Where the Retirement Experts Are “Retiring,” And Why – Part 1

Dear Ron,
Was thrilled to see your bio in this article on Meet the Experts and where they all retired. We are actually heading to Asheville again next month for a 3rd trip and hopefully some real house hunting or property sale. After being drained for years by the high property taxes in NY we knew we needed a new state. I am a retired special educ. teacher and I am married to an avid skier who will retire this coming winter from owning his own ski shop (his childhood dream). The shop has been flooded twice but hopefully he can liquidate and maybe someone will buy the building at a reduced rate. Our big problem with Asheville has been the fact that our 22 year old son with disabilities will be moving with us. The state of NY and the rest of the USA has moved to a "inclusion" model and wants the parents to keep the disabled adults with them for life with financial supports in place through a Medicaid Waiver program. Our son has had this program since his birth but the program does not transfer state to state. You start all over from the bottom of the list. I have been in touch with Smoky Mounty Center LME/MCO which is the clearing house to apply for services. The lady I spoke to told me I should just stay in NY since the waiting list is 5-7 years! I currently work as the Founding Executive Director for our son's rare syndrome (Cardio-Facio-Cutaneous). We support and service individuals from all regions of the world. I basically can take the home office to any state but it is so frustrating that I help so many others but cannot help my own son if we wish to move to NC. This is another whole "retirement" topic for those of us seniors who now have disabled children to move with us. Sadly, our choices are very limited. I am not giving up on Asheville since we loved it and found it to be very a very welcoming community (except for the Smoky Mountain Center LME/MCO). Thank you to this site since this was what helped us learn about Asheville!

It appears that the "experts" are choosing their retirement locations in direct correspondence with family and career. What I would like to read and evaluate is each "experts" previously documented places of interest to retire vs. where they have chosen to retire. Since we read much in the way of taxes, cost of living, medical facilities and ambiance we are also reading about friends, family and familiarity. After reading this article it would appear the experts are leaning towards friends, family and familiarity. This would then indicate that taxes and other such advantages constantly mentioned are much ado about nothing.

I somewhat disagree with the Sun City Grand overview based on my dad's experience when living there for a number of years--it is NOT inexpensive to live there, and the HOA dues increased every year. I also have a neighbor who moved away from there just over a year ago and reconfirmed the ever-increasing cost to live there along with the perpetually annoying intrusion by the HOA involving nearly every aspect of one's life.
The traffic in that area is somewhat of a nightmare much of the time due to rampant growth during a couple of peak/extended real estate periods over the past two decades.
Be very wary of large HOA ruled communities and make sure you read and understand the HOA dues structure, the CC&Rs plus any special rules before opting to move into one of them.

I found these ideas extremely important, the plan is so individualized to your goals but so many factors have to be evaluated when relocating to an unknown environment. I explored many communities in southern Florida and found Marco Island (SW). A small community with Naples only 15 miles away offers everything that I could have dreamed, but it's expensive. Because Marco Island is a destination community I can rent my house and pay for my expenses and still enjoy a piece of paradise in retirement. It was very adventurous but has worked out perfectly so far.

Dear Brenda: Thank you for your comments on the dilemma you face in considering moving to Asheville. You have brought out an important and often neglected aspect of moving in retirement, that of the physical or mental health condition of loved ones and their need for adequate and appropriate public and private support in a new host community. NC has been a progressive state during the 20th century, rising from one with the highest level of illiteracy and poverty in the south to one in the middle range nationally. But in certain areas, such as mental health and certain other kinds of special supportive services in schools, NC has turned back the clock. Eventually, this will change. But, for now, it's a serious barrier for those considering an interstate move. I sympathize with you and your situation. If you find a solution, I hope you will let us know.

Sincerely, Ron

Judith: Interesting comments about the preferences of these "experts". I think what they point out is how individualized our retirement decisions are. Being close to family, ambiance, activities, familiarity, and being able to work were important for this group. There was some discussion of importance of medical within the group - and it is important. Taxes and cost of living did not seem to be high for them. If cost of living is crucial to your retirement decision, then it should be one of your top priorities. Likewise with taxes, although usually cost of living and taxes are mutually exclusive (with the exception of property taxes) - if your income is low you don't need to worry about living in a low cost state, taxes will be a negligible consideration. This group did a pretty good job of mapping out their personal priorities. But what they picked doesn't work for you, unless your priorities match. Figure out what matters to you, knowing the full range of considerations, and you will be in good shape.

