Two most critical considerations for retirement

Where you live and your steady income stream.

My net Social Security payment won’t cover my property taxes $1166/ month and HOA fees $900/month let alone other basic expenses, but mostly because where we live – the highest property tax state in the country and one of the highest taxed overall. Where you live will also affect other things like health care costs, including Medicare supplemental plans and your utility bills too.

Here are a few examples of how people live in different states. So, when it is an option, where you live can have a great impact on how you live, but of course that may not be your main consideration.

But we’re in good shape when it comes to property taxes, thanks to generous homestead and over-age-65 exemptions. For our comfortable 2,800-square-foot home on a one-acre lot in a nice neighborhood, we pay $2,619 a year in taxes, plus our annual homeowners’ association fees are just $195.

Social Security benefit is sufficient to cover our mortgage, property taxes, homeowner’s insurance and utilities — even the DirecTV bill.

My benefit (after tax withholding and Medicare premium) will be enough to cover our mortgage payment ($1100/month), our property taxes ($120/month), our homeowner’s insurance ($100/month) and utilities ($250/month). We’ll have enough left over to pay for a few other things as well.

As far as income goes, when planning for your retirement focus on income not accumulated investments. In that process look to creating a steady income stream not heavily dependent on the gyrations of the stock market.

That means leverage to your advantage: Social Security, a pension (if available), an immediate annuity (with a portion of savings), interest payments from various sources and dividends.