Monday Accountability Post

PurpleBookmark · December 2015

1. Good, we only bought groceries this weekend which was budgeted.

2. We started the process of switching cell phone plans which will reduce our monthly expenses.

3. We will go to church Christmas Eve, see DH's family on Christmas, my family the day after and DH's other side of the family after that. Everyone is pretty local so no big travel plans.

als1982 · December 2015

1. How MM was your weekend?

Decent. Caught up on yard and house work, mostly. Friday happy hour with H at $35 and Sunday dinner with girlfriend for $30. We did start Christmas shopping, and it hurts to see all those numbers adding up, but they're budgeted at $1,200 split between us.

2. Any progress towards goals?

A few hundred to student loans, paid off the last of our expenses from Thanksgiving vacation to the Caribbean.

3. Any plans for the holiday season (vacation, time off at home, travel to see family, etc)?

Christmas Eve and Christmas morning with H's family, then drive to my moms and have Christmas dinner. We'll then spend the night at her house and go to my dad's side the next day. I'm glad that family is all within a 1.5 hour drive! I dont get holidays off, so I usually spend these weeks getting caught up at work while everyone else is taking PTO!!

short+sassy · December 2015

vlagrl29 said:

I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.

I've never paid a property tax on a vehicle in Louisiana. There was one when I first moved here, my b/f at the time got them every year, but I never did. I don't know when it changed but, according to the link above, Louisiana does not have them. And here this whole time I thought I was getting one over on the state! I'm actually a little disappointed, lol.

According to that same article, Louisiana also has the lowest property taxes. I pay $600/year for my house assessed at a $140K value...but that also includes a $75K Homestead Exemption, so really my taxes are based on a $65K value. Alas, next year is the year they reassess my area. And real estate has shot up hugely since I bought my house. I'm skeered!

blondie42107 · December 2015

vlagrl29 said:
I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.

In my state we have annual license plate/registration fees for vehicles, trailers, etc. My H's vehicle was $94, I believe this fall. I don't recall what mine was. Once payment is received, the state mails back a sticker that you put on your license plate.

abrewer5 · December 2015

blondie42107 said:

I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.
In my state we have annual license plate/registration fees for vehicles, trailers, etc. My H's vehicle was $94, I believe this fall. I don't recall what mine was. Once payment is received, the state mails back a sticker that you put on your license plate.

This is how MD is too. Except we have to renew every two years. Mine was $128 this year. And we pay yearly property taxes that I just roll into my mortgage I believe they're about $2500 per year.

blondie42107 · December 2015

abrewer5 said:

blondie42107 said:

vlagrl29 said:
I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.
In my state we have annual license plate/registration fees for vehicles, trailers, etc. My H's vehicle was $94, I believe this fall. I don't recall what mine was. Once payment is received, the state mails back a sticker that you put on your license plate.

This is how MD is too. Except we have to renew every two years. Mine was $128 this year. And we pay yearly property taxes that I just roll into my mortgage I believe they're about $2500 per year.

SITB

I should also add that our home/property taxes are included with our mortgage as well. I think for 2015 they were $2000.

jessica490 · December 2015

I live in CT and our property taxes are included in our mortgage as well. Our house taxes are $3700 per year for our small 1100sq foot ranch!

We also pay car taxes twice a year on each car (it's broken down). I still pay around $230 on a car that I bought at the end of 2006! And since H always has newer car he's pays around $400+ for his car taxes. I just love New England. I tell you, the day we retire we are moving down south and we are buying Ferrari's because we'll probably be able to afford them with all the sh*t we are paying to live here now LOL

We also have to pay to renew our car registration which I think is $60 or $90...can't remember if that's per year?

Xstatic3333 · December 2015

jessica490 said:

I live in CT and our property taxes are included in our mortgage as well. Our house taxes are $3700 per year for our small 1100sq foot ranch!
We also pay car taxes twice a year on each car (it's broken down). I still pay around $230 on a car that I bought at the end of 2006! And since H always has newer car he's pays around $400+ for his car taxes. I just love New England. I tell you, the day we retire we are moving down south and we are buying Ferrari's because we'll probably be able to afford them with all the sh*t we are paying to live here now LOL
We also have to pay to renew our car registration which I think is $60 or $90...can't remember if that's per year?

