Latest / Money In Motion with Klaas Financial / Where to Live in Retirement?

Transcript

Where to Live in Retirement? · Money In Motion with Klaas Financial

0:00
Speaker 1: And our phone lines they are open to you right now.
0:02
Speaker 1: If you have questions for our retirement planning professionals from
0:05
Speaker 1: Class Financial, we'd love to have you join us this morning.
0:07
Speaker 1: Telephone number to get on the air six oh eight
0:09
Speaker 1: three two one thirteen ten. That's six oh eight three
0:12
Speaker 1: two one thirteen ten. Join this week by CJ Class
0:16
Speaker 1: and Malia Quavis. Of course, you can learn more about
0:18
Speaker 1: Cjmalia and the whole team at Class Financial on their
0:21
Speaker 1: website Coss financial dot com. That's Class k l aa
0:25
Speaker 1: S financial dot com. Great website and resource has mentioned
0:28
Speaker 1: to learn more about the team. Also an opportunity to
0:30
Speaker 1: sign up for the weekly Market Pulse newsletter that available
0:33
Speaker 1: to you at clossfinancial dot com. Telephone up for the
0:36
Speaker 1: office right here in Madison. Six oh eight four four
0:38
Speaker 1: two five six three seven. No charge for that initial
0:41
Speaker 1: get to know you appoyment tech Class Financial, It will
0:43
Speaker 1: be complimentary to you again their number six oh eight
0:46
Speaker 1: four four two five six three seven and you get
0:48
Speaker 1: on the air, just call it the studio. We'd love
0:49
Speaker 1: to hear from you six 'oh eight three two one
0:51
Speaker 1: thirteen ten that's three two one thirteen ten and joining
0:54
Speaker 1: us as mentioned are our retirement planning professionals from Class Financial. CJ.
0:58
Speaker 1: Closs and Malia Quavis.
0:59
Speaker 2: CJ.
0:59
Speaker 1: How you doing this week?
1:01
Speaker 2: I'm doing great. Sean, how are you?
1:02
Speaker 1: I'm doing really good. It's fantastic to talk with you. Malia,
1:05
Speaker 1: how are you doing?
1:06
Speaker 3: Very good? Enjoying the changing colors already?
1:09
Speaker 1: Ain't that crazy? It's I guess we're already in. You're
1:13
Speaker 1: already little October.
1:15
Speaker 3: Wow.
1:15
Speaker 1: Yeah, it's bye and bye wow.
1:17
Speaker 3: Wow.
1:18
Speaker 1: Is for sure. We've got speaking of things that can
1:20
Speaker 1: come up on you quick. Of course it comes to retirement,
1:24
Speaker 1: and we're talking about retirement planning, that retirement day can
1:26
Speaker 1: come up on you quick. We talk about the importance
1:28
Speaker 1: of retiring, and I think sometimes people fantasize about things
1:32
Speaker 1: like downsizing and other things. We're gonna get the details
1:34
Speaker 1: from c Jen Malia on just that. Maybe that's been
1:37
Speaker 1: something you've been thinking about. Maybe you're saying, you know what,
1:39
Speaker 1: I love the fall colors, but I don't like the snow.
1:42
Speaker 1: Maybe I should relocate. We'll get the details from Cgen
1:44
Speaker 1: Malia on that in just a moment. A couple of
1:46
Speaker 1: things remember about the program. Of course, it is a
1:49
Speaker 1: great opportunity if you have questions, whether it's specifically related
1:52
Speaker 1: to this week's topic or any related retirement related conversation
1:56
Speaker 1: or question, you can always call in. We'd love to
1:58
Speaker 1: hear from you. At six oh eight three two one thirteen.
2:00
Speaker 1: That's six eight three two one thirteen. Ten talked about
2:03
Speaker 1: some of the features at classfinancial dot com. That's coss
2:05
Speaker 1: klaasfinancial dot com. Another great benefit there is the podcast.
2:09
Speaker 1: If you miss any part of today's program or you
2:11
Speaker 1: want to share it or listen back to that part
2:14
Speaker 1: that you missed. I know sometimes in the morning get
2:15
Speaker 1: a little busy, you can always head on over to
2:17
Speaker 1: classfinancial dot com. Before we get rolling on this week's
2:20
Speaker 1: conversation about downsizing or maybe buying a second house or
2:25
Speaker 1: an RV or selling the house here and moving there
2:28
Speaker 1: and those type of things. Before we get all of that,
2:29
Speaker 1: one of the really cool things also we do on
2:31
Speaker 1: the show is a class quiz question a week. This
2:33
Speaker 1: week will be no exception chance for you to win
2:35
Speaker 1: fantastic prize from our friends at class Financial. This week
2:37
Speaker 1: chance to win a twenty five dollars gift card to
2:39
Speaker 1: pet Smart. And before we get rolling on this week's topic,
2:42
Speaker 1: let's actually take a look back at last week's program
2:44
Speaker 1: and get the question and answer there as well. Maliah.
