Move over Florida! Iowa is ranked the best place to retire - while Alaska, New York and California come out worst

[Cujet]

I love driving the PCH and wandering off to visit various wineries and other rural, kind of "off the beaten path" type shops and staying at some remote family owned lodge on the river. We just don't have that kind of non "big name" stuff anymore in FL.

Since this thread is about retirement, the idea that a thriving retirement on a Social Security income of about $30K/yr is possible in CA, is well, beyond a pipe dream. The cost of living in CA, is high, not due to just one thing, but all things. People of lesser means are taxed into abject poverty.

Contrast that with a tax-free state that does not tax retiree investment income and has generally lower prices for everything, and the choice becomes quite clear for many of us.

In my case, I've not had a raise in over a decade. Despite working my tail off. Saving has been difficult lately, and I'm now getting occasional overdraft notices in the mail. Despite HAVING NO DEBT. Florida has become expensive, much like NY and CA. Gas is $4, Home insurance is $9-12K, Auto is $6K, Prop tax on a 3/2 home like mine $17,000, Electric power 13c KWh, but fees and taxes drive it to 22c at times.

Just had the talk with the wife about dropping homeowners insurance, despite the very real hurricane risk.

Do you think I can afford to move to, and retire in CA? Or is TN a smarter choice?

 

[GON]

I love driving the PCH and wandering off to visit various wineries and other rural, kind of "off the beaten path" type shops and staying at some remote family owned lodge on the river. We just don't have that kind of non "big name" stuff anymore in FL.

Since this thread is about retirement, the idea that a thriving retirement on a Social Security income of about $30K/yr is possible in CA, is well, beyond a pipe dream. The cost of living in CA, is high, not due to just one thing, but all things. People of lesser means are taxed into abject poverty.

Contrast that with a tax-free state that does not tax retiree investment income and has generally lower prices for everything, and the choice becomes quite clear for many of us.

In my case, I've not had a raise in over a decade. Despite working my tail off. Saving has been difficult lately, and I'm now getting occasional overdraft notices in the mail. Despite HAVING NO DEBT. Florida has become expensive, much like NY and CA. Gas is $4, Home insurance is $9-12K, Auto is $6K, Prop tax on a 3/2 home like mine $17,000, Electric power 13c KWh, but fees and taxes drive it to 22c at times.

Just had the talk with the wife about dropping homeowners insurance, despite the very real hurricane risk.

Do you think I can afford to move to, and retire in CA? Or is TN a smarter choice?

Not sure what you might want from a community, but wonder if exploring Alabama west of Birmingham might be something to look into? when I drive the new interstate west of Birmingham, I am taken away by the beautiful terrain. Tennessee has become a "hot spot" with prices going up.

A real advantage for Florida is lots of stuff to do, to include places to eat and shop. I suspect that west of Birmingham dining and shopping options are very limited.....

 

[CKN]

I love driving the PCH and wandering off to visit various wineries and other rural, kind of "off the beaten path" type shops and staying at some remote family owned lodge on the river. We just don't have that kind of non "big name" stuff anymore in FL.

Since this thread is about retirement, the idea that a thriving retirement on a Social Security income of about $30K/yr is possible in CA, is well, beyond a pipe dream. The cost of living in CA, is high, not due to just one thing, but all things. People of lesser means are taxed into abject poverty.

Contrast that with a tax-free state that does not tax retiree investment income and has generally lower prices for everything, and the choice becomes quite clear for many of us.

In my case, I've not had a raise in over a decade. Despite working my tail off. Saving has been difficult lately, and I'm now getting occasional overdraft notices in the mail. Despite HAVING NO DEBT. Florida has become expensive, much like NY and CA. Gas is $4, Home insurance is $9-12K, Auto is $6K, Prop tax on a 3/2 home like mine $17,000, Electric power 13c KWh, but fees and taxes drive it to 22c at times.

Just had the talk with the wife about dropping homeowners insurance, despite the very real hurricane risk.

Do you think I can afford to move to, and retire in CA? Or is TN a smarter choice?

I would be looking to moving where ever to make the dollars go further. Plenty of information on where if you start researching. Dropping insurance is a nonsensical idea.

 

[andyd]

Do they still have the emoji of the guy hiding under a chair? I've been in the same town all my life and in my house 45yrs. I pay ~6K$ real estate taxes about 400$ for rubbish. State taxes and 6.25% sales tax. I'm far enough away from the water so as not to get washed away. I consider my taxes a bargain for the infrastructure I enjoy. I'm gonna climb into my Nomex suit now

 

[BMWTurboDzl]

I love driving the PCH and wandering off to visit various wineries and other rural, kind of "off the beaten path" type shops and staying at some remote family owned lodge on the river. We just don't have that kind of non "big name" stuff anymore in FL.

