RPF0633-The_Case_for_Moving_to_a_No-Income-Tax_State
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00:00:30.620 | Welcome to Radical Personal Finance,
00:00:31.860 | a show dedicated to providing you with the knowledge,
00:00:33.700 | skills, insight, and encouragement you need
00:00:36.000 | to live a rich and meaningful life now,
00:00:38.100 | while building a plan for financial freedom
00:00:39.660 | in 10 years or less.
00:00:41.160 | Today on the show, we kick off
00:00:42.600 | as a special April celebration, a tax series.
00:00:45.200 | This will be a three-part series,
00:00:46.500 | and today, in part one, I want to give you a case
00:00:50.140 | for your moving to a no-income tax state.
00:00:54.780 | And I want to make sure that I bring this
00:00:56.120 | to your attention right now during tax season
00:00:59.120 | so that you can have current data to do your own analysis.
00:01:03.560 | Now, in the United States, April is, of course,
00:01:06.460 | the time that we file our federal income tax returns
00:01:10.660 | to the U.S. government.
00:01:11.760 | And, of course, most states,
00:01:13.460 | I don't know of any that doesn't,
00:01:14.760 | but, of course, I've not reviewed every state,
00:01:17.300 | but so I think most states line up
00:01:18.640 | their own state income taxes
00:01:20.400 | as being due with the federal returns.
00:01:23.240 | April is also, interestingly,
00:01:24.780 | the day that we celebrate Tax Freedom Day
00:01:27.040 | in the United States.
00:01:28.440 | Now, I don't know what the date is for 2019.
00:01:30.840 | I haven't seen that date released,
00:01:32.320 | but in 2018, Tax Freedom Day was April 19.
00:01:36.080 | Tax Freedom Day is the date at which Americans
00:01:38.780 | collectively have finished paying all of their taxes.
00:01:42.800 | In the United States, Americans collectively
00:01:45.020 | spend more on taxes than on food,
00:01:48.100 | clothing, and housing combined.
00:01:51.260 | Now, of course, that tax burden is not equal.
00:01:54.800 | The rich bear it much more than the poor people do,
00:01:58.280 | but collectively, Americans spend much more on taxes
00:02:01.440 | than on food, clothing, and housing combined.
00:02:04.020 | And so if you actually look at the numbers,
00:02:05.920 | it takes about 44 days to pay off federal,
00:02:08.120 | state, and local individual income taxes.
00:02:10.620 | Payroll taxes take about 26 days to pay from there.
00:02:14.020 | Sales and excise taxes, another 15 days.
00:02:16.820 | Then corporate income taxes, another seven days.
00:02:19.920 | Property taxes, another 11 days.
00:02:22.000 | And then the last six days are spent paying
00:02:23.700 | estate and inheritance taxes,
00:02:25.440 | customs duties, and other taxes.
00:02:27.340 | To bring you to about the middle or end of April
00:02:30.440 | for Tax Freedom Day.
00:02:31.540 | Canadians, of course, celebrate Tax Freedom Day
00:02:33.240 | usually in about June.
00:02:35.340 | Last year, it was June 10.
00:02:37.520 | Canadians pay about 43.6% of their annual income to taxes.
00:02:42.520 | So the point is that taxes are a major expense,
00:02:45.520 | and for many of us, the biggest expense is income tax.
00:02:49.460 | And that's really frustrating,
00:02:51.160 | because income tax has that perverse incentive
00:02:54.160 | of meaning that if you are productive, you pay more.
00:02:56.900 | You can avoid many other taxes with your behavior.
00:03:00.360 | For example, if you don't like sales taxes,
00:03:02.140 | you can change how you buy things
00:03:03.860 | in order to avoid or reduce sales taxes.
00:03:06.640 | If you don't like property taxes,
00:03:08.240 | you can change the property that you buy
00:03:10.040 | and where you buy it to avoid those property taxes.
00:03:12.840 | But income taxes are insidious,
00:03:15.020 | because in order to avoid them,
00:03:16.520 | you have to make less money.
00:03:17.940 | But of course, we wanna be productive.
00:03:19.860 | We wanna be, we wanna be,
00:03:22.660 | I don't know the word to use, productive.
00:03:24.460 | I wanna be a good steward with my resources,
00:03:27.020 | with my energy, and with my businesses
00:03:28.860 | to produce as much money as possible.
00:03:31.020 | But the more I produce, the more money I pay in tax.
00:03:34.260 | And I find that very frustrating, personally.
00:03:37.060 | So, we talk a lot on Radical Personal Finance
00:03:39.340 | about how you can reduce your tax bill.
00:03:41.300 | And I wanna strike right to the heart of it, though,
00:03:43.080 | because although there are dozens and dozens and dozens,
00:03:45.640 | perhaps hundreds of individual little techniques
00:03:48.620 | that we can put into place in our lives
00:03:50.540 | to minimize and reduce our tax bill,
00:03:53.120 | there are a few big techniques that make a big difference.
00:03:56.720 | The thing that is difficult for many laypeople
00:03:59.620 | about tax planning is they're always looking
00:04:01.660 | for one big idea.
00:04:03.540 | They're wishing for that there were one thing,
00:04:06.020 | that if you just did this one thing,
00:04:07.940 | then it would change your tax situation.
00:04:10.580 | Well, I've been modestly obsessed with this topic for years
00:04:14.720 | and have educated myself to a very high level.
00:04:17.860 | And I have never been able to find that one thing.
00:04:20.140 | Try as hard as I've looked to find it.
00:04:23.240 | But in this series, I'm gonna give you three things
00:04:25.560 | that I think are big, fast strokes
00:04:29.960 | that'll make a big difference.
00:04:31.080 | Unlike all the little deductions, all the little offsets,
00:04:34.280 | all the little credits and things that you can accumulate,
00:04:37.200 | these are just three big strokes for you to consider.
00:04:40.300 | So, let's talk about the case for your moving
00:04:43.100 | to an income tax-free state.
00:04:46.240 | In the United States,
00:04:47.700 | U.S. residents pay income taxes at three levels.
00:04:51.560 | There are federal income taxes,
00:04:53.440 | which are charged to you by the U.S. federal government.
00:04:56.920 | And those federal income taxes apply to all U.S. persons
00:05:01.420 | on their worldwide income.
00:05:03.220 | U.S. persons are defined as all U.S. citizens,
00:05:07.220 | any person who actively has a U.S. citizenship,
00:05:09.920 | no matter where they live in the world,
00:05:11.600 | and any green card holder or any person
00:05:15.020 | who passes the substantial presence test
00:05:17.320 | for their presence in the United States.
00:05:19.200 | So, the U.S. federal government assesses income taxes,
00:05:22.080 | federal income taxes, to all U.S. persons,
00:05:25.720 | no matter where in the world they are,
00:05:27.800 | on all of their worldwide income.
