Too many factors to adequately cover here.

I'd recommend sitting down with an independent, fee-based, financial adviser. Not one who who would earn a commission from selling you insurance or an investment product. The first meeting is usually free.

This guy's web site is a good place to start reading up on some of the issues.

Ric Edelman

Another comment that Edelman is not what you need. If you want to hire a planner, try a Garrett Planner, completely fee based. We spent $2100 total, all our non-401k (which we have limited choices) funds, both IRAs and taxable, is with Schwab and Vanguard is very low cost funds, and good diversity.
Garrett Planning Network

Garrett is a franchising operation like McDonalds or Subway Sandwiches.

I think there are better choices, ask around

Better advice than the one mentioned in the first reply.

As a couple whose husband recently retired (and was semi-retired for about 7 yrs, working part time for his old company), I would tred with caution about moving somewhere you are not sure of. Have you vacationed in this area and/or spent any time in that area, and/or aside from it being a lower cost of living, why did you choose this particular place?

Assuming your financial position is fine (I wont give advice to consult any financial people), consider what it is you and your better half REALLY want to do. If you want to travel, why are you building a house? And can you resell the land you bought; and purchase a house for $200,000 less that you would love as much -- and not have to go thru the whole building experience (UNLESS that is something you really want to do). We were fortunate enough to have enough money to buy our retirement home a few years ago, when the market prices were still low, and use it as a vacation/getaway which we do year round. We will sell our main house (I am still working) when my young est is out of college, a couple years away.

Retirement in itself is a big adjustment.... you need to really think what you want before jumping into such a big investment, one that is so much more than houses in that area. Another thought..would you be able to recoup the cost if you decided to sell the house you built? And the house you are selling where you are, will you make at least as much as the new build will cost you or more? Generally people downsize as they retire.

What is your goal? To Travel, or retire to this area with a newly built house (or other house) or both? When will you start the build? And will you stay in your current house til it's done....

You are having second thoughts...is your better half also, but hasn't said anything? Might be a good idea to sit down and have a frank discussion of options/and how you feel about each.

You dont say if you have family and if they are closer to the house 6 hrs away or if you are moving away from "everyone".

Just a few thoughts from my perspective...I might have more later :o) but these come to mind off hand.

Thanks everyone for the replies.

Oh, btw, the heading should read: So Many Decisions to Make. I saw the mistake but could no longer edit my post.

I don't think we need a financial planner since the tools through Fidelity and other sites I am on state we will be ok with our current assets. I added the issue about the recession because we all know that assets will be reduced with the next stock market drop.

We do have our money in Vanguard, Fidelity and Schwab which includes ETF's, bonds and mutual funds.

Val

We visit the area where our land is located 3 - 4 times a year and are content with the area. We will be downsizing 300-500 square feet on the house. However, the cost to build is much higher than the money we will receive from the sell of our current home. We plan to live there forever whether we buy or build. So 30? years down the road the house value should be higher if we need to sell.

The area where are land is located offers so many things we love to do. Hiking, cycling and other outdoor activities. We want to build or buy on our land while we are in good health and enjoy the area.

My DH and I came from humble beginnings and neither of us want so spend more than necessary on our retirement house.

I guess more than anything, we are looking at so many changes that will happen at once.

Cricket, it sounds as if you have everything planned. However, if you are building in a certain location so that you can hike, bike, etc., what happens if one of you can no longer do active sports? Are there enough other amenities in the area to keep that person busy? Would you want to switch gears together? Something to consider.

Although the OP was a year ago you bring up some very good points for others that are thinking about retiring. Another thought is what happens if one of them becomes unable to do the active sports. What things must be done, normally in pairs, for safety like hiking.