February 24, 2025 • 16 mins
This episode guides listeners through the process of selecting the ideal state for retirement, weighing financial incentives against personal happiness. The discussion centers on Florida, Arizona, Tennessee, and North Carolina, examining the pros and cons of each state, as well as critical financial considerations for future retirees.
• Evaluating Florida's no-income tax benefits
• Understanding Arizona's climate challenges
• Highlighting Tennessee's low-cost living and unique culture
• Discussing North Carolina's strategic tax treatment of retirement income
• Importance of community, healthcare facilities, and amenities in relocation
• Encouraging listeners to balance personal happiness with financial concerns
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Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.
“Early Retirement – Financial Freedom” is a podcast produced by Root Financial Partners, an SEC-registered investment adviser. The content provided is for informational and educational purposes only. It should not be interpreted as investment, legal, or tax advice. I may reference planning situations based on real client experiences, but they’ve been simplified for clarity. Always consult your own financial advisor before making decisions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back to the Early Retirement Podcast.
Today we're gonna talk aboutwhich state you should retire in
.
Now I tell this to all myclients don't retire in one
state, because that's the besttax strategies and you're gonna
minimize tax bill.
If you have no friends orfamily that are there, it does
not make any sense.
Make sure you are absolutelyretiring where you're excited to
(00:21):
retire.
Now some of you I recognize arelike look, we're going to
travel big the first few yearsof retirement or we're going to
live overseas.
So like, we just want a homebase.
And so we're just wondering,like, what's the most optimal
decision?
I get that.
That I'm 100% on board with.
But I have people that reachout that have 5, 10, $15 million
and they're like optimally, Ithink I should live in Florida
(00:43):
because there's no tax and it'sgoing to be really attractive.
And I said, great, like, do youwant to live there?
They're like absolutely not.
It sounds terrible Like myfriends are here in California
but like the taxes are justcrushing me.
I'm like no, I get that and Ilive in California.
I pay a lot in taxes.
I would love to minimize mytaxes, but I also recognize my
friends and family are here.
(01:03):
So it's almost like I pay thatcost and I choose to do it.
So we just want to know ifwe're going to retire, are we
optimizing where we're living?
And the factors I looked atwere the following I looked at
economic data, healthcarestatistics and lifestyle factor.
So we're going to go throughthe primary states we're going
to be discussing today Florida,arizona, tennessee and North
(01:25):
Carolina.
I've got a ton of different funstuff I'm excited to go through
with you.
If you don't already know, myname is Ari Taubli, I'm a
certified financial planner, I'mthe host of this show, the
Early Retirement Podcast, and Iam the Chief Growth Officer at
Root Financial.
If you get excited with anystrategy I talk about before you
actually execute, please,please, be smart about this.
(01:48):
This should all be construed asno financial advice.
It should not be construed asfinancial advice.
That would be proper Englishand this is for fun, educational
information of informativepurposes.
Only.
I cannot talk today, so notvery helpful for a podcaster,
but I get excited when I get totalk about certain topics and
this is one of them, so I wantto start going straight into it.
(02:11):
Of course, I'm going to alwayshave this be a podcast episode
on the podcast applications andon YouTube as video format.
So number one is Florida.
Florida is a big spot forretirees for a few reasons.
Well, there's no income tax, sosignificant savings if you're
withdrawing from retirementaccounts.
(02:32):
Social Security, the warmclimate year-round, obviously.
And then extensive healthcareinfrastructure for aging
population Some statisticsaround it.
Population, some statisticsaround it.
No state income tax, 1,350miles of coastline, over 1,000
golf courses, 2.8% lower overallcost of living compared to the
(02:53):
national average and a highconcentration of healthcare
facilities per capita.
Now those are the pros, thecons.
The state faces increasingproperty insurance costs due to
natural disaster risks, andpopular areas have seen sharp
increases in housing costs.
Of course, hurricane risk andhumidity.
Florida is the go-to for a lotof people.
(03:13):
Totally recognize why.
