Latest / Dime After Dime / 23. Retirement Relocation: Taxes, Cost of Living and Financial Planning When Moving States

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23. Retirement Relocation: Taxes, Cost of Living and Financial Planning When Moving States · Dime After Dime

• 0:00
  SPEAKER_00: This podcast is produced by Moran Wealth Management, an SEC registered investment advisor.
• 0:04
  SPEAKER_00: Nothing in this episode constitutes his personalized investment advice.
• 0:08
  SPEAKER_01: We can't control the market.
• 0:09
  SPEAKER_01: We don't know how long you're gonna live, but spending is a big thing.
• 0:12
  SPEAKER_01: That's the number one thing people can control in retirement.
• 0:16
  SPEAKER_01: You'd be surprised a ten, twenty, thirty thousand dollar reduction in costs to live have dramatic impacts.
• 0:25
  SPEAKER_00: You're listening to Dime After Dime, a Moran wealth management podcast.
• 0:29
  SPEAKER_00: Every episode, your host, Tony Steak, brings in financial professionals to discuss strategies and insights for investors who want to grow and protect their wealth.
• 0:38
  SPEAKER_00: With that, here's Tony.
• 0:42
  SPEAKER_02: I'll try to explain this for you, Aaron.
• 0:44
  SPEAKER_02: All right.
• 0:44
  SPEAKER_01: I think I know what it is.
• 0:45
  SPEAKER_02: The subject matter expert on this episode.
• 0:47
  SPEAKER_02: I know what it is.
• 0:48
  SPEAKER_02: Um I know you know what it is.
• 0:49
  SPEAKER_02: But I did.
• 0:50
  SPEAKER_02: I just moved from Wisconsin to Florida.
• 0:53
  SPEAKER_01: Congratulations.
• 0:54
  SPEAKER_01: Welcome to the free state of Florida.
• 0:56
  SPEAKER_02: I love it.
• 0:56
  SPEAKER_02: I love it.
• 0:57
  SPEAKER_02: And that that has a lot to do with if you look at all this, there's plenty of studies out there showing actually the net migration of wealth, not just people, but wealth.
• 1:06
  SPEAKER_02: Florida is number one for that money movement, right?
• 1:10
  SPEAKER_02: Now, so I want to drill into domestic geoarbitra.
• 1:13
  SPEAKER_02: I love it.
• 1:14
  SPEAKER_02: It's just it's a fancy way for saying moving to a more tax-friendly state.
• 1:20
  SPEAKER_01: Yeah.
• 1:21
  SPEAKER_02: Right?
• 1:22
  SPEAKER_01: Uh-huh.
• 1:22
  SPEAKER_02: Okay.
• 1:23
  SPEAKER_02: So I did just that.
• 1:24
  SPEAKER_02: I went from uh a state that charges income tax, Wisconsin, to a state with no income tax.
• 1:31
  SPEAKER_02: And I've there's a lot more benefits involved with that as well.
• 1:37
  SPEAKER_02: People should be considering this.
• 1:40
  SPEAKER_02: Remote workers, pre-retirees, and then of course retirees, right?
• 1:45
  SPEAKER_02: So what do what should someone look at?
• 1:47
  SPEAKER_02: Because it's not just income tax or not.
• 1:51
  SPEAKER_02: What are some of the things that people are going to look at when considering moving to a friendlier state?
• 1:57
  SPEAKER_01: Oh, well, I mean, yeah, taxes are the big one.
• 1:59
  SPEAKER_01: That's a big driver.
• 2:01
  SPEAKER_01: Um, it's lifestyle.
• 2:03
  SPEAKER_01: I mean, obviously in Florida, we got beaches, we got sun, we got golf, we got all the stuff that people want to move down here for.
• 2:09
  SPEAKER_01: So I think that's a big thing.
• 2:11
  SPEAKER_01: So some of it's just where do I want to be?
• 2:13
  SPEAKER_01: What kind of lifestyle do I want?
• 2:15
  SPEAKER_01: But it goes beyond the taxes.
• 2:16
  SPEAKER_01: You got to look at what does it cost to live.
• 2:18
  SPEAKER_01: I mean, Florida's still expensive, probably not as expensive as some other states, but real estate's pretty pricey still.
• 2:25
  SPEAKER_01: Um you got things like insurance.
• 2:28
  SPEAKER_01: We got hurricanes down here.
• 2:30
  SPEAKER_01: So, you know, you gotta have some flood insurance and things like that.
• 2:34
  SPEAKER_01: Um, healthcare, you know, where your doctors are gonna be, what's that cost look like?
• 2:39
  SPEAKER_01: Obviously, for a lot of retirees, it's great.
• 2:41
  SPEAKER_01: We got a lot of retirement communities down here, so that's a draw.
• 2:45
  SPEAKER_01: So it's it's a whole thing.
• 2:46
  SPEAKER_01: You know, where's your family?
• 2:48
  SPEAKER_01: What kind of life do you want?
• 2:49
  SPEAKER_01: Some of that goes beyond just the taxes you're gonna have to pay.
