Your Best State is a Personal Decision
Choosing where to retire is one of life’s most important and exciting decisions. While lists of “best” states are a helpful starting point, the perfect place for your neighbor may not be the perfect place for you. The true “best” state is the one that aligns with your complete financial picture, your healthcare needs, and your desired lifestyle.
By understanding the interplay between income, sales, and property taxes, and by using the research framework we’ve outlined, you can move beyond generic advice. You can build a short list of states that are a genuine financial fit, giving you the confidence to take the next step.
Actionable Next Steps for Your Journey
1. Create Your Retirement Income Map: Within the next week, sit down and list every source of income you expect to have in retirement. Get specific with the numbers.
2. Research Two States: Pick two states from this list or your own that appeal to you. Use the four-step guide to do a deep dive into their tax systems and overall cost of living.
3. Schedule a “Money Date”: Set aside time to review your findings with your spouse, partner, or a trusted advisor. Talk through the pros and cons and see how the numbers feel. This journey is about finding a place where you can not only live, but thrive.
Disclaimer: The information provided in this article is for educational purposes only and is not intended to be a substitute for professional financial, legal, or tax advice. Tax laws and regulations are subject to change and vary by state and locality. You should consult with a qualified professional who can assess your individual situation before making any major financial decisions related to retirement or relocation.
Alabama, beginning in 2025, exempts the 5% state tax on up to $12,000 dollars that is withdrawn from an IRA/401K account by people that are 65+. A savings of up to $600 dollars from a $12,000 dollar withdrawal..