Real estate assets are a substantial portion of most individuals’ retirement plans. Mortgage structures are designed for individuals to pay off the principal by the time they retire, so they have substantially decreased monthly living expenses after leaving the workforce. But for many, this retirement strategy feels outdated. Some people don’t want to spend their later years in the same house where they’ve lived for decades. If you’re going to retire to a different location than where you’ve lived while working, here’s how to plan for a nationwide retirement.
Choose a location with a lower cost of living
For many, their career dictates where they live. Access to job opportunities often requires living in cities with high living costs. Moving after retirement can substantially decrease your monthly expenses while also letting you experience a new lifestyle. Some of the best locations for nationwide retirement:
Myrtle Beach, South Carolina: affordable beachfront property, golf courses, and low median mortgage costs
Raleigh and Durham, North Carolina: low housing costs and access to some of the nation’s top healthcare facilities
Ocala, Florida: low cost of living and housing, mild winters, and proximity to plenty of nature, including a National Forest
If your priorities in retirement are travel or supporting grandchildren through college, then retiring in a place with a lower cost of living can maximize your savings.
Become a snowbird with seasonal housing
If you live in the northern part of the United States, you may be sick of the cold and snow during the winter. You can become a snowbird––a retiree that migrates south for the winter to escape the weather and generate extra income by renting out your home.
Whether you buy a second property in Florida, Arizona, or Utah, rent one, or travel in an RV, you can hire a property management company to rent out your home. Generating extra rental income can offset the cost of seasonal travel and pad your savings.
Optimize your retirement savings accounts early
Maximizing your retirement account contributions early in your career is the best way to provide yourself with financial flexibility later in life. By making significant contributions early in your career, you can generate thousands or hundreds of thousands more from your investments.
A good rule of thumb is to increase your payroll deductions by one percent every year until you contribute 20 percent of every paycheck to your retirement. Keep in mind payroll deductions are just one component of a successful retirement strategy.
Work with holistic retirement strategists
A retirement strategist can provide invaluable advice and support whether you have steadfast goals for retirement or vague plans. In a world filled with increasing uncertainty, your retirement plans can change instantly, and it’s vital for your retirement plan to adapt to your evolving needs.
Maybe you decide to move to a new city after you retire to be closer to your grandchildren. Or you want to expatriate for lower healthcare costs. Perhaps you want to try nomadic living in an RV for a few years. Whatever your goals for retirement are, a holistic retirement strategist will work with you to ensure you have the income and savings to make them a reality.
OWFI helps individuals plan for retirement nationwide by optimizing their tax savings to increase retirement income.
OWLFI is a team of holistic financial planners that develop custom, holistic strategies for clients to save on taxes and optimize their retirement income. We get to know all our clients on an individual basis so that we can provide customized approaches to every aspect of their finances. When you partner with OWLFI for wealth planning, you get financial experts who act as your personal tax advisors and retirement planners, dedicated to ensuring you can live out your lifelong dreams after leaving the workforce.
Meet with the OWLFI team and gain total confidence that you’ll be able to live out your dreams of retirement nationwide.