• 2:52
  SPEAKER_02: Right, but there's a lot more to it, right?
• 2:54
  SPEAKER_02: And I think you've touched on the major points.
• 2:57
  SPEAKER_02: Um, but you can look at a variety of studies that show some of the fastest growing states.
• 3:02
  SPEAKER_02: And I mentioned Birmingham before we started the show.
• 3:05
  SPEAKER_02: Birmingham and Alabama is growing fairly rapidly.
• 3:08
  SPEAKER_02: It's a lower cost state, right, in terms of taxes, um, but all the benefits still exist, right?
• 3:15
  SPEAKER_02: So pretty solid schools, pretty good medical health care, et cetera, et cetera.
• 3:19
  SPEAKER_02: But I just did this, as I'd mentioned, and when you really start putting everything in Excel file, you'd mention real estate, right?
• 3:27
  SPEAKER_02: So I moved to Naples, um, and it's fairly expensive.
• 3:31
  SPEAKER_02: In fact, you know, some uh if you look at per square footage, like it's almost double than say Wisconsin.
• 3:37
  SPEAKER_02: And of course, I I left a low uh interest rate uh mortgage to a fairly high one, almost actually over double.
• 3:45
  SPEAKER_02: Um, but the math still mathed when I looked at it, you know, at the end of the day, from income taxes, from answer expenses around the home, um, from medical, there's a variety of things.
• 3:57
  SPEAKER_02: What are some of those other so outside of taxes?
• 4:00
  SPEAKER_02: Let's let's pick on uh a pre-retiree, someone who's maybe their kids are out of the home, right?
• 4:09
  SPEAKER_02: Maybe they're kind of in those late earning years, they have 10 or 15 years from retirement.
• 4:14
  SPEAKER_02: What other things should they look for if they want to move to benefit their own portfolio?
• 4:21
  SPEAKER_01: Well, I mean, I would say there's probably been a lot of um political geo arbitrage as well.
• 4:28
  SPEAKER_01: I mean, people trying to, you know, post-COVID, a lot of people coming down here for different reasons.
• 4:33
  SPEAKER_01: Um, so it's just what kind of lifestyle, what where do you want to live?
• 4:37
  SPEAKER_01: Um, a lot of people come from big cities down to a little bit quieter lifestyle.
• 4:43
  SPEAKER_01: Um, but you know, if you're kind of in that pre-retiree, I think where do I want to be the long term?
• 4:50
  SPEAKER_01: Um, you know, where are the kids gonna eventually come?
• 4:52
  SPEAKER_01: They get out of college, they're gonna come down and visit, they're gonna get married, grandkids come down, come to see the beach.
• 4:58
  SPEAKER_01: Um, so we get a lot of that, a lot of retirees coming down here because they've been vacationing here for years, and this is where they ultimately wanna hang it up.
• 5:08
  SPEAKER_02: So, and that's uh it's you bring up a good point, travel, accessibility, right?
• 5:12
  SPEAKER_02: So we need to start kind of calculating that in the mix too, especially if you want to go back to see your family or you want to have your family come into town.
• 5:19
  SPEAKER_02: You need to look at uh locations where travel is conducive and potentially inexpensive.
• 5:24
  SPEAKER_02: And Florida really checks that box because there are so many opportunities to travel, airpoints, airports, etc.
• 5:31
  SPEAKER_02: All right, I'm gonna really throw a curveball at you, but I love doing that for you, Aaron, because uh you give it to me after the show's over.
• 5:38
  SPEAKER_02: Let's just say you're making 400 grand a year.
• 5:40
  SPEAKER_02: Right.
• 5:40
  SPEAKER_02: Let's say you're you have a three million dollar portfolio, and I'm not asking you for precise numbers, but if you move from a higher cost, let's say Wisconsin or California to a lower income tax state in particular, like Texas or Florida, like what are we talking in savings?
• 5:56
  SPEAKER_02: Just ballpark numbers.
• 5:57
  SPEAKER_02: We don't need to get, again, granular, but what does that look like in terms of buying power, earning power, and then potentially what the portfolio looks like as well?
• 6:06
  SPEAKER_01: Well, it's not just the portfolio.
• 6:08
  SPEAKER_01: I mean, it's taxes on your maybe a pension, deferred comp, your IRA distribution.
• 6:15
  SPEAKER_01: So there's all these other sources of income that you got that you know, maybe not gonna be as taxed as much on dividend income, all these things.
• 6:22
  SPEAKER_01: So we got it it's not just maybe obviously if you're still working, your earnings, but there's a lot of other things that are gonna get calculated into that.
• 6:31
  SPEAKER_01: Um I'm trying to think of what you just asked.
• 6:35
  SPEAKER_02: Yeah, no, no, no.
• 6:36
  SPEAKER_02: I was just talking about the other levers that we have to look at in terms of like if I'm making 400 grand a year and I have a three million dollar portfolio, like what kind of savings.
• 6:44
  SPEAKER_02: Yeah, yeah.
• 6:44
  SPEAKER_02: Again, I remember spending power, yeah.
