Snowbirding vs. Year-Round Retirement

[Biggd]

My wife and I just retired this past year and are going though the same thought process. But we have different visions of retired life.
My thinking is move to our NH home and just rent down south every year for 3 or 4 months.
My wife wants to sell out Waltham home, which I want to do also, and buy a home at the Cape.
So my question is to her, why would I want to own 2 summer destinations?

[tummyman]

One of your biggest issues post retirement is Estate Taxes for your beneficiaries. Without going into the whole topic, MA has a terrible and regressive Estate Tax situation that taxes everything world wide unless you pay taxes elsewhere. What that means if you die a MA resident and have property in NH, the State of MA will tax that NH property. NH and FL are two states that have NO Estate Taxes. So buying anything in MA makes no sense to me. Make NH your permanent home, rent in the south, and be HAPPY to throw your winter clothes away !!! You have to think hard about the estate tax situation. It is a big deal and cost. Also, sell your MA property BEFORE becoming a NH resident and you can claim the one time Federal capital gains tax exclusion of $500,000 if married and filing jointly. If you become a NH resident first, your MA property becomes your second home and capital gains is fully taxable. I am no tax professional, so get real guidance, but this is what I have learned over the years.

[Sue Doe-Nym]

Tummy, you may not be a tax professional, but you provided useful information on estate taxes MA vs other states. Thanks. We bought the condo in Florida so our daughter would have a decent place to live, and now she isn’t living there. We had never considered owning 2 places, so my advice would be to be very deliberate in your planning before purchasing a second property. You might want to vary destinations from year to year. It’s just a thought...

[garysanfran]

It's difficult to avoid the extremes...Cold in the winter. Hot in the summer.

I think the best year-round weather in the USA is the southern coast of California between San Diego and Los Angeles. And, therefore it is crowded and expensive. I don't think it's possible to have-it-all at a reasonable cost.

I have a long commute from San Francisco to Meredith. I'd love to have an aquarium...I can't. I'd love to have a dog...Difficult. Even live plants become a problem.

To further complicate any decisions on my part, there is no other lake, like Lake Winni, in my opinion. In California everyone marvels about Lake Tahoe...A lake I find boring. Nice colors, brilliant blues, etc. Only one island and hardly anywhere to go by boat except around in circles. And it is extremely crowded and expensive.

[Pricestavern]

Originally Posted by garysanfran

To further complicate any decisions on my part, there is no other lake, like Lake Winni, in my opinion.

Absolutely agree. I've always referred to myself as a 'lake snob' because it's either Winni or it's just some pond somewhere. It is the gold-standard. We sold and will not buy a place on another lake anywhere. We'd always be comparing it (poorly) to beautiful Lake Winnipesaukee. Spoiled ourselves, we did.

[Gatto Nero]

We purchased on a canal with Gulf access down here in FL 3 years ago for very reasonable price. They are going up, probably due to Covid related moves, but still very reasonable, as compared to the lake anyway. It' not Winni, for sure, but we do 6/6 and are able to enjoy nice weather and boating all year. Don't miss those winters.

[map]

Originally Posted by garysanfran

It's difficult to avoid the extremes...Cold in the winter. Hot in the summer.

I think the best year-round weather in the USA is the southern coast of California between San Diego and Los Angeles. And, therefore it is crowded and expensive. I don't think it's possible to have-it-all at a reasonable cost.

I have a long commute from San Francisco to Meredith. I'd love to have an aquarium...I can't. I'd love to have a dog...Difficult. Even live plants become a problem.

To further complicate any decisions on my part, there is no other lake, like Lake Winni, in my opinion. In California everyone marvels about Lake Tahoe...A lake I find boring. Nice colors, brilliant blues, etc. Only one island and hardly anywhere to go by boat except around in circles. And it is extremely crowded and expensive.

Winni isn’t crowded and expensive?

[Doobs41378]

Originally Posted by map

Winni isn’t crowded and expensive?

It is yes but a quick search of Lake Tahoe lakefront properties show multiple for sale over 40 million. Winni is not that expensive.

[Biggd]

Originally Posted by tummyman

One of your biggest issues post retirement is Estate Taxes for your beneficiaries. Without going into the whole topic, MA has a terrible and regressive Estate Tax situation that taxes everything world wide unless you pay taxes elsewhere. What that means if you die a MA resident and have property in NH, the State of MA will tax that NH property. NH and FL are two states that have NO Estate Taxes. So buying anything in MA makes no sense to me. Make NH your permanent home, rent in the south, and be HAPPY to throw your winter clothes away !!! You have to think hard about the estate tax situation. It is a big deal and cost. Also, sell your MA property BEFORE becoming a NH resident and you can claim the one time Federal capital gains tax exclusion of $500,000 if married and filing jointly. If you become a NH resident first, your MA property becomes your second home and capital gains is fully taxable. I am no tax professional, so get real guidance, but this is what I have learned over the years.