2:47
Speaker 3: Yeah, so last week we had a great conversation on
2:49
Speaker 3: the ins and outs of understanding annuities, So listen to
2:53
Speaker 3: that show if you have any interest or maybe have
2:56
Speaker 3: some of those products. Did a lot to know about those.
3:00
Speaker 3: So last week's question revolved around that, and the question
3:03
Speaker 3: was what is the penalty amount for taking money out
3:06
Speaker 3: of an annuity prior to age fifty nine and a half?
3:10
Speaker 3: Question was is it ten percent or twenty percent? Larry
3:13
Speaker 3: of Stoughton, congratulations to him. He correctly answered ten percent.
3:18
Speaker 3: So thanks for listening listen carefully for today's question, and I.
3:22
Speaker 1: Got a great chance to win a prize. It a
3:23
Speaker 1: little tip if you listen closely, oftentimes the question answer
3:26
Speaker 1: come up during each week's program, so it benefits you
3:29
Speaker 1: in a number of ways to pay close attention. As mentioned,
3:31
Speaker 1: we're going to be talking this week about folks as
3:33
Speaker 1: they get ready to settle into retirement and you know,
3:36
Speaker 1: maybe wondering should I consider downsizing or moving maybe do
3:41
Speaker 1: a whole new area. What can you tell us CJ
3:43
Speaker 1: about those who may be thinking about doing just that.
3:46
Speaker 2: Yeah, this is an important part of the communication we
3:49
Speaker 2: do with people as they prepare for retirement. Our organization
3:54
Speaker 2: is fortunate enough to work with people well before retirement
3:57
Speaker 2: and retirement and in many circumstances and then transference of
4:01
Speaker 2: that wealth to the next generation and so in so
4:05
Speaker 2: working with people along that path, we often run into
4:07
Speaker 2: this question of all, right, should I move to be
4:11
Speaker 2: closer to kids and grandkids? Should I should I move
4:15
Speaker 2: from a home into a condo? Should I move into
4:17
Speaker 2: a progressive kind of senior living community where they've got
4:20
Speaker 2: independent living. Should I go into a nursing home? When
4:23
Speaker 2: do I go into a nursing home? There's a lot
4:25
Speaker 2: of interesting parts of this discussion, and of course, as
4:30
Speaker 2: Malia can attest, you know, everybody's got an opinion about this,
4:33
Speaker 2: So you know, oh, mom and dad you need to
4:35
Speaker 2: be in a warmer climate, or grandma and grand but
4:38
Speaker 2: come live near me. And and by the way, that's good.
4:41
Speaker 2: It's good that you know that everybody has an opinion
4:45
Speaker 2: and they love you and they want you you to
4:46
Speaker 2: move near them, or maybe they just want safety for
4:49
Speaker 2: you if they feel that you're unsafe.
4:51
Speaker 3: In your home.
4:52
Speaker 2: And while that's all good, we would just encourage our listeners.
4:55
Speaker 2: You don't want to be forced into these decisions. Now,
5:00
Speaker 2: I'll admit to you, many times you are because proactive
5:05
Speaker 2: decision making around reducing your liberties or reducing your optionality
5:09
Speaker 2: is very unpopular for US Americans. We love our freedom
5:14
Speaker 2: of choice, but in so doing, often you end up
5:18
Speaker 2: putting your family or yourself in a position of having
5:20
Speaker 2: to make a kind of rushed, last minute decision around
5:25
Speaker 2: moving into a senior living facility or in some cases,
5:29
Speaker 2: directly into a nursing home, or in really tough circumstances
5:33
Speaker 2: where family members are having to take keys away from
5:36
Speaker 2: you for driving a vehicle because you can no longer
5:39
Speaker 2: do that safely. So our largest piece of advice as
5:42
Speaker 2: it relates to this whole topic, would just be pro
5:45
Speaker 2: actively think about these items so that your family members
5:49
Speaker 2: don't have to on your behalf. Now, I will admit
5:53
Speaker 2: to you, we actually just did a webinar here earlier
5:56
Speaker 2: this week on this very topic with a business called
5:59
Speaker 2: vesta senior network that actually helps people choose where to
6:03
Speaker 2: move into. Now, this is more think of this as
6:05
Speaker 2: progressive senior living facilities or nursing homes or anything like that,
6:09
Speaker 2: but they will help people make that decision to match
6:12
Speaker 2: up the facility with both your budget and your needs.
6:15
Speaker 2: So really interesting thing. We're going to actually be posting
6:17
Speaker 2: that webinar to our website if you're interested in listening
6:20
Speaker 2: to it. But fascinating discussion around the financial components of
6:24
Speaker 2: this decision and the services available by these facilities.
6:28
Speaker 1: Talk this morning with CJ. Colsso Moli Equavis. They are
6:31
Speaker 1: our retirement planning professionals from Class Financial. Speaking of that website,
6:34
Speaker 1: not only the webinars and other things up there. You
6:36
Speaker 1: can listen to the podcast, you can subscribe to the
6:38
Speaker 1: weekly market Ball's newsletter that'll all available to you at
6:41
Speaker 1: clossfinancial dot com. Tell off a number six oh eight
6:43
Speaker 1: four four two five six three seven. No charge for
6:45
Speaker 1: that initial get to know you appointment Deck Loss Financial.
