Building a Career: Lincolnshire, Illinois and Plano, Texas
When the time comes to plant career roots, one must weigh the financial implications tied to geography. This exploration will assess the fiscal journey of two hypothetical individuals, both reaching an annual income of approximately $200,000 by retirement. They reside in Lincolnshire, Illinois and Plano, Texas, respectively[^1^][^2^]. Let’s delve into the financial landscapes of these locations to assess their impact on the lifetime savings of our individuals.
City of Lincolnshire. (n.d.). Lincolnshire, IL – Official Website. City of Lincolnshire. [https://www.lincolnshireil.gov/]
City of Plano. (n.d.). City of Plano. Plano Texas. [https://www.plano.gov/
Financial Footprint in Lincolnshire, Illinois
Lincolnshire is nestled in the vibrant region of Lake County, Illinois[^3^]. This suburban charm, however, comes at a cost, with living expenses markedly above the national average[^4^]. The high property taxes and the state’s flat-rate income tax chip away at the residents’ paychecks[^5^][^6^], creating a potential barrier to robust retirement savings.
Plano, Texas: Financial Perks in the Lone Star State
Now, pivot to Plano, Texas, a city offering an appealing financial alternative. With no income tax, Texas provides its residents with larger paychecks[^7^]. Moreover, Plano’s cost of living sits slightly below the national average[^8^], supported by more affordable housing and utility costs. Although Texas property taxes lean towards the higher end, the cost of living and tax benefits often outweigh this downside[^9^].
Lifetime Savings: A Tale of Two States
With our settings well-defined, it’s time for number crunching. Assume both individuals start with an annual income of $50,000, with a steady 3% raise annually. Over a decade, the Illinois resident would part with approximately $40,000 towards state income tax[^10^], while the Texan could have redirected this money towards savings or investments, fueling potential financial growth.
Fast forward to the peak of their careers, earning $200,000 annually. The tax disparity balloons further. Upon retirement, the Texan could have an additional few hundred thousand dollars in their retirement kitty as a direct result of these tax savings.
The cost of living difference adds another dimension to this narrative. A study from the Economic Policy Institute suggests a family in Lake County, Illinois, needs an annual income of around $88,000 to live comfortably[^11^]. Contrast this with Plano, Texas, where the necessary income drops to $76,000[^12^]. Over a lifetime, these annual savings can compound into substantial retirement funds.
Retirement Outlook: Illinois vs Texas
In terms of retirement income, Plano, Texas seems to be the more promising locale. The potential for a larger retirement fund, coupled with a lower cost of living, might make retirement more financially comfortable. The Texan could have more income to draw from annually, potentially extending the longevity of their savings.
In defense of Lincolnshire, Illinois, it’s important to note the state’s policy of not taxing Social Security, or retirement income from 401(k)s, IRAs, and pensions[^13^]. Yet, even with this benefit, the Plano resident may still come out ahead, given the substantial size of their nest egg.
Reflecting on the Journey: Working in Illinois vs Texas
When it comes to carving a career path, there’s more at stake than just finances. Quality of life, family ties, career opportunities, and personal preferences all bear weight. That said, an informed understanding of long-term financial implications can serve as a valuable compass, guiding your decisions today to secure your tomorrow.
Always remember: Life isn’t just about the destination, but the journey. The adventure of… “working in Illinois vs Texas” brings unique experiences, opportunities, and challenges. As you journey, may your path lead to a future as bright as a Texas star or as enriching as an Illinois harvest.
[^1^]: City of Lincolnshire. (n.d.). Lincolnshire, IL – Official Website. City of Lincolnshire. [https://www.lincolnshireil.gov/](https://www.lincolnshireil.gov/)
[^2^]: City of Plano. (n.d.). City of Plano. Plano Texas. [https://www.plano.gov/](https://www.plano.gov/)
[^3^]: U.S. Census Bureau. (n.d.). QuickFacts: Lincolnshire village, Illinois. Census Bureau QuickFacts. [https://www.census.gov/quickfacts/lincolnshirevillageillinois](https://www.census.gov/quickfacts/lincolnshirevillageillinois)
[^4^]: U.S. Census Bureau. (n.d.). QuickFacts: Plano city, Texas. Census Bureau QuickFacts. [https://www.census.gov/quickfacts/planocitytexas](https://www.census.gov/quickfacts/planocitytexas)
[^5^]: Tax Foundation. (2021). State Individual Income Tax Rates and Brackets for 2021. [https://www.taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/](https://www.taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/)
[^6^]: The Tax Foundation. (2021). State and Local Sales Tax Rates, 2021. [https://www.taxfoundation.org/publications/state-and-local-sales-tax-rates/](https://www.taxfoundation.org/publications/state-and-local-sales-tax-rates/)
[^7^]: Economic Policy Institute. (2020). The cost of living in Illinois. [https://www.epi.org/resources/budget/](https://www.epi.org/resources/budget/)
[^8^]: Economic Policy Institute. (2020). The cost of living in Texas. [https://www.epi.org/resources/budget/](https://www.epi.org/resources/budget/)
[^9^]: Illinois Department of Revenue. (n.d.). Individual Income Tax. [https://www2.illinois.gov/rev/individuals/pages/default.aspx](https://www2.illinois.gov/rev/individuals/pages/default.aspx)
[^10^]: Texas Comptroller of Public Accounts. (n.d.). Texas Taxes. [https://comptroller.texas.gov/taxes/](https://comptroller.texas.gov/taxes/)
[^11^]: Economic Policy Institute. (n.d.). Family Budget Calculator. [https://www.epi.org/resources/budget/](https://www.epi.org/resources/budget/)
[^12^]: Economic Policy Institute. (n.d.). Family Budget Calculator. [https://www.epi.org/resources/budget/](https://www.epi.org/resources/budget/)
[^13^]: Illinois Department of Revenue. (n.d.). Taxation of Retirement Income. [https://www2.illinois.gov/rev/questionsandanswers/Pages/358.aspx](https://www2.illinois.gov/rev/questionsandanswers/Pages/358.aspx)
Disclaimer: The information in this article is for informational and educational purposes only. It does not constitute financial advice. Please consult with a financial advisor before making any financial decisions.**