...buying a home to retire to before retirement may, depending on one’s financial position, be a wise, solid investment. However, purchasing a second home intended for retirement may not be financially viable for all readers.
Chicago, IL (PRWEB) July 05, 2013
Following the release of an excerpt from an article in Kiplinger’s Personal Finance, GreyWingFinancial.com announced its support of Kosnett’s conclusion that purchasing a retirement home before actually retiring may prove wiser than purchasing a home after retirement. The excerpt, aptly titled “Build Your Retirement Home Before You Retire”, discussed a man who chose to do so, having a home that served as a vacation home before retirement that will also serve as the sole place of residence following retirement. Doing so may prove wise, as it provides a home after retirement, and gives future retirees more time to research all options and find a home sincerely suited to one’s needs.
Kosnett’s excerpt discussed the decision of Ken Means, an Illinois native, to purchase a home on 80 acres of land before his retirement. The home is used as a vacation home before retirement, offering members of Means’ family a beautiful getaway for summer vacations, as well as acting as a future retirement home. The home, located in a low-income area, will maintain low property taxes and, despite its size, cost Means less than $300,000. This investment has proven practical and smart for Means, as the location is close (a mere six hours away from his current home), and affords Means a method of engaging in his hobbies after retirement, including hunting. Means did not, however, make a snap decision regarding his retirement home; rather, he searched avidly for a home that fit his needs, discussed his options with financial planners, and viewed multiple properties in multiple locations and price points.
Grey Wing Financial supports Kosnett’s assertion that buying a home to retire to before retirement may, depending on one’s financial position, be a wise, solid investment. However, purchasing a second home intended for retirement may not be financially viable for all readers. Those currently without a home mortgage or with an abundance of monthly income may be the first to benefit, as the stress of adding a second mortgage may prove too much for some. This method of retirement home planning is best suited for those with substantial retirement savings, and a home already paid off.
Grey Wing Financial recommends that future retirees interested in the idea of purchasing a home intended for retirement may want to consider the following: Is the home a good price? Will purchasing the home significantly detract from current efforts to save for retirement? Is the home in need of a large number of repairs? Will this home be a good fit as a permanent place to live after retirement? Will the financial burden of a second home place too great a strain on finances? If the response to any of these questions is negative, it may be wise to take a step back and discuss options with a financial planner before leaping to any decisions. Money that has already been set aside for potential after-retirement desires (i.e. vacation fund, elective surgeries fund, AARP life insurance fund, or an upgraded vehicle fund) should not be spent elsewhere.
Conversely, if the answers to the questions are overwhelmingly positive, consider the benefits of having a second home. The home, like Means’, can serve as a vacation home before retirement. If the home is in need of repairs, it may not only be significantly cheaper, but may also provide a weekend hobby before retirement. Purchasing a home before retirement may lift some of the stress of downsizing after retirement; the home will simply be there, waiting, upon retirement. As with any large financial investment, discuss options with a financial planner, and take a long, realistic look at the current financial situation to make sure that purchasing the home will not be a burden or strain rather than a blessing.
Jeffrey R. Kosnett is a contributor to Kiplinger, an online and print publication, based in Washington D.C., aimed toward providing business forecasts and financial advice. He composes articles regarding retirement finances and stock finances, offering readers advice and tips regarding personal finance.
In the wake of an article excerpt written by Jeffrey R. Kosnett, Grey Wing Financial revealed its support of his conclusion that, like Ken Means of Illinois, purchasing a retirement home before actually retiring may prove wiser than waiting until after retirement. Purchasing a home sooner allows future retirees to become acquainted with the area and its people, making friends and making repairs to the home as soon as possible. It may also serve as a vacation home to the future retiree and his or her family. Though this solution is not feasible for everyone, for those financially secure enough to add a mortgage to the monthly bills, the prospect of purchasing a retirement home sooner rather than later is an intriguing one, and one that should perhaps be looked into.
About Grey Wing Financial:
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