Thursday, April 7, 2016

Retiring in Las Vegas—All Things Considered

When planing for your retirement destinations, you should consider at least the following factors:
  • Affordability
  • Economic Health
  • Crime Rates
  • Populations of residents age 65+
  • Tax situation for retirees
In this article, we will discuss the pros and cons of retiring at Las Vegas or in Nevada state in general.

Why Las Vegas?


In [1], it describes top 5 reasons for people to visit Las Vegas:
  1. The Hotels
  2. The Shows
  3. The Casinos
  4. The Dining Scene
  5. The Nightlife
If you retired in Los Vegas, you would also enjoy the same perks.  So, should you consider retiring at Las Vegas?  Before jump directly to the City itself, let's consider Nevada State in general.

Taxes of Nevada State


Based on an article at Kiplinger (updated: 09/2015), Nevada State has the following tax rates:
  • State income tax
    • None
      • The Silver State is one of nine in the U.S. that impose no income tax. 
      • Nevada is NOT on the list of states that tax social security retirement benefits[3]
  • State Sales tax
    • 6.85%
    • Food and prescription drugs are exempt from the state’s 6.9% sales tax, but counties may tack on up to 1.3%. The average combined state and local sales tax rate is 7.9%.
    • In addition to sales taxes, vehicle owners are charged an annual “government services tax” that’s based on the vehicle’s value and age. Tax on a two-year-old vehicle with an original sticker price of $20,000 would be $238.
  • Gas taxes and fees
    • 34 cents per gallon
  • Median property tax 
    • Median property tax on Nevada's median home value of $165,300 is $1,423, according to the Tax Foundation.
  • Estate Taxes
    • Nevada's estate tax system is commonly referred to as a "pick up" tax. 
      • This is because Nevada picks up all or a portion of the credit for state death taxes allowed on the federal estate tax return (federal form 706 or 706NA). 
      • Since there is no longer a federal credit for state estate taxes on the federal estate tax return, there is no longer basis for the Nevada estate tax. 
    • Nevada has neither an estate tax – a tax paid by the estate, nor an inheritance tax – a tax paid by a recipient of a gift from an estate.[13]

Populations of Senior Residents


If the percentage of senior residents (i.e., age 65 or up) is growing, it could mean two different things:
  • Good
    • It's the choice location for  retirees
  • Bad
    • Old people are too poor to move while young people are moving out to other locations for better job opportunities
Keeping the above facts in your mind, here are some reports on the aging population in the US:
  • America's most rapidly aging cities[9]
    • Ranking
      • 1. Atlanta 2. Raleigh 3. Las Vegas 4. Portland 5. Jacksonville 6. Denver 7. Austin 8. Phoenix 9. Sacramento 10. Tuscon
    • For example, the report says that growth in senior share of population from 2010 to 2014 in Atlanta is 20.3%, Raleigh 18.1%, Las Vegas 17.7%
  • See the chart below for a report on where more people are dying than being born in America[10]
  • America's fastest-growing cities 2016
    • 1. Austin, TX 2. San Francisco, CA 3. Dallas, TX 4. Seattle, WA 5. Salt Lake City, UT 6. Ogden, UT 7. Orlando, FL 8. San Jose, CA 9. Raleigh, NC 10. Cape Coral, FL 11. Denver, CO 12. San Diego, CA 13. Oakland, CA 14. Charlotte, NC 15. Phoenix, AZ 16. Portland, OR 17. Boise City, ID 18. Las Vegas, NV 19. North Port, FL 20. Fort Lauderdale, FL 
From the above reports, we can safely guess that Las Vegas is a retirement magnet and not the other way around.

Crime Rates


Las Vegas is a sin city.  So, you don't expect its crime rate be low.  In a bigger context, Nevada state is ranked 16 in a report—Top 20 states with the highest rates of death by gun:[5]
1. Alaska 2. Louisiana 3. Mississippi 4. Alabama 5. Arkansas 6. Wyoming, Montana 8. Oklahoma 10. Tennessee, New Mexico 11. South Carolina 12. Missouri 13. West Virginia 14. Arizona, Idaho 16. Nevada 17. Kentucky 18. Indiana 19. Utah, Georgia
In a smaller context, Las Vegas is ranked similarly to the following metro areas in the US:
  • Phoenix (AZ), St. Petersburg (FL), Tampa (FL), Boston (MA), Toledo (OH)
based on the "frequency of murder and non-negligent manslaughter" rating.

