Moving Out of Maryland

[Anonymous]

Anonymous wrote:

Anonymous wrote:A lot of DCUM retirees move to Delaware.

Or Pennsylvania, close to the MD state line

Why are you all parrots telling op where to move to?! They're retiring they don't have to stay here.

Op you should move its good advice and no need to stay close to the area on the border of de or pa. I really think some of you have a severe case of Stockholm syndrome. Its a big world out there.

[Anonymous]

The state inheritance tax can be an issue for wealthy people. I would move at some point if I lived in Maryland if you stand to leave a larger estate over $5 M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of DCUM retirees move to Delaware.

Or Pennsylvania, close to the MD state line

Why are you all parrots telling op where to move to?! They're retiring they don't have to stay here.

Op you should move its good advice and no need to stay close to the area on the border of de or pa. I really think some of you have a severe case of Stockholm syndrome. Its a big world out there.

Because it was mentioned that they want to stay close to their children

[Anonymous]

Anonymous wrote:The state inheritance tax can be an issue for wealthy people. I would move at some point if I lived in Maryland if you stand to leave a larger estate over $5 M.

$5M per estate or $5M per person!

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

presumably you would get a smaller place when you retire and move, so even if the tax rate is higher, your overall property tax may be lower than here.

PA does not tax retirement income from IRA/401ks.

We are planning to move out of MD in a few years due to the high taxes and miserable weather. I'm actually thinking of socal where my family are and where I'm originally from. While the sales tax, gas, and overall property values are higher than here, at least I get year round great weather. Also, CA does not reassess property values every few years, unlike MD. Our property taxes have gone up significantly since we moved here 10+ years ago.

I looked at the income tax band, and CA actually has a lower income tax rate for our expected income in retirement compared to MD because every county in MD has income tax. Sales tax where I'm looking at is 7.75% - not that different to MD.

I"m basically buying the great weather. I'm happy to pay for great weather. What am I paying for in MD when I retire? I don't need good schools.

CA has good medical care, too. My elderly parents live there just fine on a fixed income. I'm not worried about earthquakes (I've already lived through a big one there before). The fires may be an issue, but we will probably be moving to an area that won't get fires but may get the smoke.

The only thing that worries me is the water issue. But, I lived in CA for 40+ years and lived through several droughts. I think we will be ok. We'll get solar panels (year round sun) and rain barrels.

I can't stand MD anymore. I need to get out.

OP here. Unfortunately, I grew up in MD and my roots are here. I don't want a significantly smaller place. At least this isn't New Jersey.

[Anonymous]

OP, you're either weird or trolling. Maryland is a high tax state and retirees move out of Maryland all the time. It doesn't mean you need to leave Maryland. Your FA isn't telling you that you must leave Maryland, he or she is pointing out there can be generous tax savings by moving to certain states as states vary in how they tax retirement incomes like social security or capital gains. I've looked into it myself and it can be significant savings depending where you live.

As for culture, most people in Maryland aren't "cultural" and there's museums and art anywhere. And not everyone needs to live next door to a museum. Family members who retired to Florida travel a lot and are always seeing museums abroad, and golfing in Florida and are pretty happy. It's not an either / or situation.

If Maryland works for you, great. Many of us don't have particular loyalties to Maryland and will move someday.

[Anonymous]

Anonymous wrote:OP, you're either weird or trolling. Maryland is a high tax state and retirees move out of Maryland all the time. It doesn't mean you need to leave Maryland. Your FA isn't telling you that you must leave Maryland, he or she is pointing out there can be generous tax savings by moving to certain states as states vary in how they tax retirement incomes like social security or capital gains. I've looked into it myself and it can be significant savings depending where you live.

As for culture, most people in Maryland aren't "cultural" and there's museums and art anywhere. And not everyone needs to live next door to a museum. Family members who retired to Florida travel a lot and are always seeing museums abroad, and golfing in Florida and are pretty happy. It's not an either / or situation.

If Maryland works for you, great. Many of us don't have particular loyalties to Maryland and will move someday.