• 6:46
  SPEAKER_01: Yeah, so when you when you're looking at retirement, if you could just let's say you were spending, you need$150,000 a year to live off of, but we can cut$30,000 out, may not sound like a lot, but that compounds year over year over year, and that makes huge changes.
• 7:03
  SPEAKER_01: So when I'm working with couples and we're looking at their retirement, uh the one thing, well, there's a couple things we can't control.
• 7:10
  SPEAKER_01: We can't control the market.
• 7:11
  SPEAKER_01: Um, we don't know how long you're gonna live, but spending is a big thing.
• 7:15
  SPEAKER_01: That's the number one thing people can control in retirement.
• 7:19
  SPEAKER_01: And you'd be surprised a$10,000,$20,000,$30,000 reduction in cost to live have dramatic impacts.
• 7:29
  SPEAKER_01: I mean, you're talking, oh, I'm gonna retire 65.
• 7:31
  SPEAKER_01: We're running out life expectancy to 95.
• 7:34
  SPEAKER_01: That's 30 years of savings, and that can afford a lot of uh, I mean, that's savings.
• 7:40
  SPEAKER_01: We could do some more travel, um, you know, maybe we'll have a second home.
• 7:45
  SPEAKER_01: You know, so all that's gotta get factored into what kind of lifestyle you want.
• 7:50
  SPEAKER_01: But certainly the living expenses, it's right to the bottom line.
• 7:55
  SPEAKER_02: See, this is why I actually really like this topic, because I don't think people really consider that when they're retiring or playing retire.
• 8:03
  SPEAKER_02: Like let's just say you have a three million dollar portfolio and you choose to move from Minnesota to Alabama, right?
• 8:11
  SPEAKER_02: The cost, and I I don't know the exact numbers, but I have to assume there's parts of Alabama that are delightful, travel accessible, that cost less than, say, living in St.
• 8:22
  SPEAKER_02: Paul, Minnesota, right?
• 8:24
  SPEAKER_02: So then you add in potential ramifications on income tax, state taxes, et cetera.
• 8:30
  SPEAKER_02: You can, in theory, elongate your portfolio should you choose to move to another friendlier city where you can buy a home equivalent size for less, income taxes are less.
• 8:44
  SPEAKER_02: In in I mean, in the long run, you should consider this as part of your retirement plan.
• 8:49
  SPEAKER_02: Like, should I wish to move somewhere else?
• 8:52
  SPEAKER_02: What will that give me in terms of earning or not earning spending potential?
• 8:57
  SPEAKER_01: Yeah.
• 8:58
  SPEAKER_01: I mean, it's it's a huge factor.
• 9:02
  SPEAKER_01: Um, it's not the only one, you know.
• 9:05
  SPEAKER_01: Uh, just you don't want to move for the sake of moving.
• 9:08
  SPEAKER_01: Like, maybe Nebraska's cheap to live, but who wants to live in Nebraska?
• 9:13
  SPEAKER_02: Oh, well, that's a shot right at um at the production crew.
• 9:17
  SPEAKER_01: You know, nobody moves to Nebraska, they only leave, right?
• 9:20
  SPEAKER_01: But I'm just making fun of Nebraska.
• 9:22
  SPEAKER_01: I've never been, it's probably beautiful.
• 9:24
  SPEAKER_01: Probably.
• 9:25
  SPEAKER_01: Um, I hear they got lots of corn.
• 9:28
  SPEAKER_01: Uh but it you want to it's got to be the right kind of lifestyle for you.
• 9:33
  SPEAKER_01: Want don't just move for the sake of moving because it's cheaper.
• 9:35
  SPEAKER_01: It may not be what you want.
• 9:36
  SPEAKER_01: Sure.
• 9:37
  SPEAKER_01: Um, I we we got some folks that we work with and they they move overseas.
• 9:41
  SPEAKER_01: You know, they go to the islands, uh, Puerto Rico.
• 9:45
  SPEAKER_01: I mean, talk about like tax situations.
• 9:47
  SPEAKER_01: They got a pretty favorable place for capital gains taxes and things like that.
• 9:52
  SPEAKER_01: So it's all got to get it's all factors in.
• 9:56
  SPEAKER_01: Um, but like I said, it what what's concerning to me sometimes I see is people just go into retirement blind.
• 10:04
  SPEAKER_01: You know, no clue.
• 10:05
  SPEAKER_01: Never you did the math.
• 10:07
  SPEAKER_01: Most people aren't doing the math to figure it out.
• 10:10
  SPEAKER_01: Or they think, I got enough, I should be able to afford that.
• 10:13
  SPEAKER_01: Um but they don't run that math out over decades to see what that actually where that stress of that high live that state with high taxes causes on their portfolio, their earnings, all of that.
• 10:28
  SPEAKER_01: And that adds up and compounds over years.
• 10:30
  SPEAKER_01: So um it's something that you gotta not only look at today, what kind of lifestyle, but the rest of my life where I want to be.
• 10:38
  SPEAKER_02: Well, it's actually really interesting because um, you know, going back to my example, um, when I sat down with my wife to look at like purchasing a home, right?
