Off The Radar

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Will-C

New member
I have decided to work towards selling our house and down sizing our possessions and doing some more extensive traveling around the country. The basic plan is to retire at 65 (two years away) try to have the house unloaded by then or rented out. Pick a state to set up a residence that is more tax friendly than Pa. and just have a basic condo or apartment to come home to for a couple months out of the year when we are not traveling. I wondered what states are friendly to the traveling underground baby boomers? Are there companies who can set up these type faux residences forward your mail as you travel that are tax friendly? After we get too old we will settle back down. I'm tired of mowing lawns and maintaining a house that is becoming more of a ball and chain than a refuge. The kids are on there own and I'm tired of the 6,000 a year plus in real estate taxes for home that has been long paid for. Not to mention sewer water bills, insurance,heat, electricity, state income taxes, local 1% earned income tax. Do anyone else feel this sort of pain?
D.D.
 
Hi Dave,

We sold our home up north when we retired, and just have our small "vacation home" in the Tropical Tip. We built the house in south TX to be as maintenance free as possible - close it up, put down the hurricane shutters, set the a/c, and head out. The little bit of grass that we have is taken care of by our homeowners association. No snow to shovel, no yard to maintain (unless Joan wants to mess with a couple small bushes)... I like it. That said, we will probably put that house on the market again when we get home... these days, I am feeling way less need for a "base." (A wandering lifestyle suits us.)

We had been long time RVers before the boat stuff, and there is a large community of full-time RVers out there who have figured this out... it is much less expensive to live that way, as long as you enjoy that lifestyle. We like to divide our time between the boat and the RV. The states that most full-timers tend to gravitate towards are South Dakota and Texas (no state personal or corporate income tax). Followed by Montana and Oregon (no sales tax, good for big ticket items like a boat or an RV). South Dakota also has low vehicle taxes and registration. Stop in a Camping World sometime and check out their book selection - you will find books on full-time RVing that cover many of the questions you have, even if you don't want to RV full-time. You can choose to establish residency in a state without owning property there.

We spent most of our adult lives being "accumulators": big house, lots of vehicles and toys. Downsizing was not as traumatic as I thought... in fact, it was rather freeing. All those "things" I thought I needed were more of an anchor. Like many, we put some of our "treasures" into a storage unit... and paid to keep them there... visiting them once or twice a year... until we decided to sell or give away most of that, too.

We started the process you are considering in 2005. Once the house sold, we had 90 days to eliminate much of the stuff... amazing how you can toss stuff when you are motivated. :wink: There are some things I missed: like having the room for a real shop... or going out to the garage and having the choice of what to drive today. Totally fine with that these days. The things I don't miss: maintaining the big house, paying those property taxes, mowing grass, and having a work schedule that meant I knew what I'd be doing in three months.

You're on the right track. Making the decision to visit with the realtor was the first step for us... and no looking back after that. Understand that traveling most of the time isn't the same thing as being on vacation - real life is still there: paying bills, going to the doctor, doing laundry, doing maintenance, and deciding "what's next?". Some people get the fantasy that once they sell the house and hit the road (or waterway) that it is all easy living... just depends on how you go about it. We have friends who tried full-time RVing or liveaboard boat cruising and didn't like it... they are back in houses now. You always have the choice. Of course, that likely means that there will be stuff to buy to fill all those rooms and closets again. :roll:

Best wishes,
Jim
 
I finally retired two months ago and had the same plans, but still have a house with a huge yard to unload, with no hope on the horizon. I am thinking Sequim or nearby will be my target. No income tax (yet). They have a hefty sales tax but old people don't buy that much, and I can still come back to oregon to make a few purchases if necessary. I lived in seattle for ten years and used a private mailbox firm to handle my mail and it worked well.
 
Thanks Jim and lloyds for a lot of good info. After our last swing of 6600 miles we felt like we missed traveling after about a week. Lucy the dog was home for about three hours while we unloaded and started doing wash etc. when we asked her do you want to go in the car she struggled to get up but she was all in for another road trip. I'm not sure if we would end up being full time RVers forever but I want to spend a summer or two in Alaska, The Pacific northwest is calling us. (I owe Tom a beer). We also want to run down the west coast fron Vancouver to San Diego. A Lake Powell gathering,etc. We think we want to be loopers but will probably just do that in segments. All this does not leave a lot of time for a house. We need to down size anyway so we will just disapear off the radar for awhile we are still healthy enough to get around. Then if they don't have to pry my cold dead hands off the boat or trucks steering wheel we can rehouse if the need arises at a later date. Until then we would rent a place to call home and let someone else deal with all the pleasures of home ownership. Maybe we could move in with one of the kids. I don't think so. :cry
D.D.
 
We have done the "sold everything" twice. Once for 4 years while cruising Calif to Europe and back, the other rebuilt a Cal 46, 4 years in PNW, AK each summer, and the winter in an RV--bought a home in Florida--rented the house, and put the RV there for part of the winter--with a "Cabana" for a living room. The first time we just had a friend handle our mail, and make our formal residence in Mississippi where my mother in law lived.

The final "retirement" we first established at "Escapees" Which is an RV service in Livingston TX. You spend a morning there, they get you a TX driver's license, register to vote, and you have an "apartment" at 101 Rainbow's end drive--mail forward service.

