Retirement and Relocation
So you are near retirement and you would like to relocate? Where do you want to relocate? Will you stay in the United States or will you go to another country? Start investigating now where you want to relocate. Are you saying you don’t have the time to plan, let us help you plan? Check us out at www.retiredandlovinit.com.
If you are planning to relocate you must have a plan.
There is a lot involved. Ask yourself a few questions. Do you own your house? Will you buy a new house? If you are going to buy a new house will the new house be the same size or bigger than the one you currently live in? Will you buy or rent an apartment? Do you want your new home to be smaller than the home you live in now?
If you plan to downsize and you are five years or less away from your retirement date, start getting rid of the things you will not take with you, now. I am downsizing from a house with four floors to an apartment with one floor. I should have started earlier. You can give your possessions away to friends and family, donate them and/or have a yard sale. Check out our blog Retirement and Downsizing. Downsizing can be emotionally stressful or can be a blessing. It has been a blessing for me. I realized that I did not need all of the things that I thought I needed.
Another thing you must think about is how far your finances will go in the place that you would like to relocate to. According to Business Insider as of July 12, 2015, “$100 is worth $100 or more in the following states Mississippi, Arkansas, South Dakota, Alabama and West Virginia. $100 is worth less than $90 in the following states Washington DC, Hawaii, New York, New Jersey and California.”
Most states will tax your pension. As of this posting, according to an article in Market Watch that quotes S.Weiner, “Alaska, Florida, Mississippi, New Hampshire, Nevada, South Dakota, Texas, Washington and Wyoming are ten states that will not tax your Social Security and pension”. There are some states like New York that will not tax the pension of a retiree who retired from a New York City or New York state government job.
You must carefully research many factors that are important in deciding where to relocate. Research how much and what funds the state taxes, the cost of real estate, the cost of living and if the state offers activities that you like to be involved in. The reason for your relocation must be the main factor in deciding where to relocate. I live in a state that taxes my pension and the tax rate is one of the highest in the country but my daughter and granddaughter live here. I relocated here before I retired. But I am planning on relocating to a warmer climate within two years. If you are going to relocate make sure you will be happy there.
Let us create an emotional retirement plan for you, www.retiredandlovinit.com