Stopping being a full timer?

[Tbos]

I retire in a few years. We hope to full time it but are concerned about what to do when we need to call it quits. Should we keep a house somewhere to call home base or just find something when we are done? What does everyone on here plan to do? Thanks.

[GaryWT]

Our plan is a little different but when I can no long tow and set up, we plan on being seasonal. We will pick a great campground and just park it there.

[sourdough]

We don't full time and probably never will. I wanted to but that is a non starter for my wife. If we did however, we would never get rid of our house. It's paid for and ownership of it makes us both feel much more comfortable as far as it lasting until we kick the bucket vs a travel trailer. Plus, you own your own property, do as you wish, it's got a steel roof that won't crack/split/leak over time, no seals, tires, suspension etc. that can quit at anytime. The list of pros is almost endless, the cons are that you can't take your home with you wherever you want to go.....but then, that's what hotels and condos are for; with no blowouts, leaks etc:D

[Tbos]

We don't full time and probably never will. I wanted to but that is a non starter for my wife. If we did however, we would never get rid of our house. It's paid for and ownership of it makes us both feel much more comfortable as far as it lasting until we kick the bucket vs a travel trailer. Plus, you own your own property, do as you wish, it's got a steel roof that won't crack/split/leak over time, no seals, tires, suspension etc. that can quit at anytime. The list of pros is almost endless, the cons are that you can't take your home with you wherever you want to go.....but then, that's what hotels and condos are for; with no blowouts, leaks etc:D



Very good inputs. I admit my DW is more set on having roots we can call home somewhere near the Gkids.

[Tbos]

Our plan is a little different but when I can no long tow and set up, we plan on being seasonal. We will pick a great campground and just park it there.



Thanks. I'm not sure the DW will go for that but it's worth discussing.

[Festus2]

Tom -
You didn't say how far you are from retirement other than to say "a few years". As others here have found out, plans can quickly change due to a variety of reasons. If I were in your situation, I would have "Plan A" and "Plan B". I realize it's difficult to look into the future but I wouldn't set your goals in stone. It's great to be focused and have a goal but a lot of things can change between now and your eventual retirement and during retirement so keep that in mind and be prepared to be flexible.

It also makes it a lot easier if both you and your wife are both on the same page about full-timing. Once you commit yourselves - sell the house, etc., - it's a lot tougher to reverse course.

[hankaye]

Tbos, Howdy;

I'm letting my brothers fight it out, whichever one wants to come out here
and claim it will be the next owner.

hankaye

[Tbos]

Fetus, As of today I have 3 years and 10 months to retirement. Thanks everyone for your suggestions.

[WaitingToRetire]

Nice question Tbos.

I always just assumed we would sell our house when we no longer "need" it for living purposes. Then one day I was having a casual conversation with a financial planner friend and he asked why we weren't planning on keeping the house and rent it out. I told him I didn't want to deal with tenants, and he said there are companies that you pay $100-200/month and they will perform ALL Landlord duties (first I'd heard of that). I then told him I didn't want to come back to a ruined house because "tenants" ruined it. He then said "why do you care? You earlier told me you weren't coming back here anyway. If you rent it out for $1200-1500 a month for 10 or 15 or 20 years, and then sell it, you're financially ahead of the game. Hire a reputable Landlord company, and they won't let the house be ruined."

There's some holes in his argument, and I ain't saying he changed my mind, but it certainly gives one something to think about. To me, even with the Landlord company thing, I have to think there is still going to be a level of responsibility and inconvenience I really don't want to deal with when I'm full-timing. But that thought of an extra $1000/month certainly is enticing, eh?

Besides purely financial, I suppose you have to factor in a bunch of social things.

1) How deep are your roots "here"? We've lived "here" for almost 20 years now, but we weren't born or raised here; we have no relatives (other than 2 kids) here. My relatives "back home" I could do without. We could just as easily and comfortably call "home" somewhere else. Wouldn't bother me none.

2) Is your state one you'd want to return to? Mine was a good place to raise a family at one time, but is getting less so all the time. It's not very Education-friendly lately. Infrastructure is crumbling and no one wants to pay for upgrades; apparently roadways and plumbing just fix themselves if left alone long enough. I do have a great job, and the cost of living is pretty cheap, though (but why will that matter when I'm full-timing). Add in future environmental and populations challenges/outlook, and overall the future isn't bright in this state.

