Downtown view of Austin, Texas

The Pros and Cons of Retiring in Austin, Texas

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Going through your retirement checklist? One important consideration you may have coming is choosing where you want to live and spend your newfound spare time. Do you stay put? Or do you use your freedom to move somewhere you’ve always dreamed about? 

Whether you’ve lived in Texas all your life or you’re considering a move from colder climates, retiring in Austin is a smart move for a number of reasons. It’s why we’ve set up a location for Trajan Wealth in Austin; from our Retirement Income Planning services to helping our clients understand Annuities, many local and prospective retirees look to us to execute their long-term plans.

Let’s go through a few other reasons to see if Austin, Texas is the prime retirement spot for you.

Advantages of an Austin, Texas Retirement

Before we discuss the financial benefits of retiring in Austin, there are a few basic necessities that have helped the city rank as highly as #2 in the nation for its comfortable cost of living. They include: 

  • A variety of diverse neighborhoods, from urban Downtown Austin to the quaint, small-town feel of Georgetown
  • Easier access to healthcare, such as St. David’s Medical Center and Seton Medical Care Austin
  • Variety of housing options and retirement communities to make downsizing a more convenient and simpler consideration
  • Accessible public transportation with reduced fare for seniors and bike-friendly paths or walkable neighborhoods if you’re ready to give up driving
  • Numerous parks, lakes, and recreational areas to keep you out and about
  • Impressive museums and theaters that attract a wide array of entertainment  
  • And, of course, the year-round warm weather!

Drawbacks of Retiring in Austin, TX

We wouldn’t be forthright if we didn’t discuss a few of the negative considerations about retiring in Austin. If you still plan on using your car often, you may find the weekday traffic lives up to its frightening reputation.

Additionally, with Austin, Texas being such an attractive retirement spot, home prices are on a considerable rise (as they are nearly everywhere right now).

Fortunately, you’ll find a partner in financial planning when you work with Trajan Wealth on your Austin, TX, retirement.

Understanding Texas Retirement Taxes

Another attractive benefit of retiring in Austin, Texas, is its tax-friendly positioning for retirees. Texas is known for not having a state income tax, meaning you get to keep more of your Social Security benefits, pension income, and other forms of retirement income. Additionally, there are no estate or inheritance taxes in the great state of Texas.

To make up for this loss in revenue, Texas does have higher sales and property taxes compared to other states. To ensure you’re prepared to navigate this balance, we recommend speaking to one of our expert fiduciary advisors at Trajan Wealth. We’ll help you understand how to avoid these higher taxes through advantages like Texas’ homestead exemption for seniors. And if you’re still working or running a business, it’s never too late to start with smart tax planning practices offered by our Certified Financial Planners.

Let’s Talk About Your Biggest Goals for a Texas Retirement

As mentioned earlier, choosing a place to live is just one of the big decisions you need to make about your retirement. Our Austin wealth management team is ready to help you with the rest, including all the risks that come with our increasingly unpredictable global market.

Schedule a consultation with Trajan Wealth when you’re ready to discuss your retirement. We’ll start by listening first to your goals and follow it up with personalized solutions, including retirement income planning and annuities strategies, to ensure you get the most out of your Austin, Texas retirement.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.