Wednesday, October 06, 2010

Taxes are not the only consideration for picking a retirement destination

Or picking any other place to move to.

Yahoo Finance republished a Kiplinger article, "5 Tax Factors to Consider When Picking a Retirement Destination", Mary Beth Franklin, 2010-10-06.

I added the following comment to the article.

Beware of isolating tax factors from all other considerations.  Maybe you'll pay less taxes in the State of Bliss but less taxes could mean slower response times by fire departments.  Slower response times may mean higher insurance costs.  Less taxes could mean less road repair.  Less road repair could mean more auto repair costs.  Less taxes could mean less regulatory oversight.  Less regulatory oversight could mean higher electricity costs.  This could mean you pay more for air-conditioning in your retirement home than you paid for heating in your previous home.

Tax factors are only one part of the two really important considerations: the cost of living and the quality of life.  Look at the big picture.