I do want you to always, though,take a step back before you
actually retire somewhere and go.
Do I want to be there?
I know I mentioned that earlyon, but I don't want someone to
go retire and go.
Yep, I just saved 30,000 a yearin taxes and I don't like my
life anymore.
That defeats the purpose.
I want you to live your dreamlife, and sometimes that's also
(03:34):
for many of you like look, I'mliving my dream life if I'm
saving 30,000 a year in taxes.
So that's Florida,no-transcript.
(04:11):
He had a heart attack, flew himto Arizona, forever grateful.
That state has a big spot in myheart the challenges it is
crazy hot in the summers.
So I had a client that moved toArizona and they were like it's
because.
So they moved from New Jerseyto Arizona A lot of the reasons
I mentioned there and they lovedit for nine months, not from
June to August.
(04:32):
Not a fan.
So in those months they're likelook, we just kind of stayed
indoors.
We didn't plan our retirementfor also having a secondary home
or traveling somewhere else.
So consider Seattle Now onlysaying consider, because I had a
client.
So when I went to college up inSeattle and I think that's the
best place in the world forsummers If you have a different
thought or argue differently,let me know in the comments or
(04:54):
leave a review, shoot me a note.
In any way, you can, of course,go to my website,
earlyretirementpodcastcom, toemail me.
And I only say this becausethis couple not the one that
moved from New Jersey to Arizona, but a different couple that
went to Seattle for the summersthey're like this is the best.
And they did Vrbo, which I didnot know about, but do you guys
know this V-R-B-O?
(05:15):
So not Airbnb, but like you, goget a place for a month or two
months or three months orwhatever you want long-term
stays and they did that and theyloved it.
So their plan is now to do adifferent state each year.
So they did Seattle Washington.
Now they're going to do I thinkit was like Minnesota, I don't
know why Minnesota in the summer, but that's what they want to
do.
So consider that Tennessee.
(05:38):
Tennessee has emerged as aleading retirement destination
and that is due to low cost ofliving, no state income tax,
diverse geography you gotmountain and urban and then the
state central location, easyaccess to different regions.
Once again, no state income tax, 10.3% lower cost of living
than the national average.
(05:58):
That's 2.3% better than Arizona.
Not the reason to go there, butimportant Four distinct seasons
and the winters are moderate.
I have clients that send mephotos.
Yes, it's still winter, but itis moderate.
If you live there you can tellme otherwise.
Strong healthcare system andthen rich cultural heritage and
music scene.
Community is tough, not inTennessee.
(06:20):
So something to consider thechallenge that I've seen some
areas they face healthcareaccess issues.
I have a client that is inrural Tennessee so they had.
It wasn't a heart attack, but astroke of some kind, more
complicated than that.
If they're listening right now,trust me, I I know I didn't
explain that well and they werefine.
But getting to a hospital tooksome time.
(06:42):
It's like being I spent sometime in the Adirondacks in New
York, so up North New York, itwas a hassle getting to a
hospital.
It was about three hours.
You're going to all think I'midiots after this, but I'll tell
you anyway.
So there was a big peanutallergy.
I worked at a camp called BrantLake Camp and this was when I
(07:02):
was in college, so I don't know10 plus years ago, and I'm
working there and I chose thatjob because it paid the most out
of any other job I could findand I wanted to be a camp
counselor and be away from.
I just want to be on the Eastcoast for that summer.
So I go to New York, gorgeousAdirondacks.
I saw photos of the sunset.
I was sold.
I'm getting there.
And these kids when I say thesekids are stuck up.
(07:24):
So I grew up in Malibu and myparents did not have a ton of
money, but my dad wanted to benear the ocean that's how we
lived in Malibu and so he'drather live in a shack but be
able to surf than be in thevalley where it's super hot.
So we're living there.
People around us super wealthy,wasn't us?
My point here is I saw somebrats okay, that's me putting it
nicely.
Some of these kids are drivingLamborghinis.
