♪ California's top casino and entertainment destination is now your California to Vegas connection. Play at Yamaha Resort and Casino at San Manuel to earn points, rewards, and complimentary experiences for the iconic Palms Casino Resort in Las Vegas. ♪ Two destinations, one loyalty card. Visit yamaha.com/palms to discover more. Welcome to Radical Personal Finance, a show dedicated to providing you with the knowledge, skills, insight, and encouragement you need to live a rich and meaningful life now, while building a plan for financial freedom in 10 years or less.

Today on the show, we kick off as a special April celebration, a tax series. This will be a three-part series, and today, in part one, I want to give you a case for your moving to a no-income tax state. And I want to make sure that I bring this to your attention right now during tax season so that you can have current data to do your own analysis.

Now, in the United States, April is, of course, the time that we file our federal income tax returns to the U.S. government. And, of course, most states, I don't know of any that doesn't, but, of course, I've not reviewed every state, but so I think most states line up their own state income taxes as being due with the federal returns.

April is also, interestingly, the day that we celebrate Tax Freedom Day in the United States. Now, I don't know what the date is for 2019. I haven't seen that date released, but in 2018, Tax Freedom Day was April 19. Tax Freedom Day is the date at which Americans collectively have finished paying all of their taxes.

In the United States, Americans collectively spend more on taxes than on food, clothing, and housing combined. Now, of course, that tax burden is not equal. The rich bear it much more than the poor people do, but collectively, Americans spend much more on taxes than on food, clothing, and housing combined.

And so if you actually look at the numbers, it takes about 44 days to pay off federal, state, and local individual income taxes. Payroll taxes take about 26 days to pay from there. Sales and excise taxes, another 15 days. Then corporate income taxes, another seven days. Property taxes, another 11 days.

And then the last six days are spent paying estate and inheritance taxes, customs duties, and other taxes. To bring you to about the middle or end of April for Tax Freedom Day. Canadians, of course, celebrate Tax Freedom Day usually in about June. Last year, it was June 10. Canadians pay about 43.6% of their annual income to taxes.

So the point is that taxes are a major expense, and for many of us, the biggest expense is income tax. And that's really frustrating, because income tax has that perverse incentive of meaning that if you are productive, you pay more. You can avoid many other taxes with your behavior.

For example, if you don't like sales taxes, you can change how you buy things in order to avoid or reduce sales taxes. If you don't like property taxes, you can change the property that you buy and where you buy it to avoid those property taxes. But income taxes are insidious, because in order to avoid them, you have to make less money.

But of course, we wanna be productive. We wanna be, we wanna be, I don't know the word to use, productive. I wanna be a good steward with my resources, with my energy, and with my businesses to produce as much money as possible. But the more I produce, the more money I pay in tax.

And I find that very frustrating, personally. So, we talk a lot on Radical Personal Finance about how you can reduce your tax bill. And I wanna strike right to the heart of it, though, because although there are dozens and dozens and dozens, perhaps hundreds of individual little techniques that we can put into place in our lives to minimize and reduce our tax bill, there are a few big techniques that make a big difference.

The thing that is difficult for many laypeople about tax planning is they're always looking for one big idea. They're wishing for that there were one thing, that if you just did this one thing, then it would change your tax situation. Well, I've been modestly obsessed with this topic for years and have educated myself to a very high level.

And I have never been able to find that one thing. Try as hard as I've looked to find it. But in this series, I'm gonna give you three things that I think are big, fast strokes that'll make a big difference. Unlike all the little deductions, all the little offsets, all the little credits and things that you can accumulate, these are just three big strokes for you to consider.

So, let's talk about the case for your moving to an income tax-free state. In the United States, U.S. residents pay income taxes at three levels. There are federal income taxes, which are charged to you by the U.S. federal government. And those federal income taxes apply to all U.S. persons on their worldwide income.

U.S. persons are defined as all U.S. citizens, any person who actively has a U.S. citizenship, no matter where they live in the world, and any green card holder or any person who passes the substantial presence test for their presence in the United States. So, the U.S. federal government assesses income taxes, federal income taxes, to all U.S.

persons, no matter where in the world they are, on all of their worldwide income. We'll deal with those another day. The second level of taxation is state-level income taxation, which is, if you are the resident of a specific state, many states in the United States assess income taxes on some or all of your income if you are a resident of that state.

