Skip to main content

Saving with Steve, 03/05/2022

Show Headline
Saving with Steve
Show Sub Headline
Guest, Brad Gailbraith

Saving with Steve with Steve Sexton

Guest, Brad Gailbraith

Show Tags

Saving with Steve

Show Host

The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.

We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.

/article-feed.xml/77568
Weekly Show
BBS Station 1
Tuesday
Starts
6:00 pm CT
Ends
6:55 pm CT
Show Transcript (automatic text 90% accurate)

everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton<br>ounce of money pretty much everything to you having a happier healthy relationship with money my name is Steve sex and I want to thank you for joining us today again we had a lot of feedback on last week Bangladesh interview with magnifymoney she talked about taking the steps so people can put themselves in a position where they're not living paycheck-to-paycheck so it was a wonderful interview want to go check it out if you go to the website at episode 71 and you're going to want to see that this week I'm going to be talking about how to transition into retirement and put yourself in a better place to transition into retirement last year the state of California head over 660,000 people move out of the state to lower income tax the same thing happened to all high-tech States like New York New Jersey Illinois and more the reality of States like California don't want to lose your tax dollars and do everything to keep you pay that's right and want to keep your bang<br>you're going to have to learn how to pass your State's domicile test we have Brad galpern greater change my domicile.com nailed you good folks like you to do it right now that's what I'm talking about how to transition to retirement it was really interesting when we start talking about transitioning into retirement okay we have over ten thousand people a day retiring okay well each of his have specific goals ideas Financial circumstances you know what there's a lot of things to reply to us and hear some chips that we might want to think about besides getting some good Financial advice to help you ease into retirement K as we transition into retirement almost everyone will make a lot of critical decisions including when to start working when to take Social Security and a whole bunch more I want to be thoughtful about your choices and try out different scenarios work with the financial advisor for example delaying Social Security you know what can animals to 100.<br>what's your bottom line I talk to so many people about their social security to help will maximize it just by doing a few little things are delaying or Social Security could bring you in another hundred thousand dollars of your life okay you know what if you work a little longer pay you can earn more income for a longer. Of time you can save more you can delay tapping in your existing savings the other question where will you retire if you own a home it could save your retirement consider if you you don't need to tap into your homes Equity through a reverse mortgage think about chip doing in retirement retirement you should be this big event where you get the party to watch and then there was an Abrupt end to work okay how are these days more and more people are switching to retirement jobs or working part time before they quit the labor force completely cuz he think about taking some time off so people call it a sabbatical we get recharged instead of retiring try out a retirement<br>before packing up and moving and what I've seen this so many times at least five or six times I can count right now or clients have said hey we're moving to this day they go find a house to buy a house and they're there for 3 to 6 months and realized they just hate it and then it moving back okay you want to make sure you find your people the location that the whole the whole Vibes going to work for you all the way through make sure you also can live on a budget and you're going to need to stick to it so a lot of people they figure out what your budgets going to be in retirement and start living on that before you retire so you don't have that oh my God I overspent think about passive income okay and that can't come that you can earn without much effort for you know it most popular forms of passive income are real estate and it's okay you don't have to buy a new part of doing it you can just get a rental property or invest in something that provide passive income if you have thing at savings think about your goals and how you're invested and not the best investments right<br>you will depend on the value of your house and how much income you have for other sources your monthly expenses your ghost retirement your desires for leaving in a state and a whole bunch more you're going to heal a lot of different advice from your saving should be held in low-risk account for Serbia Capital live off the interest think about systematic withdrawal make sure you're the best ones can grow to keep Pace with inflation lots of stuff you just want to make sure you structure of program that's going to fit you not only now but in the future that leads to my next Point you're going to be retired without working for 25-30 maybe thirty-five years do you want to make sure you have a long-term pan a long-term budget that takes into account things like Health Care end-of-life the things that you everything that you do everything you do next Consulting simplify your child's many people have multiple checking and savings account if IRAs and 401 k as our previous employers it makes sense to consolidate them so you only have to look at one or two statements Maybe<br>Treetops to see where all your stuff is it makes it easier to manage and when you're consolidating things and you're working with a financial professional ask a lot of questions take what are the fees how does this work considered investment options not just one when you're doing a rollover since very do it very carefully make sure you avoid any withdrawal penalties when you're retiring think about friends and family know you're transitioning into retirement something so important part of your life is your friends and family she also connects his own the most important factors for your emotional and even physical help and many people really miss daily interactions with people they stop working with think about your tire