Whether you are already enjoying retirementor you are about to retire, moving to a new location might have come to mind. Some retirees dislike living in their busy city, while others are tired of having a very large house or simply its weather. Whatever your reason might be, it is a good idea to have a plan. So far, you have probably thought about everyone but yourself. It is time for you to do what you really feel like.
Needless to say that moving away is not something that happens overnight. It is best to organize everything and not do it on the spur of the moment. Money is the main thing that refrains us from doing it perhaps. We need to make sure of the amount of moneythat we will need for living there. It is not a good idea to move to a place where expenses are going to be higher.
Having a person who lives there will always help you a lot. Some people even opt for having a short getaway to get an idea of what life would be like. So, think of the housing expenses, property taxes, services as well as food. What about the weather, will you have to use a lot of heating or air-conditioning? This will certainly increase your bill. If it is a sunny place, you might spend more money outdoors though.
What about income tax in other states during your retirement?
Bear in mind that it will depend on the state whether you have to pay income tax or not. There are several states which do not have it. For instance, Wyoming, Washington, Texas, Tennessee, South Dakota, Nevada, Florida, and Alaska. Therefore, watch out for that. Surely, you do not want to pay more taxes to IRS. Check whether your retirement savings plan has tax-free withdrawals or not.
Social Security benefits could be subject to taxes, but once more it will depend on the state that you move to. Obviously, if your income does not exceed the limits because it is a low income, you might not have to pay. However, some retirees have higher earnings. Anyway, it is always best to ask for information related to this tax in the state you would like to live during your retirement.
Some people would rather move to a new area in their city or state. Traveling and making a move to a faraway place could be strenuous. So, it is not something easy and it does imply a lot of effort and some money too. More often than not, people try to find a smaller house in a quieter area that has plenty of services and facilities. Good luck in your personal search for a new happy life in your retirement.