The ‘Best’ States of 2020

According to wallethub.com there are good states for retirement and bad states for retirement.  For 2020, the website ranks states across the country according to an ‘affordability rank’ and gives an overall rank. 

If you want to learn about your state’s retirement ‘affordability’ and ranking – you can read the article by Adam McCann, Financial Writer (January 13, 2020) Best & Worst States to Retire.

To give an example of the rankings:  Alabama ranked number 1 on the affordability rankings and was number 39 on the overall rank with a Total Score of 48.74.

Our own state here in Colorado ranked a proud number 2 in Overall Rank, with Florida taking the number 1 slot in Overall Rank.

Some of the considerations in the ranking: 

Lowest adjusted cost of living

Lowest annual cost of In-home services;

Best Wallethub ‘taxpayer’ ranking;

Highest % of Workforce aged 65 & Older;

Most museums and theaters per capita;

Highest % of population aged 65 & older;

Highest life expectancy and

Lowest Property crime rate.

Their extensive Methodology is explained in the article highlighting such important points as:

Access to public transportation;

Mildness of weather;

Violent and property crime rates;

Air quality; and

Availability to ‘senior’ healthcare

If you are nearing retirement and have dreams of a comfortable and ‘good’ retirement, consider logging onto the wallet hub website and learn more about the ‘rankings’ of each state.

According to the article: “In order to choose the best state to retire for you, you must carefully consider various factors such as your finances, health and how you plan to spend your time.”

I would add that for many who are approaching retirement, one additional important consideration would be the proximity to family and friends as part of a social and safety network.

Note:  When moving/relocating to another state, make sure you have a professional review your estate planning documents.  Some legal issues that surround estate planning can vary from state to state.

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Downsizing With Less Pain

Often my researcher sends me something that I store away ‘for a rainy day’.  The link below is one of those tidbits…good information about how to make downsizing less painful.

As an estate planning attorney, I meet with families and follow them through the various stages of lifestyle changes – marriage, births, deaths, divorce, retirement and yes, downsizing.

(Downsizing often involves retirement; “empty nesters”; a health crisis; and a relocation to another state, which in turn ‘triggers’ estate planning issues.)

Here is the link to the book –  https://www.aarp.org/entertainment/books/bookstore/home-family-caregiving/info-2017/downsizing-family-home-workbook.html

The spiral bound book is titled:

Downsizing the Family Home: A Workbook—What to Save, What to Let Go by Marni Jameson. 

According to the description:  “…this guide—part journal, part workbook, part scrapbook—gently walks downsizers through their profound journey…”

If you are contemplating a downsizing move, the workbook may be an excellent tool and a good investment.

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Leaving Paradise – Repatriation

My researcher has devoted innumerable hours to track down articles about retirement; retirement planning and relocation.  Sifting through information to include in this blog, as well as stories from clients who are planning their retirement, provides extensive insight into the topic.  Retirement planning is a significant part of estate planning and relocation affects an Estate Plan.

Articles on my website offer advice about how to plan to retire in a foreign country (becoming expatriates) and the financial considerations of leaving the United States. 

One very excellent article from MONEY magazine piqued our interest since it dealt with the topic of retirees who decided to leave their idyllic location to return to the United States.

The article is titled “Retiring in Paradise? Before You Move, Make a Plan B” by Suzanne McGee (MONEY magazine December 2018)

The subtitle to the article is — (One couple followed their dreams to Mexico. Here’s what no one told them about starting a new life abroad.)

Clearly, repatriation (or the term “boomeranging”) is difficult and time consuming.  Besides the physical move back to the U.S., there exist sometimes overwhelming financial considerations to deal with.

Some excellent points to consider:

Differentiate between a ‘vacation’ time adventure in the country and the aspects of living there permanently, with different language, lifestyle, cultural differences, etc.

Don’t cut your ties to back home!

If possible – Don’t sell your house in the U.S. immediately (if you require income, consider renting your property for a year or more until you are certain of your decision to relocate to a foreign country.) 

Take time to investigate all aspects of the new country, including legal; healthcare; property rights/home ownership; visas; inheritance laws; banking regulations; and taxation – to name just a few.

Anticipate the on-going costs of travel back to the U.S.- for example – traveling  to visit family and friends.  Factor those costs into your retirement planning.

Consider renting rather than buying in the new country for at least a year. 