(07:46):
They're talking to teachers inhigh school in a way that you're
like look, they're still humans.
It was like horrible.
My point is that when I was atthis camp, these kids were just
attitude of the attitude.
So I don't know, that is notthe direction I meant to go here
.
The direction I meant to go herewas I had my duty, was like
(08:07):
making sure peanut allergieswere at a minimum.
I'm Jewish.
I don't have a peanut allergy,but this was a very Jewish camp.
Okay.
So tons of allergies here, andyou get there a week early and I
was there a week early, and sothey're like hey, if any of you
guys have brought peanuts oralmonds or all these different I
don't think almonds applied,but a bunch of other nuts they
named like, make sure to eatthose, because we don't want
this to be an issue in a weekfrom now when the kids arrive
(08:29):
and we're prepping it.
So I was trying to gain weight,so I'm having a lot of protein.
So I had all these walnuts andthis is a longer story than any
of you guys ever asked for and Idon't blame you if you're
skipping right now but I had allthese walnuts and I'm just
going to finish the story realquick and I was like I need more
protein.
Walnuts have good protein andit turns out I'm allergic to
walnuts.
So all I ate was walnuts andI'm like, why is my throat
(08:50):
hurting?
Maybe it's a lack of protein?
I mean, how stupid am I?
So I'm having more walnuts andso basically, my throat comes
out to here and I go.
I'm like I am sorry, I don'twant to be a hassle, but like
I'm whole neck is swollen.
Getting to a hospital was apain Three hours away Hope that
never happens to any of you guysand probably a story you could
have lived without.
(09:11):
Okay, next state, last statehere North Carolina.
North Carolina offers.
If you have a good medicalstory, by the way, that will
make me feel better than thatlet me know in the comments.
North Carolina offers abalanced approach to retirement,
with varied geography mountainsto beaches, moderate climate,
strong healthcare.
The state's tax treatment ofretirement income is also
favorable and cost of living iscompetitive.
(09:34):
So social security income istax exempt, meaning there's
federal social security andthere's state social security
taxation.
So social security income istax exempt in North Carolina
state.
5% lower cost of living, thenational average, top tier
healthcare you've got Duke andUNC right there diverse
recreational opportunities andapparently strong sense of
(09:57):
community.
I only have like a few clientsin North Carolina I don't know
why, so I can't talk to it ingreat detail but growing
popularity has led to increasedhousing costs, particular in the
research triangle and coastalregions.
So I want to go over that.
Those are the four states toconsider, and then I want to go
over some stats.
So this was from an economicanalysis.
(10:19):
Florida sees an annual economicimpact of $150 billion from
retiree spending.
Arizona's retirementcommunities contribute $12
billion annually to the stateeconomy.
So like this is big, northCarolina's retirement
communities have created over50,000 jobs.
In terms of financialconsiderations, the things that
I tell my clients number one,evaluate total tax burden, not
(10:43):
just the income tax.
So if you're just going toFlorida for income tax but
you're actually going to haveway more taxes because of all
these other reasons like thatdefeated the purpose.
Consider long-term healthcareand insurance availability.
Factor in property taxes.
Are you going to rent inretirement?
The property taxes how do youwant to structure that?
In California there's a fewdifferent options.
So you can say I want to keepmy house in my name and then if
(11:06):
my kids inherit it, they keep myproperty taxes.
You can say no, I want to putit in their name.
So defeats the step up in basisbecause it's now in their name.
But property taxes at thatpoint, you know, stay
competitive.
So it just depends what you'relooking for A research cost of
living trends over the pastdecade.
So no matter where you're goingto live, if you go to North
(11:27):
Carolina, but you're in thewrong part obviously it plays a
big role.
Lifestyle visit during differentseasons before committing.
You probably know this story,but I have a client that loved
Hawaii so much for a month, notforever.
Well, they bought a home, bigfinancial hit.
So like go to Hawaii atdifferent times of the year.
It's gorgeous literally almostall of the year.
