While the first day of winter is just around the corner, we have had our fair share of snow already here in Michigan. Thus, several people are stirred and become more curious about the “Snowbird lifestyle.” Typically the snowbird lifestyle is normally reserved for the retired. In theory, they have worked most of their lives, and have created enough passive income to take an extended hiatus from a snowy winter. Life is grand. But there is a new snowbird generation rising up. Millennials. What’s fascinating about this demographic, is their motivation. As economists track them, they are watching their patterns take shape, such as spending habits, value systems, what motivates them and their moving patterns. Its estimated in the next decade some of those attractive southern states to escape in winter, will see an increase of millennials living the ‘Snowbird Lifestyle’. No matter what age you are, if escaping the snowy cold winters is something you are dreaming of, then read on. Consider this your ultimate guide to making that dream a reality!
ZOOM OUT AND THINK BIG PICTURE
LIFESTYLE
No matter what age you are, if snowbirding is going to be your thing, you should most definitely consider your lifestyle and what you currently do on a day to day basis. For example, its quite easy to go into this decision thinking its going to be an extended holiday, but the truth is that feeling quickly leaves after the first couple of weeks. Consider the things that make you happy. Do you lead an active lifestyle? Does this mean you must be close to a gym, or do you prefer outdoor exercise? Golf? Do you value walking to the local coffee house? Is nightlife something that energizes you? How about proximity to the beach? Test drive different areas that satisfy your lifestyle appetite. Here is a compilation of popular snowbird locations.
These are the things that will make your transition into this new adventure feel like you were always meant for it!
HOW LONG
Depending on the stage in life you are in, this will look a little different. Whether you are retired, or you are just beginning to design the life you want, then treading slowly is a good option. Its not always easy to adapt as quickly as we’d like. If this is your first time getting this close to considering a Snowbird Lifestyle, going all in the first year can be a huge commitment. Start going down for 1-2 months. If you find you love it, then extend your stay each year. While you are deciding on the best area to suit your lifestyle, consider renting. This allows you to really feel out your new destination. As a millennial, narrowing down the numbers will be key in establishing your financial goals long-term. Really comb through the numbers and decide if renting or owning will be beneficial.
TIP: To rent for 3 months or longer, contact a realtor in the area you would like to ‘snowbird’ to at least 3-6 months in advance. Reach out to me as I have been able to connect with several established realtors outside of Michigan.
THE COSTS OF A PERMANENT SNOWBIRD LIFESTYLE DECISION
Before making a permanent decision, a big consideration needs to be COST. Think all of your current home and living expenses. Once you have decided to purchase, your cost gets multiplied by 2, and then some to set up. For example, dishes, linens, furniture, home insurance (which could increase if your home is empty for ½ the year). Umbrellaed under the regular household cost of things, consider property taxes. You will be paying on 2 properties.
Some food for thought around property taxes is making sure you know your residency tax laws in each state. For example, in Florida (a popular snowbird location) if you don’t claim residency, a non resident property taxes can be up to 10 times more.
Another note on residency, depending on how much time you reside in your ‘snowbird’ state, you may end up paying income taxes in two states. Every state has their own spin on residency rules. If you purchase, it also wouldn’t hurt to look at estate and inheritance taxes. So, make sure to talk to your accountant before taking off!
Lastly, if you don’t plan to return home before the April 15 deadline for personal taxes, don’t forget to bring those files with you.
USHER IN THE EASY
Once you have found your spot on the map, and have considered and/or purchased to make it a second home, bring some clothing and settle in.
Use the excitement of daily sunshine and warmer weather to get out and meet and make new friends. Building history takes time, but reach out to others in the immediate neighborhood. More than likely they are snow-birding too. Get to know them, make friends, and build new memories with others who are also enjoying the fruits of their hard work. As a millennial, hang out with others who live a similar ‘work from home’ lifestyle. You will likely find them in trendy coffee shops or shared entrepreneur spaces. Either way, make time to plug in locally.
Banking. Invite the easy in and set up online! Electronic bill payments for the win! Its easy to miss things in the mail with address changes etc. Setting up on autopay and electronic bills payments will save alot of hassle and potential of missed payments. Your other option would be to open an acct locally (in your snowbird location), and pay bills through there.
Check with your Medicare/Insurance plan. Insurance can change from state to state, so make sure you brush up on your coverage. Here is all you need to know about about the snowbird lifestyle and Medicare.
Of course there are a few other things to look after before leaving your current home for the winter that can seem overwhelming. For that reason, I have created a Snowbird Lifestyle Master Checklist for you to create more ease and excitement around this new lifestyle you are adopting.