Lowest Cost States for Retirement / Affordable Place to Retire

we're going to investigate the lowest cost states for retirement so you can have an affordable place to retire so stay tuned for the full segment welcome back this is richard with wisdom investor with the baby boomers being unleashed many are looking for a low-cost state or an affordable place to retire so we're going to investigate this topic here today now also on this channel we investigate social security questions when to retire how much money you need to save for retirement and investing for retirement our main topic here is the cost of living of where to retire now many retirees also think about other items such as the climate family health care transportation quality of life taxes livability or maybe they want a new adventure now one of the things i recommend when you do find a place you want to retire do a trial run live there for a few months or a year to see if you really like it there's three main areas we're going to take a look at the first one is the general cost of living throughout the united states by state then we're going to look at the best states to retire based on affordability then we're going to break it down and go deeper and look at it on a county level the best counties as far as affordability we're going to first take a look at this cost of living by state this information came from the council of community and economic research down at the bottom we see our indicators here the very lightest color is the below national average on cost of living the very darkest equals the national average cost of living and then the blue is above national average cost of living keep in mind when we look at states that are below national average and cost of living there's going to be isolated areas within those states where the cost of living might actually be higher and the same goes true for areas where the cost of living is higher there's going to be isolated areas where the cost of living could be lower so what we have here on this chart is the center and the southern portions of the united states the cost of living is below the northeast along with florida and also california are above national average in cost of living now interesting enough what's surprising here many retirees want to retire in the southern portion of the united states but if you notice down here florida it's listed as above national average now many surveys put florida as the number one state to retire to but we have a changing economic situation in florida where the cost of living is actually getting higher also many retirees want to retire in arizona but we're seeing the cost of living primarily do the cost of housing going higher now let's take a look at the best states to retire in 2022 as determined by bank rate bankrate did a study to find the best states to retire in 2022 and they analyzed five different categories affordability wellness culture weather crime and affordability had the highest weighting of all five of these if we look at our ledger our indicators down at the bottom the states with the lightest color have the highest ranking and the states with the darker color have the lowest ranking now what's surprising here florida is ranked number one on this list as far as best state to retire in 2022. now if we go back over here and compare our cost of living by state we find that florida was actually above the national average when it comes to cost of living by state if we take our arrow and put it over florida we'll see that the overall rank on this list is florida number one however the affordability rank here is number 18. and then the culture diversity rank is number one and the weather rank is number five so even though florida ranks number 18 on affordability the high rankings in culture and diversity and weather help pull it up to the number one state to retire but not necessarily the most affordable state if we look at the states in the top ten on this list we have florida we have georgia ranking number two tennessee ranks number eight kentucky ranks number six ohio ranks number four pennsylvania ranked number nine michigan ranked number three and was number one on the affordability rank missouri ranked number five and number three on the affordability rank south dakota overall ranked number 10 and texas ranked number seven here's the overall analysis that bank rate completed for the best states to retire we're looking at the top 20 states here in the overall rank now we're going to take a look at the top 20 states by affordability so if we look over here we have michigan tennessee missouri mississippi kentucky oklahoma georgia arkansas texas alabama ranking as the top 10 states to retire by based on affordability and then the next 10 is ohio indiana louisiana west virginia south dakota north carolina south carolina florida iowa and kansas so we narrowed down our states with the highest affordability down to 20. now we're going to take a look at it to the county level the bank rate analysis for the best day to retire was measured by affordability wellness culture weather and crime however it's difficult to just look at a state and determine if that's the best state for you now we're looking at the u.s housing affordability by county this is determined by measuring the medium home price versus the medium household income if we look at our ledger on the right those counties marked in green is the median home value is less than four times medium household income the counties marked in yellow the median home values between four and six times the household income the red is medium home values between six and ten times household income and the very dark maroon is medium home values greater than 10 times medium household income the green counties are more affordable and then as we go to the yellow and red and then maroon these become less affordable as we look on the western one-third of the united states we'll see a lot of red out here in those states the medium home value is much higher than the income this equates to our chart that we looked at a moment ago that showed that the cost of living on the western united states was much higher than other areas here's our cost of living by state and again you can see the western one-third of the united states has a higher cost of living we're back to our bank rate best states to return 22 analysis here and we're looking at affordability here and if you notice here tennessee is ranked number two now if we zoom in on the county map for tennessee here even though tennessee has a high affordability there's still areas within tennessee that are contrary to that you'll see some areas in red here these areas have very high housing costs that would be around nashville and franklin for example if we take a look at florida even though it ranks number one on this list for the best states to retire 2022 you can see there's still a lot of red in the area where housing cost is very high you can see down here around miami area and on the southwestern coast of florida a lot of red up to maybe sarasota area if we look at these other states that are in low cost of living areas we can see that there's isolated areas where we can see that there's red those are areas where the cost of living is higher in those counties due to the cost of housing being much higher if you want to move to a state that has the lowest cost of living you've got to dig a little bit deeper and look at it even down to the county level now many folks when they retire they want to move from the north and move down to the southern areas where it's warmer but just because it's warmer especially if you look out here on the west coast you'll see it's not necessarily less expensive in the same way with florida florida has areas that's very expensive even though it's listed as number one state to retire in now if you want to move to a less expensive state for retirement here's a few strategies to think about one is you can get details on the economy and area you want to spend in retirement you can visit the chamber of commerce or the economic development agency to learn about the area to help you determine the cost of living review housing cost and rental costs ensure that the area has a low crime rate you can look at the fbi's uniform crime reporting program look into health providers okay so you can review guides to find the best hospitals and health insurance plans in the state check out the weather there's sites like weather spark and weather underground that you can check out and i like to recommend this test drive the city that you picked to retire to live there for a few months or maybe a year to just get a feel for the area and talk to the locals in the area and get their input on what's going on in the city we looked at the states with the lowest and the highest cost of living we also looked at the bank rate study on the best states to retire in 2022 now the third thing i do want to mention is make sure you don't become paralyzed by looking at too much data you can become what's called paralysis of analysis so you have to look the information over make a decision go there and check it out and see if that's the place that you want to live so i hope this information was useful to you thanks for watching leave a comment stay tuned for our next update

Channel: Wisdom Investor

Views: 67,521

Keywords:

Id: 7J3OmeLGeFA

Length: 10min 31sec (631 seconds)

Published: Fri Sep 09 2022