and plants be sure to factor in your loved one one of the biggest things to do when your battery tire is figure out how to transition those steps I just gave you the things you can do I recommend you go through it make sure you talk with a financial advisor you know what we're going to have to take a little break pay some bills here on saving with Steve next up we<br>Brad Gilbert hey you're going to want to listen this especially if you're considering leaving the state of California like another six hundred some odd people thousand people did last year he's got some great advice to make sure you don't get stopped paying California tax more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show we're going to be talking about the in an ounce of money does Financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve Sexton on a saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton welcome to the ounce of money pretty much everything under the sun that relate to you having a healthier happy relationship with money my name is Steve sexy welcome to the show just want to say thank you for sharing this with your friends families and Associates we had well over three hundred and thirty-seven thousand viewers and listeners last month so we were very excited with that last year over six hundred and sixty-three thousand people moved out of the state of California mini just because I wanted to go to a lower tax date so they can save a lot of money okay and the same things happening with New York New Jersey Illinois because they want to go to a tax-free or a low-tax date now the reality is these states don't like losing your tax business it and they want to make you make sure that you're not doing anything<br> so they can keep that business so you know what you want to learn how to pass the state what it's called domicile test that's why we have brought Galbraith here greater than change my domicile, he's going to help us help us help you good folks just walk you through it now talking about the big packs cans that are in here and tax season and how would you like a technology to election forecasts risk for investors how would you like a tool that enables you to help identify when risk is too high so you can get yourself out of the market and you want to stick around we have Sean rolls at watch point at Atlantic he's going to walk us through it now what I'd like to do is tell you a little bit about Brad Galbraith now he's an attorney he's a CPA he's a CPA he's the author is States Pacific domicile plan now I'm like I said before people were looking at ways to reduce taxes lot of times. Just moving from one state to another some people they you know what don't realize that their former State wants to keep their hands in their<br> cookie jar from a tax perspective and if they ignore the rules on how to change your domicile properly hey you could come up with a lot of stress like taxes audit it could be a state as it could be a lots of things so that's why we have bread bread welcome to the show so much do you looking forward to it I heard about you being on here this is a big poppa cuz taxes are going up all over from the state perspective and quite frankly many states become unaffordable so that one of the best ways is to move out of the state now help me understand how you got involved with the changing the domicile business so to speak many many years ago I guess maybe 20 years ago in Indianapolis to my wealthiest clients kept retiring and moving to Florida and they kept saying to me what what can you do to help us and I would say well I'm not licensed in Florida so I really can't and I got the<br> refer them to someone else and I realized pretty quickly that referring away my wealthiest clients who are tuned in to this domicile issue probably wasn't the best long-term strategy so I took the Florida bar opened an office in Florida and ever since I've been helping people from higher tax states make that transition to floor and I've had some clients where they figure they can split a state or you know one spouse is domiciled in one state and another and another and for some reason you know what they're getting audited they're getting hit with penalties and all that kind of stuff so what am I going to do is just go hang what determines somebody state registry where their what states are domiciled determines that would start their sure well for the most part when were using this term domicile it's good to to specify that a lot of people called that residents must face technically call it.<br> but you can of course have a residence in more than one state but you should for tax purposes only have one domicile and so there's there's a lot of your listeners certainly to pay state income tax in multiple States but there is one state that is their primary residence and they may they may be paying state income tax for example in California because they owned rental property in California they may pay an Illinois because I have rental properties in Illinois but they happen to be domiciled in New York and so their worldwide income is subject to tax in New York minus some of those taxes that are paid another place is so so in general when we use the term domicile we're talking about really kind of tax residency now what determines your domicile is state-specific that's that's one of the things that we have talked about a little bit it's really not about the state you're moving to it's the state you're coming from because every state has their own laws that's that's just the way it works in in our United States is not a federal<br> lob instruments which state you're are domiciled in it's just a lot so they went all the way to the US Supreme Court about what state of the argument often times was I've got more than one stay saying that I'm down the south Interstate federal government or federal courts you resolve this and and the answer has really been for the most part states can have different laws it if you aren't smart enough to make sure that you are only down the sound one state there may be more than one state that tries to claim taxes on it so we have to look very specifically to the state that you were trying to change your domicile from not just the state that you're trying to change a domicile to another where is the New Jersey some of the biggest tax date you really need to make sure if you're