So, those are state-level income taxes. And then some individual localities, some cities, charge an additional level of local-level income taxes, where they will charge you income taxes based upon the city that you live in. Now, the percentage of cities that do this in the United States is too small for us to bother with.

And if you are living in one of those cities, you, I'm sure, have specific reasons why you are choosing to bear that tax burden. So, I'm not gonna spend any time on your particular problem other than to point out to you that you could move if you wanted to.

But I do wanna spend some time on state-level income taxes, because these state-level income taxes are a significant expense, and yet most people don't pay them much attention. Let me give you an example of how you should think about your state-level income taxes. The first thing that you should do is you should look at your state income tax returns that you are currently preparing, and you should figure out how much you are paying in state-level income taxes.

Find your exact number, if possible. Next, you should estimate how long you think you will be paying that number. For most people, this would be, well, until I stop working, until I retire. And so, let's use that as a good plug number here, but you should calculate your own number based upon your personal plans.

And then you should extrapolate the number that that is costing you if you simply removed it by moving to a non-income tax state. So let me give you an example case. Let's assume that we're giving financial planning advice to a 25-year-old, and this 25-year-old is earning a significant level of income, and this 25-year-old expects to pay $5,000 this year in state-level income taxes.

And for some reason, that state-level income tax burden is going to not change. It's going to be a level $5,000 for the next 40 years. And the reason, of course, is that it makes for easy math. So let's plug this into a financial calculator. How much would this particular worker's state income tax bill end up costing them over their lifetime?

Well, if we put in a $5,000 annual payment for taxes into our financial calculator, we plug in a 40-year number from age 25 to age 65, 'cause of course, they're going to set up their career in their state, and they're going to have family obligations, and they're basically going to stay in that state for a long time, and unfortunately, Americans are not moving as much as they once did.

So let's just call it 40 years. Then let's start with nothing, 'cause of course, there's no money accumulated, so let's put in a zero for our present value. And let's assume that if this person were to move to a no-income tax state, rather than spend the money, they would save and invest the money, because after all, they're a wise radical personal finance listener.

They're always thinking about accumulating and building their wealth, so they would invest this money at, let's say, 8%. Now, the end of 40 years, how much would that be worth? Well, under those considerations, that investment fund would be worth $1,398,905.20. So let's call that $1.4 million, among friends. $1.4 million is the cost to this particular person's retirement account if they choose to live in a state where they're going to be paying $5,000 of state income taxes.

This is an important thing to point out to people, especially young people, before they have established their career. If you choose to live in a jurisdiction where you will pay an extra $5,000 per year in state income taxes, when you could move to a jurisdiction that does not impose state income taxes, there is a decent chance that you'll be $1.4 million poorer at retirement because you chose to live in that state.

Now, you run your own numbers. For some people, the number will be smaller. For some people, the number will be much, much bigger. But it's a significant expense that you need to figure out, you need to think about the impact of it. If instead of paying that money to your local state, you saved and invested that money for your retirement plan, it's possible you could have in excess of a million dollars more at retirement age.

Now, I like to extrapolate numbers even more. And I think it's valid to do this because what I have learned working with wealthy people is wealthy people really usually don't ever spend all their money. And so I think there's great value in trying to figure out a lifetime cost.

How much would this cost you if you never spent this money but you just kept this money invested? So what I'm gonna do is I'm gonna keep the same $1.4 million, specifically $1,398,905.20. And now I'm gonna change that to be our present value in our financial calculator. And I'm gonna change our time frame from 40 years, which took us from age 25 to 65, to 30 years, which is gonna take us from 65 to 95.

And if you arrive at age 65 and you're alive and you're in modestly good health, you could generally expect to use about a 30-year lifespan for your calculations. That's why I'm using this 30 years. 30 years, I'm gonna now make no further contributions to the account. I'm just gonna assume that you accumulated this $1.4 million in your account.

Perhaps this was your annual Roth IRA payment. Now at the end of 30 years, how much would that be worth when you die at 95? Answer, 14,076,703.06. So let's call that $14 million. This is the cost to your family, to your heirs, for your choosing to live in a state that imposes $5,000 of state-level income taxes on you.

This is the cost, $14 million of foregone wealth. What you have done is, instead of accumulating that wealth and transferring it to your children, transferring it to worthy people, worthy causes, worthy organizations that you support at your death, and making an impact on the level of $14 million, you are choosing to transfer instead the value of that money to your state government.

