For Mark Roberts’ Use: You’ve been diligently working and saving for retirement for years now – perhaps decades – and you’re starting to feel antsy about it. Your retirement plans sound so great, that you wish you could go ahead and retire now! We hear you. This is a common scenario, and many of us are actually willing to take drastic actions to make their early retirement dreams a reality.
According to one poll, respondents said they would be willing to take the following actions, if it meant they could retire early:
- 38 percent would sell their homes and rent instead
- 34 percent would move out of the country
- 52 percent would relocate to a less expensive part of the country
In some cases these might be reasonable actions, but if you’re considering any of the above scenarios, pause for a moment and consider the possible ramifications of those decisions.
Selling your home. Some people really do prefer to rent a home in retirement. Maintenance is a phone call away, and you’re less tied to a particular location. However, with home values remaining low right now, you could potentially net a much larger profit if you wait a few more years to sell your home. Taking this route into an early retirement could cost you thousands of dollars.
Moving overseas. This is a popular idea right now, and it works well for some retirees. But don’t forget moving expenses, tax implications, and the cost of flying home to visit family or friends. All of these things should be factored into your budget before you make your final decision.
Relocating to another part of the country. This might be more feasible than moving to a foreign country, but you might still have to sell your home and incur significant moving expenses. Remember, too, that other states might vary wildly in their income tax regulations. Healthcare expenses also fluctuate depending upon geographic region.
Before taking any drastic actions, give us a call. An early retirement might be entirely possible for you! Professional guidance can help you identify lesser-known pitfalls and make a plan to stay financially solvent in your later years.