My Grandfather was born in 1930, he would have been 78 years old this year. I once asked him to tell me about how he and Grandma met.
” We met in High school and I found a job the summer after we graduated, worked hard for 40 years and retired. That’s what we all did, it’s just the way things were.”
I have pondered that conversation that took place over a decade ago many times. When he retired he did a lot of fishing and reading and spending time with us…wow how things have changed.
The word “retire” no longer fits as an adequate description for those graduating from their careers, or string of careers. It is being replaced in the main stream media with words like Refirement, Reboot, Rewire, Retread and my personal favorite- Caesura ( Latin term used to describe a break or pause in the line of a verse).
A recent Merril Lynch study says that the work-longer trend will swell with 78 million baby boomers climbing the latter. It states that 76% plan to work during their “retirement” years. Probably the most interesting thing to me about this report is the large number of retirees that are using their skills aquired through life to start small businesses and even doing it through an on-line presence.
While these numbers show a continuing work trend there is also a shift in the the type of life structure taking place.
In times past, paying off the homestead and keeping the place for the grand-kids to come and visit was the norm. This is quickly being replaced with a more “mobile” boomer. Home is where the suitcase is, and the children can just meet us at the beach this summer. There is a trend that is emerging once the nest is empty. Downsize the primary home- and get a second home to do the season split.
The information below was pulled from the Freddie mac website
Investor and Second-Home Share Doubles: 1999-2005
The rise in second-home buying reflects both secular and cyclical phenomena. As baby boomers reach or near retirement, many of them choose to buy a second home, perhaps to move to in retirement. The leading cohort of baby boomers reached age 59 this year, an age at which they can begin to make tax-free withdrawals from investment retirement accounts (perhaps for a down payment on a second home!) if they choose. The aging of the baby boomers over the next decade is likely to keep second-home purchases at an elevated level.
No matter what the short term real estate market does there is one thing for certain. The growing number of “rebooters” will be searching for that second home in increasing numbers as time marches on. The question I pose to real estate investors is -do you think they are looking at Pagosa Springs as that settling place?
I want to hear from you.