But year it's gorgeousliterally almost all of the year
(11:54):
.
But it's worth consideringespecially Kauai.
It rains a lot there.
Research, healthcare facilitiesand specialists evaluate
proximity to family and travelhubs.
I have a couple that moved fromI think it was Sacramento, I
think it was Elk Grove, anywhereright near Northern California,
and they moved there and theywere living in, I forget, but
somewhere in Arizona, and theywere like we're going to be with
grandkids, but not that much,once every few months.
They wanted to be with them allthe time.
(12:16):
So they're paying for theseplane tickets, constantly moved
to Arizona for the weather, butalso because of state tax
reasons, and they're like look,I don't even know if we're
coming out on top because we flyto see our grandkids all the
time and because our backs hurt,we fly first class only.
So, like, if they're flyingevery week, you defeated the
purpose.
So consider family and, hey, ifyou think you're gonna really
(12:37):
wanna be around them, consideramenities and social
opportunities.
So we'll call this ROH returnon hassle, for I live right next
to my brother.
My brother lives right nextdoor.
We own a semi-professionalsoccer team.
We would argue our team wouldnot play as well if we did not
live next door.
Because if I have an idea oflike, hey, I think we should
play this new system.
I want to be able to walk overright now and tell him versus,
(13:00):
save it for later, and then Inever get it to him.
If you guys are like, hey, wewant to play a lot of card games
in retirement, or it turns outwe want to be part of a golf
community or whatever it is, ifyou're not walking distance from
that community, like you willjust see it less often, it will
not be as fun.
I have couples that have nodesire in any way to be in a
retirement community and they'relike we want to live on our own
(13:22):
and we make food at home.
I have others that are like Inever considered it, but the
fact that I could have food madefor me and I don't have to do
anything, and it's a cafeteria,that's my style, I get to talk
to people Great, you guys get tochoose Future outlook things to
think about.
Is technology, infrastructureso eminent domain and things
like that is not something toworry about in retirement.
(13:44):
It, of course, could occur ifyou own any home, but mainly
like hey, is this going toAustin, Texas, becoming a very
tech forward town?
Is that a community you want tobe in?
Are you in a community withmixed ages?
I have retired couples that arelike I like being with young
people only because they thinkmore you know whatever for me.
I have couples that say that.
I have other couples that arelike I want to be around people
(14:07):
like me in my stage of life.
So it depends, I would argue.
You can find people anywhere.
The conclusion Florida, arizona,tennessee, north Carolina on
paper, the best states to retireto.
There are, of course, benefits.
If you're going well, should Ibe in South Dakota because of
the way I can set up my businessand my income if I'm overseas?
Or what other benefits exist ifI go to Washington?
(14:28):
Should I go buy a camera inOregon because no sales tax?
Like, yeah, we could go throughthis all day and maybe I'll do
if you guys want a futureepisode on, just like, the
absolute financial benefits ofevery single state, but for
today this is just retirement,how to think about retirement in
a certain state.
So hopefully this was helpful.
I don't think it was my bestepisode, I will admit, because
(14:51):
I'm doing some research on thesedifferent states and I try to
bring in my client stories, butI'm always trying to do my best.
So, guys, appreciate you guys,as always, listening and tuning
in.
I appreciate any reviews.
That's what helps this grow.
So leave comments, leave areview if you want other people
to retire with confidence, and Idon't take it lightly when you
share this with coworkers andfriends.
So, thank you guys.
(15:11):
Thank you all, as always, forlistening to the Early
Retirement Podcast.
I love getting to host theseshows and make different content
for you guys every single week.
I've not missed a single weekin years and that is because I
love getting to do this.
Now, please be smart about this.
Before you actually execute anystrategy that you see me talk
about or hear me talk about,should I say Please talk to your
(15:33):
financial advisor, your taxpreparer, your estate attorney.
Please be smart about this.
None of this should beconstrued as financial advice.
This is for fun, educational,informational purposes only.
Once again, just quickdisclaimer here guys, please be
smart about this.
