When looking for a retirement destination, couples or individuals seek destinations that fit their lifestyle, hobbies and retirement ideals. There are a few things for pre-retirees to consider in terms of location in order to make the most of their golden years.

Consider a rental or time share before buying

Deciding to purchase a second home can be both exhilarating and a bit frightening. Ultimately, someone needs to ask themselves, “Realistically, how much time will I be able to spend at a vacation home?” It helps to do a trial run before deciding on where to spend a portion of the year. The decision should be based on lifestyle, not motivated by investment potential.

Don’t underestimate cost and time

Be realistic about the amount of time you’ll actually spend in a second home and don’t buy too early, the expense is often larger than anticipated. It is important to be realistic about the true cost of resort property ownership. The same unforeseen expenses that pop up in a primary residence can occur in a second home. However, your second home will likely be some distance away, so when unforeseen problems crop up you will be dealing with third parties to help remediate the problem.

Look at taxes

To make the most of that nest egg, understand the tax implications—state, income and inheritance—of where you live and how that will impact income streams. The rules on determining residence for state tax purposes vary from state to state. In general, the number of days in the state that the tax payer chooses to declare as their residence state is greater than 180. However, these rules can be complicated. An individual who is planning to utilize a possible change of residency, should consult a tax professional.

Whether you’ve decide on a second home, a time share or a rental, finding a community and like-minded people is key. Retirement can be like ‘college’ all over again, if others are in their retirement, it will be easier to find and build friendships with those in the same stage of life, with common interests.