Haha so true. I think half of Florida is ex-New Englanders. H swears he'll never move there or I would be all over it. Just repeat after me: high standard of living, high standard of living, high standard of living.

jessica490 · December 2015

Xstatic3333 said:

jessica490 said:

I live in CT and our property taxes are included in our mortgage as well. Our house taxes are $3700 per year for our small 1100sq foot ranch!
We also pay car taxes twice a year on each car (it's broken down). I still pay around $230 on a car that I bought at the end of 2006! And since H always has newer car he's pays around $400+ for his car taxes. I just love New England. I tell you, the day we retire we are moving down south and we are buying Ferrari's because we'll probably be able to afford them with all the sh*t we are paying to live here now LOL
We also have to pay to renew our car registration which I think is $60 or $90...can't remember if that's per year?

Haha so true. I think half of Florida is ex-New Englanders. H swears he'll never move there or I would be all over it. Just repeat after me: high standard of living, high standard of living, high standard of living.

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!

My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

short+sassy · December 2015

1. How MM was your weekend?

Nothing Friday. $186 groceries on Saturday (some stocking up), budgeted. Nothing Sunday

2. Any progress towards goals?

$1,000 to HELOC. Paid credit cards off, but I do that every month, not huge balances.

3. Any plans for the holiday season (vacation, time off at home, travel to see family, etc)?

Neither mine nor my H's family leave nearby. Some years I go back to visit, but not this year. But I am really looking forward to the last two weekends in December!

My normal work schedule is a 4 9s and a 4...so I only work half-day Fridays. Since X-mas and NY's are both on Saturdays, that pushes the holiday time to Friday...which pushes my half day to the Thursdays. Soooo...for only 8 hours of total vacation time, I'm taking those Thursdays off and having two 4-day weekends in a row! Just staying home for it, but I might try tackling a big project...like painting the interior of my house.

Xstatic3333 · December 2015

jessica490 said:

Xstatic3333 said:

jessica490 said:

I live in CT and our property taxes are included in our mortgage as well. Our house taxes are $3700 per year for our small 1100sq foot ranch!
We also pay car taxes twice a year on each car (it's broken down). I still pay around $230 on a car that I bought at the end of 2006! And since H always has newer car he's pays around $400+ for his car taxes. I just love New England. I tell you, the day we retire we are moving down south and we are buying Ferrari's because we'll probably be able to afford them with all the sh*t we are paying to live here now LOL
We also have to pay to renew our car registration which I think is $60 or $90...can't remember if that's per year?

Haha so true. I think half of Florida is ex-New Englanders. H swears he'll never move there or I would be all over it. Just repeat after me: high standard of living, high standard of living, high standard of living.

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!
My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

The Carolinas we could definitely do. I have family on the Outer Banks and it is so beautiful there. I don't have much to compare our standard of living to either, but H has lived all over and really likes New England for the healthcare, convenience of having short drives everywhere, etc. Schools and the economy also tend to rank high overall, although not so much in RI unfortunately. I'm happy here, but especially with my diving hobby Florida has a LOT of advantages. It's an amazing place for nature buffs as well as finance buffs, above and below the water.

jessica490 · December 2015

Xstatic3333 said:

jessica490 said:

Xstatic3333 said:

jessica490 said:

I live in CT and our property taxes are included in our mortgage as well. Our house taxes are $3700 per year for our small 1100sq foot ranch!
We also pay car taxes twice a year on each car (it's broken down). I still pay around $230 on a car that I bought at the end of 2006! And since H always has newer car he's pays around $400+ for his car taxes. I just love New England. I tell you, the day we retire we are moving down south and we are buying Ferrari's because we'll probably be able to afford them with all the sh*t we are paying to live here now LOL
We also have to pay to renew our car registration which I think is $60 or $90...can't remember if that's per year?

Haha so true. I think half of Florida is ex-New Englanders. H swears he'll never move there or I would be all over it. Just repeat after me: high standard of living, high standard of living, high standard of living.

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!
My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

The Carolinas we could definitely do. I have family on the Outer Banks and it is so beautiful there. I don't have much to compare our standard of living to either, but H has lived all over and really likes New England for the healthcare, convenience of having short drives everywhere, etc. Schools and the economy also tend to rank high overall, although not so much in RI unfortunately. I'm happy here, but especially with my diving hobby Florida has a LOT of advantages. It's an amazing place for nature buffs as well as finance buffs, above and below the water.

