Should you retire in Nebraska? Well, Warren Buffett is likely to -- because he already lives there and loves it. There are pros and cons to relocating for retirement -- and pros and cons regarding Nebraska, too.
One key attraction might be its low cost of living: 10% below the national average, per the World Population Review. Housing costs are particularly low, with the typical home price in Nebraska recently only $265,433 -- about 73% of the national average. Car insurance is also on the low side, recently averaging $2,913 annually, about $104 below average.
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Nebraska has outdoor activities such as hiking, biking, camping, and fishing. It offers cultural activities such as a state fair, museums, art galleries, and music and comedy festivals. The baseball College World Series happens there every year, and the annual meeting of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a big event, too.
When it comes to taxes, Nebraska is one of the 41 states that do not tax Social Security benefits. But it does tax withdrawals from 401(k) and IRA accounts and pension income (though military retirement pay is exempt). Warren Buffett may be happy that there's no estate tax in Nebraska, though federal estate taxes still apply.
Healthcare (and its costs) should be a major concern for retirees, and Nebraska scores very well on this count: MedicareGuide.com has rated Nebraska the 5th-best state in the U.S. for elderly healthcare. Access to healthcare is easiest in and around big towns such as Omaha and Lincoln, though -- much of the state is quite rural, with various amenities a sizable drive away.
If Nebraska is starting to sound good to you, do keep in mind that its winters can be very harsh and summer can be quite hot. There are threats of tornadoes on occasion, too. But the positives might still outweigh the negatives, so do your own calculations. And if you start thinking Nebraska should be part of your overall retirement plan, perhaps stay there for a few months first, to make sure it's a good fit.
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