Many cruisers use "St. Brendan's Isle" Which even has a mail scanning service--and can handle all of our business. It is in Florida. Both of these outfits have been around for a long time and are 100% reliable. There are other services.

In our experience Florida was better than Texas--no income tax, no personal property tax, and our insurance was less--but all of that may vary.

As to getting a condo--etc--it is nice to have some physical property investment in the long run. Things are really cheap currently.
 
Most everything sounds good, but you MIGHT want to get some more advice on THIS part. This is not easy even in a large boat, and not recommended at all in a small boat.

Will-C":12brm1t3 said:
We also want to run down the west coast fron Vancouver to San Diego.
Click to expand...
 
Pat,
You assumed a boat, we are doing that trip by car. And we won't be doing it in a Nissan either it takes to long to get parts for them. :P
D.D.
 
Pat,
I was just ribbing you a little. You were just bragging about your ride and look what happened. You west coasters need to start digging an Inter Coastal waterway down to Mexico like the east coast has going to Florida.
D.D.
 
Well, we actually HAVE one of those only it heads north to Alaska! Too dangerous in Mexico anyway!

Will-C":1wyj7asm said:
Pat,
I was just ribbing you a little. You were just bragging about your ride and look what happened. You west coasters need to start digging an Inter Coastal waterway down to Mexico like the east coast has going to Florida.
D.D.
Click to expand...
 
Alaska:
No state tax
No sales tax in Anchorage
A Permanent dividend check from the state each year, usually over 1K
$150,000 property tax credit age 65 and over.
Great boating and world class fishing.
Become a snow bird, stay and enjoy the summers and go south for the winter.
 
Nevada -- no income tax, low property taxes. With housing market in the toilet you can get condos for next to nothing (watch the HOA fees) or use a mail service.

Email these guys for their current Luxe list and look at the high rise units and ask about town homes in Summerlin

Luxe Estates Collection [team@luxefeatureproperties.com]

Bill Uffelman
Back in Las Vegas NV and missing house in Ocean View DE
 
Also look at New Hampshire...
I maintain an address there because Michigan was mumbling about adding an income tax on retirements and annuities... So I thought like a boy scout and am prepared...

My mother maintained a mail forwarding and a physical car registration address in Florida using the Escapee organization (www.escapees.com) for many a year while traveling in her RV until age forced her to settle down - in Florida, natch..
 
We downsized last year. We sold the big house and bought a very small house with a postage stamp lawn. It's about one-half the size, one level, and paid for. Penny retired and I'm moving to half time (work every other three months). Washington state has no income tax, although the sales tax is about 9% where we live ( it varies a bit by locality). We will travel a bit in the winters but will mostly stay close to home. With the San Juan islands just outside the bay and all the other amenities we prefer the great PNW!
 
Hi Will-C. The income tax free states are NV, WY, WA, SD, FL and TX. There is a whole cottage industry set up in SD. You have already heard from folks about FL, TX, NV and FL.

Another concern could be vehicle inspections. This would require you to return to the state for those inspections. TX comes to mind. Jim, does TX still have annual vehicle inspections?

My choice if I can get your plan done for myself is SD. No income tax, 4% sales tax when there, 47th lowest vehicle insurance, easy access to drivers licenses, low vehicle registration. However, my plan does not include being in my home state often.

I would trust the people who have BTDT, like JIm who has lived in both SD and TX and Dr. Bob as well as do you own research to tailor your plans to your specific needs.

Let us know what you decide. Color me watching from the sidelines, for now.
 
Hi Sam,

TX does have a vehicle inspection, SD does not. SD is still our "primary residence", with our boat and vehicles registered there. There are quite a few places in South Dakota that handle mail forwarding for full-timers. One can stay for one night, and get a SD drivers license and mailing address. You have to renew your license in person, every 5 years.

MANY full-timers use Escapees in Livingston, TX, for mail forwarding and as a "residence." The club also has many benefits for members.

I think there are a lot of baby boomers who have spent a lifetime dreaming of retirement and an "escape." It has less to do with dropping off the radar, and more to do with wanting a wandering way of life. Some folks need a house and land to feel secure. We are very comfortable in our RV and truly enjoy knowing that wherever we go, we're home. Same with the boat.

Many of the folks we've met while working in the National Parks are full-timers; they work for a season... for the experience or the inexpensive stay, rarely for the money. When the season is over, they're off - sometimes to the next park, sometimes heading for home, often heading for the horizon. Not for everyone, but it has been interesting for us.

Best wishes,
Jim B.
 
While I do commend you all for your inventiveness, I believe that in order to claim a state as a residence, where you do not ACTUALLY live, you must be on Active Duty in the Military. In order to become a Maine Resident for two years while I was contemplating selling my vacation home there, I had to produce many types of proof that I actually lived there (utility bills, and other things that one would NOT have without the need to be there full time, or over 50% of the time, which is the "rule".)

I claimed several residences when I was on active duty, you get to pick one and change it as need be. After I retired, I became a resident of VA where I actually lived , except for the two years we actually moved to Maine). Then back to VA where we now live.

Go for it but be careful! I do see a moral issue here as well, receiving services from a state where one lives without paying for them. It's an individual call. Sorta like John Kerry registering his $6M yacht in RI when he lived in MA. I think that depends on where the yacht is tho, not where the person is...

If you're moving around as Jim Bathurst does, it's a different story, I think he could claim the Moon :moon as a residence and be able to prove it. :mrgreen:

Charlie
 
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