Many people we speak with have considered moving to a new state for retirement in order to lighten their tax burden. When you really think about it, some states take 10% or more which can have a substantial effect on retirement cash flow. If you’ve ever wondered whether your dream retirement locale might leave you with more spendable cash then you need to read this recent article from MarketWatch… find it here.
The article lists the seven most tax friendly states as well as a few things to consider if you are seriously thinking about taking the leap. Many of the biggest breaks are found in states that exempt pension and social security income from tax reporting. Also, there are those with no sales tax while others may be beneficial because of the absence of income tax altogether. By weighing this against potential changes in property taxes, you should be able to figure out if the move is worth if financially.
Of course there are other reasons why moving to a new place might be appealing. Family, weather, real estate and recreational opportunities may be motivating factors alone. But a little more cash in your pocket sure wouldn’t hurt the situation.
If there’s still a doubt in your mind, perhaps you can take a spring vacation to see if a potential retirement community catches your attention. When it’s time to figure out how to fund the whole thing, well… that’s what we do best.
As always, feel free to call or email at your convenience.
Have a great week!
Bryan J. Anderson