Now, is that a good thing for you to do? That's up to you. It's a free country, it's a free world. You get to choose. You choose to live in that state, or you could choose to live in another state. You can assess how worthy your state government is of the stewardship of that money.

Are they doing what you think should be done with it? If so, more power to you. If they're not doing what you think should be done with it, however, consider moving. You should consider moving. If there were a list of causes that I would like to support that I believe have a high impact with very few problems associated with them, this is on that list.

See, I have certain constraints that I use in assessing ideas, and for example, I'm always looking for peaceful solutions. You'll never hear me advocate for any kind of violence or violent action. I'm always looking for peaceful solutions that make change in the world. I'm also always looking for voluntary solutions, things that individuals can do that are peaceful and voluntary that will make change in the world.

So you'll never hear me advocating for something that is coercive, where the threat of violence is being imposed on another person. You'll also hear me looking for things that are effective. And I could go down my list, I'll skip that. And I'll just simply point out that this particular suggestion, that you consider moving to a state that doesn't have state-level income taxes, is powerful.

It is far more powerful if you care about your money. It is far more powerful for you to figure out how to remove $5,000 of unnecessary income taxes than it is for you to waste time figuring out how to save $4 a week on a cup of coffee. Why should you go through dozens and dozens of little savings techniques, little savings tips, to figure out how to save $5,000 when you could just simply move?

Now, I don't think it's either/or, that would be a false dichotomy. I recommend it's both/and, save on income taxes and save on those other things as well. But the point is, start with the big things, just move. And if you wanna make an impact to your state, if you wanna send a message, the only message that you can send in the modern world is simply removing yourself from their tax rolls.

See, voting is a waste of time, doesn't really do much. Politicians don't really listen to votes, but they do listen to money. And by removing your money, you can make a statement. That's the end of my political commentary, but if you study this, you will see that all over the United States, there is a steady flow of people from high-income tax jurisdictions to lower-income tax jurisdictions.

And that finally, that is making state-level politicians wake up and pay attention. So if you'd like to be part of that change, I would encourage you to consider this. It's peaceful, it's voluntary, you're not harming another person, you're not coercing anybody else, it's entirely legal, you're just simply making a different choice.

Now, before you move, let me give you a little bit of additional advice. You need to look at your actual numbers. You need to look at your actual cost of being in that particular place. If your number is $500 a year, there's probably less of a motivation for you to move to a no-income tax state, especially if that low-income tax state might come with higher cost of living in other areas.

For example, you need to consider all your taxes. You need to consider your employment taxes, but those won't change based upon a state level. You need to consider your federal income taxes, but those won't change based upon a state level. You need to consider your state income taxes, but you also wanna consider things like real estate taxes or sales taxes, because depending on what your circumstances are, those taxes might be a bigger deal for you, and so you might choose to be in a place that has higher state income taxes because you don't earn that much, but in a place that has lower real estate taxes 'cause what you actually do is manage a lot of property.

So look at your actual circumstances 'cause you need to consider all of those costs. But then also look at what's available to you and consider what your alternative use of the dollar is, your opportunity cost. For some people, removing state income taxes can allow them to spend more money on things that are important to them.

For example, let's say that you have been trying to figure out how do I pay for my children's educational costs? Well, if I just freed up $5,000 for you, maybe that'll get you started. For some people, this is such a huge number that you can pay off your house.

The most, the best example that I've ever heard of this was years ago when I read Tony Robbins' book, "Money Master the Game," he spent a couple pages laying out how after being a lifelong California resident, he finally a few years ago had enough when he was paying 60, if memory is right, 63% of his income in total tax burden.

And he finally said, "That's ridiculous." And he decided to move out of California, move somewhere else. He wound up buying an oceanfront estate in Palm Beach, Florida. Beautiful, brand new house, oceanfront estate, one of the lots on Palm Beach that goes from the water to the water. And he said that he paid off the entire house with his income tax savings in a mere six years by moving from California to Florida.

Now, your scale may be bigger than Tony Robbins' scale. Your scale may be smaller than Tony Robbins' scale, but you can still find something useful to spend your money on that's probably gonna do you more good than sending it to the state government. Now, obviously also, you need to consider your personal considerations, your personal ties to a place.

