Everyone looks forward to the freedom that retirement living offers. But with the financial realities of living on a fixed income, how can you make your savings go further? The choice of where you want to live in retirement will affect not just your lifestyle but also your finances.
In the following video, Motley Fool investment-planning editor Lauren Kuczala talks with longtime Fool contributor and retirement expert Dan Caplinger about deciding the best place to live when you retire. Dan notes that while there are obvious non-financial considerations, cost of living, taxes, and available benefits make a big difference for retirees trying to make ends meet. He notes that for those with substantial savings, looking for low-cost states without an income tax is often the best way to minimize taxes on investment income. Yet for those who want to live in higher-cost states, Dan has suggestions that can help you reduce taxes to the fullest extent possible.