Consider Taxes and Choose Your Retirement Location Carefully
Last week we discussed the best and worst states to retire in when it comes to taxes. So what kinds of factors actually play a role in coming up with those numbers? Choosing a place to call home when you retire is important and there are many factors that can play a role in where you end up. However, speaking strictly in regards to taxes, these are the top four taxes to consider when you’re ready to hang it up and retire.
Of course, your federal income tax will be the same wherever you end up so that is not relevant, but these four other taxes are:
- State income tax – most states charge income tax, but the rates vary. There are seven states, however, that don’t charge any state income tax, which could greatly reduce your retirement taxes.
- Social Security tax – the next tax to look at is the SS tax. There are 13 states that will tax your Social Security benefits; so avoiding these states will reduce your tax bill.
- Sales tax – all but five states have a sales tax but every state’s sales tax rate will differ, so that is another important tax to keep in mind when you retire.
- Property tax – your property tax will also affect your total tax bill so keep this tax in mind when choosing your final home destination, as well.
The bottom line is you should enjoy retirement, no matter where you live. So make sure you choose your location wisely and consider all of these different taxes and how each will affect your personal situation before you make your choice.
Hire a Pro or Do it Yourself – the Best Way to File Taxes
Does it feel like you just finished last year’s taxes? Well, believe it or not it’s almost time to do it again. Every year the tax laws and policies change, so each year you will have to be aware of these changes and additions. However, there are some things that never seem to change. With…
These Four Investing Mistakes Will Hurt You
These Four Investing Mistakes Will Hurt You The world is full of failed investors who entered the investment ring with high hopes, only to be knocked around like a Mike Tyson opponent in his prime. Investing is a risk, but there are several steps you can take to mitigate those risks. On the other hand,…
Could the “Rich Person Roth” Be Right for You?
Could the “Rich Person Roth” Be Right for You? The world is full of failed investors who entered the investment ring with high hopes, only to be knocked around like a Mike Tyson opponent in his prime. Investing is a risk, but there are several steps you can take to mitigate those risks. On the…
Effective Leaders Share These Seven Important Skills
Effective Leaders Share These Seven Important Skills If you want to become an effective leader then you have to develop certain skills. The skills you need to be successful might vary from what someone else needs. However, in order to become a good leader you have to be able to teach, direct, correct, and continue…