I can indeed come up with a number of very relevant arguments that would be perfectly applicable as to why you would stay in a state that charges state-level income taxes. The obvious ones have to do with your income. If you don't make a lot of money, chances are, you should stay in a state that doesn't have a lot of state income taxes.

So if you don't make a lot of money, you would probably be well-served by thinking about moving to a state that charges a lot of state-level income taxes, but also has a lot of welfare programs. That would probably serve you well. There might be also the obvious one of your income.

Perhaps by living in a state that imposes a high level of state income taxes, you might have access to a job market that is simply not available in another place. There is a reason why many people today feel that it's worth the expense for them to live and work in downtown New York City, where they are paying federal income taxes, New York state income taxes, and New York City income taxes, because that's where their job is, and they don't feel they can relocate.

That should be obvious to you. But for the percentage of people that just assume that to be the case, and they say, "Well, I have to live here to work," I don't know what percentage actually has to live there to do that job. I don't know, you'd have to analyze it.

In some industries, the answer would be a lot. But for every one of those people, I think there's at least one or probably five others that could actually move to another jurisdiction, and could do much, much better. Especially in today's world, there are a lot of places you can go.

You can do high-tech work in places other than Silicon Valley. You can do financial work in places other than New York City. It's something I've watched a lot happen in Florida, where there have been major changes in the financial sector, and it's just growing. And one of the big reasons is, why should we spend all our time in New York City, when we can be in the same time zone, an hour and a half, two and a half hour flight, away from New York City, when we need to get there, and save massive amounts of income taxes?

And so there's been a big growth in the financial sector in Florida. And with the communications revolution, where live video conferencing is so much easier to do than it once was, it's considered accepted, et cetera, this is changing more and more, and it's putting pressure on New York. Now, the financial industry, obviously, New York City still has a major hold there, and I don't expect that to change anytime soon, but there are options for you to at least consider.

You shouldn't just think about this in terms of money. You obviously need to think about it in terms of the total lifestyle package. What do you get by living in certain other places? But you should calculate the cost. So calculate it. How much does your state income tax cost you?

How much will it cost you if you save that money and invest it until your retirement age? And how much will it cost you if you just simply save that money and leave it behind as your estate? Not everyone should move, but everybody should calculate what they can gain by moving.

And then once you've calculated it in the coming years, hey, you might as well look around. And while you're looking around, perhaps you're thinking about getting a new job in a few years, maybe you should prioritize looking for a job in a state that doesn't have state income taxes.

Whether you choose to move or not, that's up to you. But at the very least, if you're negotiating a new job, perhaps you bring this into the equation. If you've got a job offer in Florida, and you've got a job offer in New York City, perhaps you take the one in New York City, but tell the employer, you gotta increase my salary 'cause I've got this job offer in Florida, and I don't have to pay New York State and New York City income taxes.

So use that data in your own planning to help you get better results. What states can you move to? Well, here are the states that don't require income tax from their residents. There are seven of them that simply flat out don't have state-level income taxes, and those seven states are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

Again, the seven states that don't have any income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Now, there are also two states that deserve honorable mention. New Hampshire and Tennessee aren't strictly free of income taxes, but they only collect very minimal income taxes. I think New Hampshire taxes interest and dividend income if it's in excess of $2,400 for individual singles or $4,800 for joint filers.

Tennessee doesn't tax wages or a salary, but they do collect on interest income from bonds, notes, and stock dividends if that interest income exceeds $1,250 for singles or $2,500 for joint filers. Now, these states still have large governments, and so they do still collect income. They still do have tax revenue that supports the state government, but it'll come from somewhere else.

For example, in Wyoming, it's heavily focused on energy taxes, on the oil business. In Nevada, of course, it's gambling and hotel taxes. Texas and Florida have their own interesting, unique things. Alaska has oil revenue. So the states still function, and they require, they collect their taxes in other ways, but they don't collect income taxes.

Now, here's what's neat about that list of nine states. Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee. In those states, you could find almost any environment that you like. For example, you want big cities? There's plenty of big cities in those states. Want cosmopolitan lifestyle?

Plenty of cosmopolitan lifestyle available. You'd like to live out in the country in the sticks? You can do that in those states. Want a big mansion? You can do it in those states. Want just an average neighborhood? You can do it in those states. If you want the desert, you can find it.