Brenda,
It seems you have your heart set on Asheville but if you can't get the Medicaid Waiver Program to kick in for 5-7 years how do you plan to provide the care your son needs? I am sure not many of us has ever heard of the program and to not be transferable from State to State is a disappointment for you. Have you considered a lower cost community in NY? You still would have to deal with the winters, but if you could find a lower cost home in a town that has lower taxes you could remain in NY and still get the waivers in NY. Are you restricted to living in NY City or could you move anywhere in NY?

update july 2015. wife and i spent 19+ years planning our retirement. did our home work, got professional advice, invested semi wisely, sold our home and paid everyone off. the target state was and is NORTH CAROLINA. the choice was based on 90% of our income WAS EXEMPT FROM STATE INCOME TAX. it was the perfect choice. FLASH NEWS, AS OF JAN 1 2015, 100% OF OUR INCOME IS NOW TAXABLE BY THE STATE OF NORTH CAROLINA. obviously we are in the middle of PLAN B now. destination unknown!

David,
Which types of income have become taxable now in North Carolina. It would be helpful to others to know this.

David, Have you done a NC state income tax return with your projected incomes to determine how much you will be paying in state income tax? If you and your wife are so drawn to NC, it may be worth your time to see how much 'extra' it will cost to live there. It may not be very much, if anything. State income tax can be quite low once one is retired. I tend to think that the price of a home will impact me more than state income tax, as that's money that is no longer bringing in a return. By the way, TN does tax interest and dividends. Good luck!

Nothing is forever. Connecticut had no income tax for many years until the '90s. Then the "temporary tax" went in place. The tax went down a bit and now is highest and now the state is one of the worst to do business in. It isn't called a "temporary tax" anymore. Now they are looking at tolls on the interstates. We even borrow money to fix potholes. Beautiful state with nice people but the politicians have really messed it up. One party control doesn't help. So things can change over time. Look at the political climate in the state before you move.

I too live in CT and it is one messed up State. I have read several articles and this one really explains what happened to CT over the years. No matter how much the greedy politicians get from us it will never be enough. They slapped us with the State Income Tax years ago, that we never had, and CT STILL can't keep it's head above water. Malloy (Governor) just raises taxes on anything he can think of even after promising "no new taxes". No creativity here.

http://www.cato.org/publications/commentary/how-did-rich-connecticut-morph-one-americas-worst-performing-economies

Beginning this weekend Connecticut added sales tax to the admittance to State Parks. So instead of $20.00 it is like now $23.65 and they are asking the public to use correct change.

I grew up in NJ and when I started work as an adult, there was no income tax or sales tax. Not owning a home back then, I do not really remember things like property tax. Good reminder not to choose a retirement location based on on taxes...it can always change. Ultimately I want to like the place first, but also want to have enough money to keep stress in check.and enjoy a relatively simple life.

I'm from CT, too. The state not only added sales tax to state parks (is it even possible for a state to collect revenue on itself - OH! they probably outsourced it so they could tax it again. Fewer state employees (brag about reduction in number of state workers), but more than likely a higher cost over time. My exposure was early - not at a state park, but at my manicurist. Like many businesses with one employee, she will now be required to file sales tax returns.

I had to it for a while, when I was self-employed, and it is a real pain. More than likely their costs will increase as they engage their accountants to do it. Oh goody, higher prices yield more sales tax.

Maybe this should be the state's logo:

CT, come live here and pay for ineffective programs for the poor, enormous taxes on the middle class, and a "Gold Coast" where people don't have to worry about taxes for at least a year before our public servants create more taxes on them.

We were all set to move to Cape Coral, Florida in May, had a house to rent, etc... A last minute medical issue forced us to remain in Connecticut for another year, with the house sold, we had to scramble to find a place to live. We now rent a two bedroom apartment with a pool, community room, etc... It is actually like resort living. Without owning a home, my monthly expenses actually dropped. When we were looking at places to rent in the Fort Myers area of Florida and Myrtle Beach, South Carolina, we discovered, home prices were less, property taxes were less, and rents were less. However food, clothing, restaurants, movie theatres, auto insurance, home owners insurance or renters insurance, auto insurance, clothing including consignment stores, food, automobile taxes were about the same or in some cases more. I will probable move out of state at some point but not owning a home has made my like a lot easier. Plus when you relocate you really have to look at the total package. It actually may be cheaper to stay where you are and just down size. I live in the Hartford Metro area. Just Sayin'

Does anyone know anything about On Top of the World in Ocala, Florida? I have heard some bad things about the community -- very strict homeowner's association rules, etc.

Barbara, my father lived there for many years. Not sure about any strict HOA rules, but I do know it's relatively inexpensive to buy into the community partly because the land underneath the homes is leased. Although the homes are inexpensive, the HOA fees are high - one reason - there is a lot of maintenance associated with the beautiful trees dotting the neighborhoods.