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Relocating Before Retirement

Most people spend a lifetime living and working in one state yet consider relocating before retirement to save money. Although a lower cost of living and paying less in taxes sounds appealing, moving away from friends and family and starting over again is a stressful thing to do at any age. As it’s common for retirees to suffer from anxiety and depression after leaving the workplace, imagine retiring and moving away from everything you’ve known for most of your adult life. The potential mental health risks of relocating before retirement may not be worth the financial reward. 

Depending on income, health, family history, and lifestyle it may make sense for someone living in New York City to relocate to Florida in retirement where the cost of living is much lower, and the winters are milder. Moving to a state known for beautiful weather offers the opportunity to enjoy a more active lifestyle. The more active you are the healthier and happier will be. On the other hand, someone living in Florida who is accustomed to playing golf and enjoying the beach year-round may not thrive after moving to a state like Wisconsin where winters are harsh and lengthy. 

If you are worried you may outlive your money based on your current lifestyle and cost of living the best thing to do is speak with a fiduciary financial planner or investment advisor. If you don’t have someone you can rely on for financial advice, or if you’d like a second opinion on your retirement plan, contact Alloy Wealth at 800-689-3935.