In the meantime, he’s renting out his future retirement home, reaping the tax benefits and getting a step up on the retired baby boomers who he hopes will flood the housing market in years to come.

“And they’ll be looking for their place in the sun,” he said.

Kelner, a CPA for the accounting firm Schechter Dokken Kanter in Minneapolis, has already found his. He’s among a growing number of boomers who are buying retirement homes now, but using them as vacation homes or investment properties until they can live there full time.

While most second-home purchases are for immediate use, the 2006 Baby Boomer Survey by the National Association of Realtors (NAR) shows that those born between 1946 and 1964 are more active than any other group in the second-home market — they own 57 percent of all vacation/seasonal homes and 58 percent of rental properties. And many of them plan to use them as their eventual retirement homes.

Where are the hot spots? Typically by water and near the mountains. A 2008 NAR survey says that the sunny South had the largest share of second-home purchases, with the West coming in second.

A rising number of those second-home buyers are boomers who plan to use their investment as primary residences when they retire, said NAR spokesman Walter Molony. He attributes the trend to changes in tax laws, changing demographics (more baby boomers) and a desire to diversify investments.

http://www.startribune.com/lifestyle/homegarden/20559634.html?location_refer=Prep%20Sports

• Retirement Plan Hardship Withdrawals One of the worst financial decisions a baby boomer can make is to raid a tax-deferred retirement account such as an IRA or 401(k) to pay for non-retirement expenses. I like to call these early withdrawals "retirement plan leaks" although sometimes they are more like floods! 401(k) Plan Hardship Withdrawals......
• What is Your Retirement Risk Index? If you want to read some scary stuff this Halloween, check out the latest "retirement risk" data compiled by the Center for Retirement Research at Boston College.  The National Retirement Risk Index (NRRI) focuses on data indicating how well-prepared American adults are for retirement. Here are some key NRRI findings......
• Preparing Your Retirement Plan for Tax Increases One aspect of retirement planning that cannot be "set and forget" is tax planning. Our political leaders are regularly adjusting (and mostly increasing) the different taxes we must pay on our income and property. As things stand now, 2011 will begin with a host of tax increases that will affect......
• This Week's Boomer and Retirement Reading Here are some items I read this week in the world of retirement planning and finance that may be of interest to you: Here is one blogger's summary of Six Ways to Make Your Retirement Accounts Last Longer Ing has launched an online tool for comparing your finances with others,......
• Our Early Retirement Plan: Motivation, Numbers & Tools, and Conclusion (Part 5) If you are just starting this, I suggest you start at The Introduction - Part 0. Alternatively, you can jump to Our Early Retirement Plan: Where We Are Now (Part 1), Our Early Retirement Plan: My Personal Income (Part 2), Our Early Retirement Plan: My Wife’s Plan (Part 3), or......