Appreciate you listening, asalways, and you can, of course.
Guys, please be smart aboutthis.
(15:54):
Appreciate you listening, asalways, and you can, of course,
submit a question on my website,earlyretirementpodcastcom, if
you, of course, want me toaddress a specific case study or
topic.
I will not promise I can get toit, but I respond to every
single person and if I find itwill be helpful for a lot of
people, I will absolutely makean episode on it, at the very
least give you some insight.
That's it, thanks.
Welcome back to the Early Retirement Podcast.
Today we're gonna talk aboutwhich state you should retire in
.
Now I tell this to all myclients don't retire in one
state, because that's the besttax strategies and you're gonna
minimize tax bill.
If you have no friends orfamily that are there, it does
not make any sense.
Make sure you are absolutelyretiring where you're excited to
(00:21):
retire.
Now some of you I recognize arelike look, we're going to
travel big the first few yearsof retirement or we're going to
live overseas.
So like, we just want a homebase.
And so we're just wondering,like, what's the most optimal
decision?
I get that.
That I'm 100% on board with.
But I have people that reachout that have 5, 10, $15 million
and they're like optimally, Ithink I should live in Florida
(00:43):
because there's no tax and it'sgoing to be really attractive.
And I said, great, like, do youwant to live there?
They're like absolutely not.
It sounds terrible Like myfriends are here in California
but like the taxes are justcrushing me.
I'm like no, I get that and Ilive in California.
I pay a lot in taxes.
I would love to minimize mytaxes, but I also recognize my
friends and family are here.
(01:03):
So it's almost like I pay thatcost and I choose to do it.
So we just want to know ifwe're going to retire, are we
optimizing where we're living?
And the factors I looked atwere the following I looked at
economic data, healthcarestatistics and lifestyle factor.
So we're going to go throughthe primary states we're going
to be discussing today Florida,arizona, tennessee and North
(01:25):
Carolina.
I've got a ton of different funstuff I'm excited to go through
with you.
If you don't already know, myname is Ari Taubli, I'm a
certified financial planner, I'mthe host of this show, the
Early Retirement Podcast, and Iam the Chief Growth Officer at
Root Financial.
If you get excited with anystrategy I talk about before you
actually execute, please,please, be smart about this.
(01:48):
This should all be construed asno financial advice.
It should not be construed asfinancial advice.
That would be proper Englishand this is for fun, educational
information of informativepurposes.
Only.
I cannot talk today, so notvery helpful for a podcaster,
but I get excited when I get totalk about certain topics and
this is one of them, so I wantto start going straight into it.
(02:11):
Of course, I'm going to alwayshave this be a podcast episode
on the podcast applications andon YouTube as video format.
So number one is Florida.
Florida is a big spot forretirees for a few reasons.
Well, there's no income tax, sosignificant savings if you're
withdrawing from retirementaccounts.
(02:32):
Social Security, the warmclimate year-round, obviously.
And then extensive healthcareinfrastructure for aging
population Some statisticsaround it.
Population, some statisticsaround it.
No state income tax, 1,350miles of coastline, over 1,000
golf courses, 2.8% lower overallcost of living compared to the
(02:53):
national average and a highconcentration of healthcare
facilities per capita.
Now those are the pros, thecons.
The state faces increasingproperty insurance costs due to
natural disaster risks, andpopular areas have seen sharp
increases in housing costs.
Of course, hurricane risk andhumidity.
Florida is the go-to for a lotof people.
(03:13):
Totally recognize why.
I do want you to always, though,take a step back before you
actually retire somewhere and go.
Do I want to be there?
I know I mentioned that earlyon, but I don't want someone to
go retire and go.
Yep, I just saved 30,000 a yearin taxes and I don't like my
life anymore.
That defeats the purpose.
I want you to live your dreamlife, and sometimes that's also
(03:34):
for many of you like look, I'mliving my dream life if I'm
saving 30,000 a year in taxes.
So that's Florida,no-transcript.
