Where You’ll Retire – and Why: What You Said

I am looking for a place near my children and grandchildren who live in LA and Portland Oregon
I need warm weather, would like beach, need low cost housing and since I dont have a pension that taxation is not a factor. I would like a neighborhood with gardens and people who walk and talk to their neighbors. A place where there is life, creativity and energy. Multi-generational.

My husband and I live in PA now and are interested in leaving the cold, snowy winters there.
We fell in love with the Lake Murray and Columbia area of South Carolina but then found out they tax retirement income at 7% . Though investments and a pension will make retirement possible before age 62 (and with an annual income above their cut off), 'losing' that amount of income just doesn't seem realistic. Any advice?

Cindy, My husband and I just moved from SC to Pa! Partly because of the tax thing and partly for lifestyle preferences. Originally from NJ, Pa (Bucks) is perfect for us. As for nasty winters - we'll head to parts south for a couple of months.

Cindy: I suggest focusing on net costs when looking at your budget, not just the income tax. I moved from PA to SC near Charlotte NC for a few years. After factoring in real estate taxes, SC's auto personal property tax (no auto inspection in SC though), gas taxes, insurance, income taxes and sales tax, I ended up saving money in SC over PA. The net saving wasn't that far-off as you might think though. The higher SC income tax was offset by much lower real estate taxes and slightly higher insurance costs. Surprisingly, my utilities were pretty much the same in both states. Instead of paying for gas heat, I was paying higher cooling bills and water bills. When I factored in travel costs to visit family members back North, that difference pretty much disappeared. Where am I now? Retired and in Ohio to be near family. I did the same net cost calculations, looking at SC, PA and OH. PA and OH were neck & neck (PA's high real estate taxes offset the income tax differential). I think OH is going to net out about $200 more a month than PA, but it was worth it to me to be near family. Ask me again in the middle of the winter though. I loved the weather in SC, even the 100+ degree summer days.

We moved this comment from another Blog for a better fit:
Well …everyone who wanted me to keep up to date with maybe my final retirement plans….yes, we are finally in escrow with my mothers condo and now looking to find an apt. We have less than 4 weeks to get rid of the furniture and move into our new place with our 3 fur babies. When I first started the probate process i thought it would be horrendous but actually if you are prepared and have a good attorney it’s really not that bad. It’s just a Long process… we decided not to buy immediately our retirement home and rent for a while and see if the home prices comedown in the next year. We are a liitle nervous but so looking forward to the next step in our lives. We want to do some travels, perhaps get a part time job or just join some clubs and enjoying this phase in our lives. We most probably will be staying in CA and moving into one of the Sun City homes and enjoying meeting new people . I wish only good things for everyone on this blog who helped me with this next journey in my life …

Mary11

Hi Mary11,

I am so glad that your journey has come to such a positive end. Please let us know periodically how things go in Sun City. My Aunt has friends who live in the same one that you are moving to. They inherited it from a parent and decided to keep it for their winter home. They live near San Francisco the rest of the year. I think this may be the original Sun City--they seem to love it and all the activities which one can choose to participate in,...or not.

As for part-time work--I work three consecutive days a week and love the schedule. The rest of the week I can do what I need to or want to do. I have mixed it up with volunteer work.

I really hope that you enjoy your life now that things seem settled. Best Wishes!

Jennifer,
Thank you so much for your best wishes. Of course I will continue to keep everyone abreast of our future adventures. Actually there are several condos in Sun city available so hopefully we can rent one. It's a good way to determine if you want that lifestyle. I think it would be fun to have the extra activities ...such as big band and 50s dances every month. I love the thought of having a special shopping plaza just for all the retirees across the street from where you live too. We're a little concerned about the weather being much hotter than were used to but we can adjust and if not we can always relocate to Oregon later on. Wow!! Sounds like you're keeping busy...after we finally move out we have plans to vegetate for a few weeks because this whole probate and selling the home process was stressful but I always try to stay strong and hopeful for my hubs. I'd love to find a part time job perhaps on the Sun City campus. I currently head up the entertainment committee where I live and enjoy doing that. My hubs is more private and doesn't like to mingle as much as I do, lol. And no it wasn't too bad with the downsizing. I found several college students that were happy to take a lot of the furniture I needed to get rid of. It will be strange leaving the family home but I know my parents are proud of what I have accomplished and only wish the best for me ...so I welcome whatever the future may bring!!