6:48
Speaker 1: It will be complimentary to you. Again, they're number six
6:50
Speaker 1: oh eight four four two five six three seven. So CJ,
6:53
Speaker 1: let's kind of break some of this stuff down.
6:55
Speaker 2: Yeah, so some items you'll want to consider as you're
6:58
Speaker 2: thinking about moving. We already talked about, you know where
7:02
Speaker 2: children and grandchildren proximity matters, but then secondarily would be taxations.
7:08
Speaker 2: So before you move to a different state. We would
7:11
Speaker 2: highly suggest that you'd look at the future taxation for
7:14
Speaker 2: your retirement accounts and pensions and think of this in
7:18
Speaker 2: terms of, you know, federal income tax is pretty in
7:21
Speaker 2: your face. As a matter of fact, federal income taxes
7:23
Speaker 2: tend to get renegotiated and changed about every four years. Surprise, surprise,
7:27
Speaker 2: how long are presidential election cycles, So about every four
7:31
Speaker 2: years you end up with a slightly modified federal tax
7:36
Speaker 2: situation that may not even be marginal income taxes. It
7:39
Speaker 2: could be incentive incentives through fiscal policy of Congress. But
7:43
Speaker 2: then you have to think, if I'm going to move
7:45
Speaker 2: to another state, well, hey, states do have a state
7:48
Speaker 2: income tax for people who don't know it. Here in
7:50
Speaker 2: the state of Wisconsin, we've got a progressive tax, much
7:54
Speaker 2: like the federal government does that ranges. I don't remember
7:57
Speaker 2: exactly I stop my head, but somewhere between like four
8:00
Speaker 2: to seven and a half percent, depending upon your income.
8:03
Speaker 2: And so, hey, if you're going to move to another state,
8:06
Speaker 2: you might want to be aware of what that state
8:08
Speaker 2: income tax environment is. Do they tax your social security
8:13
Speaker 2: in that state you're moving to? Do they assess us
8:18
Speaker 2: a state income tax on your pensions? And retirement accounts.
8:22
Speaker 2: Here would be a simple example of this. Here in Wisconsin,
8:25
Speaker 2: there is no state income tax on Social Security. However,
8:29
Speaker 2: there is state income tax assessed to pensions, retirement accounts,
8:33
Speaker 2: so on, and so forth. Believe it or not, our
8:36
Speaker 2: neighbors to the south in Illinois do not have any
8:40
Speaker 2: state income tax assessed to either their Social Security or
8:44
Speaker 2: their pensions or their retirement accounts. No state income tax.
8:48
Speaker 2: So there's a simple example where people go, what Illinois.
8:51
Speaker 2: I always heard they tax you to death in Illinois. Well,
8:54
Speaker 2: you gotta slow down and take a look at these
8:56
Speaker 2: things and evaluate it. Now. By the way, that's I'm
8:59
Speaker 2: not surey make a statement that you should move to
9:02
Speaker 2: Illinois by by no means. I'm just trying to say
9:04
Speaker 2: you need to slow down and take a look at
9:06
Speaker 2: what these state income taxes are. Another example of this
9:09
Speaker 2: would be there are actually nine US states with no
9:14
Speaker 2: state income tax period, whether it's retirement accounts or otherwise.
9:18
Speaker 2: That's Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington,
9:26
Speaker 2: and Wyoming. So there you go. Those might be some
9:29
Speaker 2: states for you to be aware of. Now, review the
9:32
Speaker 2: cost of living, because the true cost of living can
9:35
Speaker 2: be not only the state income tax, but it could
9:37
Speaker 2: be the property that you're going to purchase, property taxes,
9:41
Speaker 2: sales taxes. There can be other ways for these states
9:44
Speaker 2: to try to make up for that. But accordingly to
9:48
Speaker 2: or I'm sorry, according to a Senior Resource Center, the
9:51
Speaker 2: most affordable states for retirees overall in twenty twenty three
9:57
Speaker 2: were Wyoming, Utah, Montana, Idaho, Colorado, and New Mexico. So now,
10:04
Speaker 2: interestingly enough, you might go, well, no kidding, because those
10:07
Speaker 2: are less populated areas and not fully true by the way,
10:11
Speaker 2: Colorado is pretty populated, but you get the idea. So
10:14
Speaker 2: you might want to slow down before you just decide
10:17
Speaker 2: to follow children or grandchildren and say, hey, what is
10:21
Speaker 2: the overall tax environment of that particular state. Do they
10:26
Speaker 2: have even healthcare resources available to me as I age
10:30
Speaker 2: if suddenly I end up needing independent or assisted living
10:34
Speaker 2: or nursing home care. So some good things to consider
10:37
Speaker 2: as you think about housing, entering into and throughout retirement.
10:41
Speaker 1: It's very fascinating stuff. As we talked this week with CJ.
