The Best 4 States to Retire and Buy a Home
There’s a lot of fear associated with reaching retirement age. As humans, we are hard-wired to work; we crave a sense of accomplishment. It’s not uncommon hearing someone complain about their job regularly and then eat their words when they retire. Taking on new hobbies like painting can mitigate this boredom along with other activates that stimulate the brain.
The primary concern when retiring, however, is ensuring you have a sufficient nest egg to live out your days’ stress-free and not lack anything. Often times pensions, life savings or your 401k don’t cut it. At this point, you are limited in what you can monetize and most retirees are reluctant to let go of their home. Aside from all the memories, you have already gone through an enormous life adjustment and have a ton of free time. Fixing up your house and doing garden work and things that give you a sense of purpose are non-existent in a condo or apartment.
There’s another way you can capitalize on all the equity you have accumulated towards your home: Moving to an area where homes a less expensive with a low cost of living. While a good idea, in theory, there’s issues that come with it. Generally, when an area is less expensive it’s due to crime, a lack of enmities and it’s generally not as nice. These are sacrifices most won’t want to make in their golden years.
Fear not, inexpensive does not always mean you have to compromise. Here’s a list of the best 4 states to buy a retirement home and cash in on your equity while still having a high quality of life and taking advantage of a low cost of living.
Idaho is not generally regarded as anything aside from a potato farm, but don’t be fooled. Idaho is a beautiful state loaded with beautiful parks and scenery punctuated by the Sawtooth Mountains.
There are many cost benefits to buying a home in Idaho, social security is not taxed and there is no estate tax either. The affordable health care is the cherry on top.
What is there to be said about Florida? You’re basically living in a tropical Paradise, beaches, sunshine and year-round warm weather. It also happens to be where the most retirees locate to and it’s not just because of the sunshine.
Most importantly they don’t tax any retirement income including social security. In addition to that, there are no income, estate or inheritance taxes.
Second to Florida is Arizona, in regards to where retirees flock. Although you’re in the desert, don’t be fooled, it’s a gorgeous state with a beautiful desert landscape. Don’t let the weather reports fool you; while it gets very hot there, it’s a dry heat. Dry heat is a lot more bearable than humidity.
The tax situation is nothing to scoff at either: No tax on Social Security, other retirement incomes are partially exempt, no inheritance tax and no estate tax.
4. South Dakota
Surprisingly, South Dakota is regarded by many as the best state to retire and buy a home. With a wealth of National Parks and Mount Rushmore to boot, it’s definitely one of the prettier states.
What brings South Dakota over the top is the low cost of living and tax exemptions. There is no tax on retirement incomes, including social security. There is also no state income tax and very low property tax. Low health care costs are an added bonus.
If you want to learn more about retirement options, check out this article, Saying I Do: How Marriage Changes Your Finances.