Denver is a beautiful, happening city with lots going on. It’s got something for everyone.
If you’re a fan of the outdoors, the Rocky Mountains, Pikes Peak, Garden of the Gods, Black Canyon of the Gunnison, and Great Sand Dunes National Park are all within striking distance. If you’re a sports fan, there are the Rockies, Broncos, Nuggets, and Avalanche. Animal lovers can check out all sorts of species at the Denver Zoo. Music fans have easy access to one of the most prestigious venues in the nation: Red Rocks. There’s great weather, too—assuming you don’t mind some snow.
There are also a lot of job opportunities in Denver as the economy grows, but that means, Denver isn’t necessarily known as being the cheapest place to live in the country.
So, whether you’re planning on retiring in Denver because you’ve lived there your whole life, you want to move to be closer to friends and family, or you simply are in the mood for a new adventure during your golden years, consider putting together a retirement plan that helps you achieve that goal.
Retiring in Denver? Here’s What You Need to Know
More than 650,000 people call Denver home, and more and more people are moving to the area every day. This won’t be surprising considering the city’s growth rate and the fact that the median household income is just north of $76,500, which is some $16,000 higher than the median U.S. household income.
As a result, the Denver real estate market is “very competitive” according to Redfin—with most homes receiving a single offer, and some homes selling within six days of their listing date. It costs a decent amount of money to live in Denver; in fact, the cost of living in the city is 28.7 percent higher than the U.S. average. When you think about moving to Denver, you might also be thinking about the climate. Denver can get pretty chilly during the winter. And if you’re planning on retiring in Denver, you’ll also have to get used to being blanketed in snowfall each and every winter.
That said, Denver boasts pleasant summer and fall seasons, and there’s no shortage of gorgeous outdoor areas to explore when the sun is shining.
Financial Planning Tips for Retiring in Denver
If you’re thinking about retiring in Denver, the sooner you begin planning, the better off you’ll be when the time comes to call it a career.
Generally, as you begin saving for retirement, you’ll need to calculate how much income you need to save and invest to live at your current lifestyle. If you’re already living in Denver, you may be working in publicly traded companies that call Denver (or Colorado) home. Businesses such as Arrow Electronics, DISH Network, and Liberty Expedia Holdings may even offer a pension, in addition to stock options as part of their retirement packages. Because of the higher risk with investing in one (or few companies) you may want to consider exiting your concentrated position in that one stock. This has tax and investment implications. And if you have a pension, you may have to make a decision whether to take the lump sum or get the regular payments. To help, a financial advisor may be able to show you the cost benefit of each scenario.
You’ll also want to consider paying off your high-interest debt as soon as you can, which might include mortgages, student loans, and—of course—any credit card debt that may be lingering.
You may also want to consider Denver’s real estate market. The increase in the demand for housing, coupled with low interest rates, could present a lucrative opportunity to invest in real estate—depending on the CAP rates.
One more thing: Although you might be tempted to invest in marijuana-related businesses that are thriving, you may want to think twice about doing so. Such businesses are legal in Colorado, but they are still illegal on a federal level—which has, to date, presented a serious problem when it comes to banking.
Ready to Begin Planning for Retirement in Denver?
Planning for retirement is no easy feat. In addition to figuring out how you’ll be able to pay to live in an expensive part of the country when you’re not working, you will also have to determine where you’re going to live, what to do with Social Security and insurance, and many other things. With so much on the line, these are important decisions you may not want to make on your own.
Good news: You don’t have to.
Contact EP Wealth today to learn more about how a trusted financial advisor can help you develop a plan that increases the chances that you meet your long-term monetary goals. Over the years, we’ve helped a number of individuals just like you secure their financial futures.
We have two physical branches in Colorado—one in Greenwood Village and the other in Littleton. Stop by either branch to say hello and discuss how we might work together so you can retire comfortably in Denver.
In the meantime, check out our new e-book, The Retirement Planning Guide for People Who Don’t Want to Work Forever, to learn more about what you can do today to secure a brighter tomorrow.
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