• 10:46
  SPEAKER_02: And there's all the rules of thumb around debt to income ratios and how much home you should buy based on your current income levels, but also future.
• 10:54
  SPEAKER_02: And um, you know, in a bubble, you know, she was like, Well, I just don't know if we should be looking at a home of this size or of this or of this expense.
• 11:04
  SPEAKER_02: And I said, Well, let me remind you that the moment we domicile in Florida officially, the income tax from Wisconsin will go away.
• 11:12
  SPEAKER_02: I'll have that much more, you know, money in the bank.
• 11:16
  SPEAKER_02: And then we talk about these and these taxes or these benefits to putting our kids in private school in Florida with some of the scholarship programs.
• 11:24
  SPEAKER_02: And it began to, you know, it she really began to become enlightened to the fact that there are real financial consequences, not negative consequences, but positive consequences when you really look it all up and kind of lay it all out there, right?
• 11:37
  SPEAKER_02: So it was very enlightening to her.
• 11:39
  SPEAKER_01: Yeah, and state to state.
• 11:40
  SPEAKER_01: I mean, you've got even death taxes.
• 11:43
  SPEAKER_01: So in Florida, we don't have death taxes.
• 11:46
  SPEAKER_01: You know, you've got a substantial net worth, and I I don't know every state, but Massachusetts, and you die with a lot of money, the state's gonna take a piece of that.
• 11:55
  SPEAKER_01: All right.
• 11:56
  SPEAKER_01: So there's a reason why a lot of ultra high net worth people are coming here.
• 12:02
  SPEAKER_01: One to get away from the death taxes, states like California trying to put in billionaire taxes, and they say, Yep, thanks, see you, we're going to Florida.
• 12:12
  SPEAKER_01: Uh, so there's it at property taxes.
• 12:16
  SPEAKER_01: I mean, we're in a state that come November, it's on the ballot, we may eliminate property taxes in the state of Florida.
• 12:24
  SPEAKER_01: Another huge benefit.
• 12:25
  SPEAKER_01: So you gotta, it's not just, well, yeah, I save some income taxes, but what are we paying for property taxes?
• 12:30
  SPEAKER_01: Um, city taxes, you know, it just all gets added into the bucket, and you got to figure out what's gonna make the most sense.
• 12:38
  SPEAKER_02: Yeah, no, I think you you stole my next question, which is I do I still want to talk about this a bit.
• 12:44
  SPEAKER_02: Estate and inheritance taxes, because not all states function in a state when it comes to an estate or a death tax.
• 12:51
  SPEAKER_02: Um, but I don't know if you know this.
• 12:52
  SPEAKER_02: I I I used to be uh an executive at a financial planning software company, and we had all the tax rates for all 50 states.
• 12:59
  SPEAKER_02: We actually had a 51st state.
• 13:02
  SPEAKER_02: We had a 51st state that was New York City because the complex tax code of simply living in the city versus the state, and that layer of taxes upon that.
• 13:13
  SPEAKER_02: So to your point, you know, property taxes, income taxes, estate taxes, inheritance taxes, these all have to be considered, right?
• 13:22
  SPEAKER_01: Yeah, I mean, New York City, you know, we get a lot of people from New York coming down here.
• 13:29
  SPEAKER_01: I mean, if you want to send off 50% of your money to Kami and Mondami, go ahead.
• 13:35
  SPEAKER_01: But like a lot of people don't want to do that, and they want to come down here and save the money, right?
• 13:41
  SPEAKER_01: So, you know, there's a lot, like you said, there's a lot to consider.
• 13:46
  SPEAKER_02: Well, we have onboarded personally um a great deal of households in the last in the first part of 2026, and most of them are relocating to Florida, they are literally planning to domicile in Florida because they see the writing on the wall, right?
• 14:03
  SPEAKER_02: If you look, and I think we wrote uh like a four-part series on this, all the states that have pretty much vocally said, Hey, we're coming for that wealth, right?
• 14:13
  SPEAKER_01: Oh, well, yeah.
• 14:14
  SPEAKER_01: I mean, I just made fun of Montami, but I mean he's out there saying, Hey, putting people's properties, they're listening out, like, hey, this person lives here, we're coming after you.
• 14:24
  SPEAKER_01: Um, I mean, so like I think Mark Zuckerberg got out of New Uh California, came to Florida.
• 14:30
  SPEAKER_02: Yep.
• 14:30
  SPEAKER_01: So, I mean, they're being targeted, you know, specific income net worth individuals are being targeted, and they're saying, thanks, but no, thanks.
• 14:38
  SPEAKER_01: I'm out.
• 14:38
  SPEAKER_02: Well, you look at Illinois, California, uh, Massachusetts, uh, New York.
• 14:43
  SPEAKER_02: Um, there's a handful more Connecticut.
• 14:45
  SPEAKER_02: They're pretty aggressive too, right?
• 14:47
  SPEAKER_02: When it comes to domiciling.
• 14:49
  SPEAKER_01: Right.
