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

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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.

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. 

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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.

11. Sharpsburg, Pennsylvania

Insider Monkey Score: 13    

IM Cost of Living Index: 89.4          

Livability Score: 75

Graced by waterfalls and mesmerizing mountain views, Sharpsburg in Pennsylvania offers retirees a tight-knit community and an affordable place to call home. Besides lakes, parks, and trails, there are abundant theaters, galleries, and boutiques to explore. The culinary scene is also superb-all the more to call this place one’s home.

10. Bentonville, Arkansas

Insider Monkey Score: 13    

IM Cost of Living Index: 92.3          

Livability Score: 83

Known for its small-town charm and extensive natural beauty, Bentonville has so much that it has to offer. Retirees can enjoy outdoor activities with the nearby Ozark Mountains, and attend cultural events and festivals throughout the year. Overall, this hidden gem combines small-town charm with modern conveniences, making it a great choice for retirement.

9. San Antonio, Texas

Insider Monkey Score: 13    

IM Cost of Living Index: 91.6          

Livability Score: 82

San Antonio, Texas, boasts an affordable cost of living and a solid livability score, making it an appealing destination for retirees. Rich in history and culture, the city offers a blend of Tex-Mex cuisine, historic sites, and vibrant festivals.

8. Louisville, Kentucky

Insider Monkey Score: 13    

IM Cost of Living Index: 85.4          

Livability Score: 66

Sitting along the Ohio River, Louisville in Kentucky is another good choice for retirees looking for a blend of affordability, a vibrant culinary scene, and a rich cultural heritage. Living expenses here are 14.6% lower than the national average. Besides its affordability, Louisville is known for its beautiful parks and recreational spaces, healthcare facilities, and friendly community atmosphere.

7. Alton, Illinois

Insider Monkey Score: 13    

IM Cost of Living Index: 83.3          

Livability Score: 65

Alton is a city on the Mississippi River offering a charming riverside community lifestyle. Offering stunning views and a rich history, including beautiful historic homes and landmarks, seniors will love it for its beauty and amenities. The city also boasts a friendly, tight-knit community, ideal for retirees looking to make connections and engage in local activities.

6. Biloxi, Mississippi

Insider Monkey Score: 15    

IM Cost of Living Index: 88.3          

Livability Score: 78

Seniors with a deep affection for the beaches and casinos will love Biloxi, Mississippi for all that it offers. The state doesn’t tax any sort of retirement income, which makes it tax-friendly for retirees. Biloxi, in particular, is a coastal town where retirees will love to indulge in seafood, abundant recreational activities, and its laid-back lifestyle.

5. Lindale, Texas

Insider Monkey Score: 17    

IM Cost of Living Index: 87.6

Livability Score: 80

One of the most affordable places to retire in the USA is Lindale, Texas. Living expenses in Lindale are 12.4% lower than the national average. Texas as a state is a sound retirement choice for its tax-friendliness and abundance of recreational activities. Lindale’s charm, in particular, makes it an excellent option for those looking to settle down.

4. Springfield, Missouri

Insider Monkey Score: 18    

IM Cost of Living Index: 79.0          

Livability Score: 72

Springfield, Missouri, is an affordable retirement destination with a cost of living index of 79.0. Its livability score of 72 highlights the city’s diverse recreational options, including parks, museums, and a thriving arts scene. Retirees can enjoy a low-stress lifestyle while benefiting from affordable housing and a variety of local amenities.

3. McAllen, Texas

Insider Monkey Score: 20    

IM Cost of Living Index: 78.3          

Livability Score: 74

One of the best places to retire in the US, McAllen appeals to retirees with its year-round sunshine, tropical climate, vibrant arts scene, and of course, its affordable cost of living.

2. Des Moines, Iowa

Insider Monkey Score: 21    

IM Cost of Living Index: 86.8          

Livability Score: 83

Another vibrant city, Des Moines is known for its excellent healthcare facilities, strong arts scene, and wide range of recreational opportunities. Besides its reasonable cost of living, Des Moines is also known to be very safe for families and retired citizens. The city offers a blend of urban amenities and outdoor spaces, making it ideal for those who enjoy city life but still want access to parks and nature.

1. Fort Wayne, Indiana

Insider Monkey Score: 24   

IM Cost of Living Index: 86.5         

Livability Score: 84

Situated in northeastern Indiana, Fort Wayne tops our list due to its affordability, livability, community vibe, and outdoor recreation opportunities. This happy city offers retirees hundreds of miles of biking, hiking, and kayaking trails, peaceful forests, and meandering rivers. Retirees also love it for its stunning parks, pleasant weather, and seasonal festivals.

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Disclosure: None. This article was originally published on Insider Monkey.