Sunshine State Strategy

The Real Reason Wealthy People are Moving to Florida

That “rite of passage” for you has finally arrived -- you have built the financial means and are mentally ready to take that next step: purposefully following through on your goal of retiring to Florida. Or, given the increasingly remote and flexible nature of our American economy, your career allows you to no longer be fixed to your office up north, which had always been so permanent – and alternatively entertain a more attractive tax climate. Or, you’ve owned that vacation home here in Florida, tested the waters, and decided to now live the lifestyle of a full-time Floridian, enjoying all the exceptional culture, entertainment, and nature that the Sunshine State affords. Whatever your intentions, you’ll inevitably come to a crossroads – to learn and engage in the process and then, whether it makes sense for you at the end of the day, to become a Florida resident. This junction is where one engages in their own Sunshine State Strategy -- to most effectively and formally become a Florida resident. For those that do move forward -- in some cases, the process is easy and can be done rather quickly. For others, it is naturally more complicated. Like so many things in life, it is not a “one size fits all” approach to the action of Florida domicile. Considerations abound -- whether you are working or retired, your native state, family commitments, travel and taking into account multiple homes, your wealth and tax needs, and your sources of earnings – among many others.

Let’s touch on some of the general benefits of becoming a resident of Florida:

No State Income Tax: Everyone knows this one! Today, in a society where taxes abound, it is more important than ever to keep what you worked hard for at the end of the day. Florida has no state income tax, one of just a handful of states that provide such a fantastic freedom. This means that you keep more of what you earn, spending your money as you see fit for your and your family, in the most resourceful way. As a contrast, many other states have burdensome and material state income taxes – that, depending upon one’s earnings, can even eclipse 10%+! To summarize this phenomenal benefit:

• One that successfully moves from a state with a state income tax can get an immediate “pay raise” on a net basis – all things being equal, as they do not have a state income tax component in the Sunshine State; one then has more discretionary income in their proverbial pockets to spend as they see fit.
• There are multiple investment advantages – here, think no state income tax withholdings needed on RMDs, the ability to secure both Federal and State Tax Exempt interest through the use of Municipal Bonds (mind you from all 50 states), and no state income tax due on pensions / IRAs / and qualified plans.

No State Estate or Inheritance Tax: Most know that there is a Federal Estate Tax – that may or may not be applicable to their estate (and loved ones) after death – but, did you know that there is also a State estate (and/or inheritance) tax that exists in many states? In Florida, such a tax – whether it be Estate or Inheritance – does not exist. This is fantastic news for families, business owners, and other financially successful people that have built intergenerational wealth that seek to make their fortunes last. One should first be aware if said taxes apply in their existing states, and then also consider the substantive financial impact that these taxes would have upon their family’s hard-earned wealth – either today, or with time, as their net worth grows.

Homestead Exemption: Provided you are a permanent resident of Florida and you have declared your home in Florida as your primary residence (even if you have more than one abode) – you may apply for homestead exemption. This achieves:

• Up to a $50,000 reduction in the assessed value of your dwelling, potentially lowering your property taxes.
• The “Save our Homes” law is an Amendment to the Florida Constitution that caps the annual increase in homesteaded properties at the lesser of 3% or the Consumer Price Index (CPI). The annual increase for non-homestead properties is capped at 10%. Given the assumption of appreciating real estate values, one’s property taxes can be more effectively managed in the long-run.
• While not transferable, one can transfer or “port” their assessment difference (all or part) of the exemption to their new Florida homestead.

Asset Protection: Florida is arguably one of the greatest states in the Union to protect the assets that one has earned and accumulated. As we all know, America is unfortunately a highly litigious society. Whether in a riskier profession or not, or even fully retired, one should be fully aware of potential gaps in their exposures to risk – where creditors can potentially come knocking in the event of a claim. Asset protections largely unique to the state of Florida abound, including:

• Homesteaded property.
• Retirement accounts (i.e., 401(k) / 403(b) / IRAs) and Pensions.
• Cash value of life insurance.
• Annuities
• Social Security.
• Head of Household wages and Disability Income.
• A portion of jointly titled assets under “Tenants by Entirety.”
• Prepaid College funding.

Of course, each one’s personal circumstances are unique – and, like with any change in life, there may be downsides or considerations that should be taken into account as one considers formally becoming a Floridian.

We respect that many of the people that we initially meet with are doing their homework – which is always the right thing to do on the front end; as the expression goes – measure twice and cut once. Others we meet with highly motivated and are looking to “flip the switch” and become residents yesterday! No matter the case, the process has to be above board, one’s proverbial ducks should be in a row, their professionals are to all be in the loop (and in agreement), whereby you are ultimately placed in a position where you can sleep well -- knowing that you’ve arrived and done it right.

We’re here to help you navigate this path of Florida Domicile and tailor a Sunshine State Strategy to you – in a complimentary fashion. Knowledge is power, so please lean on us as a resource. We aim to be among the most experienced on the subject – and would love to walk you through the process (about an hour-long, private, interactive presentation), to provide you with trusted professionals as needed, and to answer any and all multitude of questions that you may have on the subject – with answers uniquely suited to your needs.

If you wish to contact us to schedule a presentation, please complete the below form, call our main line at 239-778-1780, or email us at oleykinserwealth@raymondjames.com and we'll follow up on a mutually convenient time. Thank you, and we look forward to speaking with you soon.

Most respectfully,

Brett Oley & Ryan Kinser
Oley Kinser Concierge Wealth

Now Available – Sunshine State Strategy: Your Essential Guide to Becoming a Florida Resident

Financial advisors Ryan Kinser and Brett Oley have successfully helped hundreds of people like you become Florida residents. In Sunshine State Strategy, these experts guide you through the process of taking advantage of the benefits of living in the land of sunshine and beaches.

You know you’ll enjoy the beautiful weather. Now, discover the real reasons wealthy people are moving to the sunshine state. Florida’s fiscal strength and tax friendly environment allow residents to potentially maintain more of their hard-earned wealth without the worry of state income or state estate taxes. Florida residents can also enjoy the state’s powerful homestead exemption and unique asset protections.

Before you start packing, let Sunshine State Strategy help you plan how to head south with confidence.

Please provide your contact info below for a free e-copy of our book -- and we will send it to you in one business day.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Oley Kinser Concierge Wealth and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we do not render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.