Through decades of experience with clients living the snowbird lifestyle, we know there is a lot more to consider than just where to buy a new home
So Many Decisions
If we were to list all the decision points for someone considering having multiple residences in multiple states, it would make your head spin. That’s not our goal. We do, however, want to help you think through the decision to live across states through multiple lenses. Let us help you be confident you're making a sound financial and life decision when you consider the snowbird lifestyle.
Snowbird Planning Isn't Just for Retirees
With more and more people working remotely each year, the ability to work from anywhere across the country is becoming more common. This means that single people, couples, and people in their 20’s, 30's, and 40’s are choosing to live a more mobile lifestyle with homes in multiple locations.
Location
Location is a critical decision point for all the reasons you’d expect – convenience, view and surroundings, distance to friends, family, fun, etc. – but there are other things to consider which require careful thought like access to quality medical care, residency requirements, and estate planning implications.
Cost
How much can you afford? Should you buy or should you rent? Do you plan to rent out your home via VRBO, Airbnb, etc.? How will you move between the two homes (travel costs)? Carefully reviewing the current state of your financials against future goals is a vital part of our analysis.
Healthcare
Our goal is to consider not only the care you need today, but also what your future healthcare needs may look like. Will you be close to a hospital with high-quality doctors? Does your medical insurance (today and in the future) allow for the same level of care at the same cost in both locations where you'll live?
Taxes
Taxes are complicated when you have multiple homes, even more so if you own a business or are still working. Which state will hold your permanent residency? What are the rules and restrictions associated with residency? There are many questions to ask, and we'll take you through them all.
Legacy
Have you thought through and discussed with your family what will happen to your home(s) in the future? What happens if there is a divorce? Have you carefully planned for how your real estate will be handled in the event of a separation? These are all key items to consider before you purchase a second home.
Insurance
Depending on your financial situation and occupation, you may want to consider how your second home is titled from a liability perspective or if you need an umbrella policy. Natural disasters have also become the norm in many states, and domestic disasters like leaky pipes and power outages can happen even when you're not at home.
It's never too early to start planning for the snowbird lifestyle. The sooner we can add this goal to your financial plan and begin working on strategies, the better. That being said, at least two to three years in advance would be the latest you’d want to begin your snowbird planning.
Step 1: Lifestyle Questionnaire
Our Lifestyle Questionnaire will help both you and our financial planning team gain a better understanding of your vision. We'll collectively create your vision statement and pin it for later as we step back and look at where you are today.
Step 2: Current State Analysis
To figure out how best to help you attain your vision for the future, we start with your current situation. We take a deep dive into your assets, liabilities, insurance, spending, employment and career plans, and lifestyle needs. We then present our findings and discuss how you can achieve your vision.
Step 3: The Plan
Designing a Plan that will enable your success is our ultimate goal. Our job is to be creative and thoughtful in how to best help you attain your vision. We will meet with you after your draft Plan is completed to dive into the details and support you in making decisions. Once your Plan is complete, we'll implement the steps together to help make your dream a reality.
Step 4: Let's Go!
The implementation phase may include any or all of the following: Portfolio Changes, Tax Planning, Estate Planning, Cashflow Planning, and/or Insurance Planning. Read more about each of these in further detail below.
Your Snowbird Planning Implementation May Include...
Portfolio
Changes
We put your money to work for you in alignment with your Plan. Considering when you'll need money available, along with your risk tolerance and growth needs, will help drive the updates we make.
Tax
Planning
We discuss potential changes (income, sales, and estate tax rates) to your tax situation and residency status and how this factors into your Plan.
Estate
Planning
We review estate planning considerations including beneficiaries, maintenance of your home, etc., and establish which documents you'll need to manage your assets.
Cashflow
Planning
We review your overall budget and cash flow while considering the costs of maintaining and moving between two residences.
Insurance
Planning
We discuss insurance planning and factors to consider including the types of insurance you may need, how to manage risk associated with a second home, protection of your dependents, and more.
Blogs & Podcast Episodes on Snowbirding
Second Homeownership
Snowbirds: Second Homeownership ft. Melissa Joy Transcript: “Welcome to a Word on Wealth, a Stephens Wealth Management Group podcast focused …
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7 Tax Essentials
7 Tax Essentials for Snowbirds Snowbirds frequently head to places like Florida, Arizona, or California in the winter months, and …
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Moving Out of State?
Like many of our clients, you might be thinking about moving out of state. What issues should you consider when …
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Episode 12: Snowbirds
Sherri Stephens, President and CEO of Stephens Wealth Management Group, discusses the “ins and outs” of becoming a snowbird/sunbird with …
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Episode 9: Thinking About Downsizing Your Home?
Thinking about downsizing your home? As you approach retirement or become an empty nester, it’s important to understand the dynamics …
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*Please Note: Limitations. The scope of any financial planning and consulting services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. Stephens Wealth Management Group does not serve as an attorney, accountant, or insurance agent. Stephens Wealth Management Group does not prepare legal documents.
If the client engages us to do so, Stephens Wealth Management Group can provide tax preparation services as discussed in Stephens Wealth Management Group’s written disclosure Brochure (a copy of which is linked to this web site) per the terms and conditions of a separate engagement and fee.
If the client desires, one of Stephens Wealth Management Group’s representatives, in their separate licensed individual capacities, can be engaged to provide insurance sales/services as described on Stephens Wealth Management Group’s written disclosure Brochure (a copy of which is linked to this web site) per the terms and conditions of a separate engagement and fee.