Is San Antonio, Texas a good place to retire? If so, where should I retire in Texas?
These are two questions we hear a lot at PAX Financial Group, with offices in San Antonio and New Braunfels. And when asked, we follow up with a question of our own: How do you plan to spend your days in retirement?
Answering this question is an important step in the retirement planning process, as it lays the foundation for what you’re planning for. Do you want to travel? Spend time at home? Open a business of your own? Your answers determine how much you’ll need in retirement and therefore, how much you need to save.
With more than 100 years of combined experience at PAX Financial Group, helping clients plan for the future, we see 6 common retirement personalities, plus others that involve a combination of sorts. Each brings along with it different needs, different fears and different concerns.
If you’d like to dive deeper into what your personality says about your finances, or if you don’t fall into one of the personalities featured here, let’s talk! It’s never too early to start planning for the future.
Schedule a no-obligation conversation with the team at PAX Financial Group and get the conversation started.
The Traveler
Is your dream in retirement to see the world? The Traveler is someone who may live out of a suitcase, collecting more stamps in their passports than a tree has leaves. You may have a list a mile-long of trips you plan to take, landmarks you want to see, and experiences you long to have. Or maybe you just have a few major trips you’d like to take when you’re no longer working. Either way, there are a few things to keep in mind.
A Traveler’s lifestyle is not cheap. Even the most frugal jet-setter will have to pay for transportation expenses, food, and lodging, not to mention continuing to pay the bills at home. Which brings up the question: Will you sell your home? Downsize? Relocate? These costs will affect your retirement income.
Another factor retirees often overlook is cross-border healthcare coverage if you plan to travel internationally, since most health insurance, including Medicare, doesn’t usually cover you outside of the U.S.
Make sure you review your plans as you near retirement. Has COVID-19 changed your plans? Is travel no longer of interest to you? Talk to a financial advisor about how any new plans will affect your finances. Staying in your home as opposed to selling it, for example, can bring new costs you weren’t originally planning for.
The Home-Body
At the other end of the spectrum, some retirees simply can’t wait to spend their time at home. Relaxing. Doing, well, not much! Maybe you’ve been putting off projects around the house for years that you finally plan to get to, or perhaps you have a long list of books you want to read. There’s nothing wrong with this. Many years of hard work earns you the right to do whatever it is you want to do! However, despite what you may think, there are costs to staying home.
For example, home renovations aren’t cheap! Even if a remodel is not on your to-do list, it may end up there 10 or 15 years into retirement.
And don’t forget about property taxes! These costs can be especially high in Texas. Read our recent blog post: Planning a San Antonio Retirement? 5 Considerations When Choosing Where to Retire.
A word of caution for potential Retirement Home-Bodies. While a life of relaxation and silence may sound like a dream come true after years of commuting and working in an office, it’s easy to get lonely at home after a few years, even if your spouse is also retired. (Actually, that can present a whole different challenge for Home-Bodies! Read our recent blog post: Retiring Before Your Spouse? 5 Issues to Discuss.)
Loneliness can lead to depression and feelings of isolation. To avoid this, consider how you’ll spend your time at home with meaningful social interaction. Find a group, a volunteer opportunity or some other source of human contact.
These blog posts may help:
How to Emotionally Prepare for Retirement – Why Friends May Be the Key
Spending Time With Family: Plan Now, Retire Happy
The Grandparent
The Grandparent persona can be a combination of retirement personalities. For example, do you plan to travel to spend time with your family or do you live close by?
If your plan is to spend more time with your kids and grandkids in retirement, take that thought a little further.
- Will retirement allow you to travel and spend weeks, or even months, at a time with your loved ones?
- How will you pay for transportation and travel for extended visits?
- Do you plan on taking your grandchildren on family vacations?
- Will you relocate to be close by?
- Do you have the energy to keep up with rambunctious grandchildren every day?
The Grandparent may even become a part- or full-time caregiver for the grandchildren while Mom and Dad are at work, to help them save money on daycare.
Read our recent blog post: 10 Ways to Support Family Members Without Risking Your Retirement.
The Worker
As the life expectancy in America continues to increase, at PAX Financial Group, we talk to many pre-retirees who plan to work longer, if not “forever.” Working longer, either because you love your job, care about your company or just want to stay busy, can be a financial blessing, but there are still factors you’ll want to consider.
The Worker has obvious financial benefits: Extra years of earning income, more time to save for retirement (and less time drawing down account balances), and possibly employer-covered healthcare for a longer period of time. However, talk to a financial advisor about the potential financial implications regarding Social Security, tax brackets, Required Minimum Distributions (RMDs), etc.
Read our recent blog post: Working in Retirement: 4 Things to Consider.
The Business Owner
An offshoot of the Worker is the Business Owner. More and more retirees have plans of retirement entrepreneurship, using the knowledge and experience they earned during their working years to turn it into something of their own. This can be a consulting firm with better hours, or it can be something entirely different, like a boutique or coffee shop.
Running a business and continuing to work can keep your mind sharp and your body active, but it also requires money.
If you dream of opening your own business in retirement, talk to a financial advisor about the costs and make sure you can afford it.
The Underprepared
No one wants to be this retiree, but unfortunately, many are.
If you didn’t save enough to retire comfortably at the age you had in mind, you may have to work longer, work part-time or adjust your plans. If you fear you may fall into this category, let’s talk! There are strategies that can help you catch up and get back on track sooner than expected. The key is starting the conversation now.
If you’re still decades from retirement, make sure you save early and often.
Other Considerations
Once you determine your plans in retirement, then you can return to our original questions: Is San Antonio, Texas a good place to retire? If so, where should I retire in Texas?
The financial advisors at PAX Financial Group can help you create a personalized, comprehensive retirement plan that works for you. If you find yourself a combination of a few of the retirement personalities above (maybe you’re a little Grandparent, a bit of Traveler and some Home-Body), we can also help you determine how much you need to save based on your retirement budget and obligations.
Regardless of your goals in retirement, now is the time to start planning for them. Schedule a no-obligation conversation today.
This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.
