Tony Stich just moved from Wisconsin to Naples, and before he did, he put everything in a spreadsheet. Income tax was only one line. Home prices, mortgage rates, insurance, health care, and even school options all had a row, and by his account the math still worked.
For this episode of Dime After Dime, he asks Aaron Simpson, one of our senior advisors, what belongs in that spreadsheet for anyone thinking about the same move. They call it domestic geoarbitrage, which is just a long way of saying relocating to a state with friendlier taxes. Aaron’s take is that the tax rate is the easy part.
What Actually Goes in the Spreadsheet
Taxes get the headlines, but Aaron says they’re one piece of a bigger picture. Florida has the beaches and the golf, he says, and it also has hurricane insurance, pricey real estate, and a lot of questions about where your doctors will be. Tony adds travel to the list, and why it matters more as the years go by.
Then Tony asks Aaron for a ballpark on what a move could do for someone with a high income and a large portfolio. Aaron’s answer isn’t really about the move. It’s about one number in a retirement plan that he says clients have more control over than they think.
Why a Change of Address Isn’t a Change of Domicile
Claiming a new home state and actually having one aren’t the same thing, and Aaron has seen what happens when the details get missed. Tony brings up a story about a former resident, a state tax agency, and a few personal belongings that turned out to matter a great deal.
They also go through what to take care of once you’ve picked a new state. Aaron’s list includes a few things you’d expect, like a driver’s license and your estate documents, and at least one that’s easy to forget, because it involves the people helping you with all of it.
The Part Nobody Puts in the Brochure
Moving somewhere sunny often comes with a bigger house, and Aaron has a lot to say about that. He talks about the pool, the guest rooms, the guests who may or may not show up, and the expenses that don’t appear in the monthly mortgage payment. He also has some thoughts on hanging on to the old house.
There’s even a story about a couple who moved to be near the grandkids, and how it turned out. It’s a good reminder that these decisions are personal, and Aaron is clear that tax and legal specifics are a conversation for a qualified professional.
Tony Stich and Aaron Simpson talk through what to weigh before relocating to a new state, from taxes and housing to the domicile details that are easy to miss.
Watch or listen to the full conversation on the Dime After Dime YouTube channel, Apple Podcasts, or Spotify.
This commentary is for informational purposes only and does not constitute tax, legal, or investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. State and local tax rules, residency requirements, and individual circumstances vary widely; consult your own tax, legal, and financial advisors before making decisions about relocating or changing your domicile. The views expressed are those of the speaker(s) as of the date of publication and are subject to change without notice.
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