Bloomberg's Wealth Manager magazine has published its annual ranking of tax-friendly states. (The article is about 2.6 MB to hold all those cool retro 1950s graphics.)

This ranking is broken down for various situations-- salary, real assets, mixed assets, retirement, and overall. In a stunning surprise, Hawaii leaped to first as the nation's most retirement-friendly tax state and rose to 13th overall. Wyoming is #2 for retirees & real assets, #1 for salary & mixed assets, and #1 overall. (Weather was not part of the rankings.)

California is #28 for retirees & real assets, #50 for salary & mixed assets, and #43 overall.

New York placed #51 (behind even Washington, DC) and was as high as 46 for salary.

Surprisingly Massachusetts' rankings ranged from 18-27 and #20 overall. But that probably doesn't count car insurance & parking.

The link will only be up for a few more days before Bloomberg puts out next month's issue. However a print subscription is free and it's worth the entertainment value of reading a magazine that's published for the benefit of investors financial advisors. (Oh, so that's how they sell that!) My favorite articles are the ones about the private banks... although for TH's benefit they did have a funny one about thong-wearing nannies.

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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.

Thanks for the link .... with my state howling daily that it's broke, I have to wonder just what my tax bills are going to look like in a couple of years.

BTW, how did you "qualify" as a financial adviser to get the subscription?

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"Coffee: the finest organic suspension ever devised." -- Kathryn Janeway

I notice Louisiana and Washington are in the hunt for top ten retirement spots. (current digs and the old sod).

If a hurricane blows us out - maybe freeload off the sister in Washington until we get settled Texas not withstanding - still lean toward hot and dry should the itch to move hit - versus cold like Wyoming.

The one problem with this is that the high-tax states (Cali and NY) are also where it is easier to make big incomes and get big house appreciation. Sure if I could make big bucks in Wyoming it would be fine, but it is easiest to make a big income in NY or Cali. Where are the millionaires? In NY and Cali. Also, the house price appreciation in the tax heavy states tends to outweigh the price appreciation in the lower tax states. Because of the taxes I pay to NYC, I have a dense urban infrastructure where a lot of high-income jobs can easily reside. And my home has gone up way more than the taxes I pay. Just another point of view.

Of course, this is something often recommend at retirement; i.e. selling your appreciated home, add the gain to the portfolio, and move to a low-cost, tax friendly location.

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Have Funds, Will Retire

...not doing anything of true substance...

I'm not a financial advisor, I'm an independent investment manager!

Several articles from the current issue are available on the website for free (I don't think I even have a registration or a login) but they don't archive old issues. And they're not going to check up on you. They're practically begging to send you their advertising magazine in order to boost their ad rates subscription numbers.

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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.

Yeah, dont count out MA's ability to tax you 9 ways from sunday and not have it show up as a tax.

Thong wearing nannies? These are women, right?

Example of the way MA 'taxes' you without actual taxation. It was decided some 14-15 years ago, that MA, being a 'drought inflicted state' (yeah, me too...I dont remember a rain shortage anytime I lived there), that they should have a special 'water resources authority' to manage this situation. They picked a nice tony location near the ocean, had a huge building put together. Inside looked like the nicest insurance company you've seen. Hardwood panelling, big thick desks, etc. I sold them their network. Guy wanted the whole thing to be fiber optic, end to end. I explained that the fiber would not only cost 5-10x as much, it would do them no good for the next 5-10 years (at least) as the stuff he would be hooking to it wouldnt push data any faster over fiber than copper. Didnt matter, he said, they wanted the best.

Costs for all of this ended up being paid partially through taxes, and partically through special assessments and higher water bills. Years later we had the usual "corruption party" and many low-end mooks got in big trouble so the headlines could be allowed to die away.

Or take a look at any one of the many documentaries on the "big dig" that 'dig' into the corruption, hands held out and pockets being filled. A lot of that came from federal money, which came from everyones pockets. And of course now a lot of the tunnels are leaking and might have to be redone because some corners were cut, and some of the engineering might not be very sound due to improper work and planning...

If that isnt enough, I'm sure they dont count it when they send you a demand for car tax from 10 years before (when you havent moved in 15 years) with a tripled amount due to penalties and interest. When they cant tell you what car it was from because they dont keep records back that far, nor can they explain why they couldnt find you when you hadnt moved. But you do need to pay it promptly or they will suspend your license. No process or escalation provided or available. Pay it or stop driving, you decide.

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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.

They don't account for the fact that the retired family in Hawaii with a house worth $500K (asking price is $575K) might be living in this 960 sqft house.



I bet the place in Wyoming is nicer.

I wonder what the outcome would be if he accounted for cost of living -- including home purchase

OK, I was going to leave that original teaser alone, but this is such an ugly aftertaste that I'd better replace it with a more palatable image.

Bloomberg had an issue a few months back on what a private bank should do for its host family. It's not just non-traditional investments and teaching the next generation how to execute their philanthropy-- it's all about services. One of those services was screening domestic assistants, including nannies.

The example of why a private bank would want to learn how to find a nanny was a family who hired a young woman from a "nanny locator" agency. The family loaded up their private yacht and cast off for a day on the water. When the kiddies appeared topside for a swim, they were escorted by the hot young nanny in her thong. The family's alpha female was not impressed-- although presumably other members of the party were more, er, impressionable.

So there you go. Without Bloomberg's free wealth-management magazine you might set up your private bank wrong, deprive yourself of valuable services, and have to contend with all sorts of inappropriately clad domestic assistants running around your house. Subscribe now!

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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.

I am gravely tempted to not only not subscribe, but to go back to work so I can afford these inappropriately clad domestic assistants. I will make it my lifes work to convert them.

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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.

Nords, do you have pictures of these unfortunate women? I am imagining a well tanned Calipygian blond in a yellow thong. But I will accept all images.

Haha

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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams

Convert them, why? Are you mormon?

(p.s. sorry if I offended any mormons, yes I know you are not polygamists anymore!)

Perhaps he plans to "convert" them to mothers?

ha

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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams

Yeah I left that 'convert' thing hanging, didnt I?

FOR A REASON!

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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.

Thanks for the link nords. I subscribed too. Hopefully, the FA police won't discover me.*

Bookm