I grew up in Mont Cty. My youngest is getting ready to leave for college. I'm planning to sell the house about 2 years after he graduates. Ask yourself, when was the last time you went to a cultural event that could not be replicated elsewhere. The Smithsonian's are great. Many of the exhibits haven't changed since my elem school field trips. The interesting exhibits are the ones that travel. They will travel to a city near my new (TBD) town as well. Broadway shows travel. However, I don't like the traveling casts so I go to NY or London a few times a year. I'm not retiring to either of those cities so I'll continue to have my 3-4 day escapes to the big city. But if you like the traveling broadway shows, they travel as well. I don't understand not wanting to leave this area due to it's cultural impact.

[Anonymous]

Why do you need to move whe yo uretire, as opposed to now? Most people have lower income in retirement (since they aren't working) so income taxes, which are high in MD, are less of a concern.

The nearest state to here with no state income tax is TN and it's about 8 hours drive from MD to Knoxville, TN. Delaware and PA both do have state income tax.

[Anonymous]

Anonymous wrote:Why do you need to move whe yo uretire, as opposed to now? Most people have lower income in retirement (since they aren't working) so income taxes, which are high in MD, are less of a concern.

The nearest state to here with no state income tax is TN and it's about 8 hours drive from MD to Knoxville, TN. Delaware and PA both do have state income tax.

MD has county income tax everywhere. If you're on a fixed income, that can be a burden.

[Anonymous]

Anonymous wrote:Why do you need to move whe yo uretire, as opposed to now? Most people have lower income in retirement (since they aren't working) so income taxes, which are high in MD, are less of a concern.

The nearest state to here with no state income tax is TN and it's about 8 hours drive from MD to Knoxville, TN. Delaware and PA both do have state income tax.

PA doesn't tax retirement or social security income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

In fairness...I assume your advisor thinks VA provides much better taxes. I mean, yeah, it's moving...but are you really moving away from your children or culture (as I assume you mean the culture in DC proper)?

Yes, this. VA has no estate or inheritance tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

presumably you would get a smaller place when you retire and move, so even if the tax rate is higher, your overall property tax may be lower than here.

PA does not tax retirement income from IRA/401ks.

We are planning to move out of MD in a few years due to the high taxes and miserable weather. I'm actually thinking of socal where my family are and where I'm originally from. While the sales tax, gas, and overall property values are higher than here, at least I get year round great weather. Also, CA does not reassess property values every few years, unlike MD. Our property taxes have gone up significantly since we moved here 10+ years ago.

I looked at the income tax band, and CA actually has a lower income tax rate for our expected income in retirement compared to MD because every county in MD has income tax. Sales tax where I'm looking at is 7.75% - not that different to MD.

I"m basically buying the great weather. I'm happy to pay for great weather. What am I paying for in MD when I retire? I don't need good schools.

CA has good medical care, too. My elderly parents live there just fine on a fixed income. I'm not worried about earthquakes (I've already lived through a big one there before). The fires may be an issue, but we will probably be moving to an area that won't get fires but may get the smoke.

The only thing that worries me is the water issue. But, I lived in CA for 40+ years and lived through several droughts. I think we will be ok. We'll get solar panels (year round sun) and rain barrels.

I can't stand MD anymore. I need to get out.

OP here. Unfortunately, I grew up in MD and my roots are here. I don't want a significantly smaller place. At least this isn't New Jersey.

? ok, then stay in MD?

For some of us, we don't need to stay in MD for family, nor do we think MD is the only cultural center.

MD is a high tax state. There are plenty of other places that have "culture", and better weather to boot.

The better question is: Why would one stay in MD if not for family and work?

[Anonymous]

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

Why would you move away from your kids? If you have plenty of money and a paid off house, that makes no sense. If you don't have the income or huge mortgage, maybe but in that case you wouldn't need a financial planner.

[Anonymous]

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

Why would you move to Philly? PA is more than Philly/pitt.

[Anonymous]

Your children may find that MD is too expensive and move elsewhere. You never know where your adult kids will end up.

Spouse's siblings ended up on two different continents to the parents.

My siblings and I ended up in 4 different states. Only one lives near to parents.