Thinking About Moving Closer to Your Kids? 4 Financial Implications to Consider
When I left home, I moved across the country, driving all the way from California to Florida. My mom laughed when I talked about how far away I had moved, reminding me that when she moved out of her house, she left the country entirely and went to sail around the world. That's just what kids do!
But despite our initial need for independence, adult children eventually come to appreciate their parents more. If your children have moved away and continue to grow families of their own, a thought may cross your mind: Should we move closer to our children (and grandchildren)? As Chris never fails to remind me, having grandchildren is so much better than having kids - with grandchildren, you can "Sugar them up, play all day, and then hand them back to Mom and Dad!"
So, is it worth moving to be closer to your adult children? If so, what are some financial considerations to keep in mind?
Consideration #1: Cost of Living
Do a cost-comparison between where you live now and the area in which you’re considering moving to. What are real estate prices like? You’ll want to determine how monthly expenses like health care and insurance will vary as well.
Check out local restaurants, grocery stores, shops and any other daily expenses that will impact your budget.
Consideration #2: Housing
One of the biggest considerations you’ll need to make is what your living situation will look like. Will your child move you into an in-law suite? Or do you need to weigh the pros and cons of renting versus buying a home? When you’re looking for housing, you’ll also want to consider functionality. Will you be hosting celebrations and holiday dinners in your home, or do you primarily plan on spending time over at your child’s place? If so, then you may find it best to downsize to a condo or apartment.
If you want to be able to have grandchildren sleepover, host Thanksgiving dinner and entertain friends and family, then you’ll want to look for a piece of property that can accommodate your needs.
Consideration #3: Resources & Discounts for Retirees
Some areas offer resources for senior citizens and retirees, such as community centers, programs and volunteer opportunities. If staying active in your community and connecting with other retirees is a priority, you’ll want to check ahead of time to see what opportunities are available to you.
Additionally, you may find that the area you’re moving to offers added perks for seniors, such as discounts on public transportation.
Consideration #4: State and Local Taxes
If you’re considering staying in-state, checking into what your state and local taxes will look like may not be a top priority. But wherever you’re considering heading to, check into what you can expect your taxes to look like. In addition, you’ll want to look into other tax obligations including sales, property and estate taxes. Depending on where you move to, taxes can vary greatly across the board.
Need Help Figuring This Out?
If you're uncertain about what the financial impact of such a move would be, feel free to reach out to us. Such a big move can have financial implications that you will want to look at before you decide.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.