00:05:30.600 | We'll deal with those another day.
00:05:32.000 | The second level of taxation is state-level income taxation,
00:05:36.920 | which is, if you are the resident of a specific state,
00:05:40.040 | many states in the United States assess income taxes
00:05:44.780 | on some or all of your income
00:05:47.260 | if you are a resident of that state.
00:05:50.120 | So, those are state-level income taxes.
00:05:52.560 | And then some individual localities, some cities,
00:05:56.280 | charge an additional level of local-level income taxes,
00:06:01.020 | where they will charge you income taxes
00:06:02.880 | based upon the city that you live in.
00:06:05.120 | Now, the percentage of cities that do this
00:06:06.800 | in the United States is too small for us to bother with.
00:06:09.640 | And if you are living in one of those cities,
00:06:11.400 | you, I'm sure, have specific reasons
00:06:13.500 | why you are choosing to bear that tax burden.
00:06:16.320 | So, I'm not gonna spend any time on your particular problem
00:06:18.920 | other than to point out to you
00:06:20.020 | that you could move if you wanted to.
00:06:22.620 | But I do wanna spend some time on state-level income taxes,
00:06:25.720 | because these state-level income taxes
00:06:27.780 | are a significant expense,
00:06:31.060 | and yet most people don't pay them much attention.
00:06:34.340 | Let me give you an example of how you should think
00:06:36.460 | about your state-level income taxes.
00:06:39.140 | The first thing that you should do
00:06:40.460 | is you should look at your state income tax returns
00:06:43.940 | that you are currently preparing,
00:06:45.900 | and you should figure out how much you are paying
00:06:48.540 | in state-level income taxes.
00:06:51.260 | Find your exact number, if possible.
00:06:55.200 | Next, you should estimate how long you think
00:06:58.460 | you will be paying that number.
00:07:00.940 | For most people, this would be,
00:07:02.300 | well, until I stop working, until I retire.
00:07:05.020 | And so, let's use that as a good plug number here,
00:07:07.700 | but you should calculate your own number
00:07:09.160 | based upon your personal plans.
00:07:11.020 | And then you should extrapolate the number
00:07:13.260 | that that is costing you if you simply removed it
00:07:16.220 | by moving to a non-income tax state.
00:07:19.740 | So let me give you an example case.
00:07:21.140 | Let's assume that we're giving financial planning advice
00:07:23.940 | to a 25-year-old, and this 25-year-old
00:07:27.460 | is earning a significant level of income,
00:07:29.340 | and this 25-year-old expects to pay $5,000 this year
00:07:33.660 | in state-level income taxes.
00:07:36.180 | And for some reason, that state-level income tax burden
00:07:39.100 | is going to not change.
00:07:40.300 | It's going to be a level $5,000 for the next 40 years.
00:07:43.500 | And the reason, of course, is that it makes for easy math.
00:07:46.060 | So let's plug this into a financial calculator.
00:07:47.940 | How much would this particular worker's
00:07:50.500 | state income tax bill end up costing them
00:07:53.740 | over their lifetime?
00:07:55.660 | Well, if we put in a $5,000 annual payment for taxes
00:07:59.560 | into our financial calculator,
00:08:01.720 | we plug in a 40-year number from age 25 to age 65,
00:08:05.900 | 'cause of course, they're going to set up their career
00:08:07.740 | in their state, and they're going to have family obligations,
00:08:09.960 | and they're basically going to stay in that state
00:08:11.580 | for a long time, and unfortunately,
00:08:13.660 | Americans are not moving as much as they once did.
00:08:16.140 | So let's just call it 40 years.
00:08:17.980 | Then let's start with nothing, 'cause of course,
00:08:20.220 | there's no money accumulated,
00:08:21.860 | so let's put in a zero for our present value.
00:08:23.940 | And let's assume that if this person were to move
00:08:26.700 | to a no-income tax state, rather than spend the money,
00:08:30.060 | they would save and invest the money,
00:08:31.820 | because after all, they're a wise
00:08:33.540 | radical personal finance listener.
00:08:34.940 | They're always thinking about accumulating
00:08:36.300 | and building their wealth, so they would invest this money
00:08:38.660 | at, let's say, 8%.
00:08:40.840 | Now, the end of 40 years, how much would that be worth?
00:08:43.600 | Well, under those considerations,
00:08:47.800 | that investment fund would be worth $1,398,905.20.
00:08:52.800 | So let's call that $1.4 million, among friends.
00:08:58.880 | $1.4 million is the cost to this particular person's
00:09:03.560 | retirement account if they choose to live in a state
00:09:07.880 | where they're going to be paying $5,000
00:09:09.680 | of state income taxes.
00:09:11.240 | This is an important thing to point out to people,
00:09:16.760 | especially young people, before they have
00:09:19.800 | established their career.
00:09:21.380 | If you choose to live in a jurisdiction
00:09:25.620 | where you will pay an extra $5,000 per year
00:09:28.300 | in state income taxes, when you could move
00:09:31.560 | to a jurisdiction that does not impose state income taxes,
00:09:36.600 | there is a decent chance that you'll be $1.4 million
00:09:40.800 | poorer at retirement because you chose
00:09:45.000 | to live in that state.
00:09:46.560 | Now, you run your own numbers.
00:09:49.160 | For some people, the number will be smaller.
00:09:51.080 | For some people, the number will be much, much bigger.
00:09:54.660 | But it's a significant expense that you need
00:09:58.000 | to figure out, you need to think about the impact of it.
00:10:01.600 | If instead of paying that money to your local state,
00:10:05.480 | you saved and invested that money for your retirement plan,
00:10:09.240 | it's possible you could have in excess
00:10:10.800 | of a million dollars more at retirement age.
00:10:14.120 | Now, I like to extrapolate numbers even more.
00:10:16.440 | And I think it's valid to do this
00:10:17.920 | because what I have learned working with wealthy people
00:10:20.000 | is wealthy people really usually don't ever
00:10:22.040 | spend all their money.
00:10:23.360 | And so I think there's great value in trying
00:10:25.080 | to figure out a lifetime cost.
00:10:27.120 | How much would this cost you if you never spent this money
00:10:29.920 | but you just kept this money invested?
00:10:32.280 | So what I'm gonna do is I'm gonna keep
00:10:33.400 | the same $1.4 million, specifically $1,398,905.20.
00:10:38.400 | And now I'm gonna change that to be our present value
00:10:44.200 | in our financial calculator.
00:10:45.840 | And I'm gonna change our time frame from 40 years,
00:10:48.380 | which took us from age 25 to 65, to 30 years,
00:10:51.300 | which is gonna take us from 65 to 95.
00:10:54.680 | And if you arrive at age 65 and you're alive
00:10:57.080 | and you're in modestly good health,
00:10:58.960 | you could generally expect to use
00:11:00.480 | about a 30-year lifespan for your calculations.
