NEW YORK
Though the cliche has retirees flocking to Florida, those looking to make the most of their retirement assets may be going to Hawaii.
Accoding to a recent study, Hawaii is the most wealth-friendly State for retirement assets, while Wisconsin is the worst.
Bloomberg Wealth Manager magazine analyzed how the tax bite varies depending on where you live and the origin of your wealth -- salary, real estate, personal property or retirement assets. Tax codes and their impact on the wealth of four hypothetical families were compared for each of the 50 States and the District of Columbia.
The top states for preserving retirement wealth were (in order) Hawaii, Wyoming, Delaware, Colorado, Arizona, Alabama, Nevada, Louisianna, Alaska and Washington. The worst states were Wisconsin, Nebraska, Connecticut, Kansas, Rhode Island, New Jersey, Illinois, New York, Texas and Maine.
The hypothetical retirement family had no earned income, but retained assets from investments, Social Security, pensions and IRAs. They had a $500,000 home and a year-old car valued at $50,000, but no dependents. Their annual spending was estimated to be near $50,000, including expenses for food, medications (prescription and over-the-counter) and gasoline. How much you pay each year in taxes could vary by thousands of dollars from State to State. Retirees in Hawaii would pay $3,445, while those with the same assets living in Wisconsin would have to pay $17,756.
To find out where your State falls, visit http://wealth.bloomberg.com/.
---- CBS MarketWatch
Roger Hanscom
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