10:44
Speaker 1: Closs and Malia Quavis, they are are retirement planning professionals
10:47
Speaker 1: from Class Financial. The website Class financial dot com. That's
10:50
Speaker 1: coss k l aas Financial dot com. Great website resource
10:54
Speaker 1: learn more about Class Financial. They're telf for whatever six
10:56
Speaker 1: so eight four four two five six three seven charge
11:00
Speaker 1: for the initial get to know you appointment tech loss Financial.
11:02
Speaker 1: It will be complementary to you again. The number six
11:05
Speaker 1: oh eight four four two five six three seven looks
11:08
Speaker 1: into our conversation with c generally, and don't forget phone
11:10
Speaker 1: lines are open for you right now at six oh
11:12
Speaker 1: eight three two one thirteen ten that's three two one
11:14
Speaker 1: thirteen ten will get you on the air with our
11:16
Speaker 1: retirement planning professionals from COSS Financial as Money and Motion
11:19
Speaker 1: continues right here on thirteen ten wib I chatting with
11:25
Speaker 1: our retirement planning professionals CJ. Closs and Malia Quavis. Of
11:28
Speaker 1: course they do come to us from Class Financial, the
11:30
Speaker 1: website coss financial dot com that's Coss k l a
11:34
Speaker 1: a s Financial dot Com and their telephone number six
11:37
Speaker 1: oh eight four four two five six three seven. No
11:40
Speaker 1: charge for the initial get to know your appointment tech
11:42
Speaker 1: loss Financial. It will be complementary to you again. The
11:44
Speaker 1: number six oh eight four four two five six three
11:47
Speaker 1: seven talking about downsizing and moving, and we've talked taxes
11:52
Speaker 1: in the in the last segment, and I think another
11:55
Speaker 1: reason CJ. I've got a guess why folks may be
11:57
Speaker 1: considering moving in retirement is the weather. And there's got
12:04
Speaker 1: to be some reasons as well to be thinking downsizing,
12:06
Speaker 1: aren't there.
12:07
Speaker 3: Yeah, I think I'm going to cover this Sean. Yeah, see,
12:10
Speaker 3: Jerry talked about the weather a little bit. And you
12:13
Speaker 3: know what's interesting is some people love the seasons, and
12:18
Speaker 3: they've loved them their whole, you know, whole life living
12:21
Speaker 3: in the Midwest perhaps, but sometimes we've seen people that
12:25
Speaker 3: like to escape to warmer climates and so that's their
12:27
Speaker 3: dream in retirement that they can live every day and
12:31
Speaker 3: in hopefully seventy degree weather. So that's one thing that
12:37
Speaker 3: might come into play. We've had people who say, you
12:39
Speaker 3: know what, I've been dealing with allergies asthma for so
12:42
Speaker 3: many years. I just want to go to Arizona where
12:44
Speaker 3: I can dry out and feel better. So those are
12:47
Speaker 3: real reasons why people do choose to to move to
12:51
Speaker 3: maybe for health considerations and so forth. So looking into that,
12:56
Speaker 3: you know, I think as we go through all these
12:57
Speaker 3: different items, what's interesting, as we see in our offices
13:01
Speaker 3: with clients is that, you know, when we're first having
13:05
Speaker 3: conversations early before retirement, we're always talking about our clients'
13:10
Speaker 3: parents and what they're going to do with their parents,
13:13
Speaker 3: for their parents, where their parents are going to move.
13:16
Speaker 3: Suddenly the conversation comes around to the client sitting in
13:19
Speaker 3: front of us going, oh, you're talking to me. Now
13:22
Speaker 3: you're talking about what I'm going to do. And so
13:24
Speaker 3: this is a really great conversation for all of our
13:28
Speaker 3: listeners to say, yeah, mom and dad, what should we
13:31
Speaker 3: be doing? Or oh, what about us in retirement. So
13:34
Speaker 3: we're really just trying to plant those seeds today. So
13:37
Speaker 3: as we talk about health conditions, that could be you
13:39
Speaker 3: what you need to do in your retirement. Also we
13:43
Speaker 3: talk about recreational activities. You know, so if you just
13:46
Speaker 3: like fishing and outdoor trails and so forth, that's wonderful.
13:51
Speaker 3: If you're in climate that allows for that twenty four
13:55
Speaker 3: to seven so that might be something a reason that
13:58
Speaker 3: you might want to consider go going toward more of
14:01
Speaker 3: a three to four season climate. For many people's sun
14:05
Speaker 3: is really an important factor. And when we've had you know,
14:08
Speaker 3: I remember last year we had like two or three months,
14:10
Speaker 3: we felt like we never saw sun. Not a good feeling.
14:14
Speaker 3: So we see now, you know, when we look at
14:16
Speaker 3: the number of days of actual sunshine, we see Arizona
14:21
Speaker 3: has two hundred and eighty six days, New Mexico two
14:23
Speaker 3: hundred and seventy eight, California two hundred and fifty eight days.
14:27
Speaker 3: These really come to play in your mind when you're
14:30
Speaker 3: feeling like, hmm, I think walking outside every day and
14:33
Speaker 3: just seeing the sun the majority of the time feels good.
