Southern and western cities are listed on Forbes as the best places to retire in 2012. Why? Perhaps it is the combination of the pleasant weather, low taxes, and healthy lifestyle that these cities offer. Among the top cities are Austin, Texas, Florida’s Cape Coral, and Asheville, North Carolina. Cities like Albuquerque, New Mexico and Phoenix, Arizona made the list as well.
One of the main criteria for selecting these cities was the impact of taxes on the local economy. There are nine states that have no income tax – Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington, and Wyoming. Of these states, some offer tax breaks to retirees as well which provides plenty of financial incentive to spend the rest of one’s days there.
Another parameter used by Forbes to determine the best retiree cities was the local job economy. This is primarily for retirees who wish to work part-time. Many of the states listed have unemployment rates at least two points below the national unemployment rate. If you are considering retiring in the next 5 to 10 years, start thinking about where you would like to live now. An important factor that must be considered is family. There are plenty of retirees who will not move because they want to be close to family and friends. This is a decision that can be quite strenuous, however, start planning ahead now and the transition may not be as difficult.
JDKatz, P.C. is a full-service law firm focused on tax law and estate planning. We are dedicated to minimizing your existing liability and risks while providing valuable tax planning to streamline your tax issues in the future. Please call us at 301-913-2948 to schedule an appointment to meet with one of our trusted attorneys.