One of our client’s most important goals is retirement and they seek our expertise to be prepared financially.  This entails analyzing many details including forecasting growth of current financial assets, net savings, projected spending and other factors. Projected living expenses are a critical factor as high levels of spending can easily consume large portfolios whereas more prudent consumption can stretch a more modest asset base.  However, we also discuss with clients the implication of retiring in different parts of the country.  As New Jersey residents are too painfully aware, location is a primary factor for cost of living as well as taxes.  Moving out of state shouldn’t be made for financial reasons alone. It is important to carefully consider non-financial considerations including extended family and life style.

The decision as to where to retire is often complicated by factors such as caring for family members, transition to retirement, continued business ownership and other factors. In addition, we also see three factors gradually altering the dynamic of retirement:

1) Each younger generation is progressively more mobile with regards to relocating for a job. They no longer limit themselves to employment within a given radius of where they grew up. 

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2) People are increasingly establishing residency in another state while maintaining roots in their home state. Weather can be a factor as “snowbirds” will set up a nest in a warmer climate for more than six months a year.

3) Electronic communications have significantly improved in recent years.  Facebook, Twitter, texting and Skype make it easy to be in contact with anyone on the planet!

In the coming months we will be providing a number of articles that discuss the plusses and minuses of moving to a different state.  Cost of living, taxes, weather, quality health care facilities, arts, entertainment and sports will be considerations in the discussion.  In addition to detailed research we will be calling upon the experiences of our clients and friends.  We will maintain their anonymity and we welcome any experience or input you care to share.

Look for future installments in this series:

We hope to address the following topics and more in the coming months:

  • Profiles of popular states to where we see clients moving to include but not limited to Florida, Georgia, South Carolina, North Carolina and Arizona.
  • Important considerations in selecting where to live 
  • How to balance living in more than one state
  • Adult communities
  • Living near a college or university
  • Buy a vacation/rental home now with the intent of retiring there later

Peter is a MBA and Certified Financial PlannerCFP® with AEPG Wealth Strategies in Waren, NJ (www.aepg.com). Peter resides in Berkley Heightswith his family.