00:11:03.680 | That's why I'm using this 30 years.
00:11:05.320 | 30 years, I'm gonna now make no further contributions
00:11:08.720 | to the account.
00:11:09.560 | I'm just gonna assume that you accumulated
00:11:10.840 | this $1.4 million in your account.
00:11:12.760 | Perhaps this was your annual Roth IRA payment.
00:11:15.480 | Now at the end of 30 years, how much would that be worth
00:11:17.760 | when you die at 95?
00:11:20.800 | Answer, 14,076,703.06.
00:11:28.600 | So let's call that $14 million.
00:11:30.200 | This is the cost to your family, to your heirs,
00:11:37.200 | for your choosing to live in a state
00:11:40.800 | that imposes $5,000 of state-level income taxes on you.
00:11:45.800 | This is the cost, $14 million of foregone wealth.
00:11:51.600 | What you have done is, instead of accumulating that wealth
00:11:54.640 | and transferring it to your children,
00:11:57.320 | transferring it to worthy people, worthy causes,
00:12:00.840 | worthy organizations that you support at your death,
00:12:04.000 | and making an impact on the level of $14 million,
00:12:08.000 | you are choosing to transfer instead
00:12:10.360 | the value of that money to your state government.
00:12:14.000 | Now, is that a good thing for you to do?
00:12:16.840 | That's up to you.
00:12:17.840 | It's a free country, it's a free world.
00:12:19.120 | You get to choose.
00:12:20.400 | You choose to live in that state,
00:12:22.000 | or you could choose to live in another state.
00:12:24.080 | You can assess how worthy your state government is
00:12:27.840 | of the stewardship of that money.
00:12:30.040 | Are they doing what you think should be done with it?
00:12:32.440 | If so, more power to you.
00:12:34.240 | If they're not doing what you think
00:12:35.480 | should be done with it, however, consider moving.
00:12:38.800 | You should consider moving.
00:12:40.160 | If there were a list of causes that I would like to support
00:12:45.720 | that I believe have a high impact
00:12:49.480 | with very few problems associated with them,
00:12:53.240 | this is on that list.
00:12:56.160 | See, I have certain constraints that I use
00:12:59.680 | in assessing ideas, and for example,
00:13:02.160 | I'm always looking for peaceful solutions.
00:13:04.080 | You'll never hear me advocate
00:13:05.320 | for any kind of violence or violent action.
00:13:08.480 | I'm always looking for peaceful solutions
00:13:10.400 | that make change in the world.
00:13:11.980 | I'm also always looking for voluntary solutions,
00:13:15.240 | things that individuals can do
00:13:17.280 | that are peaceful and voluntary
00:13:19.640 | that will make change in the world.
00:13:21.440 | So you'll never hear me advocating
00:13:22.800 | for something that is coercive,
00:13:24.400 | where the threat of violence
00:13:25.640 | is being imposed on another person.
00:13:27.640 | You'll also hear me looking for things that are effective.
00:13:31.240 | And I could go down my list, I'll skip that.
00:13:33.800 | And I'll just simply point out
00:13:34.840 | that this particular suggestion,
00:13:37.400 | that you consider moving to a state
00:13:39.160 | that doesn't have state-level income taxes, is powerful.
00:13:43.700 | It is far more powerful if you care about your money.
00:13:47.040 | It is far more powerful for you to figure out
00:13:49.120 | how to remove $5,000 of unnecessary income taxes
00:13:53.000 | than it is for you to waste time
00:13:54.640 | figuring out how to save $4 a week on a cup of coffee.
00:13:57.820 | Why should you go through dozens and dozens
00:14:03.520 | of little savings techniques, little savings tips,
00:14:07.040 | to figure out how to save $5,000
00:14:09.400 | when you could just simply move?
00:14:11.000 | Now, I don't think it's either/or,
00:14:14.700 | that would be a false dichotomy.
00:14:16.040 | I recommend it's both/and,
00:14:17.840 | save on income taxes and save on those other things as well.
00:14:21.120 | But the point is, start with the big things, just move.
00:14:23.960 | And if you wanna make an impact to your state,
00:14:27.480 | if you wanna send a message,
00:14:28.960 | the only message that you can send in the modern world
00:14:31.920 | is simply removing yourself from their tax rolls.
00:14:35.760 | See, voting is a waste of time, doesn't really do much.
00:14:39.280 | Politicians don't really listen to votes,
00:14:41.600 | but they do listen to money.
00:14:44.280 | And by removing your money, you can make a statement.
00:14:47.180 | That's the end of my political commentary,
00:14:49.840 | but if you study this, you will see
00:14:51.960 | that all over the United States,
00:14:53.920 | there is a steady flow of people
00:14:55.800 | from high-income tax jurisdictions
00:14:57.920 | to lower-income tax jurisdictions.
00:15:00.480 | And that finally, that is making state-level politicians
00:15:04.840 | wake up and pay attention.
00:15:07.120 | So if you'd like to be part of that change,
00:15:09.440 | I would encourage you to consider this.
00:15:10.880 | It's peaceful, it's voluntary,
00:15:14.320 | you're not harming another person,
00:15:16.200 | you're not coercing anybody else, it's entirely legal,
00:15:20.620 | you're just simply making a different choice.
00:15:23.920 | Now, before you move,
00:15:24.880 | let me give you a little bit of additional advice.
00:15:27.340 | You need to look at your actual numbers.
00:15:29.820 | You need to look at your actual cost
00:15:32.160 | of being in that particular place.
00:15:34.560 | If your number is $500 a year,
00:15:37.840 | there's probably less of a motivation for you to move
00:15:40.140 | to a no-income tax state,
00:15:42.000 | especially if that low-income tax state
00:15:45.640 | might come with higher cost of living in other areas.
00:15:49.120 | For example, you need to consider all your taxes.
00:15:52.480 | You need to consider your employment taxes,
00:15:55.160 | but those won't change based upon a state level.
00:15:57.800 | You need to consider your federal income taxes,
00:15:59.840 | but those won't change based upon a state level.
00:16:02.440 | You need to consider your state income taxes,
00:16:03.840 | but you also wanna consider things like real estate taxes
00:16:06.840 | or sales taxes, because depending
00:16:09.440 | on what your circumstances are,
00:16:11.140 | those taxes might be a bigger deal for you,
00:16:13.120 | and so you might choose to be in a place
00:16:14.820 | that has higher state income taxes
00:16:17.580 | because you don't earn that much,
00:16:19.380 | but in a place that has lower real estate taxes
00:16:21.300 | 'cause what you actually do is manage a lot of property.
00:16:24.380 | So look at your actual circumstances
00:16:26.700 | 'cause you need to consider all of those costs.
