Retirement is arguably a worker’s most important milestone, but it may be easier in some states than others.

With the cost of retirement expected to increase substantially in coming years, combined with a growing shift away from pension plans and toward individual 401(k) plans, the choice of where to spend the golden years is becoming as crucial as ever. According to a recent report from Bankrate, which took into account factors like affordability, weather and violent crime, some of the lowest-ranking states were Louisiana, Texas and Oklahoma. The big winners included New Hampshire, Maine and Wyoming.

“This is meant not to disparage any given state,” said Stephen Kates, a financial analyst at Bankrate who helped author the study, adding that Louisiana has higher crime rates and worse healthcare outcomes. “For retirees, that matters.”

Taking (Tax) Advantage

New Hampshire topped the list and was dubbed the best state to retire by Bankrate because of its neighborhood safety and good healthcare outcomes. Its high ranking could also be due to the state’s lack of income tax and sales tax — combined with its repeal, earlier this year, of a state interest and dividends tax — according to Colin Walker, a co-founder of CoFi Advisors based in New Hampshire. These factors, as well as good weather, hiking trails and beaches, have made the state a hotspot for high-net-worth retirees fleeing New York and Massachusetts, he added. “It’s becoming more expensive because there’s such a demand here now,” Walker said. “I’m not surprised that it ranked high.” Other outperforming states included:

• Maine, which ranked second overall because of its high numbers of senior residents, low levels of violent crime and good healthcare outcomes.
• Wyoming, which was third overall and scored first in the tax category because it doesn’t have an individual income tax; it ranked fourth overall in terms of affordability.
• Vermont, which scored poorly on weather, but highly in terms of the number of arts venues and of senior residents.

The report’s bottom-ranking states, however, still benefit from low taxes and high affordability, said Mark Green, president of GFG Wealth Advisors, a firm based in College Station, Texas. Texas ranked last in healthcare in part because it has the highest ratio of people who defer care due to the cost, but its lack of a state income tax and more affordable housing make it an attractive option for many looking to escape northern snows, according to Green. “Here in Texas, in certain places, housing is definitely affordable,” Green said. “We’ve got major healthcare facilities throughout the state, especially in the metropolitan areas… I think that’s a big deal.”

To Go, or Not to Go. More than any metric, what ends up pushing retirees toward certain states is personal relationships, said Judson Meinhart, a principal at Modera Wealth Management based in North Carolina, which had a middle-of-the-road ranking of 26th. “They want to be close to family, they want to be close to friends, to their social networks,” Meinhart said. “I don’t see many folks picking up and going to West Virginia just because it’s more walkable.”

Artificial intelligence has proven to be a competent co-pilot for note-taking, document organization and compliance checks. But if Microsoft’s predictions are right, AI may soon be saying: “I’m the captain now.”

In a recent report, the tech giant ranked 40 jobs by AI applicability, placing advisors at No. 30, between data scientist and archivist. While that may sound threatening given the years it takes to learn the trade and build a book of business, many in the industry aren’t worried about being replaced. Clients still want customized financial plans and a human they can talk to in moments of doubt.

“We saw this with robo advisors in the early 2000s and the 2010s,” said Scooter Thomas, a CFP with Savant Wealth Management. “When someone is putting their life’s savings into your care, they want to be able to call you and ask if everything is going to be alright, and hear an empathetic person on the other end of the phone.”

Mo Money, Mo Problems

Most AI programs excel at pulling and analyzing vast amounts of data. It makes sense for roles like interpreter and translator to be at the top of Microsoft’s list. But financial advising is more nuanced, said Adrian Johnstone, CEO of Practifi, a CRM platform. “Looking back at market trends and the impact of geopolitical events is one part of the equation,” he told Advisor Upside. “The other part is understanding an individual’s needs and drivers.”

Tools like ChatGPT and Gemini can answer basic investor questions, but actual financial planning may still require human assistance. “The more wealth you have, the more important it is to have a human advisor,” said Stephen Caruso, associate director of wealth management at Cerulli. He added that much of an advisor’s value comes from managing emotions, something AI just can’t do right now. Caruso pointed to a recent Cerulli and Edward Jones study showing that advised clients with a financial plan had fewer emotional reactions to this year’s economic turmoil than those without advisors. “Their portfolios were still exposed to intraday market shocks,” he told Advisor Upside, “but from an emotional perspective, they knew where their plans were.”

For any advisor still fretting over AI replacing them, don’t feel too bad. Some have it worse: journalist was No. 16 on the list. *Gulp*.

A mind is a terrible thing to waste. It can also be expensive to support.

While a college degree helps set people up for success, its cost is a growing concern. Nearly half of college-bound students say price is the most important factor in deciding where or how to pursue higher education, up from 40% in 2021, according to a Fidelity study. Meanwhile, 60% of parents are concerned that market uncertainty will affect their ability to pay. Advisors can ease those concerns by including both parents and children in meetings.

“While kids sometimes start out nonchalant, seeing real numbers often triggers an ‘aha’ moment,” said Patrick Huey, owner of Victory Independent Planning.

Bring the Kids

A tough but important conversation occurs when an advisor has to recommend against a child’s dream school, especially when that first pick could result in decades of debt. “I wouldn’t hesitate to do the same for my own family if the numbers don’t work,” Huey told Advisor Upside.

It’s best to remind clients that deciding on a college should be treated more as a financial decision than an emotional one, said Alvin Carlos, an advisor with District Capital Management. “You don’t have to go to an Ivy League school and break the bank in the process to set your kid up well.”

Class Is in Session. The average US college cost tops $38,000 per year, including books, supplies, and living expenses, according to the Education Data Initiative. Pandemic disruptions, family challenges and economic volatility have pushed more students toward affordable options, the Fidelity study found:

• Public in-state colleges remain the top choice for students at 35%, up one percentage point from 2021.

• Public out-of-state interest dropped to 9% from 14%. However, interest in private schools showed the exact opposite.

• Interest in vocational schools remains low at 6% but has tripled in popularity since 2021.

A strategy like a 529 plan is a tried and true method for clients to save for their children’s education. But there are a few other tactics advisors could suggest to more cost-conscious clients. “Merit aid hunting is underrated,” Carlos told Advisor Upside. “Applying to schools where the student is at the top of the applicant pool can lead to big discounts.” He added that starting at a community college and transferring can cut costs in half. “You can find a sweet spot between a great education and a price tag that doesn’t mortgage the future,” Carlos said.