Retirement should be a time for relaxing, exploring, and enjoying life. After a lifetime of working, retirees often choose to shift their focus to traveling, and some of them choose full time RVing.
If you’re planning to retire in your RV full time, you’ll need to consider some expenses in advance. Here are 3 ways to prep for full time RV retirement.
Buying a Recreational Vehicle (RV)
If you own your home, you’ll have to look at the amount of equity you have accumulated. For those who want to sell their home and purchase an RV with their equity, it can be tempting to think that this is where the expenses end.
However, you’ll still have to purchase an RV, which will eat up a good portion of your equity “savings account”. Be sure to plan for how much will be left over after making an RV purchase.
If you currently rent or do not have enough equity in your home to pay for most of the RV, you’ll have to decide whether another loan (with interest) is a smart decision for you. Each person is in their own unique financial situation, so take a look at your income coming in each month and the cost of the loan plus RV insurance before deciding if it’s doable.
If you need an expert’s advice, a financial planner may be the right professional to consult.
RV Wear and Tear / Maintenance
You’ll need to plan for unexpected breakdowns as well as upkeep and wear and tear on the engine, moving parts, and internal living space. Having money saved up for addressing these issues on the spot can help you have peace of mind on the road. You should also keep basic info on towing your RV incase of emergencies.
Be sure to perform all scheduled maintenance on your RV, especially if you’ve purchased an extended warranty. By servicing your RV at the appropriate times, you’ll keep your warranty valid and your coverage intact.
Sure, you won’t have to pay for airfare and hotel accommodations if you travel in your RV, but you will have travel expenses. You’ll need to plan for fuel costs, which can vary greatly by state (and even by the season).
Another expense to be prepared for is the cost to park overnight at an RV park. Slot spaces are usually rented out for anywhere from one day to one week or longer. Often, sites will have weekly deals which end up costing less than if paying their daily fee.
There may be additional costs for hookups, wireless Internet, or use of their community pool or clubhouse. Be sure to also plan for eating out and/or buying meals and cooking them in the RV.
Buy Your RV with a Montana LLC
Starting a Montana LLC allows you to buy the RV you want without paying sales tax at the time of purchase. Even if you live in another state that charges sales tax, you won’t owe sales tax when you buy your RV.
This is possible because the IRS considers Montana LLCs as residents of Montana. This allows you, the LLC owner, to buy anything under your LLC’s name and not owe sales tax at the time.
Not sure how to get started? Ask us how LLCTLC can handle everything for you from start to finish for one easy flat fee. Our experienced Registered Agents are ready to answer all of your questions right now.
Enjoying full time retirement in an RV has never been easier (or more affordable) than with a Montana LLC! Get in touch with us today.