(04:11):
He had a heart attack, flew himto Arizona, forever grateful.
That state has a big spot in myheart the challenges it is
crazy hot in the summers.
So I had a client that moved toArizona and they were like it's
because.
So they moved from New Jerseyto Arizona A lot of the reasons
I mentioned there and they lovedit for nine months, not from
June to August.
(04:32):
Not a fan.
So in those months they're likelook, we just kind of stayed
indoors.
We didn't plan our retirementfor also having a secondary home
or traveling somewhere else.
So consider Seattle Now onlysaying consider, because I had a
client.
So when I went to college up inSeattle and I think that's the
best place in the world forsummers If you have a different
thought or argue differently,let me know in the comments or
(04:54):
leave a review, shoot me a note.
In any way, you can, of course,go to my website,
earlyretirementpodcastcom, toemail me.
And I only say this becausethis couple not the one that
moved from New Jersey to Arizona, but a different couple that
went to Seattle for the summersthey're like this is the best.
And they did Vrbo, which I didnot know about, but do you guys
know this V-R-B-O?
(05:15):
So not Airbnb, but like you, goget a place for a month or two
months or three months orwhatever you want long-term
stays and they did that and theyloved it.
So their plan is now to do adifferent state each year.
So they did Seattle Washington.
Now they're going to do I thinkit was like Minnesota, I don't
know why Minnesota in the summer, but that's what they want to
do.
So consider that Tennessee.
(05:38):
Tennessee has emerged as aleading retirement destination
and that is due to low cost ofliving, no state income tax,
diverse geography you gotmountain and urban and then the
state central location, easyaccess to different regions.
Once again, no state income tax, 10.3% lower cost of living
than the national average.
(05:58):
That's 2.3% better than Arizona.
Not the reason to go there, butimportant Four distinct seasons
and the winters are moderate.
I have clients that send mephotos.
Yes, it's still winter, but itis moderate.
If you live there you can tellme otherwise.
Strong healthcare system andthen rich cultural heritage and
music scene.
Community is tough, not inTennessee.
(06:20):
So something to consider thechallenge that I've seen some
areas they face healthcareaccess issues.
I have a client that is inrural Tennessee so they had.
It wasn't a heart attack, but astroke of some kind, more
complicated than that.
If they're listening right now,trust me, I I know I didn't
explain that well and they werefine.
But getting to a hospital tooksome time.
(06:42):
It's like being I spent sometime in the Adirondacks in New
York, so up North New York, itwas a hassle getting to a
hospital.
It was about three hours.
You're going to all think I'midiots after this, but I'll tell
you anyway.
So there was a big peanutallergy.
I worked at a camp called BrantLake Camp and this was when I
(07:02):
was in college, so I don't know10 plus years ago, and I'm
working there and I chose thatjob because it paid the most out
of any other job I could findand I wanted to be a camp
counselor and be away from.
I just want to be on the Eastcoast for that summer.
So I go to New York, gorgeousAdirondacks.
I saw photos of the sunset.
I was sold.
I'm getting there.
And these kids when I say thesekids are stuck up.
(07:24):
So I grew up in Malibu and myparents did not have a ton of
money, but my dad wanted to benear the ocean that's how we
lived in Malibu and so he'drather live in a shack but be
able to surf than be in thevalley where it's super hot.
So we're living there.
People around us super wealthy,wasn't us?
My point here is I saw somebrats okay, that's me putting it
nicely.
Some of these kids are drivingLamborghinis.
(07:46):
They're talking to teachers inhigh school in a way that you're
like look, they're still humans.
It was like horrible.
My point is that when I was atthis camp, these kids were just
attitude of the attitude.
So I don't know, that is notthe direction I meant to go here
.
The direction I meant to go herewas I had my duty, was like
(08:07):
making sure peanut allergieswere at a minimum.
I'm Jewish.
I don't have a peanut allergy,but this was a very Jewish camp.
Okay.
