Seven Factors to Consider if You Want to Relocate in Railroad Retirement

Welcome everyone to the latest installment of the Highball Advisors Railroad Retirement discussion. I'm John McNamara from Highball Advisors, and today we'll explore the topic of relocating after retirement. Many individuals envision a fresh start once they retire, moving to new places to enjoy their railroad retirement and embrace a more idyllic life. So, for those considering a change of scenery, here are seven key aspects to consider when contemplating your retirement relocation. Amidst the myriad of state rankings and suggestions, it's important to note that each assessment is influenced by various biases. To offer a more impartial perspective, I've compiled a list of generic factors for your consideration. Crafting a plan is essential; rash decisions seldom yield the desired outcomes. These factors will help you structure your thinking.

Starting on your right side (my left), the first factor to ponder is lifestyle. What sort of retirement life do you envisage? Are you drawn to an active lifestyle, involving hiking, golf, sailing, or similar pursuits? Perhaps you lean towards an urban setting, abundant with entertainment choices like theater and dining. Lifestyle preferences, including activity levels and interests, shape your retirement journey. The second factor is the cost of living. Affordability varies greatly between locales. Living in Midtown Manhattan contrasts starkly with other cities, especially considering factors like utilities, groceries, and miscellaneous services. Small expenses accumulate and can overshadow more conspicuous costs like property taxes.

Factor three pertains to retirement taxes. Remember, railroad retirement is exempt from state taxes. While this makes no-tax states like Florida or Tennessee appealing, the impact isn't as substantial due to the absence of state taxes on railroad retirement income. However, taxes on 401(k)s, IRAs, and capital gains merit consideration, as they differ by state. Climate, the fourth factor, is a critical consideration. The spectrum ranges from winter enthusiasts to lovers of warm climates, and even those who cherish seasonal transitions. The variety within the country enables you to align your preferred climate with your retirement destination.

Factor five, the job market, becomes pertinent if you intend to continue working in retirement. Are there opportunities in your chosen locale that match your skill set? This is especially relevant for retirees, like railroaders, who may still wish to contribute professionally post-retirement. The sixth factor is access to quality healthcare. Healthcare costs in retirement can be substantial, making access to top-tier healthcare facilities and practitioners a priority. Proximity to friends and family is also a pivotal factor, as their presence provides essential support, particularly as you age. The human touch in healthcare delivery remains invaluable.

Lastly, the seventh factor is your overall happiness. The community, the people, and the atmosphere in your chosen location play an integral role in your well-being. After years of dedicated work, your retirement should be a time of joy and contentment. In conclusion, these seven factors offer a comprehensive framework for your retirement relocation contemplations. Rather than prescribing specific destinations, they provide a toolkit for you to evaluate and decide the best fit for your retirement dreams. If retirement is near or upon you, peruse our Railroad Retirement guidance for a wealth of insights to facilitate your major retirement decisions. Stay informed by clicking the notification bell for updates, and until next time, stay secure, stay on track, and take care. Farewell, everyone.

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.