Common Mistakes to Avoid When Relocating

Stretching your $200,000 retirement portfolio requires careful planning. Even if you choose a highly affordable destination, certain missteps can quickly erase the financial benefits of your move.

• Ignoring Property Taxes: A state might boast no income tax but make up for it with sky-high property taxes. Always look at the total tax burden. For deeper insights into state-by-state taxation, Kiplinger maintains an excellent state tax guide for retirees.
• Moving Too Far from Support Systems: Relocating halfway across the country to save money might backfire if you have to spend thousands of dollars annually flying back to see children and grandchildren. Factor travel costs into your budget.
• Failing to Audit Healthcare Access: A cheap house in a rural town loses its appeal if the nearest cardiac specialist is two hours away. When researching destinations, check the Medicare.gov provider directory to ensure your new town has high-quality hospitals and doctors who accept your coverage.
• Buying Before Renting: Never buy a home in a new city without living there first. Rent an Airbnb or a short-term apartment for three to six months to experience the traffic, weather, and local culture.

“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” — Suze Orman, Personal Finance Expert