So tons of allergies here, andyou get there a week early and I
was there a week early, and sothey're like hey, if any of you
guys have brought peanuts oralmonds or all these different I
don't think almonds applied,but a bunch of other nuts they
named like, make sure to eatthose, because we don't want
this to be an issue in a weekfrom now when the kids arrive
(08:29):
and we're prepping it.
So I was trying to gain weight,so I'm having a lot of protein.
So I had all these walnuts andthis is a longer story than any
of you guys ever asked for and Idon't blame you if you're
skipping right now but I had allthese walnuts and I'm just
going to finish the story realquick and I was like I need more
protein.
Walnuts have good protein andit turns out I'm allergic to
walnuts.
So all I ate was walnuts andI'm like, why is my throat
(08:50):
hurting?
Maybe it's a lack of protein?
I mean, how stupid am I?
So I'm having more walnuts andso basically, my throat comes
out to here and I go.
I'm like I am sorry, I don'twant to be a hassle, but like
I'm whole neck is swollen.
Getting to a hospital was apain Three hours away Hope that
never happens to any of you guysand probably a story you could
have lived without.
(09:11):
Okay, next state, last statehere North Carolina.
North Carolina offers.
If you have a good medicalstory, by the way, that will
make me feel better than thatlet me know in the comments.
North Carolina offers abalanced approach to retirement,
with varied geography mountainsto beaches, moderate climate,
strong healthcare.
The state's tax treatment ofretirement income is also
favorable and cost of living iscompetitive.
(09:34):
So social security income istax exempt, meaning there's
federal social security andthere's state social security
taxation.
So social security income istax exempt in North Carolina
state.
5% lower cost of living, thenational average, top tier
healthcare you've got Duke andUNC right there diverse
recreational opportunities andapparently strong sense of
(09:57):
community.
I only have like a few clientsin North Carolina I don't know
why, so I can't talk to it ingreat detail but growing
popularity has led to increasedhousing costs, particular in the
research triangle and coastalregions.
So I want to go over that.
Those are the four states toconsider, and then I want to go
over some stats.
So this was from an economicanalysis.
(10:19):
Florida sees an annual economicimpact of $150 billion from
retiree spending.
Arizona's retirementcommunities contribute $12
billion annually to the stateeconomy.
So like this is big, northCarolina's retirement
communities have created over50,000 jobs.
In terms of financialconsiderations, the things that
I tell my clients number one,evaluate total tax burden, not
(10:43):
just the income tax.
So if you're just going toFlorida for income tax but
you're actually going to haveway more taxes because of all
these other reasons like thatdefeated the purpose.
Consider long-term healthcareand insurance availability.
Factor in property taxes.
Are you going to rent inretirement?
The property taxes how do youwant to structure that?
In California there's a fewdifferent options.
So you can say I want to keepmy house in my name and then if
(11:06):
my kids inherit it, they keep myproperty taxes.
You can say no, I want to putit in their name.
So defeats the step up in basisbecause it's now in their name.
But property taxes at thatpoint, you know, stay
competitive.
So it just depends what you'relooking for A research cost of
living trends over the pastdecade.
So no matter where you're goingto live, if you go to North
(11:27):
Carolina, but you're in thewrong part obviously it plays a
big role.
Lifestyle visit during differentseasons before committing.
You probably know this story,but I have a client that loved
Hawaii so much for a month, notforever.
Well, they bought a home, bigfinancial hit.
So like go to Hawaii atdifferent times of the year.
It's gorgeous literally almostall of the year.
But year it's gorgeousliterally almost all of the year
(11:54):
.
But it's worth consideringespecially Kauai.
It rains a lot there.
Research, healthcare facilitiesand specialists evaluate
proximity to family and travelhubs.
I have a couple that moved fromI think it was Sacramento, I
think it was Elk Grove, anywhereright near Northern California,
and they moved there and theywere living in, I forget, but
somewhere in Arizona, and theywere like we're going to be with
grandkids, but not that much,once every few months.
They wanted to be with them allthe time.