Want the beach? You can find it. Want mountains? You can find them. Planes? They're available. So in those states, you can find almost anything that you want. It's hard for me to think of something that is available in another state in the United States that's not available in one of those nine states, except the tax question.

So think it through and be willing to consider it. Here's the other cool thing about those states. You can find a situation, a living situation, in those states that could be fairly convenient to your current stomping grounds. Now, Alaska may not be the most convenient, but between Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee, you can find a state that's pretty geographically close to most other places in the United States.

It's not that far from Washington to Oregon. So if you've got family in Oregon and you wanna live in Washington, that's not that difficult to do. A few hours will get you there. It's not that far from Wyoming to Colorado. Not that far on an airplane from Florida to New York.

Not that far from Nevada to California. So why not consider just simply moving and then spend some time in those states? Don't spend enough time there to trigger your tax residence. Make sure that you don't do that, but you can still spend some time there. And in many businesses, as long as you have moved, you may not even necessarily have to change your business.

Now, some states you do because of the actual way that the laws work. If you just think that you're going to, I've thought about doing a whole course on this. I don't think it's gonna affect enough people, but just leave it simply enough that you may even be able to keep your business.

You just need to change your residence. Now, study carefully. Make sure that you learn, if you're moving from New York to Texas, or if you're moving from California to Nevada, make sure that you study carefully and you understand how you can adjust your affairs to make sure that you fully get rid of your resident classification.

There are a lot of things you can do. And you wanna make sure that you minimize your footprint in any of those states that impose income taxes. You never wanna become a tax resident of those states, but it's very, very doable. It's very, very possible. And here is my last suggestion for you.

One of the big things that has changed in 2017, 2018 is the deductibility of state-level income taxes. Those of you who are paying state-level income taxes this year are now appreciating the enhanced cost of that. But what you should recognize is many times the cost of moving may still allow you to have expenses that are deductible.

For example, mortgage interest is still deductible without the same restrictions, although there were slight changes, but without the same restrictions as state-level income taxes are now under. So if you moved from the California side in Lake Tahoe to the Nevada side in Lake Tahoe, and you had to pay a higher price because of the higher value of those properties in Nevada due to the no state income tax, that higher price may now be deductible for you where your California taxes no longer are.

Or other examples, sometimes the cost of traveling is a deductible business expense. So let's say that you move from New York to Florida or to New Hampshire or to Tennessee, but now you're required once a quarter to fly up to the city for a week. Well, recognize that now, as long as that travel is appropriate business expense and you're flying for business, if you work from Florida and you have to travel up to New York City once a quarter and spend a couple of weeks there, whereas previously your New York-level income taxes were deductible but now aren't after the 2017 Tax Cut and Jobs Act, your business expenses will be deductible.

And since you probably already have family in New York and you probably enjoy visiting that family, there's no reason why you are required to not enjoy visiting your family while you are doing business in New York. And what's more interesting is this could provide an interesting way for you to do a tax-free transfer of wealth.

For example, let's say that you are currently a New York resident, but you've decided that you don't wanna pay New York state income taxes anymore but you still are gonna have some business connections in New York and you look at the laws of New York and you recognize that you may have to go up there to see clients, but if you adjust, I'm not gonna get into the details of how your corporate structure, et cetera, but you're gonna move your business out of New York to Florida.

But now that you're a Florida resident and you are doing business in Florida, you're still gonna have to go to New York to see clients. When I was a financial advisor, I had clients in New York. If I needed to go to New York and see clients, it was every bit as deductible, or business expense, for me to fly from New York, from Florida to New York to see clients as it would have been for me to travel from New York City to New Jersey to see that client, or you get the point.

Now, if you properly schedule your appointments using the common rules of business deductions, for example, you have business appointments on Friday and you have business appointments on Monday, now all of your travel to New York is a deductible travel expense. And the fact that you spend the weekend with your parents on Long Island doesn't matter.

Your time in New York is deductible travel days. What's more interesting is perhaps instead of renting a hotel in downtown New York City, you rather work out a rental arrangement with your parents and you rent a spare bedroom in their home for you to stay in when you're there on business travel.

So yes, you have to commute in from Long Island, but now you can pay your parents whatever an appropriate rate is for the rental of that home, check the Airbnb, get some comparable rental expenses, et cetera, but perhaps that you can rent it and perhaps you find that based upon the comparable rentals in that area, your rates are now $100, New York, I don't know what they are, $200 per night.

