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 Location, Location, Location!
"So, dear, where shall we live for the rest of our lives?" That's almost as weighty a question as your father asking, "So, my child, what do you want to do with the rest of your life?" But it's the question baby-boomers are asking themselves and each other these days. Why? Because so much flows from where we choose to live: the friends we meet and socialize with, the types of recreation we can indulge in, the kind of work, parttime or fulltime, that we can find, the doctors and hospitals that will take care of us when we get sick,
Retirement experts boil the issues down to four biggies: people, money, climate and amenities. Let's look at them one at a time
People. We are talking here about old friends, new friends, and family. And family is often first. Many boomers choose to stay right where they are, or at least in the same general area, because they don't want to leave their family. Family might be kids and grandkids, or it might be aging parents. Of course, families are not static. Children can get married (or divorced), find a new job, start having kids and so forth and as a result, move thousands of miles away. And aging parents also sometimes decide to move, and eventually pass on. But in the short run boomers often feel tied to a location because of family.
Friends, on the other hand, may or may not be replaceable. It depends on your culture and temperament. Some boomers seem to be in the business of making new friends, and don't give a wit for old friends who they now find boring. Others maintain friendships for years, adding new friends only on a very select basis. Which type are you? Obviously boomers who build close long-lasting friendships may be reluctant to move. Some, however, find moving to a warm climate like Florida where old friends can come and visit allows those long-standing friendships to flourish!
Once the strings to an old location have been cut, however, the heavy-duty question is: "Where will I find people that are likely to become new friends?" This is a question with many socio-politico-cultural-religious-psychological dimensions, such as "Can a New Yorker find peace and contentment living among a bunch of Texans?" or "Can a couple of French extraction get along in an Italian neighborhood?" We are being a bit light-hearted here but the point is very serious. People typically like to hang out with people who are similar. So think carefully about who you are, what defines you and then work on figuring where you will find others like that.
Money. There are lots of places on the BBRC website that talk about money! Here we are really talking about cost-of-living, the expense side of wherever you choose to live.
The #1 ingredient to analyze when comparing the costs of living in different locales is state and local taxes. Unfortunately that is not a simple calculation because every locale has a stew of taxes--sales tax, property tax, income tax. And while the recipes vary, making a locale with no income tax look very attractive, for example, some other tax often provides a counterbalance to even things out. To get the low-down on any particular place that interests you check out the Sales Tax section of the website of our partner Retirement Living [www.retirementliving.com/RLtaxes.html].
Equally important as taxes is the economic outlook for any place you are considering. Sure, you are not an economist, but use some commonsense. How do people in the area earn a living? If there is one major employer, ask your stockbroker how the company is doing. Especially important: what brings dollars into the area from the outside world? Is it products that companies in the area make and sell in other areas of the world? Tuition that students from all over pay to go to the local college? Or perhaps it's some natural or historic attraction and the resulting tourism. In some hot retirement areas it is the arrival of the new retirees--the homes they are buying and building, the retirement incomes they are spending--that drives the economy.
Finally, it's important to consider the overall cost-of-living of an area. Prices for some goods are pretty much the same (high!) everywhere--like gasoline which only varies because of varying fuel taxes. Other costs vary dramatically, like housing, for example. In some places $700,000 will only buy a starter home while in other areas it will buy a mansion. When working on that budget to see if you have enough money to retire, be sure to adjust the numbers to reflect the costs in the area where you are moving to.
Climate. Most people, boomers included, underestimate the importance of weather and climate. They usually have adjusted to the climate where they have been living and can be slapped in the face when they find out how different it can be in different places. Make sure you consider the obvious. Sun and heat. Buildings in the south are air-conditioned, but we all spend some time outside. In the summer the sun in places like Florida can damage your eyes if you don't wear proper sunglasses, to say nothing of causing sunburn and dehydration. Cold. As we age, our circulation slows down and our body temperature drops. Have you noticed how the elderly often wear topcoats when you are in shirtsleeves? Our declining ability to cope with cold is what drives many of us to seek sunny southern climes. If you live in a cold climate now, and barely tolerate it, keep in mind that your tolerance will only get worse. Besides cold, winter dryness also bothers many people. The low humidity during the winter causes many people's skin to dry out and crack. Precipitation. Rain, snow and ice can be dangerous. They make driving difficult; they lead to slips and falls. there is just no way around it Hurricanes, tornadoes, floods and other catastrophes. Ask a SanFranciscan if he worries about earthquakes, or a Floridian if he worries about hurricanes, or a mid-westerner if he worries about tornadoes. They will all likely say no because the odds of getting caught in a catastrophe are low, and there is not much that an individual can do to prevent them. But before you move to some place labeled "hurricane alley" or the like, make sure you have considered the likelihood of some kind of disaster and are comfortable with the risk.
Amenities. So far in the above we have covered a lot of reasons to exclude places: too far away, too expensive, too hot and so forth. But that's no fun! How about all the benefits of retiring and moving to a new place? Ah, now we are talking--it's about amenities!
Every place has its own character, its own set of attractions, and it's fun and important to read in detail about any particular place that interests you. If you want to explore, a good place to begin is at the Great Places to Retire [www.retirementliving.com/GPR_intro.php] section of our web partner Retirement Living.
But here's an overview of the kinds of amenities to look for. You might want to make a mental list of the ones that are important to you.
Social. Where do people gather to meet and greet each other? And what is my access as a newcomer? A place may have a slew of golf and tennis clubs but they may all be private with long waiting lists. How about places to dance? Swing dancing, and square dancing are popular these days. The list of possible meeting places goes on and on: beaches, places to play cards, sailing clubs,
Entertainment. Here's an area where most of us need no coaching. We know the kinds of restaurants we like, whether we like jazz or disco, art cinemas or live theater. And since a cardinal rule about relocating is "Fly before you buy!" we can look forward to sampling a new location's entertainment scene long before we decide to move into the neighborhood.
Cultural. A town's cultural scene may be equally or more important than its entertainment. But like restaurants, it's fun and easy to sample an area's museums, symphony and concert halls, and art galleries. We also include churches, synagogues and other houses of worship here. For many of us a congenial congregation with an inspiring rector or rabbi is essential.
Educational. Baby boomers are learners, and they are going back to school in droves. If you are among them, be sure to consider locating in a college town or at least check out educational opportunities where you are locating. Many towns sponsor adult education programs in the local high school. They are a great way to pursue a long-neglected interest, like photography or jewelry-making, and a great way to find friends with similar interests.
Other. Although you may not classify them as amenities, several other characteristics of a location need to be evaluated: safety and security, access to health care, and the availability of work or business opportunities.
The safety and security of a place can be measure quantitatively but it is also a state of mind. Statistics will tell you what the crime rate is in the larger area, and further investigation will reveal whether there have been break-ins, muggings and so forth in your neighborhood. Equally important, though, is your own comfort level. Some people only feel safe if they are inside a private association with gated access and an active security force on patrol. Others never lock their front door--or their car doors--and never feel insecure.
In regard to health care, ask yourself: how close is the nearest hospital? Is it well-staffed and equipped to handle emergencies like heart attacks and strokes? Hospitals are rated and certified these days so it's easy to inquire, for example, whether the Joint Commission on Hospital Accreditation (JCAHO) has designated them a primary stroke center. Also, is there a professional or volunteer emergency service?
There is an entire section of the BBRC website devoted to identifying and assessing opportunities for everything from part-time work to buying a franchise, so if that is on your radar screen, be sure to check it out. [link to it]
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