Many people figure that they'll move after they retire, either to live closer to where they want to be or to save on expenses. But is it a smart money move to relocate in retirement, or is it a decision that you'll come to regret?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the pros and cons of moving in retirement. Dan notes that especially if you live in a high-cost area, moving can make huge financial sense, either within the U.S. to a lower-cost area of the country or to an overseas destination for more venturesome retirees. Yet Dan also points out that other factors play a vital role in the decision. In particular, many retirees underestimate the social aspects of deciding where to live, with a move often involving having to give up your entire network of friends and family at a critical time for your well-being. Dan also runs through the need to consider available health-care and technical aspects of taxation in order to make sure the financial benefits are as great as you expect from a move. Dan concludes that relocating in retirement can indeed be a smart money move, but only if other non-financial factors don't outweigh the positives.
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