going to be living in Florida or in Texas or some other like Tennessee tax-free State you really need to look<br> like for example you probably do it while you're from Indiana so Indiana has what kind of like I'm just going to ask about Indiana what kind of rules for domicile test of Indiana have to be so I can even be a little bit more specific than that I would say in general about half of the states in our country have a two-pronged assault and the other states have a 1 prong dumps out a number of days test New York is probably the most famous of of those states where they say if you haven't place of Abode if you have a place that you can live with a rented or own and you are in New York 183 or more days then you are statutory resin and there is no reason to move on to the second prong to text you are a resident of that state for their tax purposes and any of the other things I've ever heard of that you're supposed to do just simply won't matter about half<br> what states have a law like that the number of days now that this the number of days a little bit from state-to-state but most of them are in that 6 months and add a category they're Ohio is the one very unusual stay where where they don't have six months in a day that's 7 months in the day they actually are more liberal a surprisingly and I have said in order to hold on to as many people as they can who will continue to come back to Ohio and summer time or offseason they said you know we're going to be really live while you could be in Ohio up to 7 and if you intend to be domiciled somewhere else we won't count that against so that they've done the opposite direction of many states and their thought is that way the former residents can continue to come back to Ohio on second homes do their Banking and investing and go to the doctor there and get the Charity's there and I've decided the best what's best but in general half of the states have this number of days test<br> the second part of the cast in those States and the second part and the only part of the test in most other states is an intent test and it is based upon your subjective intent and unfortunately there's no there's no MRI machine that we can run a person through that that lights up green if you intend to be domiciled in Florida and lights up red if you took the domicile in the yard it doesn't work that way so every state has come up with different factors that they may look to to objectively determine what your subjective intent might be and that's what really berries varies significantly in some states they say whether you have a safe deposit box in their state is extremely relevant in another States that's just not even mentioned in some states and only a few States they say where you give to charitable organizations really shows where your heart is and if you still give in your former State that's very indicative of your intent and yet other states a absolutely positively we will not consider that<br> we don't want to harm the Charity's but what we want to do is we want to make sure that if a fact finder is a quart or a taxing Authority whichever take a look and audit or even little we wanted to be very clear to them that this case just isn't worth pursuing because you've done so many things too heavily weight that Apothecary scale in favor of your new stay up at 8 we're going to hold on right there I want to talk to you about many of those things that people can do when we come right back so we're going to take a break got to pay some bills once he's active more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talked about the in an ounce of money does Financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton on a truly thank you for tuning in appreciate you letting your friends & Family Associates know about the show all the replays are available in Saving with Steve. Us again at saving with Steve. You as if you're enjoying the stories some helpful information inside on saving the Steve then I encourage you to subscribe to your YouTube channel so you never missed a show and check out a few of our Affiliates at UK help radio BBS radio talk radio New York City East 360 TV and Las Vegas TV network Financial personal freedom Facebook enjoying the saving with Steve insiders Club at saving with CWS you get all the replays exclusive gift from our gas and more so with that we have bread back we're talking about<br> factors that people look at now what specifically are some of those factors that the Franchise Tax Board here in California or whatever it is here to there in Florida will they be looking at is factors for somebody's domicile I can provide a bit of a list of those things that are somewhat Universal country doing just those things that are General may not be everything you need to do for your sake, but some of those General things are the things that are really almost just obvious domicile to driver's license and ID register a car in that if there's a homestead exemption you would file for that homestead exemption in one thing that may not be quite as obvious but is true in many of our state's is it you're changing to a new state there may be a form available either through a County<br> or the State Franchise Board or the Department of Revenue by the taxing Authority for the state that allows you to complete an affidavit that says as of this day I intend to be domiciled in my newspaper in Florida every county has one of those is called a declaration of domicile is completed in front of a notary and you just swear that's your intent you can record that with the county putting everyone on notice that that's you know that's not going to do it that's that's not going to be the determining Factor but it is very nice to have a very clear piece of paper that says it is my antenna as of February 25th 2021 that I intend to be domiciled in my new stick Sonos are some of the the universal things but there's a few others that are certainly worthy of mention in some of these are a little bit less obvious I mentioned a safe-deposit box earlier that's not relevant in every state but I would say<br> and at least half of the states that appears either in case law or regulatory materials or state publication that the debt may be very indicative of a person has a cat if you have a safe deposit box still in your former state it sounds like that really is your intended