(12:16):
So they're paying for theseplane tickets, constantly moved
to Arizona for the weather, butalso because of state tax
reasons, and they're like look,I don't even know if we're
coming out on top because we flyto see our grandkids all the
time and because our backs hurt,we fly first class only.
So, like, if they're flyingevery week, you defeated the
purpose.
So consider family and, hey, ifyou think you're gonna really
(12:37):
wanna be around them, consideramenities and social
opportunities.
So we'll call this ROH returnon hassle, for I live right next
to my brother.
My brother lives right nextdoor.
We own a semi-professionalsoccer team.
We would argue our team wouldnot play as well if we did not
live next door.
Because if I have an idea oflike, hey, I think we should
play this new system.
I want to be able to walk overright now and tell him versus,
(13:00):
save it for later, and then Inever get it to him.
If you guys are like, hey, wewant to play a lot of card games
in retirement, or it turns outwe want to be part of a golf
community or whatever it is, ifyou're not walking distance from
that community, like you willjust see it less often, it will
not be as fun.
I have couples that have nodesire in any way to be in a
retirement community and they'relike we want to live on our own
(13:22):
and we make food at home.
I have others that are like Inever considered it, but the
fact that I could have food madefor me and I don't have to do
anything, and it's a cafeteria,that's my style, I get to talk
to people Great, you guys get tochoose Future outlook things to
think about.
Is technology, infrastructureso eminent domain and things
like that is not something toworry about in retirement.
(13:44):
It, of course, could occur ifyou own any home, but mainly
like hey, is this going toAustin, Texas, becoming a very
tech forward town?
Is that a community you want tobe in?
Are you in a community withmixed ages?
I have retired couples that arelike I like being with young
people only because they thinkmore you know whatever for me.
I have couples that say that.
I have other couples that arelike I want to be around people
(14:07):
like me in my stage of life.
So it depends, I would argue.
You can find people anywhere.
The conclusion Florida, arizona,tennessee, north Carolina on
paper, the best states to retireto.
There are, of course, benefits.
If you're going well, should Ibe in South Dakota because of
the way I can set up my businessand my income if I'm overseas?
Or what other benefits exist ifI go to Washington?
(14:28):
Should I go buy a camera inOregon because no sales tax?
Like, yeah, we could go throughthis all day and maybe I'll do
if you guys want a futureepisode on, just like, the
absolute financial benefits ofevery single state, but for
today this is just retirement,how to think about retirement in
a certain state.
So hopefully this was helpful.
I don't think it was my bestepisode, I will admit, because
(14:51):
I'm doing some research on thesedifferent states and I try to
bring in my client stories, butI'm always trying to do my best.
So, guys, appreciate you guys,as always, listening and tuning
in.
I appreciate any reviews.
That's what helps this grow.
So leave comments, leave areview if you want other people
to retire with confidence, and Idon't take it lightly when you
share this with coworkers andfriends.
So, thank you guys.
(15:11):
Thank you all, as always, forlistening to the Early
Retirement Podcast.
I love getting to host theseshows and make different content
for you guys every single week.
I've not missed a single weekin years and that is because I
love getting to do this.
Now, please be smart about this.
Before you actually execute anystrategy that you see me talk
about or hear me talk about,should I say Please talk to your
(15:33):
financial advisor, your taxpreparer, your estate attorney.
Please be smart about this.
None of this should beconstrued as financial advice.
This is for fun, educational,informational purposes only.
Once again, just quickdisclaimer here guys, please be
smart about this.
Appreciate you listening, asalways, and you can, of course.
Guys, please be smart aboutthis.
(15:54):
Appreciate you listening, asalways, and you can, of course,
submit a question on my website,earlyretirementpodcastcom, if
you, of course, want me toaddress a specific case study or
topic.
I will not promise I can get toit, but I respond to every
single person and if I find itwill be helpful for a lot of
people, I will absolutely makean episode on it, at the very
least give you some insight.
That's it, thanks.
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