Costs of Being a Snowbird

3. Decide whether to rent or buy.

Housing is the largest snowbird expense, and it’s also where you have the most flexibility. Some choose to rent in different locations before making a major investment, and the rise of vacation rental platforms have made it easier to find short- or long-term rentals that suit your budget and schedule.

Buying a second home can offer stability and potential appreciation, but comes with a number of additional costs like property taxes, homeowners association (HOA) fees, maintenance and insurance. You may be able to offset those costs by renting the property to others, though some communities do not allow owners to do so, or require minimum rental terms of one month or longer. It’s important to understand HOA rules and to talk to your financial planner or accountant about tax implications and other considerations.

Another option is to rent or own an RV, combining travel and lodging in one. While owning can offer freedom and flexibility, it also comes with ongoing costs like maintenance, fuel, insurance, and campground fees.

Finally, keep in mind that living in two places can mean duplicated expenses. You’ll likely maintain utilities, internet and insurance at both homes.

4. Understand your healthcare coverage.

Healthcare is one of the most important considerations for snowbirds. Medicare coverage, for example, typically travels with you within the U.S., but some Medicare Advantage plans have limited provider networks tied to your home state. Before finalizing your plans, confirm that you’ll have access to quality care wherever you’ll be spending the winter.

If you have private health insurance, ask your provider whether out-of-state care is covered. You may also want to budget for travel medical insurance if you plan to spend time abroad, as traditional plans and Medicare generally won’t cover international care.

And don’t forget about routine prescriptions and specialists. Check whether your pharmacy network extends to your new location or if you’ll need to switch providers seasonally.

5. Factor in travel and transportation costs.

You’ll also want to think about distance from loved ones and the cost of travel to and from your warm-weather home, and remember that the costs extend not just to you, but to friends and family who want to visit you.

Airline travel can add up quickly, while driving may require vehicle storage or maintenance in both locations. If you prefer flying, look into seasonal flight passes or loyalty programs to help offset costs. If driving is preferable, be sure to factor in parking fees, fuel and tolls. Some snowbirds choose to keep cars in both locations, while others may forgo a car in favor of public transportation, ride-sharing and other alternatives. A thorough financial analysis can help you decide what’s right for you.

Be ready for other lifestyle adjustments.

While big ticket expenses are easier to predict, be sure to consider lifestyle changes as well. If you have pets, they may require more frequent sitting or kenneling while you’re traveling. Your dining and entertaining habits may change as well — you may have a wonderful cook’s kitchen in one home and a galley kitchen in the other. And you may participate in activities with associated expenses like golfing or boating, in one location more than the other. Consider storage costs as well: whether you need to store personal items while renting out one of your homes or store leisure items like boats or RVs when not in use.

The snowbird lifestyle can offer freedom, sunshine, and a refreshing change of scenery, but it requires thoughtful planning. By understanding the full range of costs and working with a financial advisor to map out a plan, you can enjoy your winters in comfort and confidence.

So, before you head south, talk to your Commerce Trust Private Wealth Management team or Commerce banker to create a plan that fits your goals and helps you make the most of your well-earned retirement.