Since this thread is about retirement, the idea that a thriving retirement on a Social Security income of about $30K/yr is possible in CA, is well, beyond a pipe dream. The cost of living in CA, is high, not due to just one thing, but all things. People of lesser means are taxed into abject poverty.

Contrast that with a tax-free state that does not tax retiree investment income and has generally lower prices for everything, and the choice becomes quite clear for many of us.

In my case, I've not had a raise in over a decade. Despite working my tail off. Saving has been difficult lately, and I'm now getting occasional overdraft notices in the mail. Despite HAVING NO DEBT. Florida has become expensive, much like NY and CA. Gas is $4, Home insurance is $9-12K, Auto is $6K, Prop tax on a 3/2 home like mine $17,000, Electric power 13c KWh, but fees and taxes drive it to 22c at times.

Just had the talk with the wife about dropping homeowners insurance, despite the very real hurricane risk.

Do you think I can afford to move to, and retire in CA? Or is TN a smarter choice?

The WSJ just posted an article on how hazard policies are starting to put a damper on high priced sales around Sarasota. The article stated that in the state of Florida properties in flood zones are overvalued by approx $50 billion due to mispriced flood insurance.

"...The risks of disasters haven’t been fully priced into property markets, partly because of flaws in the way federal flood insurance was priced, researchers say. If flood risks were taken into account, U.S. residential properties would be worth at least $121 billion less, according to a study earlier this year by nonprofit the First Street Foundation, the Federal Reserve and others. In Florida alone, properties in flood zones are overvalued by more than $50 billion, the study found...."

 

[99Saturn]

I love driving the PCH and wandering off to visit various wineries and other rural, kind of "off the beaten path" type shops and staying at some remote family owned lodge on the river. We just don't have that kind of non "big name" stuff anymore in FL.

Since this thread is about retirement, the idea that a thriving retirement on a Social Security income of about $30K/yr is possible in CA, is well, beyond a pipe dream. The cost of living in CA, is high, not due to just one thing, but all things. People of lesser means are taxed into abject poverty.

Contrast that with a tax-free state that does not tax retiree investment income and has generally lower prices for everything, and the choice becomes quite clear for many of us.

In my case, I've not had a raise in over a decade. Despite working my tail off. Saving has been difficult lately, and I'm now getting occasional overdraft notices in the mail. Despite HAVING NO DEBT. Florida has become expensive, much like NY and CA. Gas is $4, Home insurance is $9-12K, Auto is $6K, Prop tax on a 3/2 home like mine $17,000, Electric power 13c KWh, but fees and taxes drive it to 22c at times.

Just had the talk with the wife about dropping homeowners insurance, despite the very real hurricane risk.

Do you think I can afford to move to, and retire in CA? Or is TN a smarter choice?

Those home, auto and property taxes are crazy to me, and I'm not that far from NYC.

 

[Cujet]

Those home, auto and property taxes are crazy to me, and I'm not that far from NYC.

My point was that Florida has become as expensive as NY in many ways.

My insurance is 30x higher than it was in 1991. Prop tax is likewise 40x higher. My income is just a touch more than double. Gas is more here than most of NY and 4x what it was when I moved to Jupiter.

The FL advantages include no income tax, no heating bills, no insane bridge tolls and certain self defense rights, which one can't put a price on.

 

[alarmguy]

Remember just because a publication ranks something as better does not mean people will move there or better said be a top choice of where they may retire

 

[99Saturn]

My point was that Florida has become as expensive as NY in many ways.

My insurance is 30x higher than it was in 1991. Prop tax is likewise 40x higher. My income is just a touch more than double. Gas is more here than most of NY and 4x what it was when I moved to Jupiter.

The FL advantages include no income tax, no heating bills, no insane bridge tolls and certain self defense rights, which one can't put a price on.

Your numbers as real to you numbers just surprised me, maybe I just have not thought about it before just was unexpected and immediately drew a comparison to mine. My property taxes are like $9k (3 bed 2 bath) Homeowners insurance is less than $1k and car insurance is just over $1k (granted my cars are virtually worthless). As you said lots of other factors too.

 

[MSCH]

Didn't see this analysis coming.... But maybe I should have.

Iowa has been ranked as the best state to retire due to its reasonable cost of living, affordable but high-quality healthcare, and low crime levels.

The Hawkeye state overtook historic retirement paradise Florida which came out top last year, according to Bankrate's annual retirement study.
Bankrate ranked all 50 states on affordability, overall well-being, quality and cost of healthcare, weather and crime - and found the best and worst states for retirees were split geographically.

'The Midwest and the South claim the top five states, while the Northeast and West claim the bottom five states, primarily because of the differences in cost of living,' said Bankrate analyst Alex Gailey.