3) How tied to your place are your kids? I'm raising my kids to not be encumbered by family, and so to look elsewhere when they get old enough to decide where they want to live/work/family. In my dreams they go off to make their own life, not be locked into a life dictated by happenstance of geography. If they do, that'd be one less reason for us to want to return here. I suppose if one was raised to value family above all else, that will be hard to leave behind.

4) How strong is your community "here"? We've made some great friends, and would seriously miss them. So that's one reason to return.

I suppose I look at full-timing and the after-full-timing periods as opportunities for fresh starts. Just gauging by their personalities so far, I expect one of my kids to be independent and want more, and one to stick around here. So that doesn't really help make our decision, LoL. Maybe your factors make yours easier?

Chad

[theeyres]

We knew when we hit the road we were never going back. Both my wife and I were sick of the snow and I never wanted to shovel another load, had lost good friends to either death or moves, and both our boys had moved. So it was a no brainer to put the house up for sale. While we were on the road we kept an eye out for where we might want to eventually settle, fell in love with the desert and Tucson area, and then bought a small house in a retirement community when we got off the road.

So it all just depends on your situation. We also had no desire to take care of a house in OR and didn't want to have to go back there to do things when we were out East or South.

As an aside, we sold the fifth wheel and bought a smaller trailer so still travel, but not full time. We're taking two months right now to escape the heat. We belong to an RV club that goes out several times every winter. So we are still enjoying RVing.

[Tbos]

More great inputs. Thanks. I'm skeptical about keeping the house and renting it out. I don't like knowing a tenant can skip out on you or not pay and then I'm stuck making the mortgage payment. The house has another 15 years before it's paid in full. We do have roots here with 2 kids and most of the G-kids here. Taxes are high, weather in the winter is unpredictable. Thanks again.

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[bsmith0404]

A couple thought s for you. First, we've rented our house before and don't know if we would ever go through that again. We weren't going to rent our house, but had a friend who rents out several homes. We were afraid of damage, but he reasoned with us that at $1,200 per month plus a $1,200 security deposit you have over $15k in rent for the first year, you can do a lot of repairs for $15k, plus pay part of your mortgage. It made sense to us so we did it. The first renters we had stayed 2 years and probably took better care of the house than we did. The 2nd tenants also stayed 2 years and did over $10k in damage to the house. From a business standpoint, it was a successful adventure. We collected $57,600 in rent, $1,200 in security deposits that we retained, and an additional $8,000 in fees after taking them to court. So $66,800 collected in exchange for $10,000 in damages over 4 years. The problem we had was the fact that we looked at the house as our home that we planned to move back to after we retired from the Air Force. My wife was crushed when she saw "her" house. The emotional side of it wasn't worth it. If you can look at it as a business and not personalize it, renting a home can add a nice bit of spending cash to your pocket, but be prepared for what can happen.

As for our plans, once the kids are gone, we will probably sell this house when we start full timing. It's too large with 5 bedrooms and too much maintenance with a pool and all. We like the idea of having a stick home that we can come back too. We also have a double wide mobile home that my parents use when they snowbird down here from WI. We plan to set that up on a nice piece of land with a good garage for the RV set up specifically for taking care of it. We can come back to that a couple months out of the year, put the RV in the garage, take care of some routine maintenance in a nice environment. How much time we actually spend at the house each year will vary, we'll just play it by ear. Probably be there for Thanksgiving and Christmas. Good weather in NM during that time of the year and a good place to spend holidays with friends and family.

[Ken / Claudia]

I had a aunt/uncle who when retired wanted to full time but, come back to Oregon because of grandkids and other family. They sold their stick built home. Purchased a manufactured home in a over 55 years old community in Oregon. Rented that out. Traveled about 10 years, going thru 3 motorhomes and with some more age and health issue's came back and moved into the MH. On the rental they had their children take care of rent, inspections and maintenance. By the way renting a home can go from good to bad real fast. I have had 2 rentals. Advice if you do that, pay a family member or trusted friend to take care of collecting rent and watch out over the place. Rent only to those who pass a background check and have past great rental history.

[sourdough]

Retirement, how to retire and why to retire are tremendously personal decisions.

Factoring in trying to rent a property was a non starter for us. I am a very meticulous person along with being the type that worries. I have no trust in the fact that someone would take care of something the way I would; and I wouldn't be happy if they didn't, so, instead of worrying all the time, ruining my fun retirement, or harassing a renter, I just visit the houses from time to time.

