Ohio Retirement Planning

Planning for retirement should never be taken lightly. No matter where you live or where you want to live you are going to need to calculate your retirement needs. While many people love the ocean and warm climates, these places often cost more money to live. Housing, taxes, insurance, are all necessities you have to budget for during your retirement and these often cost more in those areas. Whether you are on the East Coast or West Coast or down in Florida, these places off often cost more money to retire than the northern states or states in the Midwest. Finding a state with a low retirement cost is very important.

A perfect example of a state with a low cost of living is Ohio. While it may not have the oceans or the hot nights of Florida or California, you do not have the natural disasters that each of those places have. That can save you a ton of money on insurance right there.

Saving Tips & Strategies

So before you decide to retire lets try to figure out how much money when he’d retire. Let’s take a lump sum of around $1 million. By most estimates taking out 4 percent of that money annually will allow the principal balance to grow and for you to keep that money for your heirs when you die. You may think 4% is not much, but 4% on $1 million is $40,000 a year. If your house is paid for and you have no other expenses that will go a long way. If you need a little more money you may have to consider taking five or 6%, but that could be a big risk to principal. You will have to decide on your needs before you retire. Retiring too early is one of the worst mistakes you can make.

Before we decide to retire you need to have a plan. How much should I save? When shall I retire? A good rule of thumb is that we save 10% your income during your earning years. However, it is not always the case and many times people to play catch up during their 50s. There is a 401(k) catch-up contribution amount in excess of the normal annual amount so that people in their 50s can often contribute over $20,000 to their 401K. Please keep this in mind if you are behind on your retirement goals as Social Security does not help as much as it used to for most people.

For the younger individuals, in their 20s or early 30s, this is now the best time to start saving as compound interest is your friend. Over time your investments will have it’s up and down the years, but in the end stocks have shown they can return about 8 percent. That being said, investing in stocks with a few bonds is a good long-term investment for you. Please be patient in the down years, as the good years will often mask those down years and your money will quickly rebound. Trying to time the market does not work for the average investor.

Estimating Retirement Needs

Most will agree that the most important factor of doing any retirement budget is your needs. Each person is different and has different tastes, spending habits, along with other needs. Health care is a big concern for most and less your are age 65 you will have to have your own insurance. At 65 Medicare will help cover many of the costs but people still do have a considerable amount to pay on their own. Please keep this in mind when planning your retirement needs.

Another huge component of retirement needs is having a paid-off house or rent that is affordable, so you will not need the huge annual funds in order to pay for a place to live. Housing is often the most expensive cost for younger people, but often times retirees have a paid-off home. This should be well researched and taken care of before you make any retirement decisions. Many times downsizing can help you retire early as well.

Please note though, you will always have to pay homeowners insurance, real estate taxes, along with other things related the property. Always consider about 2% a year for annual upkeep on your home. Some years you may not have any upkeep costs, but in one year you may replace the roof and air conditioner.

Why Ohio is a Great Place to Retire

Climate

The climate in Ohio offers four unique seasons, unlike many other places in the country that only have a few. In Ohio you will see warm, cold, snow, and rain during each of the respective seasons. While some people get a little tired of the snow, the snow does not stay for very long and there’s a good balance of moderate temperatures year-round. Ohio also do not have a long rainy season or long dry season as many of the other climates in the country do. The fall leaves are beautiful and the spring fresh air brings out the best in people recovering from a snowy winter.

Health Care

Northeast Ohio,in particular, is known for its’ hard winters. The lake effect snow can be beautiful, but also can bring a lot of snow in a hurry. However, Northeast Ohio also has some of the best medical facilities in the world. The Cleveland Clinic is known throughout entire world for its heart and brain units. They often perform surgeries on some of the most influential people in the world. University Hospital is also a very good hospital that is well know for its spectacular service and patient care. The other areas in Ohio. including Columbus and Cincinnati, also have great health care with affordable costs for most patients.

Low Cost of Living

Perhaps the most important perk of retiring in Ohio the lower cost of living. Many of the areas in Ohio average around 80 to 85% of the national cost. Some of the rural areas are even cheaper to live in. Also, taxes are normally lower than most other parts of the country. You can get a lot more for your dollar retiring in Ohio, as opposed to Florida, California, Arizona, or in the northeast which has the big cities of New York City or Boston. Each of those places is very expensive to live which can erode much of your retirement savings in a hurry.