**** Keep your finances based in the United States in case you decide to repatriate.

If you think you will need a job to maintain your lifestyle in a foreign country, investigate the job market there and what skills you have to offer. How will your earnings be taxed?

For retirees living abroad, or considering such a move, the best advice is to take the time to investigate and whenever possible, talk with expatriates living in the country to get their true insights.

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More About Retiree Relocation

Relocation is difficult, at any age.  For the elderly, the incapacitated and for those who are caregivers to an ailing spouse, the idea of organizing a move may seem insurmountable.  So why move at all? 

There are numerous reasons, such as the need to down-size (living in a property that is too expensive to maintain); moving closer to family; seeking a better climate; and moving closer to needed ancillary services, such as hospitals and treatment centers. 

Few people consider taxation as a reason to move, but it can enter the decision- making process.

Kiplinger’s has offered an excellent article about the 33 states that offer retirees a ‘tax  bonus’.  The article is titled:  33 States with No Estate Taxes or Inheritance Taxes (by Sandra Block, Senior Editor , April 16, 2018.)

Keep in mind that there is a federal estate tax. However, the majority of people would not be paying the federal estate tax, since the exemption was raised.

But, as noted above, besides estate taxes, there are many other logical reasons for retirees to move. 

Here is just a short list of the considerations –

Cost of living – which can vary dramatically from state to state

Proximity to services – moving from a rural area to a more urban one and closer to needed services

Proximity to family

Climate

Availability of healthcare – to be closer to hospitals and emergency centers

Proximity to dining , shopping and entertainment/culture

Availability of public transportation or transportation services

Cost and issues of maintenance – e.g. moving from a single family home to a condo

The above are all considerations when planning a move.

Drilling down to a particular community and neighborhood, some issues to consider:

Mixed age versus age restricted community

Lifestyle – do you want a golf course; a waterfront community; a planned community

Single family vs. ‘other’; single story versus two

Renting versus owning

Security and crime rates

Proximity to continuing education options; cultural events; libraries and Internet access

The above is just a short list of considerations.

Discussions with a spouse, family, friend or trusted advisor can help organize the priorities before you decide on a move.

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Zip Codes of the Wealthy

I often write about how to make the most of retirement and retirement income. 

For most retirees, the zip codes to AVOID would be those that made the list of the Top Ten Most Expensive Zip Codes in the country. 

By the way, one of the cities that made the list is in my home state of Colorado.

According to Investopedia.com,* coming in at #9 of their most expensive zip code areas to live is…Snowmass, Colorado (zip code 81654) – a mecca for big properties nestled in wooded areas. 

And coming in at #10 is a Wyoming zip code (83014) in Wilson, Wyoming (not far from Jackson Hole).

The median house prices for Snowmass is $3mil plus; and the median house price in Wilson is just under $3mil.

Not surprisingly, the state at the top of the list, coming in at #1 and #2 is California.

If you are approaching retirement and considering relocation, some states and cities (and zip codes) are better than others for house values/prices, taxes and style of living…and you won’t have to break the bank to live there.

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* the listing was compiled with data from Realtor.com for 2018

‘Tis the Season for Moving

In many areas of the country, the real estate market heats up in the Spring.  People often consider making a home move at this time of year and I came across an article that may help you with estimating moving costs.  (I have also written articles about moving, either locally or internationally, under my website’s Archive section titled ‘Relocation’  on http://www.attorneybarbaradalvano.weebly.com)

The website Zillow.com is known to both home buyers and home sellers for information about what is happening in their real estate market.  But did you know that Zillow also offers 570 pages of articles to inform both buyers and sellers on many topics?

One recent article of particular interest in this “moving” season…

“How Much Does It Cost to Move” by Mary Boone, March 23, 2018 on the Zillow site under their newsletter “Porchlight” (located in the drop down menu).

A quick read of the article will give you a good basis of how to assess the potential costs of your move. There is also mention of  moving company agreements.

I remind my readers that a moving company agreement is a legal document, not just a piece of paper.  Read it carefully, particularly the areas that discuss insurance coverage for your valuables.

Other articles that might whet your appetite to visit the Zillow site:

“How To Handle Long Distance House Hunting”

“Should You Renovate Your Home or Sell?”

“4 Surprising Things That May Increase How Much Your Home is Worth?”