Following Iowa, Delaware, West Virginia, Missouri and Mississippi were ranked as the best states to retire, while New York, California, Washington and Massachusetts rounded out the bottom five.

Move over Florida! Iowa is ranked the best place to retire

Bankrate ranked all 50 states on affordability, overall well-being, quality and cost of healthcare, weather and crime - and found the best and worst states for retirees were split geographically.

www.dailymail.co.uk

I have a tendency to think some of the midwestern states are probably better places to retire to than Fla. I've been in Fla 40 years now and I wouldn't advise anybody else to move here.. its not cheap like it was 40 years back..

 

[MSCH]

YUP! DIE is strongly considered on many of these "rankings". No thank you. Most retirees don't require an alternative lifestyle, they require reasonable costs.

As a FL resident, one should know that property tax is based on the home's selling price. So it is quite possible to have a modest but pricy home and a $21,000 property tax bill, along with a $12,000 hurricane insurance bill. The combo of the two can exceed a typical mortgage of just a few years ago, and be unaffordable for many retirees.

So while FL may have low taxes, it depends on if you are just moving in or a long time resident.

I paid $157k for my house in Jupiter, FL. If I sell it for $600K, my $6,500 tax bill will be $12K for the next guy. If by some miracle, the home sells for $900K, the tax burden would be near $20K. It's a 3/2 not near the water.

yeah, the Save Our Homes rules are great if you purchased your home cheap...... in my case near Naples I pay about 1 grand a year property tax... I bought the house on 2.75 acres for $110k in 2011, which was pretty much the bottom of the market.. and I'm ... if I ever sell this sucker the next guy is going to pay the full rate at the latest market value, which is probably near 500k now. As far as insurance goes, I dropped hurricane coverage awhile ago... I own the thing, its cheaper to self insure than it is to pay for everybody else... but that is a strategic bet on my part.

 

[Cujet]

yeah, the Save Our Homes rules are great if you purchased your home cheap...... in my case near Naples I pay about 1 grand a year property tax... I bought the house on 2.75 acres for $110k in 2011, which was pretty much the bottom of the market.. and I'm ... if I ever sell this sucker the next guy is going to pay the full rate at the latest market value, which is probably near 500k now. As far as insurance goes, I dropped hurricane coverage awhile ago... I own the thing, its cheaper to self insure than it is to pay for everybody else... but that is a strategic bet on my part.

Reality in FL now:

$750K 3/2 2300 sq/ft
$12K insurance
$18K property taxes
$35K health insurance
$6K auto insurance
$600 flood insurance
$4/gal gas
$22c KWh electric (due mostly to taxes and tiered rates)

One could easily spend $70K per year on taxes and insurance

 

[MSCH]

Reality in FL now:

$750K 3/2 2300 sq/ft
$12K insurance
$18K property taxes
$35K health insurance
$6K auto insurance
$600 flood insurance
$4/gal gas
$22c KWh electric (due mostly to taxes and tiered rates)

One could easily spend $70K per year on taxes and insurance

all I can say is I am a beneficiary of Collier County's relatively low tax rate, the fact I bought my house in 2011 at the bottom of the market and the Save Our Homes laws that locked me in re tax rate at the purchase price.. at this stage of the game, since I own my own home I quit with the hurricane and flood coverage, just pay a afire and liability policy . the other things you listed are not really pertinent, as they may or may not be anything you can do about or you want to have all that stuff, most of which is optional... but you could not pay me to live in Palm Beach County, assuming your list of Jupiter is in Palm Beach county, you are in about the highest taxed county in the state..

 

[tbm5690]

Reality in FL now:

$750K 3/2 2300 sq/ft
$12K insurance
$18K property taxes
$35K health insurance
$6K auto insurance
$600 flood insurance
$4/gal gas
$22c KWh electric (due mostly to taxes and tiered rates)

One could easily spend $70K per year on taxes and insurance

I assume this is in the worst counties. Also, $35K health insurance seems crazy high?!? Total cost of PPO for my family is half that.

 

[CKN]

Reality in FL now:

$750K 3/2 2300 sq/ft
$12K insurance
$18K property taxes
$35K health insurance
$6K auto insurance
$600 flood insurance
$4/gal gas
$22c KWh electric (due mostly to taxes and tiered rates)

One could easily spend $70K per year on taxes and insurance

So you are not retired? (No Medicare or equivalent)?

 

[Cujet]

So you are not retired? (No Medicare or equivalent)?

Not yet retired, but could be any time now. I just have not made the call yet.

 

[CKN]

Not yet retired, but could be any time now. I just have not made the call yet.

OK-so most of that medical premium will go away. Still-I get where you are coming from.