I've been to the OBanks once too and loved it! I guess we'll just play it by ear

hoffse · December 2015

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!
My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

The Carolinas we could definitely do. I have family on the Outer Banks and it is so beautiful there. I don't have much to compare our standard of living to either, but H has lived all over and really likes New England for the healthcare, convenience of having short drives everywhere, etc. Schools and the economy also tend to rank high overall, although not so much in RI unfortunately. I'm happy here, but especially with my diving hobby Florida has a LOT of advantages. It's an amazing place for nature buffs as well as finance buffs, above and below the water.

The humidity isn't bad at all on the coast. I'm not a fan of interior FL, but the coast along Hwy 30A is spectacularly beautiful.

Also, it's warm. High is in the 70's today where I live - it's warmer further south. H plans to golf this weekend. We walked to the gym in shorts last weekend. You couldn't pay me enough to live in snow for months at a time.

Because of the number of retirees who live there, FL has one of the best healthcare systems for an aging population in the country. The access to and quality of healthcare down there is fantastic. Florida has also figured out how to make retirement communities really appealing. Many of them are single-family dwellings built on golf courses or near the beach, so that you have privacy but there is also plenty to do. They usually come with HOAs that are fairly hefty, but they provide facilities that are reminiscent of a country club. Not a bad place to live.

And I mean, no state income tax on your retirement income if you live there for 6 months and 1 day out of the year. That's a big deal.

By the way, Florida also has the best good will finds in the country. My parents BFF's moved down there recently and furnished their entire house from good will. They even bought a baby grand piano for $50 that included free delivery.

brij2006 · December 2015

@vlagrl29 Do you write off your health expenses every year? If so, talk to me about it. We pay for DD's health insurance out of our pocket, and we also had the expense of her birth this year as well. Doesn't it need to be 10% of your gross income in order to take the deduction? Also, are there other things I'm not thinking of that we can put into that?

Thanks for reminding me that I need to get all of those numbers put together.

hoffse · December 2015

brij2006 said:

@vlagrl29 Do you write off your health expenses every year? If so, talk to me about it. We pay for DD's health insurance out of our pocket, and we also had the expense of her birth this year as well. Doesn't it need to be 10% of your gross income in order to take the deduction? Also, are there other things I'm not thinking of that we can put into that?
Thanks for reminding me that I need to get all of those numbers put together.

It's 10%, but not gross income. Pretty sure it's AGI.

**Not tax advice

brij2006 · December 2015

hoffse said:

brij2006 said:

@vlagrl29 Do you write off your health expenses every year? If so, talk to me about it. We pay for DD's health insurance out of our pocket, and we also had the expense of her birth this year as well. Doesn't it need to be 10% of your gross income in order to take the deduction? Also, are there other things I'm not thinking of that we can put into that?
Thanks for reminding me that I need to get all of those numbers put together.

It's 10%, but not gross income. Pretty sure it's AGI.

**Not tax advice

Awesome! Thanks @hoffse I think we'll be pretty close to 10% of our AGI. Guess I need to spend some time with my check register and figure out where we're at with it.

brij2006 · December 2015

hoffse said:

brij2006 said:

@vlagrl29 Do you write off your health expenses every year? If so, talk to me about it. We pay for DD's health insurance out of our pocket, and we also had the expense of her birth this year as well. Doesn't it need to be 10% of your gross income in order to take the deduction? Also, are there other things I'm not thinking of that we can put into that?
Thanks for reminding me that I need to get all of those numbers put together.

It's 10%, but not gross income. Pretty sure it's AGI.

**Not tax advice

Awesome! Thanks @hoffse I think we'll be pretty close to 10% of our AGI. Guess I need to spend some time with my check register and figure out where we're at with it.

dragonstarjk · December 2015

blondie42107 said:

I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.
In my state we have annual license plate/registration fees for vehicles, trailers, etc. My H's vehicle was $94, I believe this fall. I don't recall what mine was. Once payment is received, the state mails back a sticker that you put on your license plate.

Same. Actually, I didn't know it wasn't like this everywhere.

ETA: we do have to pay sales tax when we purchase a vehicle, so the first time we go to register it, it's a pretty hefty bill for registration AND sales tax. Then the annual registration amount is based off the vehicle make/model and factory price, I believe.

short+sassy · December 2015

dragonstarjk said:

blondie42107 said:

I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.
In my state we have annual license plate/registration fees for vehicles, trailers, etc. My H's vehicle was $94, I believe this fall. I don't recall what mine was. Once payment is received, the state mails back a sticker that you put on your license plate.

