Retirement places.

[FrankP]

My wife and I are about 5 years from retirement. We live in Indiana. Our kids have moved to Seattle and New York City.  We have a short list of possible retirement places, Washington State, Carolinas, Colorado and Florida.  Anyone else given any thought to where to retire?

[The White Coat Investor]

I chose where I live now because that's where I want to live. That includes both during my career and in retirement. I suspect a lot of people are in the same boat.

However, there are a few who want warmer weather and lower taxes. So you see lots of people from NY/NJ going to Florida and people from MN/WI going to Texas, Arizona, and Nevada.

[PhysicianOnFIRE]

The benefits of being in a low / no-income tax state are much greater when you're working and have a high income.  In retirement, not so much, unless you retire with an 8-figure portfolio or a generous pension.

I anticipate taxable income to be in the 5 figure range.  Even in a high income tax state, I'll be paying a few thousand dollars in state income tax, and potentially $0 in federal income tax.  Like WCI, I would rather stay close to friends and family.  I live where I do now for a reason.

Frank, in your case, you've got a reason to be in a no-income state with family in Seattle.  It might make sense for you to move there in retirement, especially if there are grandkids out there, or you really like coffee, clouds, and fresh fish.

 

 

[jfoxcpacfp]

Most and least tax-friendly states for retirees. Note that NY is one of the worst, but WA is not so bad. However, by the time you get to retirement, the intangible benefits are at least as important - family and friends, living in a place you like to be, access to airports, access to great health care, clean air, weather that supports your hobbies, etc. I am sure that I would not want to be over 3 hours from my grandchildren, if possible, but lloks like you may have them on both coasts...NYC is a great place to visit. Don't forget to check out state inheritance and estate taxes.

[huruta]

We lived in NYC (1 year) and now live in Seattle (lived here most of our adult lives). I think there are very different west (WA, CO) and east (NC, FL) attitudes. We are definitely west coasters. Lots of good places to retire here with mild weather (Sequim is very popular with retirees because it's in the rain shadow and not too far from Seattle). Also, there's no income tax in WA state. The cost of living, however, keeps rising. We are mid 40s but don't anticipate retiring too far from here...unless we hit the jackpot in which case we'd be snowbirds to Hawaii. For now, we'll just vacation there....regularly.

[Seroma]

Florida can be great if long hot Summers don't bother you, otherwise you will be miserable there mainly from July till August.
Some places in south Florida, mainly the east part, are just filled with people from the northeast where's people from the Midwest tend to go to the west coast of Florida.
Also remember that some places in Florida can be expensive.
Good luck

[The White Coat Investor]

huruta wrote:

We lived in NYC (1 year) and now live in Seattle (lived here most of our adult lives). I think there are very different west (WA, CO) and east (NC, FL) attitudes. We are definitely west coasters. Lots of good places to retire here with mild weather (Sequim is very popular with retirees because it’s in the rain shadow and not too far from Seattle). Also, there’s no income tax in WA state. The cost of living, however, keeps rising. We are mid 40s but don’t anticipate retiring too far from here…unless we hit the jackpot in which case we’d be snowbirds to Hawaii. For now, we’ll just vacation there….regularly.

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Book a trip now. I understand there has been a price war from Washington State to Hawaii going the last few months.

[FrankP]

Thanks for the replies.  Agree with all who stated the importance of being close to family.  However, my daughters keep moving around! The one now lives in Seattle is 24 years old and going to school there.  Previously she has lived in Denver and Santa Fe after graduating from college.  We can't be sure where are daughters might eventually settle.  Like most WCI readers, most people today don't settle until their thirties, after their formative training is finished.  We settled in Indiana in our thirties after finishing medical training.  Prior to moving here we had lived in Connecticut and Pittsburgh.  We would definitely think of Washington state if our daughter settles there.  However, she may very well move in a few years.  So for now we are contemplating places that suit our needs.  If the kids happen to be  close by then that would be a bonus.

[Zaphod]

Also something to think about is how estate taxes are handled where youre thinking of retiring. Agree with all the moving, and if non medical its more common for people to move for jobs these days.

[wideopenspaces]

I've often wondered about this. We never planned to end up in UT, but I can't imagine building a life here and then moving away once we retire. How do you make new friends in retirement?? We've always talked about traveling a bunch and touring the US in an RV of sorts. But I think I'd still want to live where my life was, if that makes sense. But I'm just 34, so who knows what life holds in store!

[Osiris]

We are very happy in the house we have lived in for 25 + years. I would hope that we live here till we can not anymore ( I would expect that to be death). We can create a masterbedroom at the first floor if we would have difficulties with the stairs  and we can get live in help in  20 -30 years or hopefully we will not need any.

It is interesting that when our accountant mentioned the 7 states that do not have income taxes and how that got my attention, but it made me realize even  with the financail incentive, we have  no desire to move. While we want to be close to children, there is no garantuee and there is security for the children to know that we are settled and happy where we live now.

[Joseph]

White Coat Investor wrote:

I chose where I live now because that’s where I want to live. That includes both during my career and in retirement. I suspect a lot of people are in the same boat.

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Definitely not true for us. No way.

We chose where we live now to (1) maximize our yearly income and (2) retire sooner.

We do not plan on living in the United States upon retirement.

[FrankP]

Joseph, your comment really expands my original question.  I was thinking of retirement places in the U.S.  Where are you thinking outside of the United  States?