Is one of your retirement goals to leave your old home behind for a new location? Maybe family is important to you and you want to move closer to them. Or you want to make your vacation home your full-time home. Whatever your reason, here are some strategies to help prepare and avoid putting your retirement goals at risk.
Research your new city's cost of living.
This could include taxes (property taxes, sales tax, state income tax), home values, insurance costs and even grocery costs. (An extra $200 a month in groceries may not derail your retirement but could impact your monthly budget.)
Assess your current situation and develop a strategy.
- Talk with a real estate agent to estimate the current value of your home. What you think it's worth may not match the market, so it's important to have realistic expectations before you list.
- Think about whether you will buy or rent your new home. If you aren't sure you'll stay in one place long term, you may want to consider renting.
- If you like luxury amenities, consider choosing a smaller home that may provide more room in your budget for higher-end details.
- Set a budget for the move. A cross-country move can cost thousands of dollars.
- Review your insurance information and decide if you can take your policies with you or if you'll need new or different coverage. If you're moving somewhere that requires special insurance –hurricane or earthquake insurance, for example – factor those costs into your new budget.
- So much of banking today is done online, but if you want to switch to a bank in your new town, open the account before you move, if possible.
Meet with your financial advisor.
After doing your research, share with your financial advisor what you've found and factor it into your retirement plan as well as other parts of your financial strategy. This could include partnering with your financial advisor and estate professional to determine whether your estate strategy might need to be adjusted. It's also important to talk about how you and your financial advisor will continue to communicate and ensure you stay on track while at a distance.