Whether you're rapidly approaching retirement or are already there, it’s always smart to find new ways to boost your bank account . One strategy for improving your bottom line is to move to a city that is tax-friendly for baby boomers.
With low income taxes, property taxes, and even sales and gas taxes, these cities are a retiree’s dream. Instead of wasting precious pennies on Uncle Sam, you can keep more money in your pocket to enjoy another round of golf or a trip to see the grandkids.
Want to start planning your move? Here are 10 cities that are particularly tax-friendly for baby boomers.
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1. Cheyenne, Wyoming
Those who want an outdoorsy way of life with the spirit of the Old West should look to Cheyenne.
With a modest cost of living, low property taxes, and no state income tax, you will have more money in your bank account and less flying out the door in taxes. That can help you get ahead financially .
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Baby boomers who love to shop might want to check out Portland, where there is no sales tax.
Oregon also has no tax on Social Security benefits. That makes this Pacific Northwest hub a great place to move after you are done working.
3. Florence, South Carolina
South Carolina’s property taxes are some of the lowest in the country, making it a great spot to buy a retirement home.
Want to avoid the more expensive retirement spots such as Charleston and Hilton Head? Explore Florence, which gives you the charm of a small city with access to bigger urban areas.
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4. Houston
You don’t have to worry about state income tax in Texas, and that means baby boomers who live in Houston catch a break.
Combine that with low gas taxes, and you will enjoy taking road trips all over this large state. In fact, it might become your retirement adventure.
5. Tyler, Texas
Living in Tyler means you won’t have to pay a state income tax and will enjoy a lower cost of living than the national average.
This city is consistently mentioned as one of the best places to live in Texas.
6. Memphis, Tennessee
Tennessee is another state with no state income tax, which makes it a favorite spot for baby boomers and younger generations alike.
Because Memphis has a lower cost of living than the national average, you will not only have more money in your bank account, but likely will also spend less.
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Baby boomers love Las Vegas for more than just the casinos and shows — it’s also a tax-friendly place to call home.
There is no state income tax here, and the sales tax is low.
8. Nashville, Tennessee
Need a good reason to check out Nashville? Start with the fact that there is no income tax in Tennessee.
You will also love that Nashville offers walkability, parks, and — of course — music and restaurants.
9. Montgomery, Alabama
Buy a house in Montgomery, and you won’t need to worry about sky-high property taxes. This capital city has some of the lowest property taxes in the country.
Alabama boasts low sales tax rates, too. Add in a low cost of living and a mild climate, and there is good reason to look South for your golden years.
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10. Boise, Idaho
If you love to ski or get outdoors and hike, Boise should be near the top of your retirement wish list.
Idaho has a flat 5.8% income tax. It also does not tax Social Security benefits, making it easier to build wealth while you sleep in the Gem State.
Bottom line
Even if you struggled to build wealth throughout your career, there are opportunities to catch up in your later years. With planning and strategic moves, you can put yourself in situations to make the most of your money.
Moving to a tax-friendly location is one of the most efficient ways to stretch funds and make money go further for longer.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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