‘Test-Drive’ Your Retirement Spot THE PROS AND CONS OF LONG-TERM STAYS
Have you heard? There’s a new trend for pre-retirees: test-driving retirement destinations, just like new cars! Thanks to remote work, many folks in their 50s and 60s can spend weeks or months immersing themselves in potential retirement destinations. With a long-term rental or RV (and good Wi-Fi), you can soak up a place’s culture, weather, and way of life. This strategy worked perfectly for Rutgers professor Barbara O’Neill. According to AARP, O’Neill left her home in New Jersey to test-drive the community of Ocala, Florida, several times over three years. She spent nine months there on sabbatical and working remotely before falling in love with Florida and buying a home. Of course, that doesn’t mean test-driving retirement is right for you.
lifestyle than when you’re on vacation.” You’ll build confidence. You’ll find out for sure if your retirement spot is right for you.
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THE CONS
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Test-driving is expensive. Airline tickets and gas can be pricey and so can testing all of the
“experiences” of a new place like restaurants and excursions. If travel isn’t in your budget, this strategy may not be for you — yet. • Not everyone has work flexibility. If you or your spouse has a career where remote work isn’t an option, test driving may not be feasible. Instead, consider waiting for retirement, then using an RV to visit multiple locations before buying a home. If you think test-driving your retirement is for you, schedule several extended stays in different seasons (Airbnb and Vrbo are your best friends). Consider your spouse’s reaction, the weather, cost of living, tax situation, health care options, and distance from family. Ultimately, getting ready for retirement should be fun, not stressful!
THE PROS
• You’ll experience the perks and pitfalls of your retirement spot. A Google search of “Palm Beach, Florida” can give you a bulleted list of the city’s pros and cons, but it can’t let you experience them. Is the coffee actually good? Is the humidity annoying or just downright unbearable? You’ll only know if you make the trip yourself. • You’ll see past the “vacation bubble.” As one wealth manager told AARP, “When you’re living there full time, it’s a different
Don’t Wait to Protect Your Generational Wealth Tomorrow Isn’t Guaranteed
Some people approach their finances with the attitude “you can’t take it with you.” Though it’s true that we only live once, such an approach neglects those you’ll leave behind someday. Most people want to leave the next generation better off than the one that came before, but creating a legacy doesn’t just happen. Krista discusses building family wealth without sacrificing your present in her new book, “The Generational Wealth System: A Holistic Approach to Preserving Your Wealth and Legacy.” She wrote it because so many families make the same mistakes. Over the next several newsletters, we will discuss some of the most common blunders associated with accumulating and passing on wealth. We hope they will help spark relevant conversations with us and any of your other legal, financial, and tax experts. One of the most common and potentially devastating mistakes comes down to something we’re all guilty of at one time or another — procrastination. The future often feels like a long way off, and it’s easy to fall into the trap of thinking we’ll always have more time. But when the unexpected happens, family members can be blindsided by both grief and a confusing financial puzzle.
Consider your savings accounts with designated beneficiaries. Are they up to date? You’d be surprised how many aren’t. Divorce, death, estrangement, and other factors can require a beneficiary change. But people often don’t consider it in a time of upheaval, or the process may appear too inconvenient. When an outdated beneficiary is still alive, your assets may go to someone you don’t intend. And when they are deceased, your heirs might face the potentially costly and time- consuming probate process. Further, procrastination tends to snowball, and between your investment, retirement accounts, real estate holdings, and other assets, it could take years for your family to sort out the mess. In the meantime, they may lose wealth, and their relationships may become estranged. Don’t leave your family’s future up to chance. No matter how inconvenient, staying on top of your financial and estate planning as issues arise will pay off in the long run. And when you have a team of advisors, the process doesn’t have to be stressful. Keep them updated on changes so you and your loved ones can enjoy peace of mind.
2 McBeathFinancialGroup.com
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