3 Reasons It Matters Which State You Retire In
Some seniors choose a state to retire to based on its climate. Others make that decision based on proximity to family and friends. These are, of course, important considerations when determining where you'll settle down in retirement -- but there are a number of financial factors to think about, too. Here are three reasons why your state of choice for retirement could spell the difference between living comfortably and winding up cash-strapped.
Income taxes affect your financial health as a senior, and they're higher in some states than in others. In fact, there are seven states that don't charge income taxes at all:
Also, while New Hampshire and Tennessee charge taxes on interest and dividend income, they don't impose a tax on ordinary income -- and both states are in the process of phasing out their existing interest and dividend taxes as well. Avoiding state income taxes could result in serious savings, so keep that in mind as you narrow down your choices.
Source Fool.com