long-term best the place where you intend to eventually return and and that could be a problem if you ever dump out of it for domicile a couple other things that are interesting the people don't always think about one of those might be professional licensing many of us and many of your listeners are are Professionals of one sort or another whether they're an attorney or a doctor or nurse or a realtor or appraiser you name it I think about it you register as a professional with your stuff that's a state that database if the state wants to determine whether they're going to audit you are not a very simple thing they can do is look and say all right with this person is still a license<br> mission in the state of California yet he says that he's now domiciled in Idaho that doesn't really make much sense to us we better inquire more so if you're changing your state of domicile it doesn't necessarily mean you have to give up your professional licenses if you're ready to even better but in most instances people want to at least change from a resident license position as an example to a non-resident license position if there is no different differentiation between resident and non-resident at a minimum change your address do not continue to use your end State address for those purposes use your new State address for this purpose in Most states will say that when trying to determine urine test again there is no MRI machine there's no easy way of determining that and it's just a little bit too obvious to just asking.<br> you have a driver's license and your new stay so what many states will do is they'll look to some of these less obvious thing that they believe that if you're really intending to change your domicile you would probably find a dentist in a primary care physician in your new state depending on the state they may ask about other professionals Insurance professionals Financial professionals accounting professionals at lawyer do you have these Professionals in your new stay at a minimum do you have them in that new state and maybe still in your old stay with them coordinating but there should probably be some connection with the new state that varies by state again interesting way I mentioned Ohio earlier Ohio when passing their laws made the decision to not count those things that what they wanted to do is have have their state residents who are changing their domicile still go back for medical care in Ohio still have the<br> Kyle Banks as their backs still have the Ohio investment professionals and CPAs in lawyers Allstate can be indicted about nuts and that things like this church in your Northern State it would only make sense that if you were changing your domicile to a new state that you probably find a Methodist Church or some church at least to attend in Florida if you're a lifelong member of the University of Michigan Alumni Association you'd probably join the University of Michigan Alumni Association of of Florida are you would likely do you also surround yourself with some suck if you've been active in charitable activities you'd probably find some of those charitable activities to do in your in your new stick<br> things that people should consider before changing their domicile I think it would only make sense to do it and make sure that it makes so one of the things that happens when you change your domicile is he give up your homestead exemption in your in your current state in order to get the homestead exemption in the new state almost every state says you can't have a homestead exemption in Homestead exemption there are for the most part reserved for those people who are domiciled in that state the homestead exemption is very significant just as an example in Michigan at the homestead exemption is very significant I've had I've done the analysis for clients before where we ended up deciding that their savings on income taxes were outweighed by the additional costs of giving up the homestead exception so so it is important to to not just hear that the new state is better but to do the financial analysis figure out whether it really makes sense to make that change and if you're<br> going to do so when did those windows Financial benefits kick in okay so how do you defend against an audit how do you defend against an out-of-state check the change in you get audited you know often times you've already lost because you do it if you're making a change in your going into retirement looking forward to spending some time with the kids and grandkids and on the golf course and you end up in an audit that's just not what anybody wants so I would say it is very important when you make your change of domicile to know the state that you're coming from to know it inside and out and that is the idea of I change my domicile.com making sure that you have a state-specific list to go through keep records of everything that you changed if your changing from a safe deposit box<br> in your tie tack state to a safe-deposit box in a low-tax states keep that information have the records as to when you change when you close the old box when you open the new one thank you Brad for being part of this show it's change my domicile. Cam is the best way for people to get in contact with you correct absolutely, and a link where you can download your specific States we did talk about the ins-and-outs money we talked with Brad Galbraith about how to change your dumb ass out properly so we're not in a position where a previous date is still taxing us now I truly want to thank you for tuning in appreciating you letting your friends and family members and Associates know about the show all the replays are available at saving with Steve. Us if you're enjoying the stories of how people information and end<br> Steve Langford you to subscribe to your YouTube channel Spotify and Google Play channel so you never misses show check out a few of our Affiliates at UK help radio BBS radio talk radio New York City e360 TV Las Vegas TV network live a life of financial personal freedom so you can follow us on Facebook and join the club at saving with Steve. You asked to get access to the after show video and guess just change your life to the next level look forward to seeing you next week have a great weekend thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to<br> you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>