Where to Retire? 5 Critical Questions
Posted on May 1, 2014 by bob in MoneyWise
One of the great things about retirement is you are not compelled by work to live in a particular place. You get to choose on the basis of your own values and preferences. While this sounds great, it is a fact that having more choices often makes reaching a decision harder than it would be if fewer options were available. How do you narrow the field of possibilities to a manageable number? Clearly, using cost information (see the March & April columns) is a good starting point unless money is no object for you. But what other factors should you consider?
One that is foremost in the minds of many is proximity to their children (and grandchildren). If you have a good relationship with your children and they are in stable work situations, it 
makes sense to be within a reasonable distance of them. Moving in next door, however, may not be a good idea, and talking with your child about how close is too close might be worthwhile.
Some parents move close to adult children in hopes of forming or restoring a close relationship only to be disappointed. Your child, your child’s spouse, and your grandchildren may be less interested in that relationship than you are, and moving near them may trigger frustration and regret. In addition, what will you do if the child you move near relocates for work reasons? A fully informed decision that is not based solely on emotion will likely work out better in the long run.
A second issue is non-family social interaction and recreational activities. Moving away from a place you have lived in for many years may make it difficult to maintain local friendships. Do you make new friends easily? How much will the loss of old relationships affect your quality of life? How will you replace the lost relationships in a new place? If you are interested in doing volunteer work or pursuing special hobbies, verify that places you may move to offer the type of opportunities that will be satisfying to you.
Third is access to medical care at a cost you can manage. The cost of care is not flat across the country, and some communities have much better medical resources than others. As we age, we face an increased probability of needing an array of quality medical services. If you have particular medical care needs, you certainly should check into the quality of that type of care in any new place that you consider.
A fourth factor has to do with the legal environment in places you consider. The first aspect of this is the crime rate. You likely do not want to find yourself in an area with high rates of illicit activity or where law enforcement is ineffective. Another aspect is a legal environment is dramatically different than what you are familiar with. Examples include Louisiana’s legal roots in the Napoleonic code instead of British common law and a change to a community property state. These are issues you should inquire about ahead of time.
Fifth, how will you feel about the geography, weather, and general environment of the place? If you’re a beachcomber, is it really a good idea to move to Iowa? How will you like the winters (or summers) in the place you are considering? If you have allergies, will you be subjected to unbearable pollen conditions there?
Once you have investigated each of these, it is a very good idea to visit the areas that you are seriously considering, perhaps at different times of the year, before making a final decision.
Places may sound great on paper or in conversation with others, but for reasons you could not anticipate, could be totally unacceptable once you spend a little time there. Be sure to spend some time on site kicking the tires before you go too far.
Alan Wallace
Alan Wallace, CFA, ChFC, CLU is a Senior Financial Advisor for Ronald Blue & Co.’s Montgomery office, www.ronblue.com/location-al. He can be reached at 334-270-5960, or by e-mail at alan.wallace@ronblue.com.