Your financial position dictates what you can or can't do in retirement. Virtually all financial advisors/planners say that having your home paid for prior to retirement is one of the most critical components of a successful retirement. For us, we started that planning many years prior to retirement. After the age of 45 I was offered many offers for promotions or new job opportunities. Having already moved 7 times I knew that finding a home would be difficult and I would probably build a new house (again). Doing that, whether I intended to or not, would mean that I would again be in debt for hundreds of thousands and put my mortgage out many years. I didn't take any of the offers and was eventually offered a huge promotion and they let me stay put.

Having watched many folks wait until 65 to retire and then promptly die we had determined we would not do that and would retire at 62. Due to some unexpected corporate activities an opportunity that would allow me to retire at 55 came along and it was impossible to pass up - so we did 10 years ago.

I've also watched individuals age and I've seen the kinds of issues that happen to "old folks". There's not a question about IF your health will decline; it's how much? How bad will it get before I kick the bucket?

With those thoughts in mind it was obvious to us that we could not "full time" and relinquish a home. The chances that I leave this earth much sooner than my wife is great. She does not, and cannot, perform all the maintenance that an RV requires. The security it offers in a severe storm can't compare to a solid brick structure. So, we keep it and will sell the other houses as we don't need/want them any longer.

As I said, when/how/why to retire is an extremely personal decision dependent on many, many factors. I have shared some of the thoughts and things we did. There were many more considerations over the years but hope some of this helps as you try to figure out your plan.

[Tbos]

Retirement, how to retire and why to retire are tremendously personal decisions.



Factoring in trying to rent a property was a non starter for us. I am a very meticulous person along with being the type that worries. I have no trust in the fact that someone would take care of something the way I would; and I wouldn't be happy if they didn't, so, instead of worrying all the time, ruining my fun retirement, or harassing a renter, I just visit the houses from time to time.



Your financial position dictates what you can or can't do in retirement. Virtually all financial advisors/planners say that having your home paid for prior to retirement is one of the most critical components of a successful retirement. For us, we started that planning many years prior to retirement. After the age of 45 I was offered many offers for promotions or new job opportunities. Having already moved 7 times I knew that finding a home would be difficult and I would probably build a new house (again). Doing that, whether I intended to or not, would mean that I would again be in debt for hundreds of thousands and put my mortgage out many years. I didn't take any of the offers and was eventually offered a huge promotion and they let me stay put.



Having watched many folks wait until 65 to retire and then promptly die we had determined we would not do that and would retire at 62. Due to some unexpected corporate activities an opportunity that would allow me to retire at 55 came along and it was impossible to pass up - so we did 10 years ago.



I've also watched individuals age and I've seen the kinds of issues that happen to "old folks". There's not a question about IF your health will decline; it's how much? How bad will it get before I kick the bucket?



With those thoughts in mind it was obvious to us that we could not "full time" and relinquish a home. The chances that I leave this earth much sooner than my wife is great. She does not, and cannot, perform all the maintenance that an RV requires. The security it offers in a severe storm can't compare to a solid brick structure. So, we keep it and will sell the other houses as we don't need/want them any longer.



As I said, when/how/why to retire is an extremely personal decision dependent on many, many factors. I have shared some of the thoughts and things we did. There were many more considerations over the years but hope some of this helps as you try to figure out your plan.



Thanks. Very wise advice. Still in planning stages. That's why we are asking the questions now. It would be an easier decision if MD taxes were reasonable for a retiree.

[bsmith0404]

Thanks. Very wise advice. Still in planning stages. That's why we are asking the questions now. It would be an easier decision if MD taxes were reasonable for a retiree.

Good time to sell and move....one of the reasons we settled on NM is the cost of living. Property taxes are very reasonable and help the retirement check go a lot further. Of course, 25 years in the military, moving around and not living near family makes that a much easier decision, we're used to it.

[sourdough]

Good time to sell and move....one of the reasons we settled on NM is the cost of living. Property taxes are very reasonable and help the retirement check go a lot further. Of course, 25 years in the military, moving around and not living near family makes that a much easier decision, we're used to it.


I have to agree with bsmith0404.

When I was transferred from NM to TX everyone said what a break I was getting because TX didn't have a state income tax vs NM which did. I was gungho about that. Well, tain't so.

