Anyone retired TO california? (55, weather, moving, friendly)
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I am a native Californian -so are my husband and kids.
We currently live in the DC metro area and even though there is a lot of interesting things to do and see on this coast, I get sooo homesick.
When we look at retiring, we always end up back in San Diego. We can afford a home there but we are worried abut the the tax picture eating away at our retirement income.
How bad is it?
Is any way to have your "permanent" residence listed in a retirement friendly state like South Dakota while spending a majority of your time in San Diego?
We can afford a home there...
but we are worried about the the tax picture eating away at our retirement income.
Investment income doesn't really care where you live and a lateral move from the over hyped
DC market to the over hyped So Cal market is almost a scratch transfer of RE equity.
So yeah, the future tax picture is the big question. Unfortunately my Magic 8 Ball is in the shop.
My observation and best guess is that as EVERY state and county in the country needs to increase
their tax proceeds just about every state and county in the country will be doing exactly that.
Most already are to varying degrees.
The question is about the degree to which it will happen and how we value the other aspects of life
that living in one state or county over another represent vs the tax consequence.
Bottom line? That So Cali sunshine has always come at a high price and it always will.
Generally speaking, places with good weather and beautiful scenery are expensive. I don't think that's going to change any time soon. Both coasts are high buck places to live.
It would scare me to live in Cali because of the tax picture overall. My perception of Cali is a very left wing population that wants to take care of everyone. Nice sentiment but I can't afford it.
Is any way to have your "permanent" residence listed in a retirement friendly state like South Dakota while spending a majority of your time in San Diego?
I suppose you CAN but you probably don't want to get caught by the Franchise Tax Board. That could get ugly!
Tax issues aside, there are a few places in California that strike me as good places to retire. Believe it or not some places are relatively inexpensive right now, which would balance out the tax issues (a little). Big Bear, for example. Lovely town, and homes there are pretty cheap these days. If I wanted to retire in the mountains I'd head there. I think one of the regulars on this forum lives there. He could probably give you more info if you're interested.
Investment income doesn't really care where you live and a lateral move from the over hyped
DC market to the over hyped So Cal market is almost a scratch transfer of RE equity.
We are in Virginia (northern) I would have thought personal income (retirement funds)is taxed at a higher rate in California than in Virginia.
I agree the RE equity is a wash. We are seriously considering selling and moving there now (1-2yrs) to work for another 10 years. We are RNs.
But, the state is in such bad shape we are hesitant. Virginia on the other hand is in good shape due to the Northern Virginia $$$ for government contracts .
We're thinking of going back as well - but not to So Cal. Hubbie is a native Angelean.
And there are affordable homes there now - a friend picked up a house in the greater Sacramento area for $150K.
I have family in silicon valley... (who are Prop 13 owners and pay the same property taxes as I do here in Utah)... but it will be different for us.
I'd even live somewhere NOT close to all the action - hopefully because I won't need a job.
We'll have to see how things are in 10 years there.
And yes, when we left - in 1990 - the State Franchise Tax board sent us nasty notes - to our Utah address - thinking we were still working in California. We were not.
We are in Virginia (northern) I would have thought personal income (retirement funds) is taxed at a higher rate in California than in Virginia.
I was referring to the earning aspect there (addressed the tax aspect separately).
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But, the state is in such bad shape we are hesitant.
I am too. I used to live in OC, have spent many happy times visiting, I love the central coast in general, my son went to CalPoly and has remained (in LA) and daughter moved to LA last year as well.
There are all sorts of intangible reasons drawing me there... but I just can't seem to make the jump. Never could going back to the 70's when I had the first of several chances to stay. If either of my kids was doing well out there (neither is doing much more than scraping by) I could justify the up front "buy in" costs for real estate... but that still leaves the continuing and steadily rising tax costs which hold no appeal at all.
Until the kids are doing better I'm hedging my bets here in NC. Truth be told I expect at least one of them to head back east again (here or Baltimore) before the end of this year.
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