Location, Location, Location. While we are not real estate advisors, this common phrase runs true in today’s example. Where you retire plays a huge factor in your retirement options. When it comes to the cost of living, choosing to live in one of these 12 cities (see chart) will play a significant role in planning for your annual living expenses, not to mention your cost of living increase annually.
Other factors based on your location may be:
- Cost of Housing: Whether you own your home, have a mortgage you’re carrying, or are planning on moving to a vacation home, this is an important factor. Many retirees choose to move to Florida or a similar state for various reasons, so consider if you’ll be moving or staying put and how that will affect your income.
- Local Taxes: High-tax areas can substantially impact your retirement income and overall expenses. There are currently only 9 states that waive state income tax.
- Healthcare Costs: Healthcare costs can vary widely by location. Research the availability of healthcare services, insurance options, and the cost of health insurance premiums in your chosen city. Some cities have more expensive healthcare systems than others.
- Entertainment and Lifestyle: The cost of entertainment, dining out, and recreational activities can differ significantly by location. Most people travel in retirement, so this is the most fluid category.
Conclusion:
You need to factor in these things into your retirement plan:
- Cost of living (based on where you live)
- How it will increase annually
- How does your expected annual investment growth rate match up to these two above as well as taxes, advisor fees, and other detractors from your growth of money
By emphasizing the importance of planning ahead, you will put yourself in a better scenario to have more flexibility after your work life. We know nobody wants to lower their lifestyle or have to work part-time in retirement without a choice, so we strongly encourage you to try out our free tool, the Financial Distress Calculator, today to learn more about what your money can do for you.
Try it out here: https://chapwoodinvestments.com/tools/financial-distress-calculator/
To watch a short walkthrough of the FDC, click here: https://youtu.be/iViwsGnJtRE
Have a great week!