The house that costs $150,000 in Ohio may go for double or triple that in California or Florida, and you would also have increased taxes and insurance rates. So if having a house and yard is part of your retirement dreams, Ohio has got many places to choose from at affordable rates. There is also much farmland and rural land available in Ohio if you want to build from scratch.

Ohio also has a wide cultural base from sporting events, arts, history, and outdoor activities to choose from. Cleveland is home to the rock ‘n roll Hall of Fame as well as the Cleveland Indians & Browns. While the Cavs lost Lebron James, they are still a good team to watch and there is not a bad seat in the Q.

Top Retirement Destinations in Ohio

Now that we have talked about some great reasons to retire in Ohio, let us talk about a few good places to retire. While there are many great suburbs of the big cities such as Columbus, Cincinnati, and Akron, we are going to focus on some of the beautiful places to retire around Lake Erie, which is directly north of Cleveland and runs the length of the whole state of Ohio.

Put In Bay

Put in Bay is on the shores of Lake Erie and offers a beautiful place to live, dine, and bring the family to. The flat horizon gives you the opportunity to see the storms roll in and the sunset while getting a cool breeze off the beautiful lake. While it may not be the Atlantic or Pacific Ocean, Put In Bay is a beautiful place to live for a person not only of retirement age but of any age young or old.

Pepper Pike & Gates Mills

If you’re looking to get a little further away from the lake, but still have a short commute to Cleveland or Lake Erie, perhaps you could consider Pepper Pike. This upscale community is very safe, has very little crime, is well-known for its beautiful homes and offers many golf courses.

Gates Mills is also very close to Pepper Pike and is much the same if you want quiet conservative lifestyle within a short drive to all the amenities of Cleveland.These beautiful suburbs could be a great place to live for someone looking to retire in Ohio. Many of the stars from the Cleveland area sports teams also live in these areas for their safety, quality schools, and great location to the city.

South Bass Island

If you really want a quiet place out of the realm of normal living, South Bass Island could be the place for you. There are not many homes for sale on this island as it has many rentals, but the ones that are for sale are beautiful. The big deal about the Bass Islands is their location in the middle of Lake Erie. So if seclusion here is a good thing for you then this is the place to go.

You are not stranded from the mainland though, as ferries frequently come and go and in case of emergency you can quickly get back home to the mainland. This is a sportsman dream as many people go fishing year-round for the amazing walleye, perch, smallmouth bass, and other species that Lake Erie can offer. Boating can also be done on the calm bays or you can go out into the main lake for some bigger waves.

Hopefully these places sound very interesting, but if you prefer a bigger city Cleveland has many great condos overlooking Lake Erie. They are known for their beautiful views and carefree living, as you do not have to worry about a yard, driveway, or other maintenance issue. The condos or apartments downtown are more expensive than what we discussed earlier, but they are an viable option for your retirement needs.

Why Ohio is the Place to Retire

Overall, there many great places to retire in Ohio. The low cost of living, ever-changing climate, access to great health care, are few of the many reasons to retire in Ohio. So if you decide that Ohio is the place to retire, you still need someone to look after retirement needs. Below are a few examples of quality retirement planning companies that offer many services that will fit your needs.

Ohio Retirement Planning Companies

Edward Jones

Edward Jones is a quality full-service brokerage that offers customer friendly service and support without high-pressure sales tactics other firms may apply. There are many local consultants for Edward Jones to give you an individual relationship with you and their consultant.

Charles Schwab

Another firm to help in your retirement needs is Charles Schwab. There also full-service brokerage and they have a very good reputation for good quality and customer care. They have been around for many, many years in Ohio while name is well known and respected.

Merrill Lynch

Merrill Lynch is a company that can provide excellent financial planning, retirement planning, and investment advice for all of their clients. No matter what your age, Merrill Lynch is always looking out for your best interest. They offer quality investments at a fair price and will give you the full service that you deserve.

Chase

If these full-service brokerage firms are not quite for you there many quality banks that will also offer you retirement planning. Chase is one that is well known nationally,but also provides financial planning for your retirement needs on a local level. Chase are considered well-respected bankers willing to fit your needs.

Key Bank Private Banking

Key Bank Private Banking is another bank that helps a person with their retirement needs. It will give quality financial information and have nice customer service to all its’ clients. Their goal is to help you plan to keep more money for you and your family.

With all those companies listed above sometimes it is hard to find the best company for you. Be sure to also talk to local members of each community and friends and family,before you make a qualified decision. Hopefully, when deciding to retire in Ohio, one of these institutions will be able to better suit your needs.

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