Go ahead: Daydream about retirement. Really start thinking about how you’ll spend your time. Envision where you want to live. If possible, even give this new lifestyle a test drive.
Imagining your life in retirement can not only be a fun activity, but the process will help you solidify your plans, and therefore, offer some important insight into how much you should be saving and how much you’ll ultimately need when the time comes. Overlook this step and you could be saving for a retirement lifestyle you don’t actually want to live.
Why? A San Antonio retirement looks different than spending your Golden Years somewhere else. Your cost of living may be different. The activities available to you may not be appropriate. Your friends and family may be too far away.
Will you sell your house and relocate? If so, have you given any thought to what type of home you want, and to which region, state or city you plan to move? Will you have a mortgage to factor into your new budget? What about property taxes?
There are many factors to consider when it comes to retirement. If planning to relocate in retirement, don’t forget to consider 5 major points.
Planning a San Antonio retirement? Schedule a no-obligation conversation with the team at PAX Financial Group to see how we can help.
Taxes, specifically income and property taxes, come as a surprise to many retirees. In San Antonio specifically, property taxes can be especially high. However, Texas doesn’t charge residents any personal state income tax.
What does this mean for your retirement?
Discuss your plans with a financial advisor so you’re aware of any financial factors taxes might have on your situation. At PAX Financial Group, we can run Monte Carlo simulations to find out how a specific decision can impact your plan. For more on what this looks like, read our recent blog post: What is a Monte Carlo Simulation and Why Do Financial Advisors Use It?
Cost of Living
Another factor to consider when relocating, even from one area of a state to another, is your cost of living. If you don’t use appropriate predictions when running the numbers, you may come up short!
When calculating how much things will cost, it’s important to consider basic living expenses, like housing and groceries, but it’s equally important to calculate the other costs of living, such as healthcare, entertainment/activities, travel, etc.
At PAX Financial Group, our team of financial advisors has been helping busy professionals plan their ideal San Antonio retirement for a combined 100 years. If you’re unsure about what the area means to your retirement plans, let’s talk! A simple conversation can have a big impact!
As a retiree, you’ll want to be aware of the resources available in your area. Where are the best hospitals and healthcare? Will you have access to things like volunteer opportunities, public transportation or an international airport? Make a list of services and resources you’d like to see in your potential new community and make sure they’re available before you move. Moving just to move again can be stressful and expensive!
Read our recent blog post: Top 8 Reasons Why San Antonio is a Good Place to Retire.
As important as specific resources are, the livability consideration of a new area should also be considered. Will you have access to things that make you feel connected, like libraries, fitness centers, golf courses, arts and cultural centers, parks and recreational facilities?
Relocating can be hard, especially if you are moving away from family and friends, so make sure you have access to places and activities where you’re likely to interact with other people in the same stage of life, so you can build a new network of friends.
Family and Friends
How important is it to you to be near friends and/or family during your retirement? Many retirees suffer loneliness, isolation or even depression when they have no one to spend their time with.
Talk to your family. Do your children or grandchildren expect you to be close by? If you’re choosing to move closer to them, is that something they’re on board with? Will they have the time you’re hoping they’ll have to spend with you? You never know, they may be planning a move of their own!
The Bottom Line
Relocating in retirement is common and can offer so many benefits, but don’t make assumptions. After discussion and reflection, you may find you can’t afford to make the move or will have to adjust your plan to make it happen. Relocating is not always an easy decision to “undo.” Get your financial advisor involved in the conversation!
If possible, plan a trip to visit the area you plan to spend your Golden Years in and see what life there is really like. If feasible, go for a week, or two if you can swing it. Explore the area, visit different neighborhoods, talk to people who live there, check out places you’re likely to frequent if you become a resident. Learn about the local economy and get to know the culture and community to really get a feel for whether you’ll be at home there. If you can, visit at two different times of the year. Are you prepared for the summer heat or winter snow? What natural disasters should you be aware of and therefore, what types of insurance will you need?
When making any decision about the future and retirement, remember to focus on the big picture. Look at how all the “little” factors can dovetail into something larger. A city might have low cost of living and offer great tax advantages, for example, but be thousands of miles away from the people you care about most. On the flip side, an area might be close to your children and grandchildren but not offer much in the way of activities and amenities for time on your own.
Again, go ahead and daydream! Is a San Antonio retirement right for you? Figure out what’s really important and makes you happy, because with any luck, you’ll be spending many years doing just that!
This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.