A Review Of The Top Places To Retire In 2020

Is the place where you’d like to retire on the Top 15 list? On this episode, we’ll review the US News & World Report’s top 15 retirement locations and share stories of past clients who made the decision to move somewhere else for retirement and what went into those decisions from an emotional and financial standpoint.

Important Links

Website: http://www.yourplanningpros.com

Call: 844-707-7381

Transcript Of Today's Show:

 

Speaker 1: Hey, everybody. Welcome in to this week's edition of Plan With the Tax Man with Tony Mauro and myself. We appreciate your time as we talk investing, finance and retirement here on the podcast. It is early November here. This is our day after the election by podcast and of course, we as expected, we don't have an idea. We have no clue who's the president. How you doing, my friend? You doing okay?

 

Tony Mauro: We're doing good. Fall's [crosstalk 00:00:24] upon us here in the Midwest and right now, this week, it's actually very warm, so it's almost golf weather, really.

 

Speaker 1: It's been wacky here in my neck of the woods. We've had some pretty big 30 and 40 degree swings, but it looks like we're going to be in the mid to upper 70s the rest of the week.

 

Tony Mauro: Same here. It's great.

 

Speaker 1: I'll take it. It's November. It's not hot, so it's comfortable. It's nice.

 

Tony Mauro: Exactly.

 

Speaker 1: So that's always good. Speaking of weather and niceness, that's actually our topic this week. We're actually going to talk about a review of the top places to retire as of the U.S. News & World Report's top 15 locations, just kind of fun here, do something a little bit different and kind of keep it light and airy, if you will, but we'll talk about a few of the metrics that went into it. If you see some things like that similarly in conversations you have with clients or potentially, so I don't know if we'll go through all 15 or just kind of lump it together here. So what I'll say is of the 15, let's see, one, two, three, four, five, six, seven, eight of the 15 are all in one state. Care to take a guess?

 

Tony Mauro: All in one state. It's fitting because when we're taping this the day after an election, everybody's kind of, well, probably had enough of that for a while. It's interesting when they have all the maps up the night before and you're paying attention to the states, sometimes you don't. But it's interesting in this report that out of the top 15, eight are in Florida and although Florida's always a popular spot, but there's some others in here as well, some in the Midwest that most people don't think of. Then, of course, some in the desert. But it's interesting, my client base, for the most part, doesn't really talk about Florida all that much, but probably nationally, that's the place. If you look at their demographics and how many retirees are down there, a lot of people migrate that way.

 

Speaker 1: Now Florida's always kind of that given, so again, it's not a surprise that people do that. So we'll hop around just on this topic. Do you have some folks that do the snowbird thing, that they split their time?

 

Tony Mauro: We have clients that split their time. A lot of our clients tend to want to go to Southern Texas down by the Mexican border and then of course out to Arizona, some Palm Springs. I'm of the same opinion, personally, is as much as I love Florida, I think down there, the snowbird thing could be hit and miss from year to year. It, depending on the weather and a lot of our clients want to go where they pretty much or know that it's going to be sunny and not a lot of rain.

 

Speaker 1: Right. Of course, there's different advantages to some states, obviously, when you think about income tax or I think weather and a few other things are why people consider Florida.

 

Tony Mauro: I think weather is the big one and I think the fact that probably for most parts of the country, it's easy to get to. It's interesting because a lot of people, if they really are going to start having serious conversations about retiring somewhere else or splitting time, I think they need to take a look at, not only the state tax rates, but just the affordability, the population and how easy it is or hard is it to get around, the quality of the health care and some other things that-

 

Speaker 1: Good point.

 

Tony Mauro: ... after weather, people should take a look at if they're going to spend meaningful time somewhere. I think sometimes after we get done with them, they hadn't thought about a lot of that.

 

Speaker 1: Right.

 

Tony Mauro: For example, a couple of spots in this list, just for the listeners, number seven's Ann Arbor, Michigan [crosstalk 00:04:17] North Carolina.

 

Speaker 1: Let's talk about some of the those. Yes. Ann Arbor, Michigan is seven, to your point, and Manchester, New Hampshire is 14. They seem like odd choices.

 

Tony Mauro: Odd choices and Nashville, but Nashville is becoming more popular [crosstalk 00:04:31] number 12. But a lot of people are taking a little bit alternative routes, if you will, and saying, "Well, weather it's not my number one goal, it's other things." It could be cost of living, which I'm assuming, and especially in Michigan, is more towards the Midwest. New Hampshire would seem to me a little higher cost of living, but maybe it's the East Coasters that are wanting to get out of the bigger cities and maybe that's lower for them.

