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.
Tim Draper: How I got into Venture Capital
Episode Transcript of: Tim Draper: How I got into Venture Capital Alan Welcome back. I’m here today with Tim Draper. Tim is the founder of Draper Fisher Jurvetson, a founding partner of Draper Fisher Jurvetson. He’s the headmaster at Draper University. He is also founder or creator of viral marketing. And he’s also a proponent…
2015 Tax | Ron Cohen
Interview Transcript of: 2015 Tax | Ron Cohen Alan Welcome back. I’m here today with Ron Cohen. Ron is a partner in the firm of Greenstone Rogoff and Olson, and Ron’s Good to have you on today’s show. Ron Thank you. Good to be here. Alan So, Ron, how did you end up as a…
Scouting Leaders for Life | Ken Melhorn
Episode Transcript of: Scouting Leaders for Life | Ken Melhorn Alan Welcome back. I’m here today with Ken Melhorn. Ken is executive director at the Bay Area Boy Scouts. Welcome to today’s show. Ken Thanks, Alan. Thanks for having me here. Alan So you kind of at 20,000 Scouts in the organization here, Ken…
The Finanseer | Megan Lathrop
The Finanseer | Megan Lathrop Alan Welcome back. I’m here today with Megan Lathrop. Megan is a finanseer. Megan, what is a and finanseer? Megan Yeah great question. I will obviously it’s a play on words from an actual finanseer, but I spell it seer, which means I help people see and illuminate their unconscious…