Will you stay home or move away once you retire? Some people prefer the home field advantage. They want to remain near friends and family in a region they know well. Others choose a new location, far away. Often, they’re attracted by adventure, better weather, grandchildren, a lower cost of living, or other concerns.
If you haven’t made up your mind yet, here are some factors you may want to include in your retirement equation:
• Taxes. There is not much you can do about federal taxes, short of leaving the country and changing your citizenship. However, you can choose to live in a state that has retiree-friendly tax laws. According to Kiplingers.com, 36 states do not tax Social Security benefits, nine have no income tax, and five have no sales tax. The most tax-friendly states for retirees are Alaska, Nevada, and Wyoming. The least tax-friendly are Connecticut, Rhode Island, and Vermont.
• Lifestyle. They say it’s important to keep your brain young by learning new things. One way to do that is by joining the new senior class in a retirement community that is linked to a college or university (such as the University of Michigan, Stanford, Dartmouth, Notre Dame, or Oberlin). Community members can attend classes, enjoy rich culture and entertainment, and gain proximity to some world class hospitals. Check with your alma mater or favorite school to see if they have a retirement community.
• Living well on little. A powerful consideration when deciding where to retire is the cost of living. Last summer, AARP Magazine identified the best places to live on $100/day (or $36,500/year). So, where do you get the most for your money? AARP says you get it in Grand Junction, Colorado; Gainesville, Florida; Spokane, Washington; Las Cruces, New Mexico; Eau Claire, Wisconsin; Roanoke, Virginia; Morgantown, West Virginia; Pittsburgh, Pennsylvania; San Antonio, Texas; and Omaha, Nebraska.
If you’re still searching for your ‘best place to retire,’ surf the web, read travel books, and travel to candidate locations. You may find the perfect spot or discover it’s right where you are – at home! We look forward to talking through this with you and helping you plan for the future.
“10 Worst States for Taxes on Your Retirement Nest Egg.” Www.kiplinger.com. N.p., n.d. Web. 19 Apr. 2017.
From: AARP The Magazine, July 17, 2012, and Jane Bryant Quinn | Personal Finance. “Best Places to Retire 2012 – Places to Live Cheap, Retire on $100 a Day.” AARP. AARP Magazine, 17 July 2012. Web. 19 Apr. 2017.
“MSN Money.” Stock Quotes, Financial Tools, News and Analysis – MSN Money. N.p., n.d. Web. 19 Apr. 2017.
“State-by-State Guide to Taxes on Retirees.” Www.kiplinger.com. N.p., Oct. 2016. Web. 19 Apr. 2017.
Advisory services offered through EWG Elevate, Inc. dba Eagle West Group.
This represents a partial list of clients. They have not been compensated and were not selected based on duration, performance, account size.