Retiring or Relocating to Another State? Perhaps Phoenix or Mesa, Arizona? Jacksonville, Naples, or Fort Myers in sunny Florida? Oh wait! Don’t forget about Austin, Texas!

Snowbirds Retiring Down South

In my younger years, I never imagined that my older self would contemplate buying a second home outside my home state of Minnesota. However, as time has passed, my perspective has changed. While the cold tundra weather and high taxes in Minnesota could justify my decision on their own, there are additional reasons why both my clients and I need to carefully plan where we want to live, not just in the short term but also in the long term. Making this decision early on is a key component for ensuring a meaningful retirement.

Minnesota remains among the states with the most-progressive tax codes. Apart from the winter weather, financial considerations often influence many Minnesotans’ choices to migrate south.

So, let’s proudly embrace the snowbird status and hop on the next flight to sunny Naples, Florida together (I’ll carry your bags). For good measure, we’ll also explore Phoenix, Arizona for a suitable comparison, right?

Well, almost. Snowbird status now comes with a set of rules to help ensure compliance if one wishes to minimize their financial exposure.

Here’s a simplified list of items below. Also included is a link to the Minnesota’s Residency Revenue Fact Sheet.
  • Where do you obtain your financial services, such as banking, investment advisor, CPA, etc.?
  • Where do you attend church?
  • Where do you kids attend school?
  • Where do own property?
  • Where do you bank?
  • Where do you have your mail sent?
  • Where does your business reside?

Snowbird Requirements

There are numerous requirements you’re asked to comply with to be recognized as a resident in another state. Your financial advisor should be consulted to help guide you through the process of changing your residence when you are ready to make this change. Many factors will go into your decision. It’s not always about income, lower state taxes, and estate or gift taxes, but rather focus on the criteria specifically pertinent to your situation. Be informed and make your retirement meaningful!

I’m ready! What’s the next step?

St. Croix Advisors, LLC is a Registered Investment Advisory firm located in Woodbury, MN.Disclaimer