Retirement Residences: Location, Location, Location

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Retirement Residences: Location, Location, Location

There are at least two factors of primary importance that influence people’s decisions about their retirement location—climate and proximity to family and friends. These two considerations are often mutually exclusive, requiring some concessions or trade-offs. For couples, some tough compromises might have to be made.

Talk candidly

The important thing is to carefully think things through and discuss the issue of location candidly with your partner (and perhaps other important people in your life) at the start of the decision-making process. This should most definitely not be an after-thought. For couples, moreover, it’s a prescription for trouble if one of you is subject to arm-twisting by the other, or tries to be overly accommodating by agreeing to a location that will ultimately lead to unhappiness.

Try different scenarios

Spending a portion of the year in different places is a good solution for many people, and might not be as financially unworkable as it might seem.

For example, some folks have a modest home or condo in a warm region where they spend the winter or even more of the year. The rest of the time they’re on the move—taking extended trips in a motor home or simply staying with family or friends in other areas.

Don’t forget about taxes

One more point: don’t forget to include state taxes—of all kinds—in the retirement location equation. This is a huge variable, highly dependent on the region in which you settle. Almost all states have both an income tax and a sales tax in some form. A few have one, but not the other. (Florida, for example, has no income tax.)

Only one state has neither an income nor a state sales tax—Alaska (some municipalities in Alaska do impose their own sales taxes, however)..