14:36
Speaker 3: That might be a reason to move. Or if you've
14:39
Speaker 3: been active most of your life, you may want to
14:41
Speaker 3: just consider being a snowbird. You know, you might want
14:44
Speaker 3: to be keeping your current home, perhaps renting in a
14:47
Speaker 3: more climate friendly location. Of course everyone looks at Florida
14:51
Speaker 3: or Arizona for many people coming from the Midwest, but
14:56
Speaker 3: that might be enough for you just to continue doing so.
14:58
Speaker 3: By no means are we saying and you have to
15:00
Speaker 3: get up and move, But you really just need to
15:02
Speaker 3: take this all under consideration. So really the next question
15:06
Speaker 3: is why should you downsize? That comes next. You know,
15:10
Speaker 3: it's not necessarily relocation, but downsizing, and so we like
15:14
Speaker 3: to talk about in our retirement planning, how much do
15:17
Speaker 3: you plan to spend in the different areas of your life,
15:20
Speaker 3: and housing definitely is one of the most expensive areas.
15:24
Speaker 3: So even if you own your home outright by the
15:26
Speaker 3: time you retire, actually downsizing to a smaller space can
15:31
Speaker 3: save you quite a bit of money. So remember that,
15:34
Speaker 3: other than healthcare, housing will likely be your single greatest
15:39
Speaker 3: monthly expense in retirement. According to the Bureau for Labor Statistics,
15:43
Speaker 3: home costs represent the largest expense for retirees, accounting for
15:48
Speaker 3: thirty six percent of their annual expenses. So that's why
15:52
Speaker 3: we at least have that discussion about potential downsizing to
15:56
Speaker 3: reduce this expense. You might say to your off, well,
16:00
Speaker 3: if I own my home outright, I have no mortgage,
16:03
Speaker 3: what are you talking about? And so obviously that can
16:05
Speaker 3: definitely bring down the cost of home ownership on a
16:08
Speaker 3: yearly basis. But the truth is there's a lot of
16:12
Speaker 3: upkeep that every single thing around your house, whether it
16:15
Speaker 3: be cutting down trees or fixing the gutters or doing
16:19
Speaker 3: the driveway, every that upkeep can really be an expense
16:24
Speaker 3: that people don't want to admit to. And then of
16:27
Speaker 3: course we've got the discussion about utilities. You know, we
16:30
Speaker 3: all enjoy lower utilities, you know in the summer with
16:35
Speaker 3: regards to maybe our guess bills, but come winter we're like,
16:37
Speaker 3: oh my goodness, this is getting expensive. So if you
16:41
Speaker 3: have a smaller space, it's you know, let's say you
16:44
Speaker 3: downsize to half the amount of space you currently occupy.
16:47
Speaker 3: It's not that your bill's going to drop in half,
16:50
Speaker 3: but certainly if you could reduce expenses by a third,
16:53
Speaker 3: that could make a difference in your potential retirement income.
16:58
Speaker 3: So we like to just point out that maybe you
17:00
Speaker 3: want to stay in your home, we'll talk about that
17:02
Speaker 3: in a minute, but considering downsizing, even if it's in
17:06
Speaker 3: your own community, could actually help you in your your
17:10
Speaker 3: monthly expensive.
17:11
Speaker 1: Talking this morning with CJ. Colss and Malia Quavis. They
17:13
Speaker 1: are our retirement planning professionals from Class Financial the website
17:17
Speaker 1: Class financial dot com. That's Class k l a A
17:20
Speaker 1: S Financial dot com. And they're telephone number six O
17:23
Speaker 1: eight four four two five six three seven. No charge
17:26
Speaker 1: for that initial gets to know you appointment tech Class Financial.
17:28
Speaker 1: It will be complimentary to you again the number six
17:31
Speaker 1: oh eight four four two five six three seven and
17:34
Speaker 1: Malia other reasons when it comes to maybe maintaining a
17:37
Speaker 1: smaller space or some other benefits there as well, aren't.
17:39
Speaker 3: There, right, I mean, honestly, just having less to take
17:43
Speaker 3: care of and what we what we hear people tell us.
17:46
Speaker 3: And it differs, of course from men to women. But
17:50
Speaker 3: you know, people love mowing their own yard for a
17:53
Speaker 3: very long time and then suddenly they don't. They love,
17:57
Speaker 3: you know, shoveling that snow and even helping the neighbor
18:00
Speaker 3: shovel there's they're driveways, and then suddenly they don't. So
18:04
Speaker 3: keeping you know, in mind, like some proactive planning and
18:09
Speaker 3: making sure that you adjust, you know, where you live
18:12
Speaker 3: before you just suddenly are like I'm done with that.
18:15
Speaker 3: I'm just done doing that. So that's that's really important.
18:18
Speaker 3: What we see is people moving toward possibly age restricted communities,
18:25
Speaker 3: and so we see these popping up throughout the country.
18:27
Speaker 3: If they're commonly known as fifty five plus. Sometimes they
18:32
Speaker 3: have additional living situations as you need progressive care. Sometimes
18:36
Speaker 3: they don't. But we have clients all over the country
18:40
Speaker 3: that this comes up, and you know, they've been living
18:44
Speaker 3: in their individual homes and suddenly they're like, you know
18:47
Speaker 3: what we want, we want to take care of our yardless.