Interested?  Then you can receive free updates of articles from the Zillow website. And FREE is good!

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Millionaire States

An article came across my desk about millionaires and their “migration”. No, not migration to some sunny island, rather migrating to another state in the U.S.: Top 10 Surprising States with the Most Millionaires”  (Phoenix Wealth & Affluent Monitor, February 17, 2017)

According to the article: “ Wealth is more concentrated and shifting geographically…”

So where do the millionaires migrate and which states top the list of having the most millionaires? More research concluded that Colorado did not make the top ten listing.

In 2015, according to thinkadvisor.com there were “6 million U.S. households with $1 million or more of (investable) assets.”

The top ten on that list: (which includes the District of Columbia) are: D.C.; Delaware; New Hampshire; Massachusetts; Virginia; Alaska; Hawaii; New Jersey; Connecticut and Maryland.

What makes these states so attractive to millionaires?

Apparently not taxes or cost of living, since New Jersey is a high tax state and Alaska is expensive to live.  Climate is not a deciding factor, think Alaska versus Hawaii!

I considered that perhaps the state mottos might have a connection?

If you are a millionaire – Why not migrate to a state with an attractive motto? (Just one thought)

So here are the interesting mottos of the above ten states:

D.C. – motto on corporate seal – Justice to all

Delaware – Liberty and Independence

New Hampshire – Live Free or Die

Massachusetts – (Latin) By the sword we seek peace, but peace only under liberty

Virginia – (Latin) thus always to tyrants

Alaska – North to the future

Hawaii – (native Hawaiian translation) The life of the land is perpetuated in righteousness

New Jersey – liberty and prosperity

Connecticut – (Latin) He who transplanted sustains

Maryland (Italian) strong deeds, gentle words

 Thus, the words that seem to attract millionaires? Justice, liberty, independence, freedom,future,  peace, righteousness, prosperity, deeds.

By the way, the motto (Latin) of Colorado is “Nothing without providence”

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Summer Time…Moving Time

Summer is one of the busiest times for relocations – ask any real estate agent.

When you have found your next dream home, you probably are not thinking of your Estate Plan – you have enough to do just planning the move.

The reality is that there are two things to consider during and after the move.

First, Organize and keep those important legal documents with you. Don’t trust them to moving companies.  You might just have a critical need for a particular document and would not want to go through the hassle of floundering through cartons to find that important piece of paper.

One rather bizarre event was when a client’s associate, during their overseas move, lost most of their household items overboard. Their entire container left the dock and took a nosedive into the water, along with their legal documents, photo albums and irreplaceable collectibles. Their insurance documents were, of course, in the container.

Second, After the move /consult your estate plan documents (or have your legal advisor do the job) and think about if and how your situation may have been affected.  The most obvious change would be moving to/from a community property state or to a foreign country…there are differing laws for different states and countries that could affect your estate plan.

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Best and Worst Retirement States

For those of you following my posts, you know I often write about retirement issues. (See my website archived articles under Retirement Planning and Retirement Savings)

So when Wallet Hub published their “best and worst” list, I sat up and took notice.

The article: 2017’s Best and Worst States to Retire by Richie Bernardo-Senior Writer (Jan. 23, 2017) not only lists the states, but also explains the methodology used to rank the states.

For example the states were ranked by Affordability, Quality of Life and Healthcare. Within Quality of Life were parameters like weather and air quality, under Healthcare were other parameters like – number of General Practitioners (M.D.) per capita.

Thus Wallet Hub derived a list of retirement- friendly (and not-so-friendly)states. Among the top ten “friendlies” I was glad to see Colorado ranked number 5!

Here is a partial listing:   top of the list for best states to retire is Florida- ranked #1, followed by Wyoming #2, South Dakota came in #3, Iowa was #4  and Colorado #5.

According to Wallet Hub research – At the bottom of the list – states that ranked the lowest: Rhode Island ranked #51; Alaska was #50; District of Columbia #49; followed by Connecticut #48 and Hawaii ranked a surprising #47.

For the entire listing – go to the Wallet Hub website.  You will also find interesting data on states with the best life expectancy and lowest property crime rates.

You might not be prepared to make the decision about when to retire, but when you do – you may want to consider where you will be spending your golden years.

Working To Preserve Your Wealth and Protect Your Future…in a Constantly Changing World

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