Don’t Move Solely for No Income Tax
That being said, focusing on your money alone could lead to potentially dangerous decisions that could end up more costly in the long run. For example, say you started your search by crossing off any states that have an income tax. Sounds like a smart way to save money, doesn’t it?
But what if you don’t have a high taxable income and you’ve picked a city very, very far from your friends and family? You might be saving money on taxes, sure, but you’ll be spending more money on traveling if visiting them even once a year is a priority.
As you grow older, traveling might no longer be feasible and your adult children may be unable to spend too much money or time traveling back and forth. See how one decision that sounds good on paper could affect your retirement for the worst? It’s best to consider all your options first!
There’s only so much research you can do via the internet. Sure, the world wide web is a perfect place to start, and all those blogs, pictures, and videos will help you trim your list of potential places to live down considerably… but real life is very different from anything you’ll find online!
A trial run of about a year should be enough to really get you used to the idea of living in a place permanently. You don’t want to be part of the statistic of seniors that move back to their original state or city after investing so much money, time, and effort into their initial downsizing.
A year-long trial run will help you see all the ups and downs of your new home. Is getting around easier? If you’re moving away from family, how does it feel? If you’re moving closer, how does that feel? The more of these types of questions you answer, the better!
