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Old 02-29-2016, 08:35 AM
 
673 posts, read 2,030,031 times
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Quote:
Originally Posted by Serious Conversation View Post
I have a sneaking feeling that study is leaving a lot of critical information out. The median HHI in MA is something like 50% more than in FL, but the replacement income in MA is only a couple hundred bucks more. Where did all that extra income that the people in MA made go? Are the Floridians just more judicious savers?

Assuming that two families in MA/FL save identically, the MA family should have a much higher net worth due to having more money to save/invest and substantially more home equity.
5th Worst State, Massachusetts - In Photos: Best And Worst States For Retirement - Forbes

Loads of sites, i.e. Kiplinger, Forbes, Money Magazine, will all tell you that retirement is poorer in the NE states. You might bring in more money, but you spend more. There is less left in your pocket.

Somebody has to pay for those huge union retirements.
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Old 02-29-2016, 08:43 AM
 
Location: Tennessee
23,650 posts, read 17,615,071 times
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Quote:
Originally Posted by Nausikaa View Post
5th Worst State, Massachusetts - In Photos: Best And Worst States For Retirement - Forbes

Loads of sites, i.e. Kiplinger, Forbes, Money Magazine, will all tell you that retirement is poorer in the NE states. You might bring in more money, but you spend more. There is less left in your pocket.

Somebody has to pay for those huge union retirements.

Even if you're spending more there, you made enough money to where you can move elsewhere that's substantially cheaper. You don't have to stay in MA in retirement because you aren't going to be tied down like you would be if you held a high earning, prestigious job that wasn't available elsewhere.


If you're a moderate income earner in Massachusetts, then maybe you aren't best equipped to handle living there in retirement, but chances are you still have more to throw around than most moderate income earners in other states. You could probably sell your MA house and pay cash with the equity for a regular house in TN/SC/IN, etc., whereas the locals in those states would likely not be as wealthy as what the MA person would have and are more likely to struggle.
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Old 02-29-2016, 09:02 AM
 
673 posts, read 2,030,031 times
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Quote:
Originally Posted by Serious Conversation View Post
Even if you're spending more there, you made enough money to where you can move elsewhere that's substantially cheaper. You don't have to stay in MA in retirement because you aren't going to be tied down like you would be if you held a high earning, prestigious job that wasn't available elsewhere.


If you're a moderate income earner in Massachusetts, then maybe you aren't best equipped to handle living there in retirement, but chances are you still have more to throw around than most moderate income earners in other states. You could probably sell your MA house and pay cash with the equity for a regular house in TN/SC/IN, etc., whereas the locals in those states would likely not be as wealthy as what the MA person would have and are more likely to struggle.
Shame to have to leave your family and friends behind because you can't afford to live there in retirement. You won't find many people in the south who want to move to Mass or NJ.
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Old 02-29-2016, 09:20 AM
 
Location: Tennessee
23,650 posts, read 17,615,071 times
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Quote:
Originally Posted by Nausikaa View Post
Shame to have to leave your family and friends behind because you can't afford to live there in retirement. You won't find many people in the south who want to move to Mass or NJ.

The big rich states often have a level of services and welfare assistance you simply won't see in the poorer states. That has to be paid for. The excellent northern schools cost money to keep up. Whether or not someone moves is an individual decision, but those tax dollars aren't just vanishing into the ether.
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Old 02-29-2016, 09:23 AM
 
Location: Los Angeles area
14,018 posts, read 17,756,785 times
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Quote:
Originally Posted by Nausikaa View Post
5th Worst State, Massachusetts - In Photos: Best And Worst States For Retirement - Forbes

Loads of sites, i.e. Kiplinger, Forbes, Money Magazine, will all tell you that retirement is poorer in the NE states. You might bring in more money, but you spend more. There is less left in your pocket.

Somebody has to pay for those huge union retirements.
I think we all know that the north-eastern part of the United States is a high cost of living area, as is the west coast in general. There are lots of components of high cost of living in addition to the allegedly "huge" union retirements. The word "huge" is certainly not an automatic go-with to union retirements anyway. The ones which are huge and which we read about in the news are in the news for a reason, namely that they are exceptional - they are outliers.

Speaking in broad, unsupported generalities is meaningless, so let me offer a specific, concrete case: I have one of those union retirements that you seem so resentful of, a California state teacher's pension. After 34 years and at age 61 I got approximately $50,000 per year, and if I had had fewer years or had retired at an earlier age the amount would have been less - a lot less. In addition I have no medical coverage at all associated with the pension or with my former employment. (Not complaining, as I am fine with Medicare). On the upside, my pension is inflation protected to an extent.