After buying our house in TX I found that between property taxes and insurance costs my monthly expenditures for those items was just about DOUBLE in TX vs NM for those same items AND the state income tax. So, if you live in a state with on onerous tax burden your retirement plans might include moving somewhere less expensive. Although.....I always said when I retired I would be selling the house and buying another in a place that was pretty, had lakes/streams and good fishing. Well, 10 years later I'm still in WTX in the middle of farm land, blowing sand and windstorms...DW does not want to go anywhere. The high side is that we are in the middle of a fishing mecca; within 5-6 hours I can find a stream or lake in any direction:D:banghead:

[Tbos]

My Dad full timed for about 15 years. When he decided to call it quits he had to find a place. He settled in Gunbarrel TX. He fussed about his property taxes for a few years but now he doesn't at all. With his age I guess it's fixed now at a whopping $17. It is definitely going to be a challenge finding a good compromise between taxes, medical care availability and relative closeness to kids & G-kids. All our family is in VA, NC, & MD. The search continues. Keep the ideas coming.

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[sourdough]

My Dad full timed for about 15 years. When he decided to call it quits he had to find a place. He settled in Gunbarrel TX. He fussed about his property taxes for a few years but now he doesn't at all. With his age I guess it's fixed now at a whopping $17. It is definitely going to be a challenge finding a good compromise between taxes, medical care availability and relative closeness to kids & G-kids. All our family is in VA, NC, & MD. The search continues. Keep the ideas coming.

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Just left Santee, SC this morning. Beautiful place, super lakes and fishing and close to the NC/VA folks. One thing I've really noticed is how small states are compared to TX. Seems like I hit one and then I'm in another.

What we noticed, and loved, is the difference in the "weather". Here in the FL panhandle it is terribly humid, so hot feeling etc. At the same temp in Santee it was cool, not humid and very enjoyable. Looks like the economy is down there right now so we will probably look at picking up a piece of property. It might be something that would work for you when it's time.

[Tbos]

Sourdough, I had not really considered SC. I need to look into that. You are right about the size of the states in the east. It gets really crazy in New England.

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[gearhead]

Santee area is nice for sure. My mothers family was from there 250 years ago. Fought with Swamp Fox. Up around Winston-Salem North Carolina ain't bad either.
I don't think I could sell my home and RV full time. We've moved several times but within about a 30 mile area. This part of Texas has always been home and I guess it always will be.
That said we almost retired in northwest Arkansas. Very nice area, 4 seasons, low property taxes but an income tax state. Anyone want to buy 2 lots near Rogers Arkansas??
Our Ameriprise guy about jumped out his 26th floor window when I told him I wanted to pay cash to build this house. "Why would I do that when I could get a 4% mortgage and he can make us more than that?" Of course he was looking at losing his management fee on that amount. But we did get a mortgage. It has worked out well.
As for a rental. Maybe a buy condo before retirement, rent it out until you need it. No exterior maintenance when you're old.

[gnirwin]

I Just don't know how someone can full time. My hat's off to you. DW & I purchased a nice fifth wheel this past summer for plans on staying in it for a few months during winter months 2 years from now when we retire. We are thinking about 3 months (Jan to April) and I am worried that I will be ready to head home before those 3 months are up. I like to camp, don't get me wrong but am always happy to be back in my house and home when the week or 2 camping trip is over. The camper we bought is nicer than anything we have owned so maybe it will be different than past experiences.

[JRTJH]

I Just don't know how someone can full time. My hat's off to you. DW & I purchased a nice fifth wheel this past summer for plans on staying in it for a few months during winter months 2 years from now when we retire. We are thinking about 3 months (Jan to April) and I am worried that I will be ready to head home before those 3 months are up. I like to camp, don't get me wrong but am always happy to be back in my house and home when the week or 2 camping trip is over. The camper we bought is nicer than anything we have owned so maybe it will be different than past experiences.

I think part of the "camping experience" vs the "Full timing experience" is mindset. When we go for a couple of weeks, we stop the mail, stop the newspaper and turn off the hot water heater. We leave with the things we "NEED" and have the "mindset" of "We'll do without the rest for a couple of weeks". And, like you, a couple weeks later, on the way home, we look forward to getting back to "the stuff we left"......

Now, when we go for a couple of months in the winter or take a 8-10 week summer trip, we include many of those "leave at home and do without" things and we arrange for someone to get the mail from the post office (they will only hold it for 30 days). look through it and forward (actually Priority Mail those things we need to have to us at a pre-arranged location). We leave home with "a different mindset" and with many of the things we would not have packed along for 2 weeks. When we arrive at our destination and plan to be there for 2 or 3 months, we include much of the "stuff" we don't have with us for a "camping trip" so we don't "forgo much of our lifestyle" like we would for a shorter trip.

