Geographic Arbitrage in Retirement: Five American Cities for Budget Retirees

I sing the praises of geographic arbitrage for physicians during their working years. Doctors have the somewhat unique ability to earn more money in places with a lower cost-of-living. A true win-win.

You don’t have to be a physician to take advantage of lower cost of living as a retiree. If you’re no longer working or holding down a job that’s location independent, you can live somewhere that costs less and meets the other criteria on your wish list.

Here you learn about a few places where you could take advantage of geographic arbitrage as a retiree, and start dreaming about your ideal spot!

Five American Cities for Budget Retirees

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At the top of retirees’ location-choosing criteria is walkability, affordability, and offered amenities. Many retirees want to live in neighborhoods that are easily accessible to restaurants, entertainment, and shopping.

Birmingham, Alabama Has Cheap Housing

One city that meets all of those criteria, is Birmingham, Alabama, which has been ranked high on its list of low-cost places to retire. Not only does Birmingham have plenty of cheap housing, it offers affordable healthcare and lots of amenities that retirees enjoy.

Detroit Residents spend on average just over $3,000 a year on housing and healthcare costs around $6,000 a year. With plenty of parks, museums, theaters, art exhibits, and other activities, there is enough to keep retirees busy.

Detroit Seeks out-of-the Box Retirees

Florida may be an ideal location to retire to. Florida has zero state income tax. Property taxes aren’t out of whack either, and retirees don’t have to worry about a state inheritance or estate tax if they live in Florida. 

Florida for Tax-Conscious Retirees

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