“We know lots of friends who are considering moving from a high-tax state, such as New York, to a state with low or no state income taxes. They think they will end up with more money, although they are torn because they may also be moving away from family and friends just to escape state taxes.”
“What I advise them to do is think about spendable income — the amount they’ll have to spend after taxes — and not just low or zero tax rates. If you have more money to spend after paying the tax bill wherever you currently live, you might as well stay where you are, if it’s closer to the grandkids. You may be able to pay for at least one warm-weather winter trip, too.”
States differ in how they tax Social Security, annuity, and other retirement income sources. Moving is expensive and it’s critical to spend a considerable amount of time in the place where you plan to move before taking the plunge. If you want to move to Arizona or Florida you better spend the summer months in a rental to be sure you can stand the summer heat.
Author of this information is Jerry Golden is the founder and CEO of Golden Retirement Advisors Inc. He specializes in helping consumers create retirement plans that provide income that cannot be outlived. Find out more at Go2income.com, where consumers can explore all types of income annuity options, anonymously and at no cost.
Source: Financial Planning for Women