However, the city named Henderson in the suburb of Las Vegas has been ranked as bottom No. 2 (i.e., one of the safest metros) on the list.[12]

Other Considerations


Not classified in the above sections, we have listed other considerations here:
  1. Temperature[11]
    • One of the drawbacks of living in the desert area—where Las Vegas is located—is its dryness and temperature.  The recent drought in the West and global climate warning makes this situation worse.
  2. National Parks
    • There are great National Parks nearby which include:
      • Grand Cayon N.P.
      • Zion N.P.
      • Bryce N.P.
      • Death Valley N.P.


References

  1. Our Top 5 Reasons to Visit Las Vegas
  2. Most Tax-Friendly States in the U.S.
    • 1. Delware 2. Wyoming 3. Alaska 4. Louisiana 5. Alabama 6. Mississippi 7. Arizona 8. New Mexico 9. Nevada 10. South Carolina 
  3. Which States Tax Social Security Retirement Benefits?
    • Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.
  4. Top 15 Most Tax-Friendly States for Retirees
    • 1. Alaska 2. Wyoming 3. Nevada 4. Mississippi 5. Georgia 6. Delaware 7. Arizona 8. Louisiana 9, South Dakota 10. Florida 11. Pennsylvania 12. South Carolina 13. Kentucky 14. Colorado 15. Arkansas 
  5. Death by gun: top 20 states with highest rates
    • 1. Alaska 2. Louisiana 3. Mississippi 4. Alabama 5. Arkansas 6. Wyoming, Montana 8. Oklahoma 10. Tennessee, New Mexico 11. South Carolina 12. Missouri 13. West Virginia 14. Arizona, Idaho 16. Nevada 17. Kentucky 18. Indiana 19. Utah, Georgia
  6. 5 States Where the Middle Class Is Being Destroyed
    • 1. Wisconsin 2. Ohio 3. North Dakota 4. Vermont 5. Nevada
  7. States With the Highest (and Lowest) Property Taxes
    • 1. New Jersey 2. Illinois 3. New Hampshire 4. Connecticut 5. Wisconsin 6. Texas 7. Nebraska 8. Michigan 9. Vermont 10. Rhode Island 11. New York 12. Ohio 13. Pennsylvania 14. Iowa 15. Kansas 16. South Dakota 17. Maine 18. Massachusetts 19. Minnesota 20. Alaska 21. North Dakota 22. Maryland 23. Washington 24. Oregon 25. Florida 26. Missouri 27. Georgia 28. Oklahoma 29. Nevada 30. Montana 31. Indiana 32. North Carolina 33. Kentucky 34. California 35. Mississippi 36. Arizona 37. Virginia 38. Tennessee 39. Idaho 40. New Mexico 41. Utah 42. Arkansas 43. Wyoming 44. Colorado 45. West Virginia 46. South Carolina 47. Delaware 48. Louisianan 49. Alabama 50. Hawaii
  8. The Best And Worst States For Taxes
    • Big three: income , sales and property taxes
    • 1. Wyoming 2. Alaska 3. South Dakota 4. Texas 5. Louisina 6. Tenessee 7. New Hampshire 8. Nevada 9. South Carolina 10. Alabama 11. Mississippi 12. Oklahoma 13. Montana 14. New Mexico 15. North Dakota 16. Georgia 17. Arizona 18. Missouri 19. Colorado 20. Florida 21. Virginia 22. Iowa 23. Utah 24. Washington 25. Kansas 26. Nebraska 27. Idaho 28. Kentucky 29. Indianna 30. Michigan 31. Haiwaii 32. West Virginia 33. Ohio 34. North Carolina 35. Oregon 36. Delaware 37. Maine 38. Illinois 39. Arkansas 40. Massachusettes 41. Pennsylvania 42. Vermont 43. Rhode Island 44. Maryland 45. Minnesota 46. Wisconsin 47. California 48. Connecticut 49. New Jersey 50. New York
  9. America's most rapidly aging cities
    • 1. Atlanta 2. Raleigh 3. Las Vegas 4. Portland 5. Jacksonville 6. Denver 7. Austin 8. Phoenix 9. Sacramento 10. Tuscon
  10. Here's where more people are dying than being born in America
  11. List of United States cities by crime rate (2014)
  12. Weather Underground
  13. Federal Estate Tax (Death Tax) Planning
  14. S&P/CASE-SHILLER 20-CITY COMPOSITE HOME PRICE INDEX
  15. StateTaxes—All Things Considered (Travel to Wellness)
  16. EVERY STATE, RANKED BY HOW MISERABLE ITS WINTERS ARE

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