00:16:29.860 | But then also look at what's available to you
00:16:31.520 | and consider what your alternative use of the dollar is,
00:16:34.500 | your opportunity cost.
00:16:36.380 | For some people, removing state income taxes
00:16:38.420 | can allow them to spend more money
00:16:40.020 | on things that are important to them.
00:16:41.660 | For example, let's say that you have been trying
00:16:44.020 | to figure out how do I pay
00:16:45.460 | for my children's educational costs?
00:16:47.960 | Well, if I just freed up $5,000 for you,
00:16:51.540 | maybe that'll get you started.
00:16:53.040 | For some people, this is such a huge number
00:16:56.780 | that you can pay off your house.
00:16:58.380 | The most, the best example that I've ever heard of this
00:17:01.860 | was years ago when I read Tony Robbins' book,
00:17:04.700 | "Money Master the Game," he spent a couple pages
00:17:07.100 | laying out how after being a lifelong California resident,
00:17:10.820 | he finally a few years ago had enough
00:17:13.300 | when he was paying 60, if memory is right,
00:17:15.860 | 63% of his income in total tax burden.
00:17:20.700 | And he finally said, "That's ridiculous."
00:17:22.700 | And he decided to move out of California,
00:17:24.380 | move somewhere else.
00:17:25.220 | He wound up buying an oceanfront estate
00:17:27.580 | in Palm Beach, Florida.
00:17:29.580 | Beautiful, brand new house, oceanfront estate,
00:17:32.340 | one of the lots on Palm Beach
00:17:33.900 | that goes from the water to the water.
00:17:36.220 | And he said that he paid off the entire house
00:17:39.740 | with his income tax savings in a mere six years
00:17:43.300 | by moving from California to Florida.
00:17:45.860 | Now, your scale may be bigger than Tony Robbins' scale.
00:17:52.060 | Your scale may be smaller than Tony Robbins' scale,
00:17:55.140 | but you can still find something useful
00:17:58.460 | to spend your money on that's probably gonna do you
00:18:00.700 | more good than sending it to the state government.
00:18:05.540 | Now, obviously also,
00:18:06.620 | you need to consider your personal considerations,
00:18:09.500 | your personal ties to a place.
00:18:12.020 | I can indeed come up with a number of very relevant arguments
00:18:17.020 | that would be perfectly applicable
00:18:19.740 | as to why you would stay in a state
00:18:22.020 | that charges state-level income taxes.
00:18:25.300 | The obvious ones have to do with your income.
00:18:27.020 | If you don't make a lot of money, chances are,
00:18:29.980 | you should stay in a state
00:18:31.140 | that doesn't have a lot of state income taxes.
00:18:33.980 | So if you don't make a lot of money,
00:18:35.860 | you would probably be well-served
00:18:37.580 | by thinking about moving to a state
00:18:39.240 | that charges a lot of state-level income taxes,
00:18:41.480 | but also has a lot of welfare programs.
00:18:43.780 | That would probably serve you well.
00:18:48.020 | There might be also the obvious one of your income.
00:18:51.300 | Perhaps by living in a state
00:18:53.540 | that imposes a high level of state income taxes,
00:18:56.500 | you might have access to a job market
00:18:58.420 | that is simply not available in another place.
00:19:02.300 | There is a reason why many people today
00:19:06.280 | feel that it's worth the expense
00:19:09.060 | for them to live and work in downtown New York City,
00:19:12.100 | where they are paying federal income taxes,
00:19:14.620 | New York state income taxes, and New York City income taxes,
00:19:17.900 | because that's where their job is,
00:19:19.860 | and they don't feel they can relocate.
00:19:21.920 | That should be obvious to you.
00:19:25.420 | But for the percentage of people
00:19:26.940 | that just assume that to be the case,
00:19:29.260 | and they say, "Well, I have to live here to work,"
00:19:31.580 | I don't know what percentage actually has
00:19:33.700 | to live there to do that job.
00:19:36.020 | I don't know, you'd have to analyze it.
00:19:37.380 | In some industries, the answer would be a lot.
00:19:40.600 | But for every one of those people,
00:19:42.980 | I think there's at least one or probably five others
00:19:47.200 | that could actually move to another jurisdiction,
00:19:49.940 | and could do much, much better.
00:19:52.580 | Especially in today's world,
00:19:54.100 | there are a lot of places you can go.
00:19:56.780 | You can do high-tech work in places
00:19:58.300 | other than Silicon Valley.
00:19:59.860 | You can do financial work in places
00:20:02.060 | other than New York City.
00:20:03.620 | It's something I've watched a lot happen in Florida,
00:20:06.180 | where there have been major changes in the financial sector,
00:20:08.700 | and it's just growing.
00:20:09.520 | And one of the big reasons is,
00:20:10.760 | why should we spend all our time in New York City,
00:20:12.660 | when we can be in the same time zone,
00:20:14.540 | an hour and a half, two and a half hour flight,
00:20:17.800 | away from New York City, when we need to get there,
00:20:20.420 | and save massive amounts of income taxes?
00:20:22.380 | And so there's been a big growth
00:20:23.380 | in the financial sector in Florida.
00:20:25.980 | And with the communications revolution,
00:20:28.740 | where live video conferencing is so much easier to do
00:20:32.380 | than it once was, it's considered accepted, et cetera,
00:20:35.060 | this is changing more and more,
00:20:35.900 | and it's putting pressure on New York.
00:20:37.740 | Now, the financial industry, obviously,
00:20:39.220 | New York City still has a major hold there,
00:20:42.100 | and I don't expect that to change anytime soon,
00:20:44.500 | but there are options for you to at least consider.
00:20:47.340 | You shouldn't just think about this in terms of money.
00:20:50.900 | You obviously need to think about it
00:20:52.300 | in terms of the total lifestyle package.
00:20:54.580 | What do you get by living in certain other places?
00:20:57.740 | But you should calculate the cost.
00:21:00.860 | So calculate it.
00:21:02.700 | How much does your state income tax cost you?
00:21:05.940 | How much will it cost you if you save that money
00:21:08.540 | and invest it until your retirement age?
00:21:11.300 | And how much will it cost you
00:21:12.380 | if you just simply save that money
00:21:13.620 | and leave it behind as your estate?
00:21:17.440 | Not everyone should move,
00:21:19.860 | but everybody should calculate what they can gain by moving.
00:21:27.740 | And then once you've calculated it in the coming years,
00:21:31.580 | hey, you might as well look around.
00:21:33.620 | And while you're looking around,
00:21:36.020 | perhaps you're thinking about getting a new job
00:21:37.780 | in a few years,
00:21:38.980 | maybe you should prioritize looking for a job
00:21:41.940 | in a state that doesn't have state income taxes.
00:21:45.700 | Whether you choose to move or not, that's up to you.