18:51
Speaker 3: We want more activities to hang out with other people,
18:54
Speaker 3: and eventually, if something, you know, some health related issue
18:58
Speaker 3: comes up, we have a place within our community potentially
19:01
Speaker 3: to move into. So these are great conversations again to have,
19:05
Speaker 3: whether it be your parents or with your your significant other,
19:09
Speaker 3: because there's no question that time marches on. So we
19:13
Speaker 3: want to we want to see what's out there, and
19:16
Speaker 3: there's certainly a lot of different situations available to people today.
19:21
Speaker 3: We we also looked at, you know, we like to
19:23
Speaker 3: update our statistics, and we looked at where are people
19:26
Speaker 3: actually retiring to the last couple of years, and looking
19:31
Speaker 3: at state to state migration patterns and so forth. United
19:35
Speaker 3: Van Lines National Mover Study. I think they kind of
19:37
Speaker 3: know where people are moving, they're doing it, and they
19:41
Speaker 3: saw that that that retirement was usually the main reason
19:45
Speaker 3: for those migrations and that the highest percentage of inbound
19:50
Speaker 3: moves people coming into the state. Those states were Vermont, Oregon,
19:55
Speaker 3: Rhode Island, South Carolina, Delaware, North Carolina, Washington, DC, South Dakota,
20:02
Speaker 3: New Mexico, and Alabama. So we tell you all the
20:05
Speaker 3: sunny estates and all the places people you know, the
20:07
Speaker 3: top ten list the best place to live, but it's
20:10
Speaker 3: kind of interesting to hear. Yeah, but there's a lot
20:12
Speaker 3: of migration into other states, inward migration that we don't
20:16
Speaker 3: really hear about. And then again with everybody's list. While
20:20
Speaker 3: at HUB, they came out with twenty twenty three's Best
20:22
Speaker 3: States to Retire. Florida was named number one in twenty
20:26
Speaker 3: twenty two, but Virginia edged them out in twenty twenty three.
20:31
Speaker 3: So I think when we sit down with our friends
20:33
Speaker 3: and family and everyone's read these lists, really we have
20:37
Speaker 3: to come back to what is the most important thing
20:40
Speaker 3: to use specifically when it comes to making that choice.
20:45
Speaker 3: Is it to be near a family like CJ was mentioning,
20:48
Speaker 3: Is it to be closer to better health care facilities
20:52
Speaker 3: potentially or your specific situation with your own health financial
20:59
Speaker 3: concern and so we want it to be affordable. So
21:02
Speaker 3: your list is going to look completely different than your neighbors,
21:05
Speaker 3: and that's what we want you to be able to
21:06
Speaker 3: spend some time and really think about what makes you
21:10
Speaker 3: happy now and what you think will make you happy
21:12
Speaker 3: in retirement.
21:12
Speaker 1: It's a really fun and enjoyable conversation as well. You've
21:15
Speaker 1: worked so hard and start to start making those plans
21:18
Speaker 1: for those next step. It's a great day to have
21:20
Speaker 1: that conversation. Don't forget the telephone over for Class Financial
21:22
Speaker 1: six so eight four four two five six three seven.
21:26
Speaker 1: No charge for that initial get to know you appoyment
21:27
Speaker 1: at Loss Financial. It will be complimentary to you again
21:30
Speaker 1: the number six oh eight four four two five six
21:32
Speaker 1: three seven at the website Coss Financial dot com. That's
21:35
Speaker 1: Coss Financial dot com. That's k l aas Financial dot com.
21:40
Speaker 1: More of Money in Motion next year on thirteen ten
21:42
Speaker 1: Wiva Gloss Quiz question wely coming up for you in
21:48
Speaker 1: just a moment a chance to win a twenty five
21:49
Speaker 1: dollars gift card to pet Smart. Talking this week with
21:52
Speaker 1: CJ and Malia about things to think about when it
21:55
Speaker 1: comes to settling into retirement. Maybe where you're going to
21:58
Speaker 1: live is downside location, All that stuff really important to
22:03
Speaker 1: think about when it comes to making these determinations. And CJ,
22:06
Speaker 1: as we're kind of going through that stuff, what about
22:09
Speaker 1: how we go about making those decisions for housing and
22:12
Speaker 1: how do we know what's how do I know what's
22:13
Speaker 1: the right one?
22:14
Speaker 2: Yeah, that is the tricky part because as we've talked
22:17
Speaker 2: about here. There's a lot of considerations from family members,
22:21
Speaker 2: to the tax environment of the state that you're going
22:23
Speaker 2: to move to, to safety and security, do access of resources,
22:27
Speaker 2: to all the things that Malia just talked about there
22:29
Speaker 2: in terms of affordability and weather patterns. So a lot
22:34
Speaker 2: of things to be considered here. But this is a process,
22:38
Speaker 2: and before you make a good decision, you really do
22:40
Speaker 2: need to evaluate your current situation and then compare it
22:43
Speaker 2: against what you think you will need in the future.
