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.

Posted in ,
How to Raise Children That Become Entrepreneurs

How to Raise Children That Become Entrepreneurs

How to Raise Children That Become Entrepreneurs By Lauren Hidden Ever since my kids can remember, I’ve worked from home. Sometimes I have to remind them that I’m not sitting home playing with their toys or eating bon-bons when they’re at the babysitter or at school, but for the most part they “get it”. As…

Transferring Assets to a Second Spouse (and to children from the first)

Transferring Assets to a Second Spouse (and to children from the first)

Transferring Assets to a Second Spouse (and to children from the first) Elizabeth and Thomas Carr (names fictitious), both in their late 60s, each have one child from a prior marriage. During the 30-plus years of their marriage, they each have accumulated an estate of over $5 million. The full $1.5 million credit against estate…

roth IRA

The Roth IRA Advantage: A Closer Look

The Roth IRA Advantage: A Closer Look Since its debut in 1997, the Roth IRA, naturally enough, has been sold mainly as a retirement  account. To be sure, the prospect of a stream of tax-free income to support a comfortable retirement is a powerful stimulant. To earn that freedom from taxes, you do have to…

Classification of Accepted Patterns of Reorganization

Classification of Accepted Patterns of Reorganization

Classification of Accepted Patterns of Reorganization The seven acceptable patterns of reorganization may be classified into three categories: Acquisitive, Divisive, Re-capitalizing. Acquisitive reorganizations Type “A,” “B”, “C,” and acquisitive D, in which one Corporation acquires another corporation’s stock, assets, or some combination of both. Divisive reorganization Type D involves the division of one corporation into…