00:21:48.540 | But at the very least, if you're negotiating a new job,
00:21:50.900 | perhaps you bring this into the equation.
00:21:53.980 | If you've got a job offer in Florida,
00:21:56.700 | and you've got a job offer in New York City,
00:21:58.900 | perhaps you take the one in New York City,
00:22:01.900 | but tell the employer, you gotta increase my salary
00:22:04.480 | 'cause I've got this job offer in Florida,
00:22:06.380 | and I don't have to pay New York State
00:22:07.700 | and New York City income taxes.
00:22:09.340 | So use that data in your own planning
00:22:13.300 | to help you get better results.
00:22:15.180 | What states can you move to?
00:22:16.340 | Well, here are the states that don't require income tax
00:22:18.900 | from their residents.
00:22:19.740 | There are seven of them that simply flat out
00:22:22.060 | don't have state-level income taxes,
00:22:25.820 | and those seven states are Alaska, Florida,
00:22:30.380 | Nevada, South Dakota, Texas, Washington, and Wyoming.
00:22:35.380 | Again, the seven states that don't have any income tax
00:22:41.580 | are Alaska, Florida, Nevada, South Dakota,
00:22:46.580 | Texas, Washington, and Wyoming.
00:22:54.420 | Now, there are also two states
00:22:55.560 | that deserve honorable mention.
00:22:56.860 | New Hampshire and Tennessee aren't strictly free
00:23:00.940 | of income taxes, but they only collect
00:23:02.760 | very minimal income taxes.
00:23:05.020 | I think New Hampshire taxes interest and dividend income
00:23:08.600 | if it's in excess of $2,400 for individual singles
00:23:11.700 | or $4,800 for joint filers.
00:23:14.180 | Tennessee doesn't tax wages or a salary,
00:23:16.820 | but they do collect on interest income
00:23:18.720 | from bonds, notes, and stock dividends
00:23:21.260 | if that interest income exceeds $1,250 for singles
00:23:26.260 | or $2,500 for joint filers.
00:23:29.040 | Now, these states still have large governments,
00:23:30.940 | and so they do still collect income.
00:23:34.020 | They still do have tax revenue
00:23:36.520 | that supports the state government,
00:23:38.180 | but it'll come from somewhere else.
00:23:40.140 | For example, in Wyoming, it's heavily focused
00:23:42.660 | on energy taxes, on the oil business.
00:23:46.260 | In Nevada, of course, it's gambling and hotel taxes.
00:23:49.380 | Texas and Florida have their own interesting, unique things.
00:23:51.980 | Alaska has oil revenue.
00:23:53.540 | So the states still function, and they require,
00:23:55.300 | they collect their taxes in other ways,
00:23:57.860 | but they don't collect income taxes.
00:24:00.100 | Now, here's what's neat about that list of nine states.
00:24:02.540 | Alaska, Florida, Nevada, South Dakota,
00:24:05.300 | Texas, Washington, Wyoming, New Hampshire, and Tennessee.
00:24:10.020 | In those states, you could find
00:24:13.460 | almost any environment that you like.
00:24:16.840 | For example, you want big cities?
00:24:18.420 | There's plenty of big cities in those states.
00:24:20.380 | Want cosmopolitan lifestyle?
00:24:22.860 | Plenty of cosmopolitan lifestyle available.
00:24:25.300 | You'd like to live out in the country in the sticks?
00:24:27.620 | You can do that in those states.
00:24:28.700 | Want a big mansion?
00:24:29.740 | You can do it in those states.
00:24:30.820 | Want just an average neighborhood?
00:24:32.260 | You can do it in those states.
00:24:33.780 | If you want the desert, you can find it.
00:24:35.460 | Want the beach?
00:24:36.300 | You can find it.
00:24:37.120 | Want mountains?
00:24:37.960 | You can find them.
00:24:38.860 | Planes?
00:24:39.700 | They're available.
00:24:41.060 | So in those states, you can find
00:24:42.940 | almost anything that you want.
00:24:44.940 | It's hard for me to think of something
00:24:47.260 | that is available in another state in the United States
00:24:50.920 | that's not available in one of those nine states,
00:24:53.680 | except the tax question.
00:24:57.440 | So think it through and be willing to consider it.
00:25:00.900 | Here's the other cool thing about those states.
00:25:03.620 | You can find a situation, a living situation,
00:25:06.160 | in those states that could be fairly convenient
00:25:10.300 | to your current stomping grounds.
00:25:12.980 | Now, Alaska may not be the most convenient,
00:25:15.220 | but between Florida, Nevada, South Dakota,
00:25:17.380 | Texas, Washington, Wyoming, New Hampshire, and Tennessee,
00:25:19.860 | you can find a state that's pretty geographically close
00:25:22.580 | to most other places in the United States.
00:25:25.020 | It's not that far from Washington to Oregon.
00:25:30.940 | So if you've got family in Oregon
00:25:34.420 | and you wanna live in Washington,
00:25:35.920 | that's not that difficult to do.
00:25:37.220 | A few hours will get you there.
00:25:38.740 | It's not that far from Wyoming to Colorado.
00:25:42.540 | Not that far on an airplane from Florida to New York.
00:25:46.340 | Not that far from Nevada to California.
00:25:48.740 | So why not consider just simply moving
00:25:53.080 | and then spend some time in those states?
00:25:55.620 | Don't spend enough time there to trigger your tax residence.
00:25:59.060 | Make sure that you don't do that,
00:26:00.780 | but you can still spend some time there.
00:26:03.500 | And in many businesses, as long as you have moved,
00:26:06.580 | you may not even necessarily have to change your business.
00:26:10.300 | Now, some states you do
00:26:11.440 | because of the actual way that the laws work.
00:26:14.220 | If you just think that you're going to,
00:26:16.180 | I've thought about doing a whole course on this.
00:26:20.140 | I don't think it's gonna affect enough people,
00:26:21.500 | but just leave it simply enough
00:26:23.020 | that you may even be able to keep your business.
00:26:25.540 | You just need to change your residence.
00:26:28.000 | Now, study carefully.
00:26:29.740 | Make sure that you learn,
00:26:30.780 | if you're moving from New York to Texas,
00:26:32.840 | or if you're moving from California to Nevada,
00:26:35.100 | make sure that you study carefully
00:26:36.680 | and you understand how you can adjust your affairs
00:26:41.680 | to make sure that you fully
00:26:43.720 | get rid of your resident classification.
00:26:46.920 | There are a lot of things you can do.
00:26:48.200 | And you wanna make sure that you minimize your footprint
00:26:49.880 | in any of those states that impose income taxes.
00:26:51.820 | You never wanna become a tax resident of those states,
00:26:54.480 | but it's very, very doable.
00:26:56.620 | It's very, very possible.
00:26:58.320 | And here is my last suggestion for you.
