If you are getting ready to reach retirement age, then you should think about Montana retirement planning. Montana is a great state; it is a big state, but it is not too crowded like other big states such as California or Texas. Montana is a wide open state with plenty of things to do if you love the great outdoors and plenty of beautiful scenery and wildlife to watch. Montana has lots of scenic valleys, beautiful huge mountain ranges, national parks, lots of agricultural resources, and rivers. They are known for their being self-sufficient on the power they generate through Hydro-power using all the vast resources provided by their many rivers. They also provide much of their own water supply because of all the water they have.
Before you decide to retire, you should think about checking out some retirement strategies and tips to help you transition easier into your golden years ahead. We all need help in getting the most out of our retirement dollars so be sure to follow some of these great tips and tax-saving strategies.
Strategies and Retirement Tips
Here are some strategies and retirement tips to help you in planning for those lovely retirement years:
Seek Advice
First, if you know someone close to you, a friend or neighbor perhaps, who is a financial advisor or planner, you might try just talking to them informally. Let them know what your plans are and where you plan to retire and see what helpful suggestions they can give you. You never know how many people are there to help unless you ask for their help first.
Allocate Savings
Remember that you are thinking of a certain amount that you need in order to live comfortably each month. You need to remember that you will have to come up with more than that amount in order to pay any taxes due on the money first and then get the remainder left over each month to live on. Also, make sure you figure out the best way to get distributions of your money that gives the best savings possible now and also when your heirs get ready to take possession of the funds.
Investments
Another important item to consider is how diversified your investments are, and also how you will be able to take advantage of your investments the best way so that you have plenty of money for the rest of your life. Retirement is really for about one-third of the years of your life, and you do not want to run low on funds halfway through it. Make sure if you decide to work part-time for a little extra income that you do not make too much so that it affects your Social Security income. Just saving a certain amount each month is another easy way to come up with additional income. Another thing to remember is that you are not alone; you can find help through many financial advisors.
Here are some ways to save money for retirement and things to remember: Remember that you are probably not going to make much, if any, earned income, and so you will depend on Social Security and retirement funds. You may have to come up with a way to try to supplement that income. There are three ways to come up with retirement funds: a company 401(K) plan, a regular IRA, or a Roth IRA. They each have their own advantages and disadvantages. We will look at each one briefly.
401(K) Plan
The 401(K) plan is great especially if the money you contribute is matched by your employer. You can quickly and easily amass a small fortune as long as you are willing to put the money aside now while you are still young enough to do so. Many people only end up with about 3/4 of what they will actually require for retirement so this is one way to quickly come up with your funds you need.
A regular or traditional IRA is a tax-deductible plan where you contribute up to a certain amount each year and part of it is tax-deductible. Your spouse can also make a contribution and get the tax deduction for their funds.
A Roth IRA is a different sort of IRA that is not tax deductible at the present, but these are post-tax dollars that you will not be taxed on. You can take it out for certain expenses such as a down payment on your first home, but there are tax consequences unless it fits in these certain areas. There is a penalty for early withdrawal if you have not owned it for 5 years and are at least age 59 1/2 when you start to take funds out.
Reverse Mortgages
Some smart older people often take out a reverse mortgage on their home for retirement living. If you need the income based on the equity in your home, you might be able to do this and end up with a comfortable amount of retirement income. These reverse mortgages have become popular among the older set in recent years with celebrity endorsements on TV proclaiming the great advantages of a reverse mortgage to take care of you in retirement living. There are new larger limits to these reverse mortgages allowing you to recover more funds for your retirement. Just be certain to investigate the lenders who want to do the reverse mortgage for you for any complaints against them. They should be aware of ethical rules to guide them to give you the best deal possible.
Using Retirement Calculators
There are also calculators for estimating or calculating how much retirement income you will need. You can use these along with life expectancy calculators to figure out pretty precisely the amount you will have to have each month. You put in the balance of things like your savings account, amount you will need for living on for a year or your annual needs for retirement income, the current yield on your savings, the current tax rate you are in, the current inflation rate, any other income you will have then, your age now, and when you retire, and how many years you will need retirement income. You should probably consult tax laws for current years tax implications and also maybe get some legal advice for anything else that might concern you about this retirement process. Using all these tools, you should be able to come up with a fairly reliable estimate of how much money you will need for your annual retirement income.
Montana as a Retirement Location
So what are some of the reasons why people choose Montana as a place for retirement? Well, Montana is a big, wide open state so if you like beautiful country it is a place you will enjoy. Also, if you enjoy outdoor activities such as hunting or fishing, you will be right at home in Montana. Montana’s nickname is the “Big Sky Country.” It definitely has plenty of nice, blue sky. There is so much wild game that you can hunt and catch your own food. In fact, more wild game is eaten in Montana than beef, and it is so cheap since you caught or hunted it yourself.
Attractions
There are plenty of nature areas to see including the Glacier National Park which is wonderful to look at. There are plenty of cool streams to go fly fishing in. The fish are not stocked by the state or anyone else; they are wild trout! Imagine catching some of those for dinner! There is no state sales tax, but there is state income tax on your Social Security. There is not an inheritance tax for most people either giving you another added benefit of this state. The people are friendly and it is not crowded like in the big cities. You can go for a long way without seeing other people, but you will see lots of wildlife and game there. For a more practical side, whether you plan to live in a big city or a small rural area of Montana, the health care there is great and readily available even in the smaller communities. They have hospitals and doctor’s offices to meet your healthcare needs right there at home.
