When you are planning ahead for retirement you should try to see a 360° picture. If you think creatively with all of your options in mind you may be able to maximize your position.
Many people decide that they would like to relocate during their retirement years. Others would prefer to stay put, oftentimes because they want to be able to remain close to their families.
Obviously this is a personal decision, but there are economic realities to consider if you actually want to stop working. Taxes are something that you should take into account.
If you were to move to a place that has a favorable tax environment you may be able to retire and enjoy a higher quality of living. For example, here in Connecticut we have a state income tax, a state estate tax, and a state gift tax. Property taxes are also quite high in Connecticut relative to the rest of the country as a whole.
Many people choose to retire to the state of Florida. When you hear about Florida retirement the first thing that may come to mind is the fact that the weather is mild year around in the Sunshine State.
However, there are financial advantages that go along with relocating to Florida for your retirement years. There is no state income tax, property taxes are reasonable for the most part, and there is no state-level estate tax.
Where you choose live during your retirement years is not exclusively a financial decision. However, you would do well to consider the tax climate in each state you are considering when you are involved in the decision-making process.
- Can I Leave an Inheritance With Strings Attached? - February 2, 2023
- Are These Items Missing From Your Estate Plan? - January 17, 2023
- Advance Property Liquidation Can Streamline the Estate Administration Process - January 3, 2023