FREE NEWSLETTER
REAL ESTATE PRICES in California are through the roof. The price of a smaller home in our neighborhood just sold for $80,000 above the list price. Not only is housing expensive for retirees like us, but also the cost of living in California is very high. Gas, food and taxes are a lot higher here than in other places favored by retirees, such as the Sunbelt.
When I was going to school, I was never good at math. In fact, I needed a tutor to get through algebra. But I know enough to calculate that—for the price of our house—we could move to another state, buy a nice home, plus a vacation home, plus a Range Rover for the garage.
It’s very tempting, especially when I climb those 18 steps on my way to bed each evening. If we asked a financial advisor, he or she would probably tell us to put the for-sale sign out front and start packing our bags.
But my wife and I have no intention of moving to another state with a lower cost of living. We’ve learned that retirement living isn’t just about how much money and stuff we have. It’s more than that. It’s about whether you enjoy your life. That’s the question you should be asking yourself before you make any major life-changing decision. It’s the true test of whether your retirement is on the right track.
Dennis, you might enjoy reading this in regards to at least taxes for retirees in California.
https://thefinancebuff.com/retire-relocate-california-high-taxes.html
It is surprising that California is such a low tax state for moderate-income retirees. That is not what I would have guessed. Thanks for the article!
Personal safety/crime where I reside is my concern long-term…”refund the police”.
Absolutely correct. Retirement is way more than about money. It’s also about those 18 steps. No need to move out of state, but don’t do as I did and wait too long to move to no step living. It sneaks up on you. My wife felt trapped in her own home. We only had to move 7/10 of a mile to solve the problem.
Ditto what Richard said. My parents retired to a two-level home and within just a few years both of them were battling serious illnesses that left them disabled and unable to use stairs. You don’t want to be put into a situation where you’re forced to move from a home when you’re also seriously ill.