Climate
People will enjoy the Montana climate. It is known as a higher altitude steppe climate. It has low humidity levels, lots of nice sunshine, mild summers, and very cold winters. There is lots of nice scenery to look at and friendly people to talk with. Most people are happy about how the climate is there and find it a nice place to live. There are really unlimited activities for recreation there as well. There are beautiful mountains to climb or hike in, and there is of course, snow in the winter. The many rivers provide water and power and lots of beautiful scenery.
Economy
Montana’s economy is another reason why people like to retire here. It is above average in home prices, but the unemployment levels are low so if you decide you do want a little part-time job, you should have no trouble finding one in Montana. The Forest Service, agriculture, tourism, and natural resources are all important industrial aspects of Montana’s economy. It seems to have a very sound economy for residents there. It offers affordable living whether you are retired or living there with your family. The cost of living is rather low probably because the game and fishing that is so readily available to obtain helps with your grocery bills.
Popular Locations for Retirement in Montana
What are some of the most popular retirement locations in Montana? Well, here are some of them that were listed by the people in Montana and other sources:
Bozeman, Montana is close to several big ski areas and the mountains and is listed as one of the 10 Most Affordable mountain towns to retire in by US News & World Report magazine. Bozeman is described as a mecca of outdoor year-round activities. It is surrounded by the Bridger, Gallatin, and Tobacco Root mountain ranges and full of fun activities such as rafting, kayaking, climbing, and biking.
Helena is another city in Montana that is known for its small town living and affordable living conditions.
Kalispell is another smaller town in north-western Montana that is close to cattle ranches and timberlands which really only make up about 6% of the entire area leaving lots of room and space to move around in freely.
There are several other communities that are becoming popular with the retirement crowd. These are Silverbrook and Bloomstone in Kalispell, Meadowlake and Tamarack in Columbia Falls, and Saddlehorn in Bigfork.
Bigfork has the distinction of being an art capital of sorts; they have 12 art galleries in the town, a playhouse, and lots of fine food and dining in the many area restaurants. They are full of excellent galleries and specialty boutiques. Also important are the number of doctors’ offices and hospitals close by since Bigfork is not really very close to any bigger cities. For recreation, you have skiing, sailing, and various golf courses nearby. There are many amenities but it retains its small town feeling all the same.
Redlake is a very small town, (2,500 population) whose main attribute is that it is known as the gateway community to Yellowstone National Park. It has also been listed as a scaled-back version of Park City, Utah. You will not find all the expensive cars and condos like in Park City, but instead you can still find affordable housing there. Instead, downtown, you will find remnants of times in the past when great western characters like Wild Bill Hickok and Calamity Jane used to come to visit. There are not a lot of saloons, but instead you will find restaurants and nice shops to look into.
Red Lodge has recently gotten great press from several notable sources: they were listed as one of the great adventure towns within the Rockies by National Geographic Adventure magazine; Outdoor Magazine described them as one of the 30 great places in the US to live and play.
There are so many great places, both big and small, in Montana for retiring to. You will have your work cut out for you doing all the research to figure out which one you like the best.
Find a Retirement Planner in Montana
For help with Montana retirement planning, here is a list of some of the retirement planners in Montana that can help you set you your retirement accounts to get ready to live there.
Kenneth Kay and Roger Lewis in the Missoula, Montana area are there to serve you and give you lots of great tips for getting ready to live in this state. They have years of experience serving the retirement communities. Steve Gardner is your contact person in the Billings, Montana, area, and he likewise, has lots of experience with retirement planning.
Waddell & Reed, Inc, are a firm of retirement planners in the Billings area of Montana.
Anderson, Hedge, Wagner, and Vogele
Craig Anderson, John Hedge, Charles Wagner, Ty Vogele, Teri Curtis, Lori Smith, and Darci Campanella are the team of retirement planners who can assist you with anything related to your retirement needs in the Billings area at the firm of Anderson Hedge Wagner and Vogele. They represent many years of retirement planning for their state residents and have a conservative approach and believe in fiscal responsibility in all areas. They can help you with any questions you might have.
Montana’s Allure
Whatever your needs are, and whatever you want in a retirement community, you are sure to find it in the great state of Montana. It can be isolated, but the big wide open spaces of pure waters and mountain peaks in the background more than make up for the lack of people. There are many opportunities for animal watching and photography as well as just about any outdoor activity you can think of. Montana retirement planning should be a wonderful experience as long as you take your time to investigate the options available to you there. You might find a little bit of “cowboy” in you as you explore the big state. Remember this is where the cowboys like Wild Bill Hickok and Calamity Jane once roamed and you too can enjoy this huge state. There are so many things you can find that will give you plenty to do while you are there. Each day will be full of new opportunities for enjoyment. Take a deep breath, relax, and enjoy the great state of Montana. There are great opportunities for all who want to retire there.