The Top 5 Things to Plan for Before You Relocate During Retirement
For many people, retirement is the opportunity to live in a dream location. Before you pack up and move, however, you should get these five important items in order.
1. Taxation Each state sets its own taxation rate for income and sales. States with no income tax often make up for it with other forms of taxation, such as a higher sales tax or property taxes. Consider all the taxes you will have to pay, and how they compare to your current state. Figure them into your regular expenses, so that you are not surprised when it is time to do your taxes.
2. Income Opportunities Over 40 percent of adults plan to keep some income streams after they retire. When you move to another state, you should confirm that your ability to earn goes with you. Passive income streams such as stock market investments may be unaffected by an interstate move. However, if you need to be able to find a part-time job when you arrive, it is important to research opportunities in your new area.
3. Real Estate Investment To a lot of retirees, moving after retirement often means downsizing to a smaller and more manageable home. Even if the prices of homes or condominiums you are looking at have much lower prices, you should still make sure that you are getting a good investment. When researching neighborhoods, look for steady growth and home values that are unlikely to fall.
4. Independence Moving away from family, friends and familiar places may make it harder to get established in a new area. Identify ways to maintain your independence, such as selecting homes near shopping or entertainment venues you like. If you are moving to live with family members, discuss ways that you can preserve your ability to care for yourself and make your own decisions, as much as possible.
5. Health Care For ideal health care, you need a health care system that is right for your needs and insurance to cover the bulk of your expenses. Look for doctors, clinics and hospitals in the new area that will provide good care for your current health concerns. Ask about access to long-term care facilities if you need it. Those who are already enrolled in Medicare can take advantage of special enrollment periods to sign up for new coverage in a Medicare Advantage Plan or a Medicare Prescription Drug Plan. If you are not yet eligible for Medicare, look at your options for individual insurance plans in your area.
Relocating to your dream city for retirement may be the culmination of decades of planning. By looking at these five aspects of interstate moving, you ensure a smoother and happier transition.
Sources: http://money.usnews.com/money/personal-finance/retirement/articles/2015/05/19/how-to-plan-for-semi-retirement https://www.medicare.gov/sign-up-change-plans/when-can-i-join-a-health-or-drug-plan/special-circumstances/join-plan-special-circumstances.html#collapse-3193 http://www.cnbc.com/2015/09/16/relocating-in-retirement-experts-say-look-before-leaping.html http://www.cnbc.com/2016/01/13/want-to-relocate-in-retirement-think-before-you-start-packing.html http://www.wsj.com/articles/SB10001424052702304734304579515613506535006