And so you wind up coming up to your parents' house once per quarter and you rent from your parents a room for $200 per night. And you're there for a total of four nights because you come Friday through Monday. So now you have four nights, that transfers $800 into your parents' pocket.

And any person in the United States can rent out their house for up to 14 days per year and not classify their house as a residence and not have to pay income tax on that money. You of course don't get to deduct any rental expenses, but you can of course, but you get to keep the money tax-free.

So what have we done if you do this? Let's say that you fly up to your parents and you rent that bedroom from your parents when you are in town on business and you have appropriate business meetings. You happen to stay over the weekend, but you schedule appropriate business meetings on Thursday, on Friday, on Monday, or if you are there over a holiday weekend, perhaps Monday is the 4th of July, you make sure that you have appropriate business meetings on Friday and on Tuesday.

And you spend a long weekend there and you pay your parents a rental rate for the rental of that home. Well, you could do that up to 14 days per year. Your parents will receive all of that income completely tax-free legally because they're not renting out their house for more than 14 days per year.

You of course, as an individual with a company, will be able to deduct that rental expense as a proper business expense, travel expenses for you doing business, and we've effectively accomplished a nice tax-free transfer of wealth. You say, well Joshua, a room in my parents' house is not sufficient.

What if I actually need a house? Perhaps I need a very nice, I live in New York and I need a house to entertain clients in, and if I move from New York to Florida, I'm not gonna be able to entertain clients, or I'm not gonna have a place for us to have our annual shareholders meeting, et cetera.

Well, there's no reason why you only have to rent a room in your parents' house. You can rent the actual house, and perhaps your parents have a beautiful house, beautiful condo right in the city, and for your purposes, you're gonna be entertaining clients, you're going to be having shareholders meetings, or something like that.

For your purposes, you need a full apartment. Go ahead and rent the full apartment. And the market rate in New York City is most likely $1,000 a night. I don't know. You can figure out what your comparable rates are, so you can figure out what they should be charging.

Of course, if they're gonna be renting a house to your business, then they need to make sure that they're charging a fair market rate. It can't be an inside deal. But whatever the comparable rate is, $1,000, they rent it to you, you rent it for 10 nights per year.

When you're in town using that house for entertainment, you pay them $10,000 out of your business. That is fully deductible. You've had what you needed in New York, which was a place to do business temporarily, and your parents have tax-free income, and you live in Florida and remove your state income tax.

So don't miss the fact that, yes, you might have to travel more back to the state where you have state-level income taxes. But as long as you don't trigger tax residency by your activities, you can still travel there just because you move. And those of you who are looking for ways to figure out how do I change my affairs, now that I'm in a situation where I can't deduct all my state income taxes now, there are plenty of options available to you, plenty.

By the way, just because you move your residency doesn't mean that you can't keep your own house in that place and keep it as a rental apartment. So residency is not the same thing as owning rental property. Now, it may or may not be a wise idea for you.

I just simply want to point out to you that if you do that and you have rental property in a place that you want to go, now you have an even stronger case for additional travel to that area. So consider keeping the house that you currently live in, rent it out as rental property, move to a state that doesn't have state income taxes.

And if you need to travel back and forth to visit family, I would imagine that you could figure out how to coordinate your affairs so that you can come back and check on your rental property. There's no reason why you can't spend the week before Christmas working on your rental property or checking up on your managers, et cetera.

Just figure out how to arrange your affairs in such a way that you are not a resident of that state paying unnecessary levels of state income taxes. You cannot legally or legitimately stay in the state that causes income taxes and just move your residence elsewhere with some kind of paper sham.

It's not possible. There are a number of court cases, however, of people who have done this, and there are some things that you can look at as to what actually constitutes a residency. Where are you actually a resident? You don't have to have a huge house in Florida. You just need a house in Florida.

House doesn't even have to be bought. Has to be your house, though. Where's your stuff? Where's your dog? Where are your doctor's appointments? What church are you involved in, et cetera? It's a whole bunch of factors that makes up where your residency is. But recognize that you are choosing to live in a state that imposes state-level income taxes.

And if you are a productive person, a productive person who is generating lots of income and doesn't want additional drag on their income, you should seriously consider moving to a state that doesn't impose state-level income taxes, because it very well could result in millions of dollars available for you in retirement and potentially tens of millions of dollars for your children and other heirs.

