://www.nasdaq.com/article/moving-to-be-near-the-grandkids-cm771226
4 https://www.homeadvisor.com/cost/storage-and-organization/hire-a-moving-service/
5 https://www.wsj.com/articles/the-pros-and-cons-of-moving-closer-to-your-children-1491574086
6 http://www.investmentnews.com/article/20170506/free/170509961/forget-bingo-more-americans-are-working-part-time-in-retirement

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.

Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.

Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Join our newsletter

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.