• 14:49
  SPEAKER_01: And so that we do get a lot of folks that come down here, they realize I'm gonna domicile, I'm gonna domicile in Florida, I gotta do it the right way.
• 14:58
  SPEAKER_01: And they need to really start cutting all those ties to all those other states.
• 15:03
  SPEAKER_01: And anything that would tie them back to that, is Florida, we don't care.
• 15:07
  SPEAKER_01: You know, we're not taxing anyway.
• 15:09
  SPEAKER_01: So you can live here 365 days a year, one day a year, doesn't matter.
• 15:15
  SPEAKER_01: You can claim Florida residency.
• 15:17
  SPEAKER_01: It's when you live here and you claim residency here, but you go back up to New York, your golf membership's there, you're still a member of the church, you you know, where are you voting?
• 15:29
  SPEAKER_01: Where are you uh, you know, where are you doing like Christmas and Thanksgiving and all that kind of stuff?
• 15:36
  SPEAKER_01: If you have those ties, don't think that a state that's bleeding money and watching all their high net worth individuals go to other states, they're losing revenue.
• 15:47
  SPEAKER_01: They're gonna go find it, and you don't want to be the one to think, well, yeah, I I did it right, and then the state of New York or Massachusetts comes back after you and goes, Yeah, don't think so.
• 16:00
  SPEAKER_01: Here, you know, and they send you a tax bill.
• 16:02
  SPEAKER_02: I mean, you've heard the you've seen the horror stories.
• 16:04
  SPEAKER_02: I mean, just Google it.
• 16:05
  SPEAKER_02: Like there'll be folks that move from, let's just say New York.
• 16:08
  SPEAKER_02: And guess who writes the rules?
• 16:10
  SPEAKER_02: New York writes the rules.
• 16:12
  SPEAKER_02: That's who defines how you're domiciled.
• 16:14
  SPEAKER_02: And I think the case was, and I don't remember exactly, but I'm paraphrasing, they just asked about some personal effects.
• 16:21
  SPEAKER_02: They said, Where do you keep your kids' baby photos or your birth certificates?
• 16:25
  SPEAKER_02: And they said, Well, it's in our apartment in New York.
• 16:27
  SPEAKER_02: Like you're a resident of New York, even though this person has lived in Florida almost the entire year, even though they have everything for the golf memberships, their health care, their estates have been updated, trust been updated.
• 16:40
  SPEAKER_02: But because they had that one artifact that New York said you owe us, I think it was like$70,000, if I remember correctly.
• 16:48
  SPEAKER_01: Yeah.
• 16:48
  SPEAKER_01: And do you want to fight that?
• 16:50
  SPEAKER_01: You know, you have I mean, I don't know how you win um when they're making the rules.
• 16:56
  SPEAKER_01: So yeah, it's it's not something it's a game that I wouldn't want to play.
• 17:01
  SPEAKER_01: You know, you you're messing with the IRS and taxes.
• 17:05
  SPEAKER_01: No thanks, but no thanks.
• 17:07
  SPEAKER_01: I don't want that fight.
• 17:08
  SPEAKER_02: Yeah, it's a serious thing, but um let's let's shift gears a little bit.
• 17:13
  SPEAKER_02: I don't want to speak in hypotheticals.
• 17:15
  SPEAKER_02: I don't want to speak in hypotheticals.
• 17:17
  SPEAKER_02: Um Canada.
• 17:19
  SPEAKER_02: Canada.
• 17:20
  SPEAKER_02: We have a lot of Canadian folks that come down here.
• 17:22
  SPEAKER_02: They snowboard down here, they have homes down here.
• 17:24
  SPEAKER_02: Um they enjoy the you know, not only the the climate, but also some of the the fiscal policies of Florida.
• 17:31
  SPEAKER_02: I'm not taking a side here, but uh we have a lot of Canadian folks that work with us.
• 17:37
  SPEAKER_02: Um have you heard of the exit tax in Canada?
• 17:40
  SPEAKER_01: Yeah, I mean I'm not I don't know Canada law, right?
• 17:45
  SPEAKER_02: But you know, some some estimates suggest that up to upwards of sixty percent, if you were to move out of Canada and relocate your money and your family to say Texas, Canada says on the way out, we went sixty percent of your assets on the way out the door.
• 18:05
  SPEAKER_02: Do you see a world, Aaron?
• 18:07
  SPEAKER_02: And again, no crystal balls here, but do you see a world in which you see more states looking at Canada and saying, hey, maybe we should consider that too?
• 18:16
  SPEAKER_01: I don't know how they don't.
• 18:18
  SPEAKER_01: You know, uh it's just like you said, the the math's gonna math, and what they're gonna see is that all these not only just the individuals, but the businesses are saying we're out.
• 18:31
  SPEAKER_01: And you know, you got states like California where you know you've only I don't know the number, but you got like 10% of the populations paying 80% of the taxes.
• 18:42
  SPEAKER_01: Well, if that 10% decides we're out, you got a big problem on your hands.
• 18:47
  SPEAKER_01: And so, yeah, they're gonna they're gonna fight tooth and nail to keep whatever tax revenue they can.