Consider it. That's the case for your moving to a no-income tax state. As we close this show, just remember this is part one of three, and I'm gonna give you two more cases in the next couple of episodes. But for today, I just wanna quickly plug, I recently very quietly released on my website, I very quietly re-released my career and income guide.

And I wrote that course. It was one that had a very good reception. Bunch of students went through it. And really had, I've got a bunch of testimonials from my students of new jobs that they've got, ways that they've increased their income. But it's my contention that one of the most important areas of financial planning for you to begin with is income.

If you get income right, and specifically here's what that means, you are working in work that is well-suited to you based upon your personal criteria, and you have massive financial potential available to you in that work, almost everything else falls into line. Just think about how easy it is to become wealthy when you earn $40,000 a year, versus how easy it is to become wealthy when you earn $400,000 per year.

Almost no matter what you do, you're gonna become wealthier earning $400,000 a year than $40,000 per year. It's so much easier to live well now, to live a rich and meaningful life now, and to be on a plan for financial freedom in 10 years or less, when you make $400,000 a year than it is when you make $40,000 a year.

So why should we spend all of our time sitting around thinking about how to make it on a $40,000 income, when you, if you're earning $40,000, could make a plan in the next 10 years to go from 40 to 400? Dumber people than you have done it. Dumber people than you are doing it.

So why not you? But the question is, if you're gonna do that, you would actually need to understand how to do it. And nowhere in your formal schooling did you ever have a class on how to do it. Nowhere in 11th grade did they sit down and say, "Hey, everybody, today let's talk about "how to increase your income by 1,000% "in the next 10 years.

"We're gonna teach you how to go from $15 an hour "to $1,500 an hour." No one taught you that, eh? Don't you think that that would be a pretty decent course to take in college? After all, if college is supposed to be a enhancement for your career, don't you think it would be useful to learn how to make some money?

Fortunately or unfortunately, it's not taught in college. 'Cause the point of college has never been about making money. You have to learn it yourself. So I would recommend to you that if you have not spent this last year at least a few dozen hours sitting down and thinking about how you can build a career that is appropriate for you, a career that you will love doing so that you'll never want to retire, and a career that has massive income potential, I'd encourage you to come by radicalpersonalfinance.com/store and give my course a shot.

It's called The Radical Personal Finance Guide to Career and Income Planning. I'll give you one more last bit of teaser. Just imagine this for a moment. Imagine how wealthy you would be if you work in a career that you love, that has huge earning opportunity, that is perfectly suited to your life and your lifestyle, that you never want to quit, such that you never actually have to retire.

Now, if you want to be mega wealthy, I think you should consider that. Because if you take high income and pair it with low expenses, recognize that, well, the point is you don't have to spend as much as you make. So just because you make a million dollars a year doesn't mean you have to spend a million, too.

And all of the good stuff comes when you have a high income. Now, if you hate your job and you make a high income, I'll be the first that'll stand up and say, hey, consider going to a job that you enjoy more. But there's no reason to choose between those things.

In 2019, you don't have to choose between work that you love and work that pays a lot. You don't have to choose. There are so many options available to you that in time, you can find and develop a career that is well-suited to you that has massive income potential.

So stop for a moment and imagine this. Imagine yourself with an income that is five to 10 times higher than it is today, whatever your number is right now. Imagine yourself with an income that is five to 10 times higher today than it is today. And imagine yourself earning that income in a way that you never wanna stop.

So now, instead of stopping your income at 65, you can keep your income until 95 and invest the whole way along. I don't know if it's possible for everybody. I don't. In fact, I don't think it's possible for everybody. But I'm convinced that almost anybody can find ways to get close to that ideal.

I've done it and I want you to do it. So if you want my thoughts on it, come on by radicalpersonalfinance.com/store or just go to radicalpersonalfinance.com. Go to radicalpersonalfinance.com, click on the store button and you'll see that course there, "The Radical Personal Finance Guide to Career and Income Planning." It is probably my most important course that I have created and the one that I think is the most important.

'Cause if you have enough money, everything else becomes easy. Check it out, radicalpersonalfinance.com/store. I'll be with you for part two tomorrow. - With Kroger brand products from Ralph's, you can make all your favorite things this holiday season because Kroger brand's proven quality products come at exceptionally low prices. And with a money back quality guarantee, every dish is sure to be a favorite.

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