 

Speaker 1: Like if people live in New York City or something like that. Actually number five is Lancaster, PA. [crosstalk 00:05:06] That's even weirder to me.

 

Tony Mauro: Yes.

 

Speaker 1: No offense, Lancasters.

 

Tony Mauro: That's right. Hopefully, you're not offending anybody by just listing it. Of course, Des Moines, Iowa is nowhere to be found, so we're out.

 

Speaker 1: We counted wrong. I think there's actually Miami didn't have the Florida next to it, so there's actually nine of the 15 are Florida. So basically just throw a dart at Florida and it's on this list more than likely.

 

Tony Mauro: It is. But I think with Florida, going back to it, it's a wonderful place. The weather is generally pretty good, but to me, when I've been down there, the cost of living is a little higher. Their tax rates are a little different, of course they get a ton of money from tourism and whatnot. But to me, I think Florida, it's a little too crowded for me. I'm not at retirement age, but I don't like all the traffic, especially down in Southern Florida around the Miami area and whatnot, but everybody's different. I think if people are seriously looking about splitting time, they should at least develop a list and kind of come up and look at some of these reports and some of what goes into them, its pros and cons of each location to make a well-informed decision.

 

Speaker 1: Yeah, no, definitely. So what financial or emotional considerations, maybe that's another thought to have a conversation around this on, Tony, is to consider if you're thinking about retiring in a different state or a different region. Sometimes it's kid-based, sometimes grandkid-based things of that nature, how do you go about advising that when people start having those conversations?

 

Tony Mauro: I advise them if they're actually physically going to pick up and move and plant the seed in a different state on a full-time basis. First thing we have them do, and we generally will help them on the tax side, is to let them know what the state's tax rates are, what income is taxed, how and from there, then we go to the sales tax rates, property tax rates, things like that, if they're going to own property there so they can kind of get some numbers without having to do a lot of digging to get some of that in their head. Then from there, basically, we get into more of the non-financial things, affordability, healthcare, things like that. But I think it's big, taxes are big. We're right after the election. We don't know anything on that, but state taxes are big in some states compared to others and I think that's got to be a consideration if you're on a fixed income, for sure.

 

Speaker 1: Well, at the time we're taping this podcast, it's so close you can't really call it. But one of the things that could be on the docket is higher taxes. Biden has made that conversation, so that might be the case. Obviously, we won't know anything until later on, but that's something to definitely consider and I think that's always been the case. People have always kind of looked to retirement as, "Well, let's retire someplace where there's no income tax or sales tax," or whatever. There are various different things kind of lead that charge. Now what about yourself? Do you have a dream retirement location? Is it right there where you're at? I know you're a big fan of the Napa area and all that kind of stuff, but living there and just visiting there are two different things.

 

Tony Mauro: Two different things, yes. I'll answer that, but the other thing's back on taxes. This is just, again, my own two cents. I have no basis for this, but if you think about it, with what we've gone through this year with the COVID and the pandemic and these states not collecting as much tax and whatnot, eventually they may have to come in and say, "We're low on money and the only thing we've got left is to raise taxes." Now it may not always be an income tax. They try to do it in kind of what I call sneaky ways, take this deduction away or that, so they don't call it that. But a lot of times, again, you go into a new state, you better find out not only what their rates are, but how they tax you, but...

 

Speaker 1: Change to a gas tax or property tax or [crosstalk 00:09:07]

 

Tony Mauro: They got to get it from somewhere. It's just not all free. But in answering the question, a couple of tops on my list, I would probably split time once I get to retirement. I don't see me just moving, but you never know with children and things like that, but one of my favorite places outside of Napa, that would be one. Although, again, looking at cost of living there and income taxes and stuff, that could be a detriment. But I love the Phoenix-Scottsdale area. I love Palm Springs. I'm a desert guy, even though I love the water, but I like to go to the water and have my visits-

 

Speaker 1: Now surprisingly enough, those aren't on there, which I found that kind of surprising. On that top 15, there's no place in Arizona.

 

Tony Mauro: No, No place in Arizona-

 

Speaker 1: Maybe too hot.

