Today’s “Slap in the Face” Award is a big wake-up call for anyone considering selling their big home and relocating for retirement. Be careful!
The one mistake that many retirees and folks approaching retirement make is buying a home in what they think (or want to believe) is a great location for spending their golden years.
[ad#Google Adsense 336×280-IA]But more and more of them report being very disappointed in their choices. In many cases, they end up moving back home.
Rushing the location decision has been described as one of the 10 worst mistakes you can make in retirement. It comes down to planning and checking your options before jumping in with both feet.
One key is to rent before you buy. Maybe even for several years in several different locations.
Moving to a new location, where you know no one, is not an easy thing to do. Your new home might offer great beaches, incredible golfing or good skiing, but that doesn’t make up for the isolation you will probably experience.
Making new friends at a later stage in life is not as simple as it was when we were kids. Or even when we were young adults starting out in life. It can be a very tough road.
You can walk on the beach and hit the ball only for so long before you need some companionship.
And losing a social network that took decades to develop can also be a big drag on your marriage. Be careful!
And then there’s the weather. I’d definitely recommend experiencing a full summer in Florida or a full winter in a cold location before making a commitment to live there.
The beautiful winter days you may have spent in Florida are paid for July through September. The heat and humidity are something you really need to experience firsthand to believe.
And don’t forget that when you relocate, you’ll also need to find a new dentist, car repair shop, dry cleaner, primary care physician, hair salon, plumber and handyman. All the things that you’ve probably taken for granted for so many years!
Usually a knowledgeable friend is required, in order to find the best and most reliable recommendations.
The decision to relocate in retirement is a major undertaking. It’s not a decision that can be based on how much fun you had on vacation somewhere.
My regular readers and viewers know that I sold my home in Baltimore in 2012. I moved to Florida, and that’s where I spend eight months a year.
The decision to relocate was the culmination of 10 years of research. I searched and searched for the right place where my Eileen and I would spend most of our retirement.
And, believe me, we searched everywhere and did our homework.
Here’s a picture of Eileen in one place we considered moving. It’s her favorite place on earth: Bali, Indonesia.
But it’s way too hot! Pizza-oven hot!
When we did finally move, we chose a place where we have some family, which is a huge help. But despite our 10-year effort to prepare for it, we’ve had our challenges.
We are about to enter our fifth winter season living in Florida this September, and we’re just now beginning to feel at home. Making friends – like the ones we had when we lived up north, as Eileen says – is still a challenge. But it’s improving.
Oh, and before I forget, we haven’t even talked about taxes, real estate costs, flood insurance and the cost of registering your cars.
You may also face new HOA (homeowners’ association) fees and special assessment costs in condos and gated communities. The list goes on and on.
Don’t give yourself one of the 10 biggest slaps in the face in retirement. Rent and check it out first. Try several places before you make a relocation decision.
Good investing,
Steve
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Source: Wealthy Retirment