I don't believe that fed estate capital gains is a one time exclusion. I've already taken it once and I believe I can take it again after living in my new residence for at least 2 years.

[tis]

Gary, I have a friend who lives in San Diego and it is cool- very often 60s- in the winter. It depends on what you like of course.

Something else to think about if it 's relevant to you is that besides the other tax advantages of NH and Fl, Fl does not have interest and dividends tax but NH does.

[Doobs41378]

Originally Posted by tis

Gary, I have a friend who lives in San Diego and it is cool- very often 60s- in the winter. It depends on what you like of course.

Something else to think about if it 's relevant to you is that besides the other tax advantages of NH and Fl, Fl does not have interest and dividends tax but NH does.

I’d take 60s all winter long.

[tis]

Originally Posted by Doobs41378

I’d take 60s all winter long.

And that's what some people like. To me that's too cold and if I am going to be in the house most of the time with the heat on, I might as well have snow and ice outside and one place to live.

[garysanfran]

In Florida my brother said it got into the 30's a few nights ago. He had a citrus that died from frost.

[TiltonBB]

Originally Posted by garysanfran

In Florida my brother said it got into the 30's a few nights ago. He had a citrus that died from frost.

January was a little colder in Florida than it usually is. However the next 7 days look pretty good! When they say showers it usually rains for about 1/2 hour and then the sun comes out.

I am fortunate to be able to spend 6 months at the lake and 6 months in Florida. I love Winnipesaukee, and have been on the lake some part or all of every summer for over 50 years, but when it turns cloudy and gray I head south.

There are additional real estate tax benefits, not available to non residents, when you claim the Florida house as your primary residence and you can still avoid the income taxes.

[Marauder]

Originally Posted by TiltonBB

January was a little colder in Florida than it usually is. However the next 7 days look pretty good! When they say showers it usually rains for about 1/2 hour and then the sun comes out.

I am fortunate to be able to spend 6 months at the lake and 6 months in Florida. I love Winnipesaukee, and have been on the lake some part or all of every summer for over 50 years, but when it turns cloudy and gray I head south.

There are additional real estate tax benefits, not available to non residents, when you claim the Florida house as your primary residence and you can still avoid the income taxes.

I do 6 on Lake Winnipesaukee and 6 in FL, best of both worlds!

[rsmlp]

Originally Posted by Marauder

I do 6 on Lake Winnipesaukee and 6 in FL, best of both worlds!

We chose FL. 7 mos there and 5 in NH BUT we still call NH "home".

[Biggd]

I could deal with 50's and 60's. I like to walk, hike, and bike so that's perfect weather for those activities.

Originally Posted by tis

And that's what some people like. To me that's too cold and if I am going to be in the house most of the time with the heat on, I might as well have snow and ice outside and one place to live.

Sent from my SM-G950U using Winnipesaukee Forum mobile app

[Descant]

Originally Posted by tis

...Something else to think about if it 's relevant to you is that besides the other tax advantages of NH and Fl, Fl does not have interest and dividends tax but NH does.

House Bill 568 has been filed by Rep. Norm Silber (r-Gilford) to phase out and repeal the I & D tax. Call your reps and senators.

[tis]

Originally Posted by Descant

House Bill 568 has been filed by Rep. Norm Silber (r-Gilford) to phase out and repeal the I & D tax. Call your reps and senators.

What are the chances?

[MAXUM]

Originally Posted by Descant

House Bill 568 has been filed by Rep. Norm Silber (r-Gilford) to phase out and repeal the I & D tax. Call your reps and senators.

IF I read this right, if successful this wipes out and estimated 113 million per year flowing into the state's general fund by the time it takes full effect. Now what is the likelihood that the state whacks that much in annual spending out of the budget? Exactly.... not much of a chance that will happen so where do they think they are going to make it up? I'd like to hear some ideas on that.

With only republicans signing on to this which is no surprise the democrats will do their best to thwart it's passing because any tax cut is a bad idea. In particular this one because those that would benefit actually have some savings paying out D&I to qualify and therefore must be, ya know "rich". Remember your elected officials knows better what to do with your money than you do anyway.

With things the way they are right now I don't see a serious conversation going on to consider the possibility of how it could happen. Just the old mantra of tax cuts for the "rich" and kids will starve, the elderly will suffer (ironically even though the elderly\retired are the ones most likely to BENEFIT from this), and of course the world as we know it will come to an end. Heck maybe even add to global warming more than John Kerry's private jetting all over the world.

[Descant]

Repeal of the I & D Tax isn't directly related to Snowbirding and it was not my intent to steal Think's thread. Happy to discuss if someone wants to start a fresh thread.

[Biggd]

The usual suspects are derailing this thread to push their political agenda. It was informative while it stayed on track.

[Sue Doe-Nym]

Originally Posted by Biggd

The usual suspects are derailing this thread to push their political agenda. It was informative while it stayed on track.

So.......Biggd, feel free to put it back on track.....be a hero. 😎