 

Tony Mauro: So but in the split time, with the true snowbirds, it's almost always sunny and in the 70s. Obviously, the Caribbean would be nice, but that's a little more of a jaunt every year if you were going to try to do something like that, but those would be my top spots to probably split time would be something like that. As I think now, and I think a lot of people do this too, is they think of their retirement spots kind of like they think of vacations right now, where you're going for an experience and excitement and what are we going to do? I think when you retire there or even split time it's more of daily life-

 

Speaker 1: Right. True.

 

Tony Mauro: I'm getting up. I'm doing my activities-

 

Speaker 1: Going to the donut shop [crosstalk 00:00:10:39].

 

Tony Mauro: ... grocery shopping. So it's not the same as when you're in your 30s, 40s, 50s on vacations. When you're retired there or spending at least six months there.

 

Speaker 1: Very true. As someone who's been doing this for 20 plus years, I'm sure you see a lot of different things. Sometimes when people want to do that split time, or they even want to relocate, it doesn't necessarily mean you have to stop working with your advisor, depending on the situation. If they're licensed, there'll be able to help you and no matter where you are, but you just have to check into all of that stuff as well. Correct?

 

Tony Mauro: I would check into it. I would visit with your financial advisor. I would solicit some other opinions as well and obviously friends, family and people that you know that may have already gone there, [crosstalk 00:11:22] that particular location, is always helpful. They can always give you the goods and bads and at least you've got the ammo to make a good decision from that.

 

Speaker 1: So factor some of those things in folks, if you're thinking about, as you get closer to retirement, factor in local resident stuff, the happiness there, tax rates, housing affordability, quality of health, healthcare, some of the things Tony mentioned already, the emotional side. Are you good being maybe away from family or friends that you've known? Things of that nature. Again, we were talking the top 15 places, in 2020 anyway, from U.S. News & World Report on retirement locations. It looks like nine of the 15 were in Florida, so again, pick a dart, you could throw them.

 

Speaker 1: But just the other ones, just to kind of catch you up, was Lancaster, PA, Ann Arbor, Michigan, Asheville, North Carolina, Myrtle beach, South Carolina, which we didn't talk about, which is way too touristy for me. I'm not that far from Myrtle Beach and [crosstalk 00:12:19] It's just way too touristy for me and Nashville, Tennessee and the same thing. I feel like Nashville, go on the outskirts, I suppose, like any town you go to the outskirts and you don't have to see the touristy stuff, but either way, so that's the 15, oh, and Manchester, New Hampshire. I almost forgot about that one.

 

Tony Mauro: That little crazy one there.

 

Speaker 1: A little odd. The PA and the Michigan, I just really surprised by the three colder weather states, really am. I've lived near Ann Arbor, Michigan, beautiful place, absolutely lovely there, but just surprised by the colder places because I know most of us like to run from the snow as we age.

 

Tony Mauro: We don't see any of the top ski resort places, even though that is cold [crosstalk 00:13:03] nobody, of course, older, it's probably designed a little bit more for younger, active [crosstalk 00:13:10] and all that, but-

 

Speaker 1: Well, I think [crosstalk 00:13:12] missing this of stuff in Arizona or even Texas, I think that kind of shows us that this report really was around things other than just weather. Florida is definitely on there, probably could become of the weather, but I think a lot of this really was about the affordability, the tax rates and things of that nature, so there you go. So that's something to ponder, for sure. All right. Well, I think that's going to do it this week. Pretty simple and easy, a simple conversation away from all the regular stuff that we've been inundated with and we'll get back to that, I'm sure, here pretty soon, but we thought we'd deviate just a little bit this week on Plan With the Tax Man. So there you go. Have a great week, stay safe and sane, folks. Take care of yourself and Tony, my friend, I will talk to you in a week or two.

 

Tony Mauro: All right. Sounds good. Take care.

 

Speaker 1: We'll see you next time, folks. Don't forget to subscribe to the podcast on whatever app you're using, Apple, Google, Spotify, iHeart, Stitcher, so on and so forth. You can simply type Plan With the Tax Man in the search box of any of those apps if they're on your phone already and you use one of those that you like in particular. Just type that in, you'll find it, or just go to yourplanningpros.com, Tony's website, a lot of good tools, tips and resources to be found there. You can also subscribe to the website and check us out,thatway@yourplanningpros.com. As always, if you need any help before you take action to always check with a qualified professional like Tony Mauro. He's an EA and a certified financial planner. Call him at 844-707-7381. Again, 844-707-7381 at Tax Doctor, Inc.. We'll see you next time here on the podcast.