enjoyable retirement

How to Retire Well in Oklahoma

June 2, 2021 By Tamila McDonald Leave a Comment

As you get closer to retirement, deciding where you’ll live during your golden years is usually part of the equation. After all, the state you choose has a major impact on your lifestyle, as well as your budget. If you don’t choose wisely, you may find that your savings falls short of what you need to be comfortable. Luckily, with a bit of planning and research, you can make sure that you’re ready. If you’re hoping to retire well in Oklahoma, here’s everything you need to know to make it happen.

Cost of Living

When you want to estimate the affordability of an area, looking at its cost of living scores is a wise decision. It helps you see how a state compares to the national average with just a quick glance. Plus, you can examine the scores of different states to see which one is the most budget-friendly.

When it comes to the national average, that is always set at 100. If a state has scores below 100, it means that the state costs less than average. With scores above 100, the opposite is true.

Oklahoma has an overall cost of living score of 87.2, which is one of the lowest cost of living scores in the entire nation. When it comes to category scores for the Sooner State, every single one is also below 100.

For groceries, Oklahoma comes in at 93.3. For utilities, transportations, and healthcare, the Sooner State sits at 94.4, 92.0, and 95.1, respectively.

One spot where Oklahoma really shines is housing. The state’s housing cost of living score is a meager 71.6. This affordability is also showcased in the state’s average home value, which comes in at $146,179. That’s reasonably close to half of the national average, which sits at $281,370.

While some may assume that the lower home value means housing quality is poor, that isn’t necessarily the case. Instead, it’s simply that comparable properties cost less in Oklahoma than they would in an area that has prices closer to the national average, making it a strong sign of affordability.

Tax Considerations

One point that many retirees accidentally overlook when deciding where to live is taxes. How much you have to pay in taxes can have a big impact on your budget. After all, you have to pay what you owe.

By looking at a state’s tax situation, you can determine the impact the cost will have on your savings. This can make it easier to decide where to move.

Oklahoma does have a state income tax, with the rate ranging from 0.5 to 5 percent, depending on your taxable income level. However, Social Security retirement isn’t taxed in the Sooner State, and there is also a deduction of up to $10,000 for other kinds of retirement income. Retirement income beyond that is taxed at the standard rate.

There is also a sales tax in Oklahoma. The base rate is 4.5 percent for most purchases. However, cities, counties, and municipalities can add to that. For example, Oklahoma City has a total sales tax rate of 8.625 percent, though zip codes there that overlap with another city can have a higher rate.

When it comes to property taxes, rates in the Sooner State are fairly low. Additionally, retirees who meet certain eligibility requirements – usually based on age and/or income level – may qualify for a Senior Valuation Freeze or certain property tax credits that limit or reduce what they owe.

Part-Time Job Opportunities

When you want to assess whether part-time job opportunities are readily available, looking at a state’s unemployment rate can be a solid place to start. Often, when unemployment is high, securing a job is increasingly difficult. With lower unemployment, positions are increasingly available in general.

As of April 2021, the unemployment rate in Oklahoma was 4.3 percent. That is notably lower than the national average, which came in at 6.1 percent during that month.

It’s important to note that the city you choose as well as the kind of work you want to pursue does play a role. However, if you’re flexible, finding part-time job opportunities in Oklahoma shouldn’t be overly challenging.

Best Cities for Retirees in Oklahoma

When you’re deciding where to retire, you don’t just have to select a state; you also need to choose a city. Each town brings something different to the table, including varying access to amenities and recreation, as well as different costs of living and general vibes.

If you prefer city life, Oklahoma City and Tulsa are both great options. You’ll have excellent access to amenities and entertainment, as well as a surprisingly affordable cost of living for a major city.

For retirees who prefer suburbs, Edmond is a great option. You’ll have quick access to Oklahoma City while avoiding some of the hustle and bustle at home. Jenks can also be a good choice. It has a small-town vibe while being close to Tulsa, giving you the best of both worlds.

