Hoping to retire later this year. Need your thoughts.

[ears20]

Middle and East Tennessee are great places to retire. No state income tax and low cost of living also. The lakes are also pretty incredible.

Re: TN state income tax - I understand TN has one of the highest tax rates (6%).

 

[lhamo]

I noticed that many are calculating an income stream based on a 3% or 4% withdrawal on $4.6M. I believe $2.6M of that will be in retirement accounts (401K, Rollover IRA, other IRAs) and won't be accessible for several years (until OP turns 59 1/2) without penalty.

His wife is 58 and just retired. If any of the 401k money is hers, it can be tapped immediately.

But probably no need to do that considering they have 1.6 million in CASH. That ought to tide them over for a couple of years.....

 

[pb4uski]

I noticed that many are calculating an income stream based on a 3% or 4% withdrawal on $4.6M. I believe $2.6M of that will be in retirement accounts (401K, Rollover IRA, other IRAs) and won't be accessible for several years (until OP turns 59 1/2) without penalty.

That doesn't matter as long as the OP has enough in accessible accounts to carry them to 59 1/2 when they will have penalty free access... it looks like the have plenty to carry them to 59 1/2 in accounts that they can currently access.

 

[SheitlQueen]

Considering Vancouver, Washington. We have a daughter in Oregon and we lived there before moving overseas.

Might also consider Tennessee or Texas. Lots of retiree friends there.

Be aware that housing-whether apartment or owning a home-has skyrocketed in Oregon and Washington. You might want to check out what it would cost where you would like to live in the NW. Tennessee or Texas is probably going to be a lot less expensive.

 

[SheitlQueen]

Vancouver has very expensive housing/real estate.

Anywhere in the Portland metro area (including Vancouver) is expensive now.
Taxes are high in Oregon too, and only getting worse.

 

[respond2u]

Two cars probably, no driver supplied. And gas costs more.

Does your wife remember how to drive?

 

[2017ish]

Re: TN state income tax - I understand TN has one of the highest tax rates (6%).

TN taxes most (and only) dividend and interest income over a modest floor. Historically, this "Hall tax" was 6%. As of last year, it is 5%, and will expire as of 2022. No income tax on other sources of income, including withdrawal/conversions from deferred accounts and capital gains.

State does have high sales taxes (we found roughly equivalent to Illinois), which are currently assessed on pretty much everything, including food.

 

[ears20]

TN taxes most (and only) dividend and interest income over a modest floor. Historically, this "Hall tax" was 6%. As of last year, it is 5%, and will expire as of 2022. No income tax on other sources of income, including withdrawal/conversions from deferred accounts and capital gains.



State does have high sales taxes (we found roughly equivalent to Illinois), which are currently assessed on pretty much everything, including food.

Thanks for the info, 2017ish. Curious as to the level of sales tax; KS has 9%+, which to my mind is borderline criminal -

 

[REWahoo]

Louisiana takes first place!

 

[FireFool]

You can do sanity checks on the costs (and prop taxes) for the type of house/location you'd find acceptable in all the locations you're considering by using zillow.com.

 

[Walt34]

Thanks for the info, 2017ish. Curious as to the level of sales tax; KS has 9%+, which to my mind is borderline criminal -

It depends on what other taxes are, I look at the total tax burden. Here in WV the governor has proposed dropping the income tax to ~2% but raising sales taxes to just over 9% to make up for it. This might be about a wash for us or even better. Our biggest budget item is groceries.

If that happens folks that live near a border state (that includes us) will increase their shopping in other states and/or online sites that don't charge a WV sales tax. (Bye-bye Amazon, hello Costco in Virginia.) Back-of-the-envelope calculations indicate that it would be cost-effective to drive the pickup truck 30 minutes each way twice a month to Costco to save on the sales tax.

 

[broadway]

Louisiana takes first place!

The tax in NJ is 6.875% not 6.85% stated in the map.
Which is rather silly.
It used to be 7%.

 

[travelover]

Vancouver has very expensive housing/real estate.

I'd say, compared to what? I'm moving to Vancouver this year and have been watching real estate and rental prices. Sure, they are more than they used to be and more than the rust belt, but all in, I still see it as affordable. With no income tax and no sales tax just across the river it has its compensations.

 

[broadway]

I'd say, compared to what? I'm moving to Vancouver this year and have been watching real estate and rental prices. Sure, they are more than they used to be and more than the rust belt, but all in, I still see it as affordable. With no income tax and no sales tax just across the river it has its compensations.

I thought that the mainland Chinese billionaires buy a lot of Vancouver real estate driving up the prices.

 

[alaska55]

I thought that the mainland Chinese billionaires buy a lot of Vancouver real estate driving up the prices.

You're thinking of the other Vancouver as in Canada, he's talking about Vancouver In Washington state

 

[broadway]

You're thinking of the other Vancouver as in Canada, he's talking about Vancouver In Washington state

 

[travelover]

You're thinking of the other Vancouver as in Canada, he's talking about Vancouver In Washington state

Yea, between the confusion between Washington state and the capital city and the confusion with Vancouver, BC, Vancouver, WA don't get no respect.