Your Retirement Life: Don't Pay Too Much for Your Big Macs

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Since 1986, The Economist has published its Big Mac Index. The index is a lighthearted way of viewing purchasing power across national borders. The theory is that a McDonald’s Big Mac uses the same ingredients and labor from one country to another, so when prices are compared in dollar terms, the differences in the purchasing power of money between locations is easy to see. In the latest reading, Russia has the cheapest Big Mac, at only $1.65. Fluctuating currency valuations can have a big impact on the index when dealing with different countries.

When comparing the U.S. states, however, currency effects are not a factor. You can see via the Cost of Living Index below that different states can have vastly different costs. Is it any wonder so many Americans are moving for retirement from high tax, high cost states to those with low taxes and low costs of living? See where your state shows up on the 2018 Annual Cost of Living Average released by the Missouri Economic Research and Information Center (MERIC).

If you’re about to retire, and you’re looking for a change, consider doing a little Big Mac research of your own. First visit the McDonald’s in your high tax home town, then when you’re scoping out your possible retirement destination, compare the price of a Big Mac there. It’s not very scientific, but it could be fun.

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2018 Annual Cost of Living Average – MERIC
State	Rank	Index	Grocery	Housing	Transportation	Utilities	Health Care	Misc
Mississippi	1	85.7	91.4	70.8	91.6	90.6	91.4	94.2
Oklahoma	2	88.1	92.5	74.6	92.7	95.7	95.4	95.5
Arkansas	3	88.4	96.5	76.4	90.9	91.1	85.9	91.2
Missouri	4	88.8	93.0	73.5	93.8	99.5	98.0	98.0
Michigan	5	89.3	94.6	78.0	101.0	96.6	92.8	85.9
Alabama	6	89.5	97.0	72.4	92.1	104.6	87.9	96.0
Tennessee	7	89.5	94.1	80.3	90.8	95.2	88.0	93.9
Kansas	8	89.7	93.7	76.5	95.8	102.4	96.5	93.4
Indiana	9	90.1	96.6	76.7	97.2	96.6	95.2	92.0
Wyoming	10	90.5	92.6	79.8	95.5	92.8	94.5	102.2
Georgia	11	91.2	97.7	76.8	97.4	92.2	96.9	98.9
Texas	12	91.3	94.0	84.3	94.4	101.0	95.2	89.9
Iowa	13	91.8	95.4	80.3	97.9	99.7	97.1	96.3
Kentucky	14	91.8	99.4	80.9	98.3	96.2	90.9	88.9
New Mexico	15	92.8	94.2	84.1	96.2	90.0	102.2	104.5
Ohio	16	92.8	100.8	77.2	101.4	93.2	96.1	99.2
Nebraska	17	93.3	94.6	88.4	99.9	91.2	98.9	95.4
Louisiana	18	93.6	97.0	86.8	96.6	89.6	94.9	100.4
North Carolina	19	94.0	100.5	83.0	93.9	95.3	107.5	96.0
Idaho	20	94.2	98.0	86.9	107.9	87.6	100.2	93.1
West Virginia	21	94.7	103.1	88.6	87.1	89.3	91.6	96.0
Illinois	22	95.7	98.6	88.2	104.2	96.7	100.3	97.0
Wisconsin	23	95.8	97.7	88.8	101.7	96.6	112.9	96.4
Arizona	24	97.7	94.8	95.6	103.3	107.7	95.8	99.6
Utah	25	98.2	99.8	95.0	103.3	93.5	96.8	101.0
South Carolina	26	98.3	104.7	87.4	92.7	108.4	101.0	101.8
South Dakota	27	98.5	99.0	100.5	92.3	92.2	105.1	99.4
Pennsylvania	28	98.6	98.9	93.1	107.1	106.8	92.3	100.4
North Dakota	29	98.7	98.7	94.4	104.1	92.0	111.8	105.1
Florida	30	98.9	98.2	96.1	99.2	101.3	95.5	106.2
Minnesota	31	101.5	109.1	89.4	102.6	98.1	111.4	106.6
Virginia	32	102.0	100.3	111.9	89.4	97.7	100.4	96.6
Montana	33	104.0	104.6	110.5	95.4	86.6	105.4	105.5
Colorado	34	105.5	100.2	120.7	104.8	86.2	102.2	100.6
Delaware	35	106.0	112.0	101.4	103.9	100.0	99.3	108.0
Nevada	36	108.3	103.3	119.2	110.3	88.9	107.4	109.2
New Hampshire	37	109.3	114.2	106.9	97.4	115.0	117.1	103.8
Washington	38	109.5	108.4	114.4	114.1	90.6	119.0	108.1
Maine	39	117.2	117.7	125.4	104.6	113.5	116.6	109.6
Vermont	40	118.7	105.8	144.1	110.8	117.6	102.7	108.1
New Jersey	41	122.5	110.9	155.0	110.3	107.0	105.1	105.4
Rhode Island	42	122.5	118.1	142.1	102.3	121.2	111.0	109.4
Connecticut	43	128.8	121.5	155.4	116.3	113.7	118.8	111.1
Alaska	44	130.6	117.0	138.1	119.8	150.8	146.3	138.8
Oregon	45	131.2	112.9	182.2	116.8	88.1	111.2	112.3
Maryland	46	131.3	109.0	189.9	106.7	105.9	91.1	107.6
Massachusetts	47	133.8	120.4	174.4	111.9	111.6	120.8	113.9
New York	48	135.7	112.7	197.1	107.9	105.5	103.9	110.6
California	49	138.7	111.2	196.1	122.0	121.6	110.8	116.6
District of Columbia	50	162.9	127.7	268.2	102.7	115.6	99.6	116.9
Hawaii	51	190.1	124.2	311.0	140.7	172.1	116.3	165.9
US Average		100.0	100.0	100.0	100.0	100.0	100.0	100.0

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.