Can You Afford To Retire In Florida?
More people moved to Florida in 2022 than to any other state. The recent arrivals represent all age groups. Florida has long been a popular retirement destination; the youngsters are a fairly recent addition. Conventional wisdom used to hold that, as long as you are not in Miami-Dade, Broward, or Palm Beach County, where Florida’s glitz and glamor are concentrated, Florida is just another inexpensive Southern state. Of course, it has been a while since Florida has counted among the top ten least expensive states to retire. Last year, it didn’t even make the top 25. Despite this, the siren song of Florida’s stinky swamps and relentless traffic keeps luring retirees. Retiring to Florida requires some careful financial decisions which are best made with the guidance of an Orlando estate planning lawyer.
Seniors Can’t Get Enough of the Land of Fatal Lightning Strikes, Multiple Crocodilians, and Sky-High Housing Prices
Bankrate recently released its list of most and least affordable states for retirees, based on factors’ such as the states’ tax policies and the average amount that seniors spend on budget items associated with retirement. Florida ranked 35th most affordable, a ranking with places it just outside the top ten most affordable states to retire. Most of the most affordable states, such as West Virginia, Iowa, and Missouri, have few of the characteristics that make Florida such a desirable destination. Nearby Alabama and Mississippi, however, are among the top ten most affordable states.
The National Mortgage Professional website has a clue about why Florida is so expensive, namely homeowners’ insurance. Florida is the site of six of the most destructive hurricanes ever recorded, such that many Florida locations are all but uninsurable. Meanwhile, the sale prices of houses in Florida have also skyrocketed, thanks to the recent population increase. Therefore, if you plan to move to Florida, housing costs will likely take up a large part of your budget. The days when Central Florida was a quiet backwater where one could easily find cheap real estate have passed, and they are unlikely to come back anytime soon.
If you are planning to settle in Florida during your retirement, one practical option is to sell your house in the state where you currently live and use the proceeds to buy a considerably smaller one in Florida. Another is to rent an apartment in a retirement community, since in that case, you will not be responsible for paying for homeowners’ insurance. Depending on the amenities offered in the retirement community, your long-term care insurance might be able to contribute toward the cost, because this type of insurance pays for residency in assisted living facilities, as well as for nursing home care.
Contact Gierach and Gierach About Estate Planning for Aspiring Floridians
An estate planning lawyer can help you build your estate plan so that you can afford to move to Florida, where the sunshine is free, but everything else costs a bundle. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Sources:
nationalmortgageprofessional.com/news/florida-battles-riptide-closing-problems
cnbc.com/2023/08/31/cheapest-us-states-to-retire-in-2023.html