22:46
Speaker 2: But with that being said, here would be some high
22:48
Speaker 2: level categories we might suggest you consider as it relates
22:51
Speaker 2: to exploring housing, kind of like transitional living housing in retirement. First,
22:58
Speaker 2: how many bedrooms do you really want need? And I'd
23:01
Speaker 2: actually pause on that one quickly. I often see people say, well,
23:04
Speaker 2: I need to keep the six bedroom, fifty five hundred
23:07
Speaker 2: square foot home in case my grandchildren come home and
23:10
Speaker 2: they come home like once every four years, and you
23:13
Speaker 2: are paying like twenty grand a year more to maintain
23:16
Speaker 2: that home just for the once in every three or
23:18
Speaker 2: four years. Now, that's been my experience. That doesn't mean
23:22
Speaker 2: that it's not right for you. I'm just saying be
23:25
Speaker 2: cautious of that, because as Milia just went through. Housing
23:28
Speaker 2: does tend to be one of the most expensive component
23:31
Speaker 2: parts for retirees, so you might want to consider downsizing.
23:35
Speaker 2: Number two would be how many floors are in my house?
23:38
Speaker 2: And is my laundry on the main floor. This has
23:41
Speaker 2: to do with health and vitality and ability to go
23:44
Speaker 2: up and downstairs. If you're aging, you know some of
23:47
Speaker 2: your peers are struggling to do this, and so having
23:50
Speaker 2: kind of single floor living can be a big benefit
23:53
Speaker 2: as you age. Number three would be do I need
23:56
Speaker 2: a basement? And of course, if I don't have a basement,
23:59
Speaker 2: where would I with all my stuff? This is why
24:02
Speaker 2: we are known as a storage generation of Americans because
24:05
Speaker 2: we have all these storage facilities, but that's a topic
24:08
Speaker 2: for another show. Number four would be what size garage
24:12
Speaker 2: do I currently have? And do I still need that? Again,
24:14
Speaker 2: we often will see people that throughout their raising children
24:18
Speaker 2: they needed three, maybe even a four car garage, but
24:20
Speaker 2: then in retirement you certainly don't need that. A fifth
24:24
Speaker 2: area to consider would be do I want a large
24:26
Speaker 2: yard to mow or do I really want a yard
24:29
Speaker 2: at all? Maybe a condo where they take care of
24:32
Speaker 2: it for me could make sense, and then final area
24:36
Speaker 2: to consider for housing would be will I have a pets,
24:38
Speaker 2: because obviously that can impact the number of options you
24:41
Speaker 2: have available.
24:42
Speaker 1: Talking with CJ colossim Leequivias, our retirement planning professionals from
24:45
Speaker 1: Class Financial and CJS, we kind of break this stuff down.
24:48
Speaker 1: Obviously having folks that can take airy professionals in your life,
24:52
Speaker 1: those are also important. And if you've gone your entire
24:55
Speaker 1: life establishing some relationships with their doctors and others, what
24:58
Speaker 1: do we think about there?
25:00
Speaker 2: Right, So that prior section is really just around like
25:02
Speaker 2: the housing itself, right, how many floors, how many rooms,
25:07
Speaker 2: the size of the yard, so on and so forth.
25:09
Speaker 2: But now let's really get into like services and area.
25:14
Speaker 2: So am I near doctors? So we talked about some
25:17
Speaker 2: of those states that are really inexpensive to live in,
25:19
Speaker 2: but you may not have access to good doctors or
25:23
Speaker 2: healthcare facilities. Another would be like how close am I
25:27
Speaker 2: to shopping facilities? And does that matter to me? Does
25:29
Speaker 2: it take me an hour to get to the closest
25:32
Speaker 2: costco or is one in my backyard? Are there social
25:35
Speaker 2: and cultural activities that are easily accessible to me? Are
25:38
Speaker 2: there hobbies that are that are available to me at
25:41
Speaker 2: a low or no cost. I know pickleball is a
25:44
Speaker 2: big thing. My wife and I play it together. And
25:46
Speaker 2: you know, so do I have a pickleball court or
25:47
Speaker 2: a tennis court near me? Is there public transit available
25:51
Speaker 2: to me in this location I'm going to go to?
25:53
Speaker 2: And do I care about that? We work with a
25:55
Speaker 2: lot of people who go public transit. Screw that, I
25:58
Speaker 2: want to be outside of bubble transit. Others say that
26:01
Speaker 2: is critical to their retirement. And then one of the
26:05
Speaker 2: big ones is am I close to family? And do
26:07
Speaker 2: I still want to be close to family? Furthermore, what
26:10
Speaker 2: are my current responsibilities with my current home? And do
26:13
Speaker 2: I want to move somewhere where I don't have those responsibilities?
26:17
Speaker 2: And then, finally, of course, the area that we care
26:19
Speaker 2: most about is how expensive is where I am living
26:22
Speaker 2: now compared to where I will be? And that runs
26:25
Speaker 2: the gamut of literally how much money do I have
26:28
Speaker 2: tied up in equity inside of my current home versus
26:30
Speaker 2: how much will I in the future home. But then
26:33
Speaker 2: even beyond that, what is the carrying cost of that home? Right?
