Retirement Planning Tips

The Best Places to Retire

January 4th, 2008 Subscribe To Our Feed

“Where do you want to be in five years?” is a common question at most job interviews, as the interviewer is trying to get a feel for the candidate’s goals, personal insights, and even their organizational skills. After all, if they haven’t put some thought into something as crucial and critical, and personally important, as their career plans and path, how will they be able to put the necessary thought into that big customer presentation, or the departmental budget?

Unfortunately, this question is not one that’s forced upon anyone when it comes to their life itself. No one ever makes you sit in a room and outline where you want to be in ten years, twenty years, or however long it takes you to retire. No one insists that you sit down and write out your lifelong plan.

This is unfortunate, because many people just don’t seem to have a plan when it comes to their personal retirement goals, and most specifically, where they want to spend those so-called “golden years.” Sure, some may have a general thought in their mind – they imagine themselves and their spouse out on a golf course by day, dining at a five-star restaurant at night. Some are even wicked enough to leave their spouse out of that dream! But when they’re pigeonholed into discussing their exact plans, especially when it comes to location, for their retirement, often they draw a blank.

Why is it important?

It may not seem important to some to think of where they want to retire when considering their plans. As long as they have enough money in the bank and in their IRA, then everything else will work itself out … right?

There’s a few reasons why this is very dangerous thinking. One is that if you are married (and are planning to take your spouse along with you!); the two of you should definitely be making these plans together. You might be looking forward to leisurely golf games, but be surprised to learn that he or she absolutely hates the game. Or you might assume that you’ll move to a warmer climate, but he or she is set on moving into your vacation home up north. If you don’t start communicating now, you’ll be in for a rude awakening later.

Additionally, there’s some good news for those in the U.S. who are “of a particular age,” and that is that older Americans are actually living longer than any generation previous. The only downside to this is that by the time you’re ready to retire, there will be millions more doing the same – and just as many who have already retired. This means that if you’re thinking of moving to some place that’s the new “hotspot” for retirees, you may actually need to get on a waiting list for housing!

So to avoid any future problems with your retirement, you do well to start planning now for where you’ll actually be living.

Get off the beaten path.

As we just mentioned, when someplace becomes the new “hotspot” where everyone wants to be, housing prices do nothing but rise. This has happened with the typical retirement areas of Florida and Arizona, where many homes are greatly overpriced.

Here’s some suggestions for other great spots for retirees that haven’t yet become overpopulated, according to a recent survey by CNN Money for great places to retire:

Charleston, S.C. If you can put up with the humidity, this Southern belle of a city offers very low housing prices in a seaside location with tons of history.
Asheville, N.C. Known as the Paris of the South, this western North Carolina town of about 70,000 is renowned as a spot for the arts, culture and diversity. The housing costs and cost of living are below average.
Cedar City, Utah. Cedar City is a great small western town, home to very reasonable home prices, Southern Utah University, the Utah Shakespearean Festival and a great climate.
Boerne, Texas. An undiscovered spot not far from San Antonio and Austin’s cultural scene. Low housing prices, lots of outdoor activities, a historical downtown and a relaxed, ranching lifestyle make this a prime spot.
Fort Collins, Colo. This Rocky Mountain city of 128,000 has so much to offer. First of all, housing prices are just over $200,000, so you can probably land a terrific house and still have money left over for your savings. It’s got a strong economy and moderate taxes. Finally, it’s close to outdoor splendor.
Beaufort, S.C. Ninety minutes south of Charleston lies this city of about 13,000 on Port Royal Island. Surrounded by tidal wetlands and small islands and steeped in military culture, Beaufort is distinguished by having its entire downtown designated a historic treasure. Health care is plentiful and homes with a view of the changing marshlands can start as low as $275,000.

Making a personal decision – and doing it now.

Obviously there is no one perfect answer for where to retire for everyone. It depends on your plans for your own retirement. If you love the water and plan on spending most of your days on a beautiful boat, then Arizona is probably out of the question. If heat and humidity make you uncomfortable, then skip Texas and the Carolinas.

And of course there’s no hard and fast rule that says that you must move when you do retire. If you love your current home and are able to keep it up, and enjoy your neighborhood and the local community, then why make a change at all?

Then again, if you love nature but have been tied to the city for years because of your work, then maybe it’s time to explore something completely different and new to you.

But the bottom line is, whatever your plans are for retirement, you can’t wait until that last day in the office to actually make the decision as to where you’re going to be. As they say, it’s never too early to start, so do yourself a favor, sit down today, and really consider that question … “Where do you want to be when you retire?”