We are all faced with lots of decisions when contemplating retirement!
Logically, and sensibly, your choices should be based primarily on your finances.
Do you want to do a lot of traveling? If you choose that lifestyle, then why would you start looking for a large home, with a lot of upkeep demanded?
You may decide to just stay put – perhaps near family – in the home you’ve been in for years. Or, have they already scattered so you are free to move where you can really make the most of your retirement years, and just enjoy their visits?
Some of our friends, retirees also, have felt they must have extra bedrooms and baths for the relatives who come to visit (usually once a year). Just contemplate… how much would it cost you to simply rent a motel room for them, compared to the upkeep and expense of having that extra space you’re going to pay for??
Think of the original cost of the extra room, the extra taxes, the heating and cooling, and just the upkeep! You can pay for a lot of overnighters in a motel for what you will pay for that extra room that isn’t even used 95% of the time. And it’s usually a wonderful break – for everyone – to part at the end of the day for some private time and recuperation time!
Do you plan to do a lot of entertaining – either family or friends? Again – why get a humongous home you’ll be constantly cleaning and keeping up, when friends are just as comfortable in a more intimate setting. Remember, you and your friends are getting older each year, and the wild parties of your 30’s and 40’s possibly are not the evenings you will be experiencing in retirement.
Keep your taxes low, keep your utility costs low, and enjoy a higher, more leisurely lifestyle like you can do if you move to Mexico.
We’ve fallen into the nicest concept…It’s called “pupu parties” … I guess it’s Hawaiian for hors d’oeuvres party. You just call a bunch of friends – they each bring nice snack, your supply the drinks, and it’s a wonderful, easy and casual get together. Not too much work for anyone, and a great reason to get together with friends!
If you have a lot of equity in your home, (I always stress that hopefully by the time you are contemplating retirement, your home and your autos are paid for) and you should decide to sell it, buy smaller, have less expenses.
And if you have a lot of equity in your home, if you sell it, buy smaller, and put the profit in an good investment fund… voila! … Interest to help with expenses, or to grow for a long desired item!
Don’t overlook renting – an apartment or a condo – everything is secure when you take those trips, and you won’t have to own a lawnmower or snow-blower anymore! Retirement years are years to enjoy!!!
Addition Feb 3, 2013 – the amount you need to move to Mexico has changed – see – http://consulmex.sre.gob.mx/detroit/index.php/info-english