If you want to be close to outdoor recreation, consider Norman. It’s just outside of Lake Thunderbird State Park and is close to Oklahoma City, too. Plus, it’s affordable for homebuyers and renters alike.

How Much Money You Need to Retire Well in Oklahoma

Since the Sooner State has a very low cost of living, having a modest amount in savings is typically all you’d need to live comfortably. Generally speaking, if you want to retire well in Oklahoma, having access to around $54,959 annually in retirement income will do the trick. Along with handling your needs, you could cover the cost of some wants, ensuring you can enjoy your retirement with greater ease.

Is there anything else that you think retirees should know that could help them retire well in Oklahoma? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Retire Like a Boss by Following These Retireees Lead

March 11, 2021 By Kathryn Vercillo Leave a Comment

Do you want to have a fabulous life after retirement? That might look a little bit different to each individual. However, there are some general guidelines that you can follow to retire like a boss. Follow the lead of these nine retirees who have inspiring stories and helpful advice.

1. Retire With Integrity like Bill Watterson

Bill Watterson was the cartoonist behind the Calvin and Hobbes series. He loved the series but over time he grew exhausted of the daily deadlines. Moreover, he was tired of his cartoon’s syndication. So, he retired. He could have gone for a lot longer making money off of Calvin and Hobbes. Instead, he decided to do what he felt was right in his heart. If you think that it might be time to return, even if you’re at the peak of your career, then go ahead and do what’s right for you!

2. Retire To Do Something New Like Michael Jordan

Do a quick Google search on celebrities who retired early and you’ll find lots of lists of actors and athletes who retired young. But you know what most of them have in common? They retired from one thing in order to do something else. Sometimes they didn’t like the fame so they quit for a more “normal” job. Sometimes they were just done with one thing and ready to try another. Michael Jordan’s second career in baseball after his basketball stardom is just one example. Retire from a job, but not from working altogether. You can continue to make money doing something new that you love.

3. Retire Even If No One Thinks You Should Like Benjamin Franklin

Did you know that Benjamin Franklin was an early retiree? In fact, retirement wasn’t even really a thing in his day and age. He might have been the first person we know of to retire. He was in his early forties, he was tired of the hard work of running a printing press, and he was ready to move on to other things like politics and inventing. So he retired. It doesn’t matter if no one around you is doing it. If you’ve set yourself up to retire, go for it.

4. Get Into Investing Like Warren Buffett

Warren Buffett had other opportunities to continue working managing hedge funds, etc. but he decided to go ahead and retire. Of course, he didn’t stop working; but he turned his attention to investments. Hopefully, you’re already investing your money wisely in order to be able to retire early. But either way, retirement is a perfect time to start exploring more opportunities for allowing the money you earned to continue making more money for you as the years go on.

5. Cash In On Your Knowledge Like Mark Cuban

Mark Cuban also made a lot of his money through investments and stock trades after early retirement. But what got him into doing that was that people started asking him for his advice about trading tech stocks. He had built up unique knowledge during his career. So have you. How can you cash in on your knowledge after retiring to keep making the money that lets you retire like a boss?

6. Spend Time with Family Like Patrick Pichette

When Patrick Pichette retired from his position as Google’s CFO, it wasn’t to chase a bigger paycheck. It wasn’t to begin inventing things or trying a new career. Instead, he simply wanted to focus on spending time with his family. What are the things that you really value most in your life? Chances are your family, friends, and other loved ones are at the top of the list. If you get the opportunity to retire, then take that opportunity to spend time with the people that you love.

7. Adopt an Abundance Mindset Like Sam Dogen

Sam Dogen of Financial Samurai is one of many bloggers who retired early and now makes a living sharing how they did it with others. His advice, found in his own CNBC articles and elsewhere, includes embracing an abundance mindset. He says that frugal living is smart but you can’t retire early with millions in the bank if you’re making your decisions from a scarcity mindset. Instead, you have to truly believe that there’s plenty out there and that you’re deserving of your portion of the proverbial pie. If you can do this then you can set yourself up to retire like a boss.

