One of the biggest questions in the minds of those who want to retire in the United States is: How much will it cost, and how much money do I need to quit working?
The answer is somewhat different in each state, according to a recent study, which lists Texas among the more affordable places to retire.
While it may be cheaper and more convenient to live in some states as opposed to others, though, one Texas retirement advisor says it's simple: It all comes down to risk so confronting the basics of retirement planning is most important.
"Baby Boomers have their pensions, but there's not so much of that anymore," Clearwater Financial Group's Michael Masor says.
When pensions proliferated, "you didn't have to gamble your 401(k) or your IRA in the stock market. Now we, as individuals, have assumed all the risk. The companies took away all their risk by getting rid of pensions. So people who are retiring have the same problem: Lack of guaranteed income.
Retirees today are running all kinds of risks: longevity risk, inflation risk, long-term care risk, taxation risk, it's all the same and it's the same for everybody, he says, no matter what state you live in.
Masor, whose program "Safe Money and Income Radio" appears on Texas radio stations 950 KPRC and 740 KTRH, says it boils down to risk management and budgeting, and that's why it's a simple equation. Watch both risk and budgets and you can build wealth.
"Most people don't sit down and talk with someone like me who can ask, Okay, what are your monthly expenses and then think about how those can be controlled."
Before becoming concerned about where you want to make your retirement home, Masor says it's most important to know what you want to do during your retirement and then plan accordingly, with retirement locations as a later decision. .