Fortune Small Business - 2002
Fortune Small Business - Hidden Gems
Looking for a retirement home that's off the beaten path? Here are ten places to get you started.
We almost called this story "The Ten Best Places Not to Retire." Why? Retirement just isn't the word for what most entrepreneurs in this country are doing after their biggest moneymaking years are over. Healthier and richer than they used to be, this group is far more likely than wage slaves to retire younger than age 65, usually because they've sold a business. And being independent self-starters, they're less inclined to disconnect from business opportunities than most people. Instead, they often end up getting involved in a new startup, backing a new venture, or influencing corporate culture. "Many also try to do something significant for their community," explains Ray Smilor, president of the Foundation for Enterprise Development, a group in La Jolla, Calif., that counsels entrepreneurs.
Business owners' unique profile prompted us to make our retirement-city candidates jump a few extra hurdles. Of course we wanted what everyone desires: natural beauty, a broad array of cultural and recreational activities, and good medical facilities nearby. But we also demanded age diversity in our towns on the theory that a village of gray hairs would not offer a large number of stimulating new business ventures or philanthropic roles for our retirees. Additionally, we looked for a lively level of commerce in, or near, our retirement spots. And though it's tricky to quantify, we tried to find places containing retirees who had been particularly successful, either as managers or entrepreneurs.
Unfortunately, we can't tell you that 2001 is a bargain hunter's paradise. Despite the economy's woes, housing prices in most regions are going gangbusters. In the second-home market (a good proxy for the towns on our list), "prices are rising faster than in the primary-home market, which will increase an estimated 4.7% this year," says Walk Mohony, a spokesperson for the National Association of Realtors. In 1999 second-home sales hit a record of 377,000, only to be surpassed by sales of 415,000 last year, estimates the NAR. That's because of demand from aging baby-boomers. Many have been encouraged to buy second homes because the capital gains tax penalty on residences was eliminated in 1997.
If you're a baby-boomer, you may want to start house hunting. In another five to ten years the mad rush for retirement homes will begin as baby-boomers enter their 60s. Wouldn't it be more fun to shop now, before you feel the sharp elbows of your demographic peers? You can start your perusal right here.
Tubac, Arizona - Southwest
Average House Price: $238,000
Temperature Range: 31° - 98°
Population: 1,200
Web site: tubacaz.com
Ask most folks in Tucson about Tubac, a high-desert town just 40 miles to the south, and they'll say, "Never heard of it." This tiny town is the perfect spot for a former muckety-muck who craves solitude - but who will be able to find stimulating company when he needs to. An artists' haven, with more than 80 galleries, shops, and studios, Tubac looks like Santa Fe did 30 years ago.
The town's proximity to Nogales, 20 miles south and across the Mexican border, has made it a bedroom community for middle- and upper-level executives whose companies have established plants there. Thanks to the stimulating mix of people, business ideas and angel opportunities for retirees permeate.
The second-oldest European settlement west of the Mississippi, the village is steeped in Indian and Spanish-missionary history. Centuries-old mud adobe houses dot the village's central streets. The state's first park, schoolhouse, and newspaper all originated in Tubac. Bordered by the Coronado National Forest on one side and by state land on another, the Santa Cruz Valley, in which Tubac sits, is a pristine four-mile strip with access to hiking and birding. Because of its altitude of 4,000 feet and the cooling effect of the Santa Cruz River, Tubac is cooler than Phoenix. At night its sky is jammed with stars.
Other top places to retire:
Northeast - Camden, Maine
East - Charlottesville, Virginia
West - Santa Rosa, California
Northwest - Sequim, Washington
Runners-Up:
Boone, North Carolina
Park City, Utah
Traverse City, Michigan
Reno, Nevada
Rockport, Texas
