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Should You Move to Another State For Retirement? The Golden Year Guide

Moving for retirement isn’t unheard of, but it comes with many complications. Be prepared to ask yourself some hard questions before you take the plunge. Unsure what you need to think about to be prepared? Keep reading to learn how moving states can make retirement more straightforward and harder.

Are you ready for the stress of a move?

Moving can be stressful under the best of circumstances, but moving later in life brings its complications. How much are you going to be able to do on your own? Do you have people to help you, or will you need to hire professionals? Before you make a decision, you’ll need to seriously consider how well you can handle a move and what assistance you may need. Where you want to move will have an impact too.

If you decide you want to move to Florida from Michigan, you’ll need to think about more than just moving your household. How are you going to get your car there? Will you sell it or instead research shipping your car to Florida? Do you need to hire a moving service? These questions will help you decide whether a relocation is the best option for you.

What about taxes?

Taxes may be the easiest thing to overlook when considering a big move, but that pocket change adds up. State and local taxes can take a serious chunk out of your retirement fund, especially if you own a business. Consider moving to states like Florida, Nevada, South Dakota, Tennessee, Texas, Washington, or Wyoming, which don’t have income taxes (unlike most other states). 

Property taxes

Finding a home might seem like the most complicated part, but have you considered property taxes? Buying a house at the end of your life may guarantee your comfort, but it can cost you dearly. Research how your assets will be taxed before you commit any cash to a new home.

Insurance

Insurance is a complicated and messy part of life, but it can’t be helped. Keep in mind how insurance laws can vary from state to state and how that will impact your cost of living.

Car insurance

Laws surrounding car insurance can vary widely from one state to another. Moving to another state may mean your cost to insure your vehicle could go up by thousands of dollars a year. You’ll want to do extensive research on car insurance laws and offerings in your new state before you move and consider what your ideal insurance plan will look like and what it will cost.

Homeowner’s insurance

If your plan is to move into your final forever home, buying a house might seem like a solid investment. But do you know how much your insurance premium is going to cost you? From one state to the next, these numbers can vary by hundreds or thousands of dollars. Consider renting or look into homeowner’s insurance rates before you move.

Wrap up

Moving later in life is always a possibility, but it comes with complex factors that will need to be considered. Do your research to make sure you’re ready to take the leap.

Christopher Stern

Christopher Stern is a Washington-based reporter. Chris spent many years covering tech policy as a business reporter for renowned publications. He has extensive experience covering Congress, the Federal Communications Commission, and the Federal Trade Commissions. He is a graduate of Middlebury College. Email:[email protected]

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