People think if they are going to move in retirement, it will be to a sun-soaked locale with low taxes. In other words: Florida.
But, according to a survey by Bankrate, Florida isn't necessarily the best deal.
Try Nebraska. Or, Iowa, Missouri and South Dakota, the top picks in the Bankrate study.
Can you even pick those out on a map? You might want to get familiar.
Consider this: A 3-bedroom duplex in Brooklyn with no parking, high property taxes, and high income taxes, costs about $500,000.
In the Midwest, a 3-bedroom house with more room, low crime, no pollution, no traffic, and low taxes, costs from $100,000 to $200,000, with the latter being an upgraded house. If you sell Brooklyn and move to the Midwest, you have a huge chunk of happy retirement left over.
Medicare costs will be lower, too. It's a myth that Medicare is free. In fact, the same plans cost more in different locations. In Miami, the monthly premium is about $286 per month. In Omaha, for the same plan, it's $90, according to NBC News. With the additional cost of supplemental and prescription insurance, sometimes deducted right from the social security check, your net income can be lower than expected.
Coastal residents usually think the Midwest is a cultural wasteland, but the truth is that cities in the Midwest have wine bars, good restaurants, plenty of entertainment, and friendly neighbors. And this comes with lower prices on gas, food, and light-weight sales taxes.
Of course, being near family and friends is crucial in a retirement location. That has to be considered as well.