I agree, do as much research as possible on the internet and then go for a vacation to the area to check things out first hand. Check out the subsidized senior citizen apartments in the area you are interested in and fill out an application to get your name on the waiting list. I would need to visit an area several times before I made the decision to just pack up and leave. Take your time and do your research, something will turn up!
What would you think of allocating 35% of my total assets, including stocks and other savings for my retirement in a warmer state, after I move
AND about 80% of my income which is from pensions, social sec and stock dividends? On my frugal budget, I could afford a $400 increase in
rent a month. I have very low rent now. Retired, No job.
After I reach 70 1/2 I must take money from my IRA (over 5000 a year.) There's nothing in my budget to cut! I'm tight.
My recreation is almost zero, but I do go on vacations, alone.
I am depressed of staying put for the rest of my life here in my suburban apartment in midwest. It's a very old rut.
No one wants to encourage me or talk about it.
What say you?
Just be careful not to paint yourself into a corner where you have no wiggle room if something goes haywire -- like if you need help at home because of an illness or accident and can't afford to pay for it because you've got all your $$$ committed to rent. OR if you got into a new place and got a big fat rent increase you can't afford.
Be sure you are moving for the right reasons. Maybe there are things you could do where you are to spice up your life? Too many people move hoping it will fix things, but find that they face the same old problems, but in a different venue with a new set of problems, too.
Of course where you move to where it's warm should be investigated. A reasonably priced place to live may not be in a neighborhood you would want to live. Taxes on your pension is another potential cost depending on what state you are thinking about. Health and access to doctors and emergency facilities another biggie, are you confident you will find what you need?
Relocating on a tight budget as you point out as having, brings with it a lot of careful planning. I'm pretty sure you wouldn't want to find yourself out on the street in that warm place.
So I say while you have time to decide and internet access research & research some more. One thing for sure knowing the length of time you will have $5000.00 a year to draw on is important.
A follow up to my last post.
For anyone not understanding MRD payout and how the value is calculated to determine when the MRD is finally finished this calculator should help.
Maybe not understood is a person has to have cash their account to cover the capital value represented. Only good news is taxes are paid on the amount paid out on the MRD, not the value still in an IRA account. If there isn't enough cash to cover the value represented by holdings then some of the holdings would have to be sold to meet the pay out required.
That last part is where some get into trouble. Selling the asset to cover the payout reduces the long term. A person really does need to do research and fully understand how their finances are affected.
I am not promoting Fidelity. The use of their calculator may be wrong on my part & this post should be removed if I am wrong in using it.
Last edited by Knight; Yesterday at 09:32 AM. Reason: Posted in wrong thread