Same. Actually, I didn't know it wasn't like this everywhere.
ETA: we do have to pay sales tax when we purchase a vehicle, so the first time we go to register it, it's a pretty hefty bill for registration AND sales tax. Then the annual registration amount is based off the vehicle make/model and factory price, I believe.

I think paying sales tax on a vehicle is true everywhere...whether it is new or used. That is actually a subject that really grinds my gears. Why do states/counties get to collect sales tax over and over and over again on the SAME CAR. WTH?

I understand collecting sales tax on the sale of new car. Fine. But then they already got their pound of flesh. The sales tax should not keep repeating each time the car is bought/sold.

julieanne912 · December 2015

short+sassy said:

dragonstarjk said:

blondie42107 said:

I thought everyone had personal property tax on vehicles. So this is kinda shocking to me. My dad even has property tax on his trailer on the back of his pick up. This year its only $50 for my car and $117 for DH's Car. $3k for our house - the house was bought at $195k. We live in MO.
In my state we have annual license plate/registration fees for vehicles, trailers, etc. My H's vehicle was $94, I believe this fall. I don't recall what mine was. Once payment is received, the state mails back a sticker that you put on your license plate.

Same. Actually, I didn't know it wasn't like this everywhere.
ETA: we do have to pay sales tax when we purchase a vehicle, so the first time we go to register it, it's a pretty hefty bill for registration AND sales tax. Then the annual registration amount is based off the vehicle make/model and factory price, I believe.

I think paying sales tax on a vehicle is true everywhere...whether it is new or used. That is actually a subject that really grinds my gears. Why do states/counties get to collect sales tax over and over and over again on the SAME CAR. WTH?
I understand collecting sales tax on the sale of new car. Fine. But then they already got their pound of flesh. The sales tax should not keep repeating each time the car is bought/sold.

Seriously. Here they collect sales tax (I paid mine through the dealer). Then the registration amount is based on the MSRP of the car (not what you actually pay for it, but what the manufacturer says it's worth). So my car I purchased for $28,500, I have to pay registration fees for as long as I own it as if I paid $36,000 for it. Not fair at all.

short+sassy · December 2015

@julianne912, Ugh! That is super crazy and obnoxious. I think the registration where I live is just the same flat fee for every car. It's something like $100/year.

But we have to get brake tags every year. I'm not saying car inspections are a bad thing, but requiring one every year is nothing but an unabashed money grab.

In fact, some parishes (counties) are now allowing the brake tag to only be done every two years...but people still have to pay a double fee to cover both years. With those new rules, now they are just being blatant that it is more about money than it is about safety.

vlagrl29 · December 2015

brij2006 said:

@vlagrl29 Do you write off your health expenses every year? If so, talk to me about it. We pay for DD's health insurance out of our pocket, and we also had the expense of her birth this year as well. Doesn't it need to be 10% of your gross income in order to take the deduction? Also, are there other things I'm not thinking of that we can put into that?
Thanks for reminding me that I need to get all of those numbers put together.

sorry I don't know the percentage because our CPA does taxes for us every year but we do write them off every year thru the HSA account which is a better deduction than on the 1040. Looks like hoffse answered that though. We do write off all of our health and dental insurance premiums every year but that goes thru our normal joint 1040 form. With the HSA I include all medical, dental, vision, and prescriptions that we get throughout the year. I save all the receipts and add them up in December so I can do a quick transfer in and out of our HSA account to get the tax deduction.

abrewer5 · December 2015

hoffse said:

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!
My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

The Carolinas we could definitely do. I have family on the Outer Banks and it is so beautiful there. I don't have much to compare our standard of living to either, but H has lived all over and really likes New England for the healthcare, convenience of having short drives everywhere, etc. Schools and the economy also tend to rank high overall, although not so much in RI unfortunately. I'm happy here, but especially with my diving hobby Florida has a LOT of advantages. It's an amazing place for nature buffs as well as finance buffs, above and below the water.

The humidity isn't bad at all on the coast. I'm not a fan of interior FL, but the coast along Hwy 30A is spectacularly beautiful.

Also, it's warm. High is in the 70's today where I live - it's warmer further south. H plans to golf this weekend. We walked to the gym in shorts last weekend. You couldn't pay me enough to live in snow for months at a time.