• 18:54
  SPEAKER_02: So um what does that what does that look like?
• 18:57
  SPEAKER_02: I again I don't want an exhaustive list from you because uh we we well we actually have those guides available, but give me a list.
• 19:05
  SPEAKER_02: What are like the top ten things you should do once you choose a new state?
• 19:09
  SPEAKER_02: Once you move to Alabama or South Carolina or Texas, what are the top ten things you want to do to kind of officially domicile in that state?
• 19:21
  SPEAKER_02: And again, I realize that you have to consult your tax attorney, like you have to do all that stuff, right?
• 19:25
  SPEAKER_01: Like, because you have to make sure the nuances of each state, but what are the big bold Yeah, your homesteading, your house, driver's license, voter ID, um, your state planning documents, your advisor.
• 19:38
  SPEAKER_01: You know, the people kind of forget that when they're like, I like my guy up north, maybe great, that's fine.
• 19:42
  SPEAKER_01: I found uh there's there's firms that are opening up offices in Florida because they realize so many of their clients are leaving these states.
• 19:52
  SPEAKER_01: Like, we gotta go open up a place in Florida because they're domiciling down there and they're changing their advisor.
• 19:57
  SPEAKER_01: So we're gonna open up other locations.
• 19:59
  SPEAKER_01: So it's a real thing.
• 20:00
  SPEAKER_01: You gotta, it's it's all of your relationship, your primary doctors, all that kind of stuff.
• 20:04
  SPEAKER_02: Um that's a big one, though.
• 20:05
  SPEAKER_02: You mentioned estates and trusts.
• 20:07
  SPEAKER_02: People forget to update those, just the simple address, just updating that in and of itself.
• 20:12
  SPEAKER_02: Like people always forget the small ones, but those are fairly large in terms of domiciling, right?
• 20:18
  SPEAKER_02: Estate in tax.
• 20:19
  SPEAKER_02: And to your point about, you know, if shops open up down here, they're doing that to hopefully not lose those assets.
• 20:26
  SPEAKER_02: Right.
• 20:26
  SPEAKER_02: But guess what happens?
• 20:27
  SPEAKER_02: You don't have the same advisor, right?
• 20:29
  unknown: Right?
• 20:30
  SPEAKER_02: Your advisor's not moving with you, right?
• 20:31
  SPEAKER_02: So we see that all the time.
• 20:32
  SPEAKER_01: Yes.
• 20:33
  SPEAKER_01: Yeah, I mean, you gotta do all these things, you gotta button it up as best you can.
• 20:37
  SPEAKER_01: Um, you know, some folks will hang on to that house that's up there.
• 20:43
  SPEAKER_01: Uh, you know, say, hey, um, whatever it is.
• 20:46
  SPEAKER_01: They're moving from Massachusetts down here, but I'm gonna go back and forth.
• 20:48
  SPEAKER_01: I'm gonna keep the house in Massachusetts.
• 20:51
  SPEAKER_01: I mean, again, it's another string that's there.
• 20:54
  SPEAKER_01: Uh, yeah, so I gotta look, do I really want to hold on to that property?
• 20:57
  SPEAKER_01: What's that costing me per year to do it?
• 20:59
  SPEAKER_01: So, yeah, I've moved to a cheaper state, but I'm holding on to all these other, I'm holding on to this other house.
• 21:05
  SPEAKER_01: It's just costing me all this money.
• 21:08
  SPEAKER_01: Um while I'm thinking about it, if you're moving to Florida, so I see this a lot too, moving to Florida, and they'll want to buy the big house.
• 21:19
  SPEAKER_01: Gotta get the pool.
• 21:20
  SPEAKER_01: I gotta get the extra bedrooms for all the friends visiting.
• 21:24
  SPEAKER_01: Yeah, they're all gonna come down and visit.
• 21:26
  SPEAKER_01: Yep.
• 21:27
  SPEAKER_01: Spring break, the kids are gonna bring the you know, they're gonna come down with the grandkids and they overspend.
• 21:33
  SPEAKER_01: So it's like they're taking advantage of the the tax situation and maybe they're getting a little bit lower cost of living from where they were, but then they just overbuy this house and they come once a year, you know, or they haven't been in five years.
• 21:46
  SPEAKER_01: And it's a lot of upkeep.
• 21:48
  SPEAKER_01: So I think as you know, as you're going through your life stages, you gotta figure out maybe how to downsize a little bit, cut off that other house.
• 21:55
  SPEAKER_01: You want to go back up?
• 21:56
  SPEAKER_01: Airbnb for a month.
• 21:58
  SPEAKER_01: You know, that's probably cheaper when.
• 22:00
  SPEAKER_01: To do it.
• 22:00
  SPEAKER_02: I like that.
• 22:01
  SPEAKER_02: And I also do see people that buy the bigger home down here or have the ancillary, the pool, or whatever, and they don't kind of think about the total maintenance costs involved.
• 22:11
  SPEAKER_01: Yeah.
• 22:12
  SPEAKER_01: Yeah, no, it's it gets expensive because you're maintaining that your landscape and all that kind of stuff.
