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"WHEN YOU FANTASIZE ABOUT RETIERMENT, you might imagine yourself doing any of the following: Waking up to 70 degree weather, playing a round of golf, lying on the beach, meeting up with friends for dinner, getting decked out to go to the symphony or even just reading that book that's been sitting on your nightstand for the past several months. One thing your assuredly not dreaming of, however, is spending a lot of money on taxes. You don't have to. For MONEY'S annual selection of best places to retire, we sought out tax havens--cities that have particulary low burdens for residents. But we weren't just looking for cheap places to live. We were looking for amazing places--cities with access to quality health care, rational home prices and lots of cultural and leisure activities--that don't soak their taxpayers. In defining tax havens, we looked beyond income levies. As it turns out, many of the states with no income tax, including Florida and New Hampshire, hit residents hard with other taxes instead. We took income tax, property tax and sales tax into account and focused on those states in which the sum of all three is relatively low. Within those states, we looked at cities with high concentrations of people over the age of 60, low local property taxes, and the amenities mentioned above that make for a great place to live at any age. After narrowing the field, we visited the towns, chatted up the locals and made our final selections based upon the community's vibrancy and resident's satisfaction. Along the way, we discovered an encouraging trend. States and cities are increasingly offering tax incentives to seniors. All the places that made our list have such breaks (Virginia, for instance, has plans to eradicate its estate tax). Why? Migrating retirees often pay more out than they cost in services, so by increasing the senior population, a place can lift its tax base without having to spend more on things like education. You get a break for living in a great place; the town improves its cash flow; everybody's happy. Now if that isn't a real welcome home." ______________________________ MONEY Magazine's Top 5 Picks ! (A)
"Stroll through Walla Walla's historic downtown and you'll understand why this southeastern Washington outpost, once known only for its sweet onions and tautonymic name, has become a destination for wine connoisseurs, urban refugees and roving retirees. Nineteenth-century Italianate-style commercial buildings-origionally built as bakeries, banks and brothels following the 1860 gold rush-are being revamped to house art galleries, bookstores and restaurants. For a place in rural Washington, Walla Walla has an unlikely air of sophistication , in large part because of the 70-odd wineries that have broken ground nearby in the last three decades." (Artical reprinted in part only.)
" Five miles off the coast of Brunswick, GA., you'll find St. Simons Island. With its sandy beaches, lush marshes and moss-draped live oaks, the island has long been a destination for summer vacationers. Over the past few years is has also blossomed into a year-round retirement community. Having visited as a kid, Ron Upshaw, 63, recently returned with his wife Barbara, 56, looking to permanently escape the New Jersey winters. "We wanted a warmer climate," Ron says. "But didn't want to give up the mix of culture we were used to." They didn't have to. Here, the summer-like weather spans almost seven months. And the Upshaws can eat out at a number of fine dining establishments, shop several galleries for work by local artists or attend concerts on Lighthouse Lawn. An active newcomer's club helps transplants get assimilated by way of dinners, bridge games and golf outings, and neighborhood associations organize events too. ("It's very much a partying place," says Nance Mathews, 59, who came here from Cincinnati last year.) And if city life beckons, Savannah and Jacksonville are each a little over an hour away." (Artical reprinted in part only) (C)
"There's something to be said for waking up to the sun every day."Says 55 year old Debbie Douglas. Coming from a cloudy Seattle suburb, she and her husband Larry, 58, made good weather a high priority when considering retirement destinations. After seveal back injuries, Debbie wanted a drier climate that would be easier on her joints; Larry wanted year-round access to golfing and hiking. They found all the above in Prescott.
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