8. Remember You’ll Be There When You Retire, Says Carl Jensen

One of the things that Carl Jensen realized quickly after early retirement was that retiring didn’t solve his problems. You are still going to be the same person after retirement as you were before retirement. And since you won’t have work to distract you, you’re going to have to deal with yourself. Therefore it’s important to do the personal work in your life as well as the business side of things. Work on your relationships, your health, your interests, your psychological wellbeing.

9. Get On The Same Page as Your Partner Like Brandon of Mad Fientist

Brandon of Mad Fientist realized that he wanted to retire early. So, he talked to his wife. She didn’t want to retire early and chose to keep working. However, they had a lot of conversations to get clear about what this would look like for both of them. They outlined their individual and share priorities. They figured out how to make retirement work not just for Brandon but for their whole family. Make sure you include your partner in your retirement decisions if you want to retire like a boss.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Are Seniors Saving Enough to Retire Comfortably?

May 8, 2019 By Tamila McDonald Leave a Comment

Most people have the best intentions when it comes to saving money. However, as they experience financial challenges, tossing cash into a savings or retirement account becomes less of a priority. Instead, immediate needs take priority. For seniors, this mentality can keep them from being able to retire comfortably or, for some, they may have to put off retirement indefinitely.

Putting Off Saving

For many older adults, not saving enough is usually self-described as their biggest financial mistake. This can include anything from not putting money away for emergencies or suitably saving for retirement.

While it is possible to make up for the lost time when it comes to saving for retirement, it does make the situation harder to navigate. Late-savers don’t get all of the benefits of long-term compound interest, so they have to make larger deposits to offset any missed opportunities.

Concerns About Retirement Savings

Most Americans are worried that they won’t have enough to retire comfortably when the time comes. While many will have access to Social Security, providing them with at least some amount of income later in life, that alone typically isn’t enough to cover what they will need in retirement.

In 2019, the average senior who qualifies for Social Security benefits receives $1,461 a month. Over the course of a year, that’s only $17,532 in income. While that amount is $5,042 over the poverty line in the 48 contiguous states and DC, most would agree that living on that amount would be incredibly difficult.

On average, Social Security only replaces around 37 percent of an earner’s pre-retirement income. As of the first fiscal quarter in 2019, the median income for a person working full-time, based on data collected by the Bureau of Labor Statistics, was $905 a week, or $47,060 a year.

Without additional savings, being comfortable in retirement might not be possible.

A “Comfortable” Retirement

Often, seniors need closer to 80 percent of their pre-retirement income covered to live comfortably. While many assume that their expenses will decrease after retirement, many don’t experience a dramatic decrease. In fact, some may see their costs stay the same or even increase, depending on factors like healthcare costs and how much they spend on leisure activities.

Based on the yearly median income amount of $47,060, this means seniors should expect to need at least $37,648 annually after they retire (based on the 80 percent metric). After deducting the average Social Security payment, that leaves a shortfall of $20,116 each year that needs to come from another source.

Those who were born in 1953 are hitting full Social Security retirement age – for them, 66 – this year. With an average life expectancy, based on CDC data, of 78.7 years, that would mean 12.7 years would be spent in retirement, theoretically. That $20,116 annual shortfall, over that period, would total up to $256,108.20. And that relies on the notion that 80 percent of the median yearly income is enough to sustain them and that they don’t live longer than the average life expectancy.

Additional Savings Are a Must

For those with a high-cost medical issue or who wish to have more money available during their golden years, then additional savings is a must. Now, one method to increase income as a senior is to wait until age 70 to begin accessing Social Security benefits. The monthly payment increases by 2/3 of 1 percent for every month that a person waits until they reach age 70 (an 8 percent increase annually).

At age 70, that means the retiree gets 124 percent of their original benefit amount each year. If the person would qualify for the average $1,461 a month at full retirement age, that means they could get about $1,812 a month instead of delaying until age 70, which is around a $351 monthly ($4,212 yearly) increase. However, that is still a far cry from what a senior likely needs to be comfortable.

