Most people approaching retirement generally retire where they spent their working years. But for some, whether you are a snowbird or just looking to relocate, the issue of state taxation can really move the needle when it comes to spendable income.
At times, this can be the difference between having 10% or more in spendable income. Some states tax Social Security benefits and IRA distributions leading to a large increase in tax-outflow. Choosing your retirement state wisely can be a significant boost to your overall spendable income depending on the state - especially when you have a large portion of your investments in tax-deferred accounts.
In other words, it pays to be knowledgable about this. I came across a great resource for state taxation below. It’s worth a look.
- State by State Guide to Taxes on Retirees from Kiplinger
Other Recommended Reading
- The Armageddonists from Michael Cembalest
- The Weakest Recovery and Longest Expansion from Scott Grannis
- The World’s Most Powerful Reserve Currencies from Jeff Desjardins
- Everything You Need to Know About Recessions from Ben Carlson
- Video: Ron Baron: Expect the Dow to Reach 650,000 in 50 Years from CNBC
Thanks for reading!
This is not advice. Please see additional disclaimers.