But, I don't think it's a coincidence that on the way home, after a 2 or 3 month trip, that we have those same "hunger pangs" to be back home and settled in to our "comfort routine"...

I'd suppose if we "didn't have home to return to" those "hunger pangs" probably wouldn't surface. They never have "on our trips, only on the way home......

[notanlines]

I believe that a lot of the full-timing mindset has to do with one's sense of adventure. There are many who simply are the "paint the garage, mow the lawn and golf on Wednesday" type people when they retire. There are many who can't wait to sell the house and find a new adventure. A number of retirees fall in the middle, but you have to decide for yourself. All of our situations are different, but you need to think long and hard about where you want to be when you're 85 years old. Do you want to look out on a freshly painted garage with a nice lawn mower inside or look out at a lake full of crappie just waiting to be dipped in cornmeal.....your call!

[Tbos]

Thanks for the added advice. We are still deciding since we have a couple years until retirement. We do know we can't stay in MD. The taxes are just too high.


2016 Passport GT 2810BHS, 2014 Silverado 1500 LT in Deep Forest Green

[CaptnJohn]

Sourdough, I had not really considered SC. I need to look into that. You are right about the size of the states in the east. It gets really crazy in New England.

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Depends ~~ I moved to SC when I retired 14 years ago. Stayed there 5 years and found I like it much better right across the line in NC. Property taxes are slightly higher and all others lower. With taxes under $1400 on a $300+K home who cares. $300K buys a lot of house compared to many other places. My biggest expense on the house is insurance but worth it to me as my boat at the marina is only 4 minutes from home.
One more thing ~~ along with NC state employees, retired military and retired federal CSRS are exempt from state income tax.

[Tbos]

John,
Thanks for the info. I'm federal FERS. Does NC tax that retirement?


2016 Passport GT 2810BHS, 2014 Silverado 1500 LT in Deep Forest Green

[byrdr1]

Depends on ~~ I moved to SC when I retired 14 years ago. Stayed there 5 years and found I like it much better right across the line in NC. Property taxes are slightly higher and all others lower. as my boat at the marina is only 4 minutes from home.
One more thing ~~ along with NC state employees retired military and retired federal CSRS are exempt from state income tax.

I like calling NC home!
randy

PS I am looking at 5 years out to retire, the wife is 4 younger than me so she will not be able to retire when I do. PLUS she carries the family insurance so that's a no-brainer on my part. We plan to do more traveling once I retire. Someone mentioned the wife would outlive us men and I believe that based on my family history and the wife's. So we are talking and I am planning. My thoughts are to get me JOB at a campground being some type of host or worker and the wife come down and visit on weekends the first few years. then travel as we can. I have moved about all Iw ant to move, we just remodeled our S&B and we are not going to leave it. So traveling several months a year sounds good. MY 2 oldest are going to live close by as my 2 grandchildren, the youngest child (22 end of month)will be the traveler. so we will have to travel to visit her and her future.
So I have enjoyed coming back and reading this thread.
thanks
randy

[notanlines]

TBOS, info is fairly available on the 'net.
If you are receiving a federally taxable retirement plan distribution under the former federal FERS system and you had at least 5 years of creditable service as of 8/12/89 (yes, thats 1989) then you may exclude ALL of your benefits from N.C. taxation. Report the deduction on line 42 of N.C. Individual Income tax return form D-400. No such FULL exemption is available for retirement distributions from plans of other states.


If you do not qualify for this exemption both you and your wife will qualify for N.C.'s general retirement deduction of up to the lesser of your taxable retirement distributions or $4,000 each. Thus, you may report a reduction in your N.C. taxable income of up to $8,000 for retirement plan benefits you receive that are taxable for Federal purposes. This deduction is reported on line 43 of Form D-400.


To the extent your retirement benefits are exempted on line 42, you may not take an additional deduction on line 43. Thus, if your benefits are exempt completely on line 42 because you qualified, then you may only take a $4,000 deduction on line 43 to reduce your wife's taxable retirement benefits.


Here is a link to the form http://www.dor.state.nc.us/downloads/D400_D400TC.pdf.

[Tbos]

Thanks. I appreciate the NC information. I will have military time that will credit toward my federal retirement. A lot of that time is prior to 1989. I don't know if that will count or not. Much to learn still.


2016 Passport GT 2810BHS, 2014 Silverado 1500 LT in Deep Forest Green