Planning for a Comfortable Retirement

Making up for the remaining shortfall can be difficult, but it isn’t impossible. If you are age 50 or older, you can save up to $24,500 each year in an employer-sponsored 401(k). Additionally, putting up to $6,500 in an IRA is allowed. Depending on how long the money can sit in the account and the return rate, that can put a serious dent in the shortfall.

However, even if you can’t max out your retirement, every bit you can save makes a difference. It’s always better to sock away something than do nothing. When working toward savings there a number of service available via the Internet to assist you. That said, it is wise to be vigilant when using online services and to make sure you practice online safety for retired seniors.

Additionally, working to pay off debt and reduce your expenses can help you make your retirement more comfortable. If you have fewer costs, you won’t need as much money to maintain your lifestyle. Plus, over time, you might be able to make more space in your budget for additional savings, ensuring your golden years are as bright as possible.

Are you on your way to a comfortable retirement? Are you worried you haven’t saved enough to support yourself in retirement? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Retirement Planning: Consider Your Time as Well as Your Money

November 23, 2011 By Jennifer Derrick 3 Comments

Retirement can be a scary thing. You wouldn’t think so, since so many people look forward to the day when they can stop working and take it easy. However, the financial and emotional adjustments can cause problems if you aren’t prepared for them. Most of us just blindly save money toward retirement thinking that the most important thing is to have enough money stashed away to keep from eating dog food for twenty years. While that’s important, it’s also a good idea to make some contingency plans for the other issues you might face.

The biggest problem is what to do with your time. Most of us can’t wait to quit working, but once we quit, what do we do? We say we want to travel, spend time with family, play golf, or just sit on the porch, but after a lifetime of work is that enough? It might be. Many people find retirement enjoyable. Or you might burn through your “fun” in a year and be stuck wondering, “What now?” The loss of a routine and feeling like you’re no longer contributing to something can be debilitating to those who haven’t seriously thought about their retirement activities.

To avoid this, try easing into your retirement. Keep working while you step down your hours or take a part-time gig. You can even quit your day job and start your own little business, either doing what you did before or something else you really enjoy. You’ll still have more free time, but you’ll also get to keep your daily routine and be productive. You’ll also keep earning money which can be saved or used to delay having to tap your retirement assets.

Keeping busy in retirement is essential to keeping yourself healthy. If you’re just sitting on the couch watching mind-numbing TV, you’re increasing your risk of disease and mental deterioration. Even if you don’t want to work, make sure you have enough hobbies and interests to keep you busy. Let your other interests and hobbies gradually crowd out your work rather than just quitting work all together. When the day comes that you want to quit for good, you’ll have enough other things to do to keep you occupied.

You can also opt to forego retirement altogether. A lot of people feel ashamed to admit that they actually want to keep working. Retirement has been built up as the holy grail and those who choose not to take it are often thought of as strange. After all, who wants to work forever? Well, plenty of people do. Work equals life for a lot of people. If you take it away, they flounder. Such people are actually better off keeping their jobs or moving on to other full-time ventures such as running their own business. Without a job, they get depressed, angry, or anxious. If this is you, don’t feel bad about keeping your job as long as you’re healthy enough to do it.

If you do retire completely, you can make the transition easier by sticking to a routine. It doesn’t have to be the same routine you had when you were working, but a routine can give your days structure and reduce the chance that you sink into depression and wonder what you’re doing with your life. Get up at the same time every day and try to eat at the same times, too. Construct your day as if you were still punching a clock. Use your mornings for exercise and chores, for example, and your afternoons for hobbies or friendly gatherings. A schedule can keep you productive and engaged.

Before you opt to tell your boss to kiss off and retire completely, make sure you’re emotionally and financially ready for it. You can have all the money you need sitting in the bank, but unless you’ve given a lot of thought to your retirement plans, you could be setting yourself up for a few years of confusion. Make sure you have a plan in place for what you will do with your time, as well as your money.

(Image courtesy of grantlairdjr)