00:27:01.320 | One of the big things that has changed in 2017, 2018
00:27:06.120 | is the deductibility of state-level income taxes.
00:27:09.120 | Those of you who are paying
00:27:10.280 | state-level income taxes this year
00:27:12.360 | are now appreciating the enhanced cost of that.
00:27:15.760 | But what you should recognize is many times
00:27:17.980 | the cost of moving may still allow you
00:27:22.200 | to have expenses that are deductible.
00:27:25.200 | For example, mortgage interest is still deductible
00:27:29.360 | without the same restrictions,
00:27:30.640 | although there were slight changes,
00:27:31.560 | but without the same restrictions
00:27:33.600 | as state-level income taxes are now under.
00:27:37.840 | So if you moved from the California side in Lake Tahoe
00:27:41.000 | to the Nevada side in Lake Tahoe,
00:27:42.920 | and you had to pay a higher price
00:27:44.480 | because of the higher value of those properties in Nevada
00:27:46.640 | due to the no state income tax,
00:27:48.960 | that higher price may now be deductible for you
00:27:51.760 | where your California taxes no longer are.
00:27:54.720 | Or other examples, sometimes the cost of traveling
00:27:58.280 | is a deductible business expense.
00:28:00.760 | So let's say that you move from New York to Florida
00:28:04.160 | or to New Hampshire or to Tennessee,
00:28:08.200 | but now you're required once a quarter
00:28:10.160 | to fly up to the city for a week.
00:28:12.720 | Well, recognize that now,
00:28:14.760 | as long as that travel is appropriate business expense
00:28:17.760 | and you're flying for business,
00:28:19.020 | if you work from Florida
00:28:20.200 | and you have to travel up to New York City once a quarter
00:28:22.980 | and spend a couple of weeks there,
00:28:25.080 | whereas previously your New York-level income taxes
00:28:28.460 | were deductible but now aren't
00:28:29.860 | after the 2017 Tax Cut and Jobs Act,
00:28:32.740 | your business expenses will be deductible.
00:28:36.460 | And since you probably already have family in New York
00:28:39.420 | and you probably enjoy visiting that family,
00:28:42.560 | there's no reason why you are required
00:28:45.220 | to not enjoy visiting your family
00:28:46.900 | while you are doing business in New York.
00:28:49.540 | And what's more interesting
00:28:50.840 | is this could provide an interesting way
00:28:52.620 | for you to do a tax-free transfer of wealth.
00:28:54.980 | For example, let's say that you are currently
00:28:58.700 | a New York resident, but you've decided
00:29:00.400 | that you don't wanna pay New York state income taxes anymore
00:29:03.480 | but you still are gonna have some business connections
00:29:05.480 | in New York and you look at the laws of New York
00:29:07.720 | and you recognize that you may have to go up there
00:29:10.220 | to see clients, but if you adjust,
00:29:12.040 | I'm not gonna get into the details
00:29:13.080 | of how your corporate structure, et cetera,
00:29:14.700 | but you're gonna move your business
00:29:15.760 | out of New York to Florida.
00:29:17.600 | But now that you're a Florida resident
00:29:19.560 | and you are doing business in Florida,
00:29:22.040 | you're still gonna have to go to New York to see clients.
00:29:24.840 | When I was a financial advisor, I had clients in New York.
00:29:27.280 | If I needed to go to New York and see clients,
00:29:29.040 | it was every bit as deductible,
00:29:31.040 | or business expense, for me to fly from New York,
00:29:33.440 | from Florida to New York to see clients
00:29:35.480 | as it would have been for me to travel
00:29:37.480 | from New York City to New Jersey to see that client,
00:29:39.680 | or you get the point.
00:29:41.400 | Now, if you properly schedule your appointments
00:29:45.680 | using the common rules of business deductions,
00:29:48.720 | for example, you have business appointments on Friday
00:29:51.160 | and you have business appointments on Monday,
00:29:53.260 | now all of your travel to New York
00:29:55.960 | is a deductible travel expense.
00:29:57.640 | And the fact that you spend the weekend
00:29:59.000 | with your parents on Long Island doesn't matter.
00:30:03.140 | Your time in New York is deductible travel days.
00:30:06.200 | What's more interesting is perhaps instead of renting
00:30:08.720 | a hotel in downtown New York City,
00:30:11.260 | you rather work out a rental arrangement with your parents
00:30:14.720 | and you rent a spare bedroom in their home
00:30:16.880 | for you to stay in when you're there on business travel.
00:30:20.000 | So yes, you have to commute in from Long Island,
00:30:21.840 | but now you can pay your parents
00:30:24.600 | whatever an appropriate rate is
00:30:26.420 | for the rental of that home,
00:30:27.880 | check the Airbnb, get some comparable rental expenses,
00:30:30.580 | et cetera, but perhaps that you can rent it
00:30:33.000 | and perhaps you find that based upon the comparable rentals
00:30:36.400 | in that area, your rates are now $100,
00:30:41.120 | New York, I don't know what they are, $200 per night.
00:30:44.320 | And so you wind up coming up to your parents' house
00:30:48.640 | once per quarter and you rent from your parents
00:30:52.080 | a room for $200 per night.
00:30:55.040 | And you're there for a total of four nights
00:30:57.480 | because you come Friday through Monday.
00:31:02.120 | So now you have four nights,
00:31:03.460 | that transfers $800 into your parents' pocket.
00:31:07.840 | And any person in the United States
00:31:10.320 | can rent out their house for up to 14 days per year
00:31:16.040 | and not classify their house as a residence
00:31:18.960 | and not have to pay income tax on that money.
00:31:22.120 | You of course don't get to deduct any rental expenses,
00:31:25.840 | but you can of course,
00:31:28.160 | but you get to keep the money tax-free.
00:31:30.720 | So what have we done if you do this?
00:31:32.000 | Let's say that you fly up to your parents
00:31:35.600 | and you rent that bedroom from your parents
00:31:38.560 | when you are in town on business
00:31:40.440 | and you have appropriate business meetings.
00:31:42.480 | You happen to stay over the weekend,
00:31:43.680 | but you schedule appropriate business meetings
00:31:45.380 | on Thursday, on Friday, on Monday,
00:31:47.760 | or if you are there over a holiday weekend,
00:31:50.000 | perhaps Monday is the 4th of July,
00:31:52.040 | you make sure that you have appropriate business meetings
00:31:54.640 | on Friday and on Tuesday.
00:31:56.800 | And you spend a long weekend there
00:31:58.040 | and you pay your parents a rental rate
00:31:59.880 | for the rental of that home.
00:32:02.180 | Well, you could do that up to 14 days per year.
00:32:04.960 | Your parents will receive all of that income
00:32:07.400 | completely tax-free legally
00:32:09.600 | because they're not renting out their house
00:32:11.000 | for more than 14 days per year.
