A Retiree Nomadic Lifestyle

One of the most important things to learn about retirement is that it isn’t one-size-fits-all. Your retirement doesn’t have to be like anyone else’s retirement. In fact, one of the best parts about retirement is getting to do whatever you’d like. You’re no longer tied down by a job, you no longer need to be at the same place at the same time every day, and you don’t have a 9-to-5 anymore. This means you have more freedom than you’ve had in years.

So, why stay in one place?

That’s what being a nomadic retiree is all about. A nomadic retirement means you don’t live at a fixed address. For some people, this means living out a suitcase and traveling across the country or around the world, living in different hotels, guestrooms, cruise lines, and shared housing. For other people, it might mean living in a recreational vehicle (RV) and driving to different spots, seeing the country.

Becoming a Nomadic Retiree

Everyone chooses to approach this lifestyle differently. For a lot of people, the first step is selling their home. Not only does your home tie you down, but it also likely holds a lot of your equity. By selling your home, you’ll unlock more funds to help cover your expenses. However, know that there’s a good chance that housing prices will continue to go up for the foreseeable future in many parts of the country. If you sell your home now, you’ll get access to cash, but you if want to buy another home in a few years, it will likely need to be smaller or in a different neighborhood. 

If you decide that you still want to own a home, downsizing can help. This will let you gain access to some additional money while still having a permanent residence.

You’ll also want to have a plan for your belongings. You can’t carry everything with you, so most nomadic retirees sell most of their things before they start to travel. The money you get from these sales can help fund your retirement. On the other hand, if there are items you want to hold onto but don’t have space for while you’re traveling, storage costs can add up pretty quickly. 

Whatever you decide to do, figuring out what to do with your home and your things are the first steps in becoming a nomadic retiree. 

Budgeting

Having a budget is always important when you’re retired, but it’s especially crucial if you’re a nomadic retiree. Living in various different places comes with various different costs. In some situations, you might be at a short-term rental, in others you could be in a hotel, while staying with friends or family can also be a part of your plans. The costs associated with each of these scenarios varies. That makes your overall expenses more variable, so you’ll need to keep careful track regularly to ensure you’re not spending more than you have available.

Think about your other expenses as well, such as your food costs. Eating out is almost always more expensive than cooking for yourself. Even if you’re on the road, you should try to prepare at least some meals on your own to reduce your costs. 

There’s also a lot of hidden costs associated with travel, such as wear and tear on a vehicle (if you have one) along with repair costs. If you’re driving your own vehicle, put some money aside to pay for these expenses. 

Healthcare

Healthcare costs are another area where all retirees need to have a plan, but nomadic retirees need to think even further ahead. If you’re traveling in the United States, you’ll need to make sure that the providers you visit accept your health insurance. This becomes a bit easier if you have Medicare, but that may not cover all your costs.

If you’re planning to travel internationally, you’ll want to buy international health insurance. It helps to research the health care of a region when you’re planning your travel to ensure the place you’re going is able to provide the level of care you need. 

Of course, you’ll also need to plan for what you’ll do if you reach a point where you’re no longer able to travel due to your health. If you require long-term care or assistance with daily life, this is much more difficult to get if you’re living a nomadic lifestyle. 

Taxes

If you’re an American traveling in the United States, you’ll still be responsible for paying federal income tax. You will also need to pay state and local taxes on your retirement income. This can be complex if you’re traveling often, as these taxes are collected based on where you have residency.

If you’re traveling internationally, you’ll also be responsible for following federal tax laws. Since these situations can get complication, it might be a good idea to work with an advisor or accountant who can help you out. 

Doing What’s Right for You

The best part of retirement is getting to live a lifestyle that wouldn’t have been possible while you were still working. Everyone has their own preferences and their own priorities. If you decide that being a retiree nomadic person is what matters to you, starting planning for how you’ll achieve this dream.