6 Reasons People Are Moving to Scottsdale … and 6 Things to Consider When Doing So
At ARQ Wealth Advisors, we meet a lot of people who recently relocated to Arizona, and we’re not surprised – Arizona has always been a popular place to retire. But it’s also becoming home to more younger folks and pre-retirees. Why? Here are 6 reasons people are telling us they’re moving here … and 6 things to consider when planting new roots.
1. Financial Benefits
People probably know Arizona for its warm weather, desert landscape and countless golf courses, but they may not know that Arizona also offers many financial benefits. For example, there is less taxation in Arizona than in other states. Arizona does not tax Social Security retirement benefits, and income tax rates in Arizona range from just 2.59 percent to 4.54 percent, depending on your bracket. That’s on the low side for state income taxes in the U.S.
Arizona also has an average property tax rate of just 0.84 percent, which is lower than the national average, and the seventh-lowest gas taxes in the nation, at 19 cents per gallon of regular gasoline and 27 cents per gallon of diesel.
This can affect your financial plan.
Think about it: A comprehensive financial plan should not only focus on your investments, but it should also take into consideration your expenses and lifestyle. If your plan was created based on a life in, say, California, expected future costs were more than likely pretty high. Moving to Arizona, depending on where you’re relocating from, can lower these expected costs, meaning you may need less to live out your Golden Years comfortably.
Moving to Arizona may also qualify you for in-state programs not offered elsewhere.
When you’re moving to Arizona from another state, you – and your current financial advisor – may not be aware of the some of the benefits that are available to you. It’s wise to talk with an established financial advisor in Scottsdale who knows what programs and benefits can work for you.
2. Cost of Living
Arizona also boasts a lower cost of living than in other parts of the country, according to USNews.com. The average home price in Arizona is $250,800 compared to a national average cost of $280,000.
Because of the influx in new residents, the median home values in Arizona have risen 7.9 percent in the past year.
At ARQ, we suggest meeting with your financial advisor to review your financial plan at least once a year to ensure your goals and concerns have not changed. A move can change things dramatically, as can other life-changing circumstances, such as a marriage, birth, death, divorce or job change.
3. Cost Breaks Across the Board
Whether you’re a golfer, hiker, biker, climber, white-water rafter or a baseball enthusiast, there is no shortage of activities in Arizona. In fact, if golf is your game, Arizona ranks No. 2 out of 50 best places to golf with many courses around. And of course, Scottsdale is home to the Cactus League Spring Training.
With many people vacationing here, there’s lots of opportunities to make money.
Financially, job growth is higher in Arizona than the national average. Arizona also boasts more than 50 colleges and universities, and when it comes to the average debt at college graduation, Arizona graduates come in lower than the national average.
For seniors, Arizona was the birthplace of the “active adult master planner community,” and therefore, there are no shortage of options for seniors and retirees in all price ranges.
Large expected expenses are another factor that should be integrated into a thorough comprehensive financial plan. These expenses often include things like paying for your kids’ and grandkids’ college education and caring for your parents as they age. Your financial plan should be adjusted to reflect lower possible costs to reach these goals in Arizona.
4. Health Benefits
The health benefits that Arizona offers can also affect your financial plan.
Arizona has more sunny days than any other state in the U.S., making it a popular destination for “snow birds” looking for warmer weather. The weather also proves to be beneficial for asthma sufferers.
Living longer extends the amount of money you will need to live out your Golden Years comfortably.
There is also affordable health care in Arizona.
While the national average of state-level per-capita personal health care spending per year is $8,045, in Arizona, the average is just $6,452. (Arizona had the second lowest in the U.S. in 2014.)
5. Benefits for Seniors
Arizona has always been a hot spot for retirees. In fact, according to the U.S. Census, 17.1 percent of the population in Arizona is 65 or older.
Because of this, Arizona offers many resources specifically tailored to those 65 and older.
6. Benefits for Veterans
Arizona has also always been very veteran-friendly, offering several benefits for military personnel, including property and income tax discounts and other special programs. There are also two veteran homes in the state.
Special military benefits are another reason why we suggest talking with a financial advisor who is well-established in the state in which you reside. An advisor who understands the area and is well-versed on its special benefits can better adjust your financial plan to affect your actual costs, needs, benefits and goals.
Arizona is a great place to live.
Originally from Harrisonburg, VA myself, I too relocated to Arizona in 2006 and currently live in North Phoenix with my wife and our three children. I personally believe that Arizona is a great place to raise a family and to retire.
I was introduced to the financial services industry many years ago by my father, who was a Registered Investment Advisor (RIA). When my father passed away, I helped transition his clients, and most notably, my mother. My father worked as a fiduciary financial advisor, and through this process, I learned what that term really means and how it benefits an investor. At ARQ Wealth Advisors, all of our financial advisors follow a fiduciary responsibility, and I suggest you click here to understand what that means for you. It gives me a lot of pride to carry on my father’s legacy and at ARQ Wealth Advisors, we take our role as a fiduciary very seriously.
If you’re contemplating a move to Arizona or are ready to discuss your financial situation with a local Scottsdale fiduciary financial advisor, contact me directly to see how ARQ can help. You can also access our exclusive Q form™ here. This free, user-friendly questionnaire is the first step to reviewing your current financial plan and can help establish a new strategy going forward.