00:32:13.420 | You of course, as an individual with a company,
00:32:16.520 | will be able to deduct that rental expense
00:32:18.900 | as a proper business expense,
00:32:20.380 | travel expenses for you doing business,
00:32:22.960 | and we've effectively accomplished
00:32:24.560 | a nice tax-free transfer of wealth.
00:32:27.360 | You say, well Joshua, a room in my parents' house
00:32:30.040 | is not sufficient.
00:32:30.960 | What if I actually need a house?
00:32:32.980 | Perhaps I need a very nice,
00:32:34.360 | I live in New York and I need a house
00:32:36.160 | to entertain clients in,
00:32:37.400 | and if I move from New York to Florida,
00:32:39.200 | I'm not gonna be able to entertain clients,
00:32:40.760 | or I'm not gonna have a place
00:32:41.960 | for us to have our annual shareholders meeting, et cetera.
00:32:45.180 | Well, there's no reason why you only have to rent a room
00:32:46.860 | in your parents' house.
00:32:48.280 | You can rent the actual house,
00:32:49.980 | and perhaps your parents have a beautiful house,
00:32:52.220 | beautiful condo right in the city,
00:32:53.980 | and for your purposes,
00:32:55.100 | you're gonna be entertaining clients,
00:32:57.300 | you're going to be having shareholders meetings,
00:32:59.000 | or something like that.
00:33:00.760 | For your purposes, you need a full apartment.
00:33:03.020 | Go ahead and rent the full apartment.
00:33:04.860 | And the market rate in New York City
00:33:07.400 | is most likely $1,000 a night.
00:33:09.720 | I don't know.
00:33:10.560 | You can figure out what your comparable rates are,
00:33:11.980 | so you can figure out what they should be charging.
00:33:13.540 | Of course, if they're gonna be renting a house
00:33:15.500 | to your business,
00:33:16.540 | then they need to make sure
00:33:17.460 | that they're charging a fair market rate.
00:33:19.220 | It can't be an inside deal.
00:33:20.740 | But whatever the comparable rate is, $1,000,
00:33:23.240 | they rent it to you,
00:33:24.080 | you rent it for 10 nights per year.
00:33:26.040 | When you're in town using that house for entertainment,
00:33:28.560 | you pay them $10,000 out of your business.
00:33:31.260 | That is fully deductible.
00:33:32.700 | You've had what you needed in New York,
00:33:34.860 | which was a place to do business temporarily,
00:33:37.320 | and your parents have tax-free income,
00:33:40.180 | and you live in Florida and remove your state income tax.
00:33:44.020 | So don't miss the fact that, yes,
00:33:47.620 | you might have to travel more back to the state
00:33:50.020 | where you have state-level income taxes.
00:33:52.040 | But as long as you don't trigger tax residency
00:33:54.100 | by your activities,
00:33:55.620 | you can still travel there just because you move.
00:33:58.020 | And those of you who are looking for ways
00:34:00.380 | to figure out how do I change my affairs,
00:34:03.600 | now that I'm in a situation
00:34:05.100 | where I can't deduct all my state income taxes now,
00:34:09.220 | there are plenty of options available to you, plenty.
00:34:13.020 | By the way, just because you move your residency
00:34:18.300 | doesn't mean that you can't keep your own house
00:34:21.380 | in that place and keep it as a rental apartment.
00:34:24.740 | So residency is not the same thing
00:34:26.340 | as owning rental property.
00:34:28.480 | Now, it may or may not be a wise idea for you.
00:34:30.980 | I just simply want to point out to you
00:34:32.760 | that if you do that and you have rental property
00:34:35.100 | in a place that you want to go,
00:34:36.580 | now you have an even stronger case
00:34:39.340 | for additional travel to that area.
00:34:41.980 | So consider keeping the house that you currently live in,
00:34:45.700 | rent it out as rental property,
00:34:47.460 | move to a state that doesn't have state income taxes.
00:34:51.540 | And if you need to travel back and forth to visit family,
00:34:54.300 | I would imagine that you could figure out
00:34:55.860 | how to coordinate your affairs
00:34:57.140 | so that you can come back and check on your rental property.
00:35:00.020 | There's no reason why you can't spend the week
00:35:01.540 | before Christmas working on your rental property
00:35:03.820 | or checking up on your managers, et cetera.
00:35:06.940 | Just figure out how to arrange your affairs in such a way
00:35:09.660 | that you are not a resident of that state
00:35:12.860 | paying unnecessary levels of state income taxes.
00:35:16.100 | You cannot legally or legitimately stay
00:35:20.780 | in the state that causes income taxes
00:35:22.820 | and just move your residence elsewhere
00:35:24.560 | with some kind of paper sham.
00:35:26.780 | It's not possible.
00:35:28.220 | There are a number of court cases, however,
00:35:29.540 | of people who have done this,
00:35:30.420 | and there are some things that you can look at
00:35:31.700 | as to what actually constitutes a residency.
00:35:34.260 | Where are you actually a resident?
00:35:36.040 | You don't have to have a huge house in Florida.
00:35:38.020 | You just need a house in Florida.
00:35:39.300 | House doesn't even have to be bought.
00:35:40.640 | Has to be your house, though.
00:35:42.060 | Where's your stuff?
00:35:42.900 | Where's your dog?
00:35:43.740 | Where are your doctor's appointments?
00:35:46.740 | What church are you involved in, et cetera?
00:35:48.500 | It's a whole bunch of factors
00:35:50.100 | that makes up where your residency is.
00:35:52.100 | But recognize that you are choosing to live in a state
00:35:55.400 | that imposes state-level income taxes.
00:35:57.700 | And if you are a productive person,
00:36:00.260 | a productive person who is generating lots of income
00:36:04.260 | and doesn't want additional drag on their income,
00:36:07.960 | you should seriously consider moving to a state
00:36:12.300 | that doesn't impose state-level income taxes,
00:36:16.600 | because it very well could result
00:36:18.220 | in millions of dollars available for you in retirement
00:36:21.140 | and potentially tens of millions of dollars
00:36:24.300 | for your children and other heirs.
00:36:26.820 | Consider it.
00:36:27.780 | That's the case for your moving to a no-income tax state.
00:36:31.100 | As we close this show,
00:36:33.460 | just remember this is part one of three,
00:36:35.820 | and I'm gonna give you two more cases
00:36:37.800 | in the next couple of episodes.
00:36:40.260 | But for today, I just wanna quickly plug,
00:36:42.180 | I recently very quietly released on my website,
00:36:45.480 | I very quietly re-released my career and income guide.
00:36:49.180 | And I wrote that course.
00:36:52.340 | It was one that had a very good reception.
00:36:54.420 | Bunch of students went through it.
00:36:56.840 | And really had, I've got a bunch of testimonials
00:36:59.440 | from my students of new jobs that they've got,
00:37:01.880 | ways that they've increased their income.
