There are many factors that can affect how our retirement will be. Two factors that many people look over that can have a big affect on your retirement are the rules associated to retirement accounts and on a more fun level, where you retire.
If you aren't careful with self directed IRA rules or any other retirement account rules you could hurt your retirement and face penalties that could have been avoided. More than focusing on the rules I thought it would be fun to focus on why where you retire can affect your retirement.
We don't take a lot of time to think of where we want to retire because maybe we just want to be by our family, wherever they are. Maybe warm weather is a no brainier so you are going south. There are more things you need to consider though when retiring and one important one is the affect where you retire will have on your taxes.
Because where you retire affects the taxes you will pay these here are a few other things to consider.. Will you work at all during retirement? Do you plan to spend lots? Depending on the retirement you want taking a look at states with great income tax and sales tax can really put a great buffer on your retirement.
So which states are the most tax-friendly? Let's take a look.
First place- Wyoming!
A few others- Alaska, Florida, Mississippi, New Hampshire, Nevada, South Dakota, Tennessee, Texas, and Washington.
There are plenty of states on the naughty list but we won't discuss those here. If you would like to see a more comprehensive list check it out at MarketWatch
I thought it would be a great idea to get another opinion as to which places are the best to retire in. After scouring the web I stumbled upon another great resource that breaks it down just a bit more. It actually breaks it down by city. They take into consideration more than just tax rates. They also take into consideration home prices, low crime, quality health care to name a few. A few of the top on the list of 25
1- Albuquerque, NM
2- Portland, OR
3- Louisville, KY
4- Tuscon, AZ
5- Austin, TX
To read more of the reasons why these cities make the list and to find out the final 20 check out CNNMoney.
Take into consideration where you will be retiring because your taxes can really benefit if you retire in the right place. One important thing to note is that taxes shouldn't be the only factor to decide where you will retire but it should be considered.
Author: Nick Barker