Retirement is the time when you can finally live your life for yourself. The children are grown and you are finished working. You no longer have to answer to anyone but yourself. One of the things you may decide to do is move to Delaware. This state has a lot of taxation perks that you could benefit from.
However, before you make the move, Fidelity.com suggests making sure you look over your finances and understand the impact of a move during retirement. Here are three things to keep in mind:
- The costs of selling your current home
While you may have a lot of equity in your home, you still need to understand the financial impact of a sale. You will not likely walk away with 100% profit. You have to pay all the fees associated with selling. You also have to take into consideration that you may not get your asking price. That is highly dependent on the current real estate market.
- The costs of the new home
Along with the cost of selling your current home, you have to think about the costs of buying the new home. They are similar to the selling costs. So, essentially, you are spending twice as much to sell and buy at the same time.
- The overlap
There is always a chance that you will not sell your home before you buy the new one. If this happens, you will have a lot of money tied up in two homes. This could stretch your finances thin, and it is at times like these that people often dip into savings. If the market is not great, you could even end up depleting a large portion of your estate. Therefore, you need to make sure you can afford to maintain two homes for a time or plan accordingly.
It is common to relocate after retirement. Moving to a new state is liberating and can allow you to make new dreams come true. However, remember that you need to be sure this is a solid financial move.