Because of the number of retirees who live there, FL has one of the best healthcare systems for an aging population in the country. The access to and quality of healthcare down there is fantastic. Florida has also figured out how to make retirement communities really appealing. Many of them are single-family dwellings built on golf courses or near the beach, so that you have privacy but there is also plenty to do. They usually come with HOAs that are fairly hefty, but they provide facilities that are reminiscent of a country club. Not a bad place to live.

And I mean, no state income tax on your retirement income if you live there for 6 months and 1 day out of the year. That's a big deal.

By the way, Florida also has the best good will finds in the country. My parents BFF's moved down there recently and furnished their entire house from good will. They even bought a baby grand piano for $50 that included free delivery.

The bolded is a huge reason why I want to move to FL from MD which has some of the craziest taxes. A rain tax, seriously?? At least our new Gov is decreasing the tax burden.

So if the plan is to move to FL before I retire should I still put my retirement income in a Roth account? The benefit of a roth is you pay the taxes now versus later, but if you move some where without income tax on retirement is that beneficial?

hoffse · December 2015

abrewer5 said:

hoffse said:

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!
My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

The Carolinas we could definitely do. I have family on the Outer Banks and it is so beautiful there. I don't have much to compare our standard of living to either, but H has lived all over and really likes New England for the healthcare, convenience of having short drives everywhere, etc. Schools and the economy also tend to rank high overall, although not so much in RI unfortunately. I'm happy here, but especially with my diving hobby Florida has a LOT of advantages. It's an amazing place for nature buffs as well as finance buffs, above and below the water.

The humidity isn't bad at all on the coast. I'm not a fan of interior FL, but the coast along Hwy 30A is spectacularly beautiful.

Also, it's warm. High is in the 70's today where I live - it's warmer further south. H plans to golf this weekend. We walked to the gym in shorts last weekend. You couldn't pay me enough to live in snow for months at a time.

Because of the number of retirees who live there, FL has one of the best healthcare systems for an aging population in the country. The access to and quality of healthcare down there is fantastic. Florida has also figured out how to make retirement communities really appealing. Many of them are single-family dwellings built on golf courses or near the beach, so that you have privacy but there is also plenty to do. They usually come with HOAs that are fairly hefty, but they provide facilities that are reminiscent of a country club. Not a bad place to live.

And I mean, no state income tax on your retirement income if you live there for 6 months and 1 day out of the year. That's a big deal.

By the way, Florida also has the best good will finds in the country. My parents BFF's moved down there recently and furnished their entire house from good will. They even bought a baby grand piano for $50 that included free delivery.

The bolded is a huge reason why I want to move to FL from MD which has some of the craziest taxes. A rain tax, seriously?? At least our new Gov is decreasing the tax burden.
So if the plan is to move to FL before I retire should I still put my retirement income in a Roth account? The benefit of a roth is you pay the taxes now versus later, but if you move some where without income tax on retirement is that beneficial?

Yes, because Roths save you federal income tax on your growth too. If you had a regular IRA (or a regular 401(k) for that matter, which is what most people have) and moved to Florida, you would not pay state income tax, but you would still pay federal income tax on your original contributions and any growth you earned. Federal taxes are a much higher percentage. Avoiding state income tax might save you thousands per year. Avoiding federal income tax could save you tens of thousands, depending on your tax bracket when you retire and how much you withdraw.

hoffse · December 2015

Side bar - there are other states that don't have a state income tax, and some may be cheaper than Florida. But I think Florida is the only state with year-round warm weather that doesn't have a state income tax (not positive about that though). The other lifestyle perks are what makes it appealing IMO. Great beaches, great golf, great water sports, great health industry, etc.

The 6 months and 1 day thing is also kind of cool though because it enables retirees to travel or live in other parts of the country for a significant amount of time and still be considered a resident.

abrewer5 · December 2015

hoffse said:

abrewer5 said:

hoffse said:

haha yes! My parents just bought a condo in FL...they haven't started the 6month thing yet...but who knows! we only have 1 grandma left here living so maybe in the near future. You don't even need to go as far down as FL...maybe VA or the Carolina's? I hate humidity, but I think once I get old my body will handle it better!
My parents always say to that we have a better standard of living here, better healthcare etc...but who knows...I have nothing to compare it to.

