Fortune’s Best Places to Retire? Try These 14 Affordable Alternatives Instead

Published on October 11, 2024 at 12:52 pm by Ghazal Ahmed in News, Retirement

This article looks at 14 overlooked affordable cities to retire. You may skip our detailed analysis of the American Dream and places to retire by jumping to Fortune Best Places to Retire? Try These 5 Affordable Alternatives Instead.

Fortune’s Best Places to Retire and The American Dream

Fortune recently unveiled a list of the 25 most affordable retirement destinations in the USA. American Canyon, California, leads the list, followed by Newport, Rhode Island, Santa Clara, California, Beaufort, South Carolina, and Portsmouth, New Hampshire.

“Where to retire and how to make sure it is affordable is something so many Americans think about – often well before they actually retire. We are excited to introduce this new Fortune list, which we believe will become an annual go-to list providing valuable guidance on where to look and just what affordability means for retirees in today’s economy”.

– Alyson Shontell, Fortune Editor in Chief and Chief Content Officer

While it is true that affordability is a prime factor of consideration for individuals, people have been flocking to US shores in hopes of attaining the American Dream—a popular term symbolizing the idea that anyone, regardless of their background, ambition, and determination, can achieve their highest aspirations and goals.

The question, however, is whether the American Dream is still attainable. While owning a home (s), driving new cars, raising kids well, and taking vacations are still possible, a financial media site has put a new number to it. According to a report by Investopedia, the American Dream now costs an estimated $4.4 million.

“$4.4 million sounds like a lot because it is a lot. But we’re talking about a lifetime of earnings, [ages] 25 to 65. How much money you would need to have [to reach the American Dream with] the things that we want, not necessarily need… We’re talking about having enough for retirement. Having enough to pay for a wedding, raising a couple of kids, sending them to a public university”.

-Caleb Silver, Investopedia’s editor-in-chief.

$4.4 million may seem like an unreal number, a lot more than what an average American makes over a lifetime. However, this number has been calculated based on what Americans aspire to have, beyond their necessities. Last year, the number stood at $3.4 million as it merely focused on what Americans needed. This year the number has risen because the report “looked at what people actually want, not the essentials like housing. You have to feed yourself, and you need healthcare. But all these other things, having a pet, paying for a funeral, buying a few new cars over the course of a lifetime, this adds up”.

As the conversation around The American Dream intensifies, it is only but obvious that Americans are reconsidering how and where best they can realistically achieve it, especially during retirement. While rising costs of healthcare, housing, groceries, education, and other items are making it harder to achieve financial goals, the quest for hunting down affordable domestic destinations becomes crucial for those seeking to preserve their savings and still enjoy a comfortable retirement.

For many, the idea of achieving the American Dream through homeownership and financial stability may seem out of reach in traditional locations, but by relocating to more affordable retirement destinations, they can redefine and realize their version of the dream. This shift in thinking reflects the evolving landscape of what it means to live a fulfilling and secure life in today’s world.

How to Achieve the American Dream

JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon has been emphasizing how one crucial factor is leading to a decline in the belief in the American Dream. Unequal opportunities, to be specific, are the reason for the decline. Dimon advocates for reforms that enhance educational access and affordable homeownership, arguing that many inner-city and rural schools fail to equip students with essential job skills. He also calls for changes to mortgage policies and the earned income tax credit to better support low-income individuals.

JPMorgan Chase & Co. (NYSE:JPM) is a leading multinational bank with a forward P/E ratio of 11.93 and a trailing twelve months (TTM) net income of $52.21 billion, reflecting a 9.53% CAGR over five years. As of June 30, the bank held $4.1 trillion in assets and is well-positioned for success due to its diversified business model, despite potential challenges from lower net interest income as the Fed cuts rates.

Investing can play a crucial role in helping individuals achieve the American Dream by allowing them to build wealth over time. By diversifying their investment portfolios—through stocks, bonds, or real estate—individuals can potentially realize significant returns that outpace inflation and increase their financial stability.

While we acknowledge the potential of JPM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Methodology

We created our list of the affordable alternatives to Fortune’s best places to retire by analyzing several key factors, including the cost of living, median home prices, job opportunities, and overall quality of life. These criteria help ensure that retirees can find affordable housing and maintain financial stability while enjoying a comfortable lifestyle. By considering these factors, we aim to highlight Affordable Alternatives to Fortune’s Best Places to Retire.

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Here are 14 Affordable Alternatives to Fortune’s Best Places to Retire

14. Magnolia Springs, Alabama

Insider Monkey Score: 7

IM Cost of Living Index: 90.4

Livability Score: 67

If you’d like to experience unique mail delivery by the Magnolia River, experience Southern hospitality at its best, and devour Gulf-fresh seafood, this charming town in South Alabama is the place to be. Magnolia Springs allows retirees to live an affordable yet peaceful lifestyle, offering them the chance to live their version of the American dream.

13. Jim Thorpe, Pennsylvania

Insider Monkey Score: 9

IM Cost of Living Index: 89.5

Livability Score: 70

Nestled in the Pocono Mountains, Jim Thorpe is perfect for retirees seeking a unique experience reminiscent of a European village, all while providing the excitement of a mountain sports destination. This beautiful borough is often known as the “Switzerland of America” due to its scenic landscapes and mesmerizing beauty. Residents get to enjoy lots of hiking, biking, and river activities.

12. Greenville, South Carolina

Insider Monkey Score: 12

IM Cost of Living Index: 92.2

Livability Score: 82

Another often overlooked retirement destination where retirees can settle down is Greenville in South Carolina. From its affordable cost of living to its thriving cultural scene, rich arts and entertainment, and mild winters, Greenville stands out as a solid choice for one’s golden years.