Some posters have argued in this Retirement Forum that $50k a year is on the lavish side, and that may well be true if you live in a small town outside of the the north-east and the west coast. It is certainly not lavish by any stretch of the imagination in the Los Angeles area, where I worked for the 34 years and where I still live. Is is enough for me to live in reasonable comfort given generally frugal spending habits, therefore I have no complaints except when people engage in gross exaggerations by painting with too broad a brush.
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Old 02-29-2016, 09:48 AM
 
13,969 posts, read 7,441,074 times
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Quote:
Originally Posted by Nausikaa View Post
5th Worst State, Massachusetts - In Photos: Best And Worst States For Retirement - Forbes

Loads of sites, i.e. Kiplinger, Forbes, Money Magazine, will all tell you that retirement is poorer in the NE states. You might bring in more money, but you spend more. There is less left in your pocket.

Somebody has to pay for those huge union retirements.
The analysis is nonsense since it's using median taxes paid in a place where the majority of the population lives in metro-Boston. If you retire inside the 495 belt, sure, you have a $500K to million dollar home with enormous property taxes. That's what makes Massachusetts 5th worst. There's the whole rest of the state to pick from.

My Massachusetts summer house where I intend to retire eventually is walking distance from salt water. My boat sits in the harbor with a $143.00/year charge for a mooring and the Waterways sticker to get the waste tank pumped out whenever I need it. My all-in cost of ownership counting property taxes, insurance, and utilities less than $5,000. Is it as cheap as a trailer park outside Nashville? No. I have world class everything an hour away in Boston but I'm not paying Boston housing prices or property taxes on that housing. Massachusetts doesn't tax Social Security so I don't care much about their 5.15% flat state income tax. I'm probably going to shift enough to a tax-free Roth IRA before I declare residence there that I won't be paying much of any state income tax. They don't tax food and clothing. I can internet shop big ticket items or buy them in tax-free New Hampshire to avoid sales tax.
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Old 02-29-2016, 10:28 AM
 
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I'm not resentful of anyone, I live in a lake access community on a beautiful recreational lake. There are six houses with a shared dock, where everyone owns a boat slip, We live in a large brick home that is paid for. My husband retired from a large telephone company, and I have a retirement also. We took five vacations last year, two to the Caribbean one to Canada, one in the US, and one in England. We have a very good income, enjoy ourselves immensely, but live in a poor southern state.

Our homeowners for the dock and upkeep of a private road is $350 a year, our property taxes are $1000, and we have the third cheapest gasoline in the country. The lake is ringed by very expensive houses. So is the coastline.

Loads of companies have relocated here, I.e. Michelin, Pirelli, BMW, Amazon, Boeing, and now Volvo. No, I'm not resentful, It's going to be about 70 deg F here today, and we don't shovel snow.

I would not normally go on about who owns what, but you need to know that everyone in the south is not poor. So condescending!
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Old 02-29-2016, 10:36 AM
 
Location: Central Massachusetts
4,800 posts, read 4,855,118 times
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Quote:
Originally Posted by Nausikaa View Post
I'm not resentful of anyone, I live in a lake access community on a beautiful recreational lake. There are six houses with a shared dock, where everyone owns a boat slip, We live in a large brick home that is paid for. My husband retired from a large telephone company, and I have a retirement also. We took five vacations last year, two to the Caribbean one to Canada, one in the US, and one in England. We have a very good income, enjoy ourselves immensely, but live in a poor southern state.

Our homeowners for the dock and upkeep of a private road is $350 a year, our property taxes are $1000, and we have the third cheapest gasoline in the country. The lake is ringed by very expensive houses. So is the coastline.

Loads of companies have relocated here, I.e. Michelin, Pirelli, BMW, Amazon, Boeing, and now Volvo. No, I'm not resentful, It's going to be about 70 deg F here today, and we don't shovel snow.

I would not normally go on about who owns what, but you need to know that everyone in the south is not poor. So condescending!


There are poor folks everywhere.


It does sound great where you live. All I want when I move is decent weather, the ability to leave a boat docked so that I can get in it and go fishing. Places to golf and places to eat that are nice and the ability to live safely in my old age.
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Old 02-29-2016, 11:07 AM
 
Location: Columbia SC
9,002 posts, read 7,766,040 times
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Do as I did. Make your money in a high income/cost of living state (MA) and retire with it to a lower income/cost of living state (SC) and enjoy.
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Old 02-29-2016, 11:14 AM
 
673 posts, read 2,030,031 times
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Originally Posted by johngolf View Post
Do as I did. Make your money in a high income/cost of living state (MA) and retire with it to a lower income/cost of living state (SC) and enjoy.
I think you are my neighbour!
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