Oct 04, 2023
Questions To Ask When Relocating In Retirement
Lori Gann Morris, CIMA®, AIF®, CeFT®, Co-Founder / Managing Partner
Did you know that approximately 40% of workers today plan to move to a different city or region after they retire? This underscores a trend of retirees eager to explore new horizons, trade familiar environments for fresh ones, and even redefine what their retirement living might look like.
However, the decision to relocate shouldn’t be made lightly. There are many questions to ask yourself and your family to ensure the move will align with your retirement goals and ideal lifestyle.
What Is The Cost Of Living In The New Location?
The cost of living varies greatly across different regions. Compare prices for groceries, utilities, transportation, and other daily living expenses to understand if the new location fits your budget. Forbes has a wonderful cost of living calculator that takes these factors into account
What Are The Housing Costs?
Whether you plan to rent or buy, it’s essential to analyze housing costs in the new location. Does buying a home make sense at this stage of life or would renting be a more flexible and cost-effective option? If purchasing a home is an option, we recommend renting for a short period of time in the new neighborhood to get a true feel for the area.
What Are The Tax Implications?
Taxes can take a big chunk out of your retirement income. Consider the state’s income tax, property tax, and sales tax. If you are selling a home in your current location, consider capital gains tax. Some states offer tax breaks for retirees, while others tax pension or Social Security income.
What About Healthcare?
Factor in the cost of health insurance, routine care, and specialist treatment in the new location. As we age, access to healthcare becomes paramount. Does your proposed new location have good hospitals? Are there specialists in areas relevant to your health needs?
What Recreational And Social Activities Are Available?
Retirement is a time to pursue hobbies and interests. Research what activities are available in the area, the typical climate, and whether there are community groups or organizations nearby where you can meet new friends.
Making the decision to relocate, no matter the stage in life, is a significant life event. By asking these questions, you’ll be better prepared to find the ideal location to fulfill your retirement dreams.
Disclosures
Securities offered through Calton & Associates, Inc. Member FINRA/SIPC. Advisory services offered through of Waterloo Capital LP d/b/a AMG Wealth Advisors, an SEC-registered investment advisor. Calton and Waterloo Capital, LP are separate unrelated entities. For more information about Waterloo, or to receive a copy of our disclosure Form ADV, Form CRS and Privacy Policy call 800.266.1723 or visit adviserinfo.sec.gov/Firm/133705.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities or to advise on the use or suitability of The AMG Managed Portfolio Series, or any of the underlying securities in isolation. Information specific to the underlying securities making up the portfolios can be found in the Funds’ prospectuses. Please carefully read the prospectus before making an investment decision.
This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this article should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy.
Investing involves risk. Principal loss is possible. Investing in ETFs is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of the shares may trade at a discount to its net asset value(“NAV), an active secondary market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund’s ability to sell its shares. Shares of any ETF are bought and sold at Market Price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns. Market returns are based on the midpoint of the bid/ask spread at 4:00pm Eastern Time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Diversification is not a guarantee of performance and may not protect against loss of investment principal.