Best Place To Retire – Where Is It And How To Save On Taxes

Where is the best place to retire in the United States?  We know that living in the good old U.S. of A. is the only way to go, but there are 50 different states to choose from.  If you could pick the state that gives your retirement dollars the most bang for their buck, where would that be?  Don’t pack your bags quite yet though, you may find that you are living in the best state already and you don’t even know it.I have written many articles about what stocks I think will make us the most money, but few on what to do after we rolling in all the hard earned cash.  What happens when you are ready to retire and take full advantage of all the proper investments you have made over your lifetime and want to minimize your tax burden?  Where you retire is just as important as all those investments you have made.  Retire in the wrong place, and you could be looking at 20% less money due to all those taxes you will have to pay.  Don’t worry though, I am going to show you the best place to retire to and how to maximize your retirement income.

Best Place To Retire - Where Is It And How To Save On TaxesWe all have that constant thought of retirement.  Some people dream of a little house in the woods, while others are looking for the million dollar home on the beach.  Whatever your dream retirement is, you better be aware of the tax implications regarding your retirement income when you finally do choose a location.  Besides considering the taxes of your retirement location, you need to be aware of the other aspects concerning your retirement.  Are you planning on working part time?  If so, you will  want to live somewhere that allows you an easy opportunity to do so.  You are also not getting any younger so having top notch medical facilities around your retirement location should be on the high priority list.  When figuring out where is the best place to retire in the United States, you will need to make a list of your needs and wants in order to help with the search.

One of the first things most retirees are looking to do is to maximize their retirement income by moving to a state that has low taxes for retirees.  The following list represents some of the best states to retire in for 2016.  There are many different aspects that go with retirement such as staying close to family or being in a warm weather climate, but this list is all about the taxes and how to minimize them.  I have also ended each of the state write ups with a hypothetical situation of spending $100,000 in that state per year and paying property taxes.  It gives you a better idea of the actual cost of living their.  Where is the best place to retire in the United States?  Take a look at the following list and see. :)

1.  Alaska:  This may not be your cup of tea if you are looking for a nice warm weather place to retire to.  But Alaska has the most tax friendly structure of all the states when it comes to retirees.  Alaska has no state income tax, no sales tax, and no inheritance/estate tax.  I think the best part of retiring to Alaska is that if you are a permanent resident, then you qualify for a payment once a year of about $878.  This payment comes from their oil wealth savings account.  There is a local sales tax that averages about 1.69% that you will have to deal with as well as some property taxes that have a median of about $2,400 per family.  Retiring to Alaska can stretch your retirement dollars, but you need to be someone that likes the cold and enjoys the outdoors.  Spending $100,000 in Alaska will cost you about $4,100 in property/sales taxes, but the $878 yearly payment takes this number down to about $3,200.  Where is the best place to retire in the United States?  Alaska is the best based on taxes alone.

2. Wyoming:  This state has some of the best opportunities for lowering taxes when it comes to retirement.  They have no state income tax and a very low 4% sales tax.  The median property tax is about $1,000.  Spending a $100,000 and living in Wyoming will cost you about $5,000 making this a top 5 place to retiree to.  Where is the best place to retire in the United States?  Wyoming should rank right up near the top based on these numbers.

3. South Dakota:  This may not be one of the first states you think about when it comes to retirement, but it should be.  This state has zero income tax and a very low 4% sales tax.  The median property tax is about $1,500 per family.  Based on a $100,000 in spending a year, you would pay $5,500 in taxes for this state for property taxes and sales tax.  Where is the best place to retire in the United States?  South Dakota gives a tax reason for being in the top 5.

4. Mississippi:  Another southern state makes my list.  Mississippi does not tax social security and pension payments.  A great thing about Mississippi is that they do not tax drugs, utilities, gas, and healthcare.  They have truly set up their state as a tax friendly destination for retirees with the exception of their 7% sales tax.  Property taxes for Mississippi will run you about $500 making this state one of the top 5 places to retire to, especially with the Gulf of Mexico at your back door.  Based on $100,000 in spending, you would pay $7,500 in sales/property taxes.  Where is the best place to retire in the United States?  Based on weather and taxes, Mississippi is very close to the top state to retire to.

5. Florida: This is a fantastic weather destination for retirees.  It is not just the weather though that attracts retirees to the sunshine state.  There are no state income taxes in Florida.  The Median property tax paid in Florida is around $1800 per family.  If you are 65 or older then you might qualify for a homestead exemption of up to $100,000.  This can significantly lower your property taxes depending on the value of your home and the amount of income you generate.  The sales tax is currently 6%.  Spending $100,000 in Florida will cost you $7,800 counting property and sales taxes.  Where is the best place to retire in the United States?  If you love sun, fun, and low taxes, then Florida is your answer.

Best Place To Retire - Where Is It And How To Save On TaxesWhen you look at the above information, you will see that you can gain about $4,600 in tax benefits from living in Alaska compared to Florida all based on the same income.  When you plan your retirement, you have to take taxes into consideration.  You can see from above that picking a retirement friendly state can help you stretch your retirement income and thus make it more enjoyable for you.  If you are still looking for some nice sit down information to read willing enjoying some quiet time, take a look at the book: America’s 100 Best Places to Retire and you will get a ton more information that will help you in your decision making process and narrow it down to the perfect place.

It is incredible to think that we go our entire lives trying to save up enough money through thrifty living and wise investing just to blow a good chunk of it on taxes and other costs that affect our financial freedom.  Live in a state that has super high taxes and you can easily lose 20-40% of your retirement to the government.  I know it is hard for people to dedicate their lives to a certain state and then just up and leave to another state just to have more money.  But I don’t like to look at it that way.  I look at it as a new adventure in life.  We get one chance on this planet and what we do with it will define our very existence.  Where is the best place to retire?  It will be the place that allows you to be the happiest with the money you have.  I have showed you places that allow you to live a more fruitful retirement, but ultimately, you have to make the decision on what to do.

Best Place To Retire – Where Is It And How To Save On Taxes

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