2008 Best Places to Retire

6 terrific towns on the water

From: Dunedin/FL.com

Dunedin, FL

Many baby boomers dream of retiring somewhere by the water. These half-dozen places are on a lake, a river or an ocean — yet they won't sink your retirement budget.

1. Dunedin, FL

Pros: Less crowded and less expensive than many towns on the Atlantic side of the state.

Cons: Hurricanes are possible.

Just a few miles north of Clearwater and 20 miles west of Tampa, Dunedin (pronounced dun-eed-in) was settled by Scotsmen in the late 19th century. Morning rush hour is a steady flow of walkers, joggers and bikers cruising the 37-mile Pinellas Trail or heading over the causeway to Honeymoon Island State Park, a 385-acre recreation area with four miles of beach and more than two miles of nature trail.

Beaufort Regional Chamber of Commerce

2.  Beaufort, SC

Pros: Great medical care — the local hospital is affiliated with Duke University.

Cons: Taxes can take a bite out of your savings.

When Hollywood movie scouts need the quintessential southern setting, they frequently call on Beaufort. Tucked among South Carolina's Sea Islands, this 300-year-old town with antebellum mansions and moss-covered oaks has been the backdrop for such blockbusters as Forrest Gump, Prince of Tides and The Big Chill.

Courtesy: City of Sequim

3. Sequim, WA

Pros: Water, mountains, culture and a small town all at once.

Cons: The Pacific is a tad nippy for a swim.

Located two hours north of Seattle, Sequim (pronounced skwim) offers a lower cost of living and an easier pace than its burgeoning neighbor to the south. For about $300,000, you can get a three-bedroom house there.

Courtesy: Durango Area Tourism Office

4. Durango, CO

Pros: Outdoor paradise with mild four-season weather.

Cons: Home prices aren't cheap.

If you don't think of Colorado as having much water, you clearly haven't been to Durango. Its name originates from the Basque word for "water town," thanks to the mighty Animas River, which flows almost parallel to Durango's Main Avenue. Vacationers flock here to kayak (the Animas has Class V rapids), wield their fly-fishing gear (rainbow and brown trout are plentiful) or simply take in water views (either from the town's 14,000-foot peaks, laced with hiking and biking trails, or from the network of shady parks that abut the river).

Photo: Pat Moody; Courtesy: City of St. Joseph

5.  St. Joseph, MI

Pros: Great medical care; lots to do.

Cons: Winter winds off the lake can be mighty chilly.

Long, sandy beaches, clear blue water, brilliant sunsets...in Michigan? You bet. The stretch of Lake Michigan coastline that hugs the western border of the state has all the charm of the seashore, only without the stinging jellyfish, blanket-to-blanket crowds and impossibly high home prices. While lots of appealing little towns dot this "Riviera of the Midwest," St. Joseph — with its vibrant year-round community, topnotch medical care and proximity to Chicago — stands out.

Courtesy: Marble Falls/Lake LBJ Chamber of Commerce

6.  Marble Falls, TX

Pros: Plenty of affordable property right near the water.

Cons: Summer temperatures can hit the triple digits.

Until recently, this little town in the hill country 47 miles northwest of Austin was a well-kept secret. But word has leaked out of the Lone Star State that this area isn't just a refuge from high home prices. With its gently rolling terrain, stately trees, colorful wildflowers and — increasingly — vineyards and fine cuisine, it's a little piece of Provence in the big ole state of Texas.