00:37:03.680 | But it's my contention that one of the most important areas
00:37:06.680 | of financial planning for you to begin with is income.
00:37:09.760 | If you get income right,
00:37:11.840 | and specifically here's what that means,
00:37:13.880 | you are working in work that is well-suited to you
00:37:17.680 | based upon your personal criteria,
00:37:19.920 | and you have massive financial potential
00:37:21.960 | available to you in that work,
00:37:24.720 | almost everything else falls into line.
00:37:26.840 | Just think about how easy it is to become wealthy
00:37:29.880 | when you earn $40,000 a year,
00:37:31.640 | versus how easy it is to become wealthy
00:37:33.440 | when you earn $400,000 per year.
00:37:35.860 | Almost no matter what you do,
00:37:38.840 | you're gonna become wealthier earning $400,000 a year
00:37:41.880 | than $40,000 per year.
00:37:43.520 | It's so much easier to live well now,
00:37:47.960 | to live a rich and meaningful life now,
00:37:50.440 | and to be on a plan for financial freedom
00:37:52.440 | in 10 years or less,
00:37:53.600 | when you make $400,000 a year
00:37:55.600 | than it is when you make $40,000 a year.
00:37:57.940 | So why should we spend all of our time
00:38:00.840 | sitting around thinking about how to make it
00:38:03.160 | on a $40,000 income,
00:38:05.320 | when you, if you're earning $40,000,
00:38:07.720 | could make a plan in the next 10 years
00:38:10.120 | to go from 40 to 400?
00:38:12.140 | Dumber people than you have done it.
00:38:14.960 | Dumber people than you are doing it.
00:38:19.260 | So why not you?
00:38:21.120 | But the question is, if you're gonna do that,
00:38:23.840 | you would actually need to understand how to do it.
00:38:27.120 | And nowhere in your formal schooling
00:38:29.080 | did you ever have a class on how to do it.
00:38:32.620 | Nowhere in 11th grade did they sit down and say,
00:38:35.640 | "Hey, everybody, today let's talk about
00:38:37.640 | "how to increase your income by 1,000%
00:38:40.580 | "in the next 10 years.
00:38:41.980 | "We're gonna teach you how to go from $15 an hour
00:38:44.220 | "to $1,500 an hour."
00:38:46.520 | No one taught you that, eh?
00:38:47.880 | Don't you think that that would be a pretty decent course
00:38:50.960 | to take in college?
00:38:51.800 | After all, if college is supposed to be
00:38:53.520 | a enhancement for your career,
00:38:56.280 | don't you think it would be useful
00:38:57.400 | to learn how to make some money?
00:38:59.000 | Fortunately or unfortunately, it's not taught in college.
00:39:03.600 | 'Cause the point of college
00:39:04.440 | has never been about making money.
00:39:06.140 | You have to learn it yourself.
00:39:08.780 | So I would recommend to you
00:39:11.740 | that if you have not spent this last year
00:39:14.320 | at least a few dozen hours sitting down
00:39:16.780 | and thinking about how you can build a career
00:39:19.420 | that is appropriate for you,
00:39:21.200 | a career that you will love doing
00:39:23.720 | so that you'll never want to retire,
00:39:25.580 | and a career that has massive income potential,
00:39:30.620 | I'd encourage you to come by
00:39:31.460 | radicalpersonalfinance.com/store
00:39:34.000 | and give my course a shot.
00:39:36.120 | It's called The Radical Personal Finance Guide
00:39:37.640 | to Career and Income Planning.
00:39:40.240 | I'll give you one more last bit of teaser.
00:39:42.080 | Just imagine this for a moment.
00:39:43.640 | Imagine how wealthy you would be
00:39:47.000 | if you work in a career that you love,
00:39:50.600 | that has huge earning opportunity,
00:39:54.500 | that is perfectly suited to your life and your lifestyle,
00:39:58.160 | that you never want to quit,
00:40:01.200 | such that you never actually have to retire.
00:40:07.240 | Now, if you want to be mega wealthy,
00:40:11.500 | I think you should consider that.
00:40:13.480 | Because if you take high income
00:40:15.300 | and pair it with low expenses,
00:40:17.740 | recognize that, well, the point is
00:40:21.940 | you don't have to spend as much as you make.
00:40:24.060 | So just because you make a million dollars a year
00:40:25.820 | doesn't mean you have to spend a million, too.
00:40:28.120 | And all of the good stuff comes
00:40:30.860 | when you have a high income.
00:40:32.760 | Now, if you hate your job and you make a high income,
00:40:34.680 | I'll be the first that'll stand up and say,
00:40:36.220 | hey, consider going to a job that you enjoy more.
00:40:38.580 | But there's no reason to choose between those things.
00:40:40.860 | In 2019, you don't have to choose
00:40:43.540 | between work that you love
00:40:44.640 | and work that pays a lot.
00:40:46.660 | You don't have to choose.
00:40:48.000 | There are so many options available to you
00:40:51.660 | that in time, you can find and develop a career
00:40:54.580 | that is well-suited to you
00:40:55.760 | that has massive income potential.
00:40:57.660 | So stop for a moment and imagine this.
00:41:00.540 | Imagine yourself with an income
00:41:04.980 | that is five to 10 times higher than it is today,
00:41:08.280 | whatever your number is right now.
00:41:11.040 | Imagine yourself with an income
00:41:12.480 | that is five to 10 times higher today than it is today.
00:41:16.120 | And imagine yourself earning that income
00:41:19.100 | in a way that you never wanna stop.
00:41:21.660 | So now, instead of stopping your income at 65,
00:41:27.360 | you can keep your income until 95
00:41:29.520 | and invest the whole way along.
00:41:31.060 | I don't know if it's possible for everybody.
00:41:36.060 | I don't.
00:41:36.900 | In fact, I don't think it's possible for everybody.
00:41:40.040 | But I'm convinced that almost anybody
00:41:42.420 | can find ways to get close to that ideal.
00:41:45.440 | I've done it and I want you to do it.
00:41:49.180 | So if you want my thoughts on it,
00:41:51.700 | come on by radicalpersonalfinance.com/store
00:41:54.580 | or just go to radicalpersonalfinance.com.
00:41:56.920 | Go to radicalpersonalfinance.com,
00:41:58.280 | click on the store button and you'll see that course
00:42:00.040 | there, "The Radical Personal Finance Guide
00:42:01.280 | to Career and Income Planning."
00:42:03.040 | It is probably my most important course
00:42:06.060 | that I have created
00:42:07.320 | and the one that I think is the most important.
00:42:10.340 | 'Cause if you have enough money,
00:42:12.060 | everything else becomes easy.
00:42:13.860 | Check it out, radicalpersonalfinance.com/store.
00:42:15.740 | I'll be with you for part two tomorrow.
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