BOOMERS ON THE RUN
As the baby boomers settle into retirement many things are on their minds when it comes to their financial planning such as; How to use their nest egg during the next 30 years ahead of them? Will my Social Security give me the assistance to retire and will it be taxed? What will be my medical costs and how does Medicare work?
Housing. Is this where I want to live for the rest of my life and will it support my needs as I grow older? This is a question of function and location. Can I use my home as and asset? Should I stay in the house I own, or refi it or reverse mortgage ?
As I write this blog, there seems to be an exit plan for many Boomers to leave high taxed states and to look for greener pastures. California, New York, New Jersey, Illinois, and Connecticut are the leading states seeing senior’s exit, heading out to states that can put more money in their pockets and provide lower cost housing. Statistics are showing Nevada, Arizona and Idaho as states in the West that are attracting many from the Golden State of California, while New Yorkers and East Coast residents are working their new retirement plans in Florida, Tennessee, and Georgia.
According to the marketing of many retirement communities is the need to provide quality homes or condominiums, near a medical center, and socially active where the Boomer can make new friends, stay active and be near a large airport for those world travel adventures. What they find is after selling their home and getting through the downsizing many are now in their new dream home with money in their pocket. The 2 story, 4 bedroom home that they raised the kids is not needed and the eventual inability to climb steps has been removed. Financially there is a real BOOM as this move can provide a nest egg that can help fulfill many of their retirement needs.
As the Boomers re-evaluate and consider a new relocation, they become ideal targets for the 55 and older communities. These communities need to attract and maintain the happiness of their new clients for many years. In researching the Del Webb group, they show a simple formula that draws people to their homes. Home values in which a retiree can purchase a home, and many will do so without a mortgage. Homes are one story as opposed to two, as climbing steps can be both a hazard and maybe a problem in the future. Housing developments near shopping, abundance of medical services, comfortable climates, within one hour of a large airport for the world travelers.
The top item on the list is the social portion. If they leave their roots how can they find new friends? Del Webb in Henderson Nevada has it all with a busy club house that entertains 68 clubs for hobbyist. This oasis of seniors has over 7000 homes with a $100 a month HOA that gives all membership to their health center for the daily work- outs and provides card rooms and pool tables for people to gather.
Hence, many of the BOOMERS are being lured away by 55 an older communities shedding light on different more affordable options and giving way to the younger generation. My own 30 year old son and daughter in law moved to Nevada due to the price of housing getting a head start on a prosperous future. Making this financial move not solely limited to just the Boomers.
So if you are looking to build your nest egg and improve your golf score give us a call, we will tell you more.