The Carolinas we could definitely do. I have family on the Outer Banks and it is so beautiful there. I don't have much to compare our standard of living to either, but H has lived all over and really likes New England for the healthcare, convenience of having short drives everywhere, etc. Schools and the economy also tend to rank high overall, although not so much in RI unfortunately. I'm happy here, but especially with my diving hobby Florida has a LOT of advantages. It's an amazing place for nature buffs as well as finance buffs, above and below the water.

The humidity isn't bad at all on the coast. I'm not a fan of interior FL, but the coast along Hwy 30A is spectacularly beautiful.

Also, it's warm. High is in the 70's today where I live - it's warmer further south. H plans to golf this weekend. We walked to the gym in shorts last weekend. You couldn't pay me enough to live in snow for months at a time.

Because of the number of retirees who live there, FL has one of the best healthcare systems for an aging population in the country. The access to and quality of healthcare down there is fantastic. Florida has also figured out how to make retirement communities really appealing. Many of them are single-family dwellings built on golf courses or near the beach, so that you have privacy but there is also plenty to do. They usually come with HOAs that are fairly hefty, but they provide facilities that are reminiscent of a country club. Not a bad place to live.

And I mean, no state income tax on your retirement income if you live there for 6 months and 1 day out of the year. That's a big deal.

By the way, Florida also has the best good will finds in the country. My parents BFF's moved down there recently and furnished their entire house from good will. They even bought a baby grand piano for $50 that included free delivery.

The bolded is a huge reason why I want to move to FL from MD which has some of the craziest taxes. A rain tax, seriously?? At least our new Gov is decreasing the tax burden.
So if the plan is to move to FL before I retire should I still put my retirement income in a Roth account? The benefit of a roth is you pay the taxes now versus later, but if you move some where without income tax on retirement is that beneficial?

Yes, because Roths save you federal income tax on your growth too. If you had a regular IRA (or a regular 401(k) for that matter, which is what most people have) and moved to Florida, you would not pay state income tax, but you would still pay federal income tax on your original contributions and any growth you earned. Federal taxes are a much higher percentage. Avoiding state income tax might save you thousands per year. Avoiding federal income tax could save you tens of thousands, depending on your tax bracket when you retire and how much you withdraw.

Ah thanks! I thought I was missing something. I need to take a financial class in just retirement/investing. I really should learn now so I can be better prepared for the future.

@hoffse I agree! The weather alone is reason enough for me to move there. No state income tax is just a bonus. H and I love warm weather and the beach.

julieanne912 · December 2015

Texas and Nevada do not have state income tax as well. However I believe in Texas, property taxes are super high, and Nevada is well... not that great of a place to live in my opinion.

Washington also does not have state income tax, and if you can deal with the rain, that's another option. Not was warm as the southern states, but no winters like you get in the NE.

julieanne912 · December 2015

BTW this is an interesting article that outlines which states do not have income tax, but also tells you how else they "get you". http://www.bankrate.com/finance/taxes/state-with-no-income-tax-better-or-worse-1.aspx

Seems Wyoming and Alaska are the only two states where the states loss of income due to no income tax doesn't get passed down to the residents.... except Alaska has a high cost of living due to everything just being expensive, due to location.

hoffse · December 2015

You're right about Texas & Nevada - I always forget about them.

I've had to do a little tax work for TX, and dealing with their department of revenue is always a huge PITA. The only state that's worse in my (admittedly limited) experience is California. Oh my God, California. It's awful. My parents own 1/6 of a building used for a medical practice in California (through an inheritance), and I've told my dad he absolutely has to sell it before they die, because otherwise if it comes to me I will donate it just to avoid having to file a California return each year.

It's interesting that Alabama is on the most regressive list from the article julieanne912 posted. Doesn't surprise me one bit. We are one of the few states where you can deduct your federal taxes on your state tax return. That ultimately favors people who pay a lot of federal taxes. H and I are going to have like a $40K deduction on our state taxes for 2015. It's ridiculous.

short+sassy · December 2015

julieanne912 said:

Texas and Nevada do not have state income tax as well. However I believe in Texas, property taxes are super high, and Nevada is well... not that great of a place to live in my opinion.

Washington also does not have state income tax, and if you can deal with the rain, that's another option. Not was warm as the southern states, but no winters like you get in the NE.

On the real estate investing board I frequent, all the folks who invest in Texas rental properties jokingly refer to the state as Taxes, in reference to the high property taxes.

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