When you look ahead to your future, there’s a lot to think about. That’s true even when you narrow down your focus lens to financial concerns alone. After all, you’ll need to consider:
- How you’ll afford long term care or access programs like Medicaid
- How many years you hope to continue working
- Whether you and your spouse will be hitting retirement around the same time and how that influences your plans
- Your personal goals for retirement, like whether you’ll volunteer or work at all
- Whether you hope to make gifts to loved ones during your life or after you pass away and how those plans connect to your ability to pay for your retirement lifestyle
Where you live also has a big impact on your financial projections. If you run a business or side hustle, state or corporate income taxes should be factored into the equation. If the cost of housing is very high, you might have to rent or live in a smaller space in exchange for your chosen location.
Knowing the increasing longevity numbers and wanting to have a good quality of life should be balanced for your own retirement planning. Look at the average cost of living and possibilities in retirement before making your final decision. There are some states that are far more expensive to live in than others. The top 5 most expensive places to retire in the U.S. are:
- Hawaii, with an average of over $50,000 a year in expenses for retirement
- New Jersey
- New York
If you’re planning to stay in and retire in California, you need a clear plan and an understanding of how this connects to your estate plan.
When you want to accomplish multiple goals in retirement and protect your assets, you need to engage a team of professionals who are knowledgeable about doing this. This can include a CPA, an estate planner, and a financial planner.