5 Financial Considerations When Moving to a New State
Deciding whether to move to a different state comes with many considerations. Top of mind might be factors like the weather, job market conditions, and education systems. Finances likely come into play, as well. Here are five key considerations to take into account as you evaluate your options:
#1 – Recognize cost-ofliving factors
Living expenses vary from one place to the next. Moving across state lines means your housing costs are likely to change. Commuting expenses are another consideration, as well as expected monthly payments for services like utilities and internet connections. Health insurance costs may also differ depending on where you live. Make sure you are prepared for your new financial realities – whether they’ll ultimately help or
hurt your bottom line.
#2 – Understand your moving expenses
If you’re moving for a new job, some employers will cover moving costs, but if that isn’t the case, it’s important to estimate what your out-of-pocket expenses will be. If you have few personal belongings, costs can be minimal. But, if you are moving a whole household, you’ll need to rent a moving van or hire a professional service. Moving costs can add up quickly, so make sure you include them as you build out your budget.
#3 – Become familiar with tax laws in your new state State income tax rates vary dramatically across the U.S.. Some states have higher sales taxes, while others offer sales tax exemptions on items like food and clothing. This is another “living cost” consideration as you assess how your bottom line may be affected by a move out of state.
#4 – Consider the impact on your investments
Investment income such as dividends or capital gains may be taxed differently in your new home state versus the state from where you are moving from. Make sure you are aware of the potential impact and determine if it might be beneficial to make changes to your portfolio. In addition, if tax-exempt municipal bonds from your current home state are part of your portfolio, be aware that you will lose the state
tax exemption benefit if you change your state of residency.
#5 – Review your estate plan Laws affecting estate plans vary by state. You’ll likely need to update your wills, trusts, and any other key estate-related documents such as health care and financial powerof-attorney documents. Consider your decision to move across state boundaries a perfect opportunity to conduct a thorough review of your estate plan.
Work with a professional If you have a relationship with a financial advisor, it makes sense to discuss the financial ramifications of your move with him or her. Keep in mind that they will need to be licensed in the state where you intend to move if you plan to keep working together. If that’s not feasible, you may need to seek advice from an advisor with the right credentials to serve your needs. Start the process as soon as you can to ensure a smooth transition of your finances as you settle into your new living situation.
Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641-684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa.
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment advisory products
and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks
including possible loss of principal and fluctuation in value.
Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2023 Ameriprise Financial, Inc. All rights reserved.File # 5613367
Teamwork
For the past several weeks, when I do not go out turkey hunting, I like to sit on the porch, drink coffee, and practice my turkey calling. Most mornings, anywhere from two to six turkeys come out of the timber on the far side of the lake where they strut, preen, and eat. I can see what effect my calling has on them. The gobblers will usually strut or gobble. Some days, when they do not have hens with them, they will even come toward the house. I have been having a good time seeing how close they will get before veering off, down the dam, and off into the timber again.
Apparently, my gray sweatsuit and bedroom slippers work well as camouflage. On the porch, with my back against the gray house, I
am almost invisible.
Thursday morning, as usual, I had my cup of coffee and turkey call in hand on the porch as it was getting light out. Two gobblers flew down to the top of the dam and started strutting. I would call and they would answer but I could not get them to move. A hen was also calling a few hundred yards away, but the gobblers stayed put and waited for hens to come to them. I gave them my hen imitations and finally gave up when I could not get them to come any closer.
Back in the house, I relaxed, watching the news. My wife got up to re-fill our coffee cups and glanced out of the window over the sink. She turned and exclaimed, “Your turkeys are coming!”
They must have gone down the dam, into the pasture and circled back toward the house. I got up to see the two gobblers slowly making their way up the emergency spillway to the lake. This is a flat area with a sharp drop off just past the edge of the lawn that lets excess water out of the lake during high water. My first order of business was to get Jag put inside. He loves to hunt, but the barking little dog
is not nearly as much help at turkey hunting as he thinks he is. I quietly coaxed him into the garage and shut the door. Going back into the house, I ran to the closet, and grabbed my shotgun, while my wife watched the gobblers and reported their position to me. Still in my slippers and sweatsuit, I sneaked out the front door and across the porch. Walking cautiously toward the spillway, I could not see the gobblers. This meant they had either spooked and ran off when I came outside, or they were still in the spillway over the edge where I could not see them. If they were in the spillway, they could also not see (Outdoors cont’d on pg 4)
(Outdoors cont’d from pg 3) me. I walked slowly and quietly toward the edge of the lawn. My slippers did not make a sound as I walked on the green grass covered in dew. The closer I got to the spillway, the more convinced they had bolted before I saw them. I knew, as close as I was getting to the limited area I could not see or be seen, if the gobblers were still there, it would be an explosive exit. I was
starting to relax, thinking they were gone when they both flew up, not thirty feet from me. Startled at first, I regained my composure in time to swing up and fire. My spring turkey tag was filled, and we would have grilled turkey for dinner.
Without my wife serving as spotter, I would have never known I had successfully called in the turkeys. We make a great team.