• 22:18
  SPEAKER_01: That just it all adds up, and most people don't think about it.
• 22:21
  SPEAKER_01: You know, they think, well, you know, I get a mortgage, is what's going to cost me a month, you know, or having to deal with um it just really what I see more than anything is as you get older, maintaining two homes is just something that people don't want to do, and they ended up selling it anyways.
• 22:40
  SPEAKER_01: Um it it's it's they don't want to do the travel back and forth, and they get real comfortable down here in Florida not having to have the snow, the cold.
• 22:52
  SPEAKER_01: So uh it tend to they tend to get down here and stay.
• 22:58
  SPEAKER_02: I love that.
• 22:58
  SPEAKER_02: I it it there's a sentimental value, of course, keeping the home or going back to where you're born and raised, but you can see the burden.
• 23:06
  SPEAKER_02: All right, in the spring, I gotta go open up the house, get the water on, and there's a bunch of costs that are associated with that.
• 23:13
  SPEAKER_02: Like it almost mathematically doesn't make sense.
• 23:15
  SPEAKER_02: So we've gone through the checklist.
• 23:17
  SPEAKER_02: So we went through the kind of the top, you know, five, ten things you want to do when you move to a state.
• 23:23
  SPEAKER_02: Uh going back a step though, I really want to get from you, you know, what are the five, ten things you want to look at, right?
• 23:32
  SPEAKER_02: If you're considering a new state to move to, like you you told me before I did all the math, right?
• 23:37
  SPEAKER_01: Right.
• 23:38
  SPEAKER_02: I work for an RA.
• 23:39
  SPEAKER_02: Like it's my job to know what to look at.
• 23:42
  SPEAKER_02: But if you're just an everyday, you know, individual looking at moving um to help you either extend your retirement or to begin a new lifestyle, what are those things?
• 23:53
  SPEAKER_02: And some of them could be lifestyle related, some of them financial related.
• 23:56
  SPEAKER_02: What are those five or ten things one should consider when moving from one state to another?
• 24:01
  SPEAKER_01: Yeah, I guess it depends on what stage of life you're in.
• 24:04
  SPEAKER_01: I mean, for me, I got kids, so I want to know you got a good school system, you know, what's that look like?
• 24:10
  SPEAKER_01: Um if you're older, healthcare, you know, what I got the right kind of doctors, the right kind of hospitals.
• 24:19
  SPEAKER_01: Um I mean, down here in Naples, dang, we we've got a all the nursing homes you could imagine.
• 24:27
  SPEAKER_01: Uh so it's just where do you want to be?
• 24:30
  SPEAKER_01: Um I think so those kind of things are important.
• 24:34
  SPEAKER_01: Um taxes, politics.
• 24:38
  SPEAKER_01: I mean, that's be real.
• 24:41
  SPEAKER_01: People are moving to states that they kind of align best with um weather.
• 24:48
  SPEAKER_01: I mean, we can't really beat the weather here.
• 24:50
  SPEAKER_01: I don't know how people do it up north.
• 24:52
  SPEAKER_01: I feel bad for them.
• 24:53
  SPEAKER_01: I I feel bad.
• 24:54
  SPEAKER_01: I'm glad I'm happy for you because like I don't know how you deal with the snow.
• 24:58
  SPEAKER_01: Um yeah, so those are some big ones.
• 25:02
  SPEAKER_02: Those are the big ones.
• 25:03
  SPEAKER_02: Has there curveball?
• 25:04
  SPEAKER_02: Has there ever been a time where you told someone not to move?
• 25:08
  SPEAKER_01: Not to move here?
• 25:10
  SPEAKER_02: No, just in general, like a client that says, I want to move, or you know, I got one.
• 25:15
  SPEAKER_01: Yeah, no, I mean I've seen kids, I've seen yes, I'm thinking of a situation they want to move to be closer to their kids and grandkids.
• 25:24
  SPEAKER_01: Okay?
• 25:26
  SPEAKER_01: That's great.
• 25:27
  SPEAKER_01: So they move away.
• 25:30
  SPEAKER_01: Now winter comes, brutal.
• 25:34
  SPEAKER_01: Then they're realizing, man, moving back north kind of sucks.
• 25:38
  SPEAKER_01: Like we've we enjoy Naples in the winter time.
• 25:42
  SPEAKER_01: So sell a place here, to buy a place there, to turn around within six months ago.
• 25:48
  SPEAKER_01: Man, I really miss it down there.
• 25:49
  SPEAKER_01: So now I'm gonna turn around and consider buying a new place down here so I can come for a few more years.
• 25:56
  SPEAKER_01: You get a little later in life, you're not gonna do that forever.
• 25:59
  SPEAKER_01: So, yeah, no, my recommendation is listen, no more, like you're not buying down here.
• 26:04
  SPEAKER_01: You want to come down here, rent.
• 26:06
  SPEAKER_01: I know it's expensive, but it's how many more years are you gonna do it?
