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We know lots of friends who are considering moving from a high-tax state, such as New York, to a state with low or no state income taxes. They think they will end up with more money, although they are torn because they may also be moving away from family and friends just to escape state taxes.
SEE MORE 5 Things to Do Before You Retire
What I advise them to do is think about spendable income — the amount they'll have to spend after taxes — and not just low or zero tax rates. If you have more money to spend after paying the tax bill wherever you currently live, you might as well stay where you are, if it's closer to the grandkids. You may be able to pay for at least one warm-weather winter trip, too.
Design a Smarter Retirement Income Plan
Before making life decisions about moving (or downsizing, purchasing insurance, etc.) retirees ought to know their number for their total starting income, and have a plan for retirement income that includes a projection of income and savings, and all planning assumptions.
The income plan ought to cover:
Starting incomeInflation protection
Beneficiary income protection
Spousal income (if applicable)
Plan management (when plan assumptions are not realized)
Market risk to plan (when markets fluctuate)
Legacy passed on to beneficiaries or heirs
All these subjects are covered in articles on Kiplinger.com. In one article,
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