26:36
Speaker 2: So think I think property taxes, maintenance, and that a
26:40
Speaker 2: lot has to do with HOA dues which is just
26:44
Speaker 2: like association dues. If I'm in Florida, I have to
26:46
Speaker 2: think about the insurance costs. So listen, we do this
26:50
Speaker 2: all day, every day. And so therefore, for us, this
26:53
Speaker 2: just kind of rolls out of our mouths. We understand it,
26:56
Speaker 2: we think it, we live it, we breathe it. For you,
26:59
Speaker 2: this might only happen once in your life, and so
27:01
Speaker 2: I would highly encourage you talk to your account and
27:03
Speaker 2: talk to your financial advisor slow down before you just
27:06
Speaker 2: jump to a new state, and have them do kind
27:08
Speaker 2: of a financial consideration of the new area you're looking
27:12
Speaker 2: to move.
27:12
Speaker 1: Really really good advice this morning. And one final point
27:15
Speaker 1: before we get to the class quiz question, Liak and Malia,
27:18
Speaker 1: other things that we may be maybe need to think about,
27:21
Speaker 1: other considerations that we should be thinking about when it
27:25
Speaker 1: comes to moving.
27:26
Speaker 3: Well, of course we mentioned affordability, right, It's you know,
27:30
Speaker 3: we have to be reasonable. Have you paid off your mortgage?
27:34
Speaker 3: You know? Are you going to downsize? Is it going
27:36
Speaker 3: to cost more to down size? That's always a big
27:38
Speaker 3: question sometimes if you're going to stay in your own community,
27:41
Speaker 3: you're like, okay, I might as well just keep my house.
27:45
Speaker 3: What we didn't talk about yet, is you know, do
27:48
Speaker 3: you want to stay put in that same family home.
27:52
Speaker 3: If that's a fact, there should be potentially some modifications
27:56
Speaker 3: that are made with regards to the laundry or things
27:58
Speaker 3: like that, maybe a different type of bathing facility within
28:01
Speaker 3: your home. Another item is maybe your adult children have
28:05
Speaker 3: moved back in. We have a lot of clients who
28:08
Speaker 3: have adult children living with them, So if that's the case,
28:11
Speaker 3: maybe they're going to be able to give you some
28:13
Speaker 3: additional care. So these are all important considerations for your situation.
28:19
Speaker 3: And you know, what we found is that many people
28:23
Speaker 3: do prefer to stay in their current home. We're talking
28:25
Speaker 3: about people leaving, downsizing, et cetera. But a majority of people,
28:29
Speaker 3: about sixty nine percent, say they do enjoy staying in
28:33
Speaker 3: their home and they're open to a relative or someone
28:37
Speaker 3: else coming to help them. So, you know, it's your situation,
28:40
Speaker 3: it's your retirement, and you just need to start looking
28:43
Speaker 3: at all angles of the equation.
28:45
Speaker 1: And it can be a lot of fun to kind
28:46
Speaker 1: of plan this stuff out and have that conversation. It's
28:49
Speaker 1: a good day to start that conversation. Start thinking that.
28:51
Speaker 1: We mentioned the website class financial dot com that's Closs
28:54
Speaker 1: Klaas Financial dot com, great website and great resource. The
28:58
Speaker 1: telephone number six oh eight four four two five, six
29:01
Speaker 1: three seven. Don't forget no charge for that initial gets
29:03
Speaker 1: to know your appointment tech cost Financial. It will be
29:05
Speaker 1: complimentary to you again. The number six oh eight four
29:08
Speaker 1: four two five six three seven. You want to hold
29:10
Speaker 1: on to that number as well, because it's time now
29:12
Speaker 1: for the coss quiz question the week. It works like this.
29:14
Speaker 1: In just a moment, I'll ask you the class quiz
29:16
Speaker 1: question week. You will then have thirty minutes from the
29:18
Speaker 1: today's program to call the Class Financial Office right here
29:20
Speaker 1: in Madison at six oh eight four four two five,
29:23
Speaker 1: six three seven. If you are the first court correct
29:25
Speaker 1: answer when this week's prize, which is a twenty five
29:28
Speaker 1: dollars gift card two pet Smart this week's closs Quiz
29:31
Speaker 1: question week, is this true or false? According to the
29:36
Speaker 1: Bureau for Labor Statistics, home cost represent the largest expense
29:41
Speaker 1: for retirees, accounting for thirty thirty six percent of their
29:46
Speaker 1: annual expenses. True or false. Telephone number six oh eight
29:49
Speaker 1: four four two five, six three seven, first caut correct
29:52
Speaker 1: answer when this week's prize, don't forget as well, that's
29:54
Speaker 1: cost Financial's office right here in Madison. That number six
29:57
Speaker 1: oh eight four four two five six three seven And
30:00
Speaker 1: C J. Maleia it's always great chatting with both of you. Guys.
30:02
Speaker 3: Have a fantastic day, thanks,