• 26:09
  SPEAKER_01: Five or seven more years, and then you're gonna get tired of it, and you're you know, it's not worth it to do that, to maintain a home here, and where you're gonna get the money.
• 26:19
  SPEAKER_01: You take it from your IRA and pay taxes to buy the house.
• 26:22
  SPEAKER_01: So when you start to look at all the assets to do that, yeah, you've you gotta look at it and go, that just doesn't make sense.
• 26:29
  SPEAKER_01: You know, I I for them, you're there now, don't add a whole nother expense on top of what you got because you know, accounts starting to come down a little bit.
• 26:42
  SPEAKER_01: Um, we don't want to run out and just rent for three months.
• 26:48
  SPEAKER_01: Get out of the cold.
• 26:49
  SPEAKER_02: Love it.
• 26:49
  SPEAKER_02: So, last question We have some listeners here, I'm sure, who are thinking about a move in the next two years, right?
• 26:56
  SPEAKER_02: They're you know, they either want to switch up to lifestyle, they're retiring, maybe they're remote work.
• 27:02
  SPEAKER_02: What are they what you know, two years out, maybe even one year out.
• 27:05
  SPEAKER_02: What are they what what should you be doing right now in anticipation?
• 27:08
  SPEAKER_02: Is there stuff that you need to be thinking about now for that upcoming move?
• 27:14
  SPEAKER_01: Um, I'm trying to think of a good answer to give you.
• 27:16
  SPEAKER_01: I don't really know if I have one.
• 27:17
  SPEAKER_01: I mean, and the pros and cons list.
• 27:20
  SPEAKER_01: Yeah, right.
• 27:20
  SPEAKER_01: Like pros and cons.
• 27:21
  SPEAKER_01: Like what I don't, you know, the same thing you do if you want to move or jobs, schools, stuff, some same kind of stuff.
• 27:28
  SPEAKER_01: Yeah, pros and cons, right?
• 27:29
  SPEAKER_01: Yeah, yeah.
• 27:30
  SPEAKER_02: But again, back to the math, the lifestyle, right?
• 27:34
  SPEAKER_02: And I think one of the big ones is travel accessibility, just it's how you get in and out, you know, especially with uh family and friends.
• 27:41
  SPEAKER_02: And to your point before about the snowbirders, you know, remember those three stage of retirement go-go, slogo, and no-go, right?
• 27:50
  SPEAKER_02: The go-go years, it's easy to hop on a jet plane, yeah, right?
• 27:54
  SPEAKER_01: I mean the travel thing for sure.
• 27:55
  SPEAKER_01: I mean, we've got a big airports down here.
• 27:58
  SPEAKER_01: You don't want to have to.
• 28:00
  SPEAKER_01: I mean, I don't know how many connecting flights you gotta do to get to Lincoln, Nebraska.
• 28:06
  SPEAKER_01: Um, but it's probably not easy to get in and out of there.
• 28:08
  SPEAKER_01: So, yeah, but I mean, if you can go, hey, you gotta jump on a flight here, straight to New York, one shot, Boston, we're going, Philadelphia.
• 28:15
  SPEAKER_01: We get direct flights.
• 28:16
  SPEAKER_01: Um, because you're right, you get later in life, just see it all the time.
• 28:20
  SPEAKER_01: Clients aren't gonna travel and gets less, it gets more difficult, you know, don't want to have to connect through all these or drive four hours to get to the closest airport.
• 28:30
  SPEAKER_01: So, all that is important because you'll just end up doing less travel in those slow go years.
• 28:35
  SPEAKER_02: See, so you gotta you gotta plan it out, you know, uh now or in the future.
• 28:40
  SPEAKER_02: Aaron, you did it, you made it through an episode of check my notes, domestic geo arbitrage.
• 28:48
  SPEAKER_02: How do you think you did?
• 28:50
  SPEAKER_01: Well, we'll see if they have me back.
• 28:53
  SPEAKER_01: Um I think I'll have you back.
• 28:55
  SPEAKER_01: So if I'm back, I did good.
• 28:56
  SPEAKER_02: I think I'll have you back.
• 28:57
  SPEAKER_02: That was a that was actually a fun one for us.
• 29:00
  SPEAKER_02: There is a lot that goes into looking at your next move, if it's retirement relocation or before, doing all that math, looking at the lifestyle changes and how that can benefit your portfolio now and in the future.
• 29:14
  SPEAKER_02: Thank you again for joining us, Aaron.
• 29:16
  SPEAKER_02: It's been a pleasure on the topic of domestic geo arbitrage.
• 29:21
  SPEAKER_02: I love it.
• 29:22
  SPEAKER_02: We're gonna own that.
• 29:23
  SPEAKER_02: I'm your host, Tony Stick.
• 29:24
  SPEAKER_02: If you like this episode, make sure you like, subscribe, and share with a family friend about domestic arbitrage.
• 29:31
  SPEAKER_02: Until next time, this is Dime After Dime.
• 29:37
  SPEAKER_00: Thanks for listening to Dime After Dime.
• 29:39
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• 29:46
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• 29:50
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• 29:54
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• 30:05
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• 30:19
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