'GMA' Quick Tip: Where to Retire

Feb. 16, 2011

VIDEO: Mellody Hobson suggests great locations to settle down for your later years.

(ABCNEWS.com)

Retirement is a fun and exciting time, but planning for it can be complicated. "Good Morning America" personal finance contributor Mellody Hobson is here to help answer your questions.

Proximity to Hospitals

There's a lot to consider when you retire. So, before you move to Istanbul or Florida don't forget about your health. As people live longer, they visit hospitals more often and take more prescriptions. Check the proximity of hospitals, pharmacies, exercise facilities and anything else that will help keep you fit and healthy.

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Check Out Local Tax Laws

Taxes are another thing to consider. Imagine what you could save from living in a no-income tax state like Florida or a no sales tax state like Delaware, or if you have an adventurous spirit, a state with neither like Alaska. Bankrate.com has state by state comparisons for income, sales, property, and estate taxes so you can get the most bang for your buck.

Try a College Town

Once you have taken care of the basics -- health and taxes -- think about where your money will stretch the farthest. Interesting places to consider are college towns. These are usually tight-knit communities where the cost of living is lower, with a well-educated and diverse population. They pack the amenities of a big city into a smaller town. You'll have access to state-of-the-art university medical facilities, libraries, theater and even live sporting events. Another plus is transportation – college towns usually have great bus systems and are generally near transportation hubs like airports or train stations. With everything so close, you may not even need a car, so you can spend your gas and insurance money on something far more fun.

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