5 Most Affordable States for Retirees

One of the great things about retirement is the freedom you can experience in your life. Not only can you determine your own schedule, seven days per week, because you aren’t tied to a desk anymore; you can even live wherever you want to! And that’s great news with the cost of living rising so rapidly in many locations.

If you’re curious about the cost of living in other states, check out these five states that are said to be the most affordable for retirees.

West Virginia. Just this year, the state of West Virginia eliminated their state income tax on Social Security benefits. Combined with a cost of living that is 9.5 percent lower than national average, low average home prices ($136,675), low average Medicare premiums ($59.74 monthly), and a reasonable combined sales tax rate of 6.52 percent, West Virginia is set to become a popular destination for retirees.

Arkansas. The state of Arkansas boasts a cost of living at 10.1 percent lower than the national average, thanks to low housing costs and very low average Medicare premiums ($44.34 monthly). The state does have a higher sales tax rate than average, so keep that in mind if you’re a big spender.

Iowa. With a cost-of-living index at 11.9 percent below average, it’s no wonder so many retirees have chosen Iowa for their new home. The state offers numerous income tax benefits, such as a low flat rate of 3.9 percent, and a complete exemption on income from taxable pensions, annuities, and IRAs for those aged 55 and older.

Oklahoma. The cost of living in Oklahoma falls more than 15 percent below the national average. Plus, Social Security income is completely tax-deductible, and the first $10,000 of your retirement benefit is exempt from taxation.

Mississippi. The state of Mississippi is ranked as the most affordable state in the nation, thanks to a cost-of-living index that falls at 16.9 percent below the national average. With more expendable income, you can enjoy everything the state has to offer. And considering the mild winters, you can enjoy time outdoors year-round.

If you’re considering a move in retirement, make sure to consult with us first. We can help you evaluate all of the factors that might affect you, so that your new state hopefully doesn’t give you any unpleasant surprises.

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

5 Most Affordable States for Retirees

5 Most Affordable States for Retirees

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About the Author: Mark Roberts