The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: What is the best state to retire in?||Date: 5/11/2004 2:30 AM|
|Author: fleg9bo||Number: 71777 of 124970|
and saved over $1,000,000...
what state does the Fool community feel is best to retire in? and why
Some research is definitely called for.
There are a few states with no income tax. Some of them compensate with high property taxes (TX), while elsewhere property taxes may be more reasonable (WA ouside of the Seattle area).
How much income do you plan to take out of your portfolio to live on? How much will you spend on items subject to sales tax? Does it make sense to pay no income tax but a relatively high sales tax or does it make sense to pay income tax but no sales tax? Some states even have sales tax on food.
How about living in southern WA and paying no income tax and doing your shopping for bigger-ticket items across the river in OR, which has no sales tax?
An even bigger consideration may be (if you're too young to qualify for Medicare and don't have company-provided health insurance, which may be cancelled anyway down the road) what is the health insurance situation in the states you are considering? If you find a state to minimize your taxes but end up paying lots more for health insurance, is that a good thing? There may be states in which it is nearly impossible to find health insurance if you have pre-existing conditions.
Sounds like a fun project to figure all this out. Good luck.
--fleg, currently in OR but eyeing WA for when DW stops working
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