retirement tax strategy and where to live

[2B]

Originally Posted by youbet

Same deal here in Chicago, except the Democrats here are much, much smarter and more aggressive about it than the upstart Republicans in Texas.* We don't use trailer park addresses, we're more into vacant lots, Wrigley Field, etc.* Also, no need to go through all the bother to vote absentee.* "Transient" voting is done right at the ballot box on election day by patronage worker volunteers who are happy to help out!* Very convenient and handy! If other states would get into this, we'd have a Dem president and 100% Dem congress before long!* *

If Hissss Honor, Major Richard M Daley, were president today, we wouldn't be in Iraq and the terrorists would be groveling for patronage jobs.

I guess the key difference is that the Texas transients are real people that I suspect only vote once. I can't be sure.

[youbet]

Originally Posted by 2B

I guess the key difference is that the Texas transients are real people that I suspect only vote once.* I can't be sure.

Just another indicator that the Texas Republicans don't have their act together.....

Back to your future tansient lifestyle..... You won't have any trouble maintaining your Texas citizenship, the PO box should work fine. When you're someplace else, just don't do any transactions, such as buying property or titling a car, that would make you any different than any other long term tourist.

I think the issues come up when you want something from a state......like if you want them to stop collecting state income tax from you or you want medicaid or you want food stamps or you want an in-state hunting or fishing license, etc.

[astromeria]

They've come up with something better than dead people voting: programmable-machine voting.

After I voted for Town Council & water commissioner last week, the electronic summary screen didn't tell me who I voted for, just that I didn't vote for the maximum number of candidates allowed--and the wording was ambiguous to boot (hmmm...did the program fill in the missing ones for me?). I much preferred the optical voting booth I used in San Francisco, which gave you a printout you could verify and put into the ballot box yourself.

My all-time favorite voting experience was the year I lived in Wisconsin. Just walked into the voting place, gave my name and address, and filled out my paper ballot. I think I registered and voted simultaneously.

[Nords]

Originally Posted by astromeria

My all-time favorite voting experience was the year I lived in Wisconsin. Just walked into the voting place, gave my name and address, and filled out my paper ballot. I think I registered and voted simultaneously.

Hawaii's voter participation rate is so miserably low that any state resident can vote absentee for any reason.

So every year I vote a paper ballot from my recliner. I've been voting for nearly 28 years and I have yet to step into a polling site...

[astromeria]

Nords, I think you might be missing something by always voting absentee. No stirring parade, patriotic music, folks in uniform, or historic sights have quite the same effect on me as voting at my polling place among My Fellow Americans. While I prefer not to wait on line, voting is one of the occasions when I feel OK in a crowd. I'm always very happy after casting my ballot, and DH and I usually go out to eat afterwards to celebrate. (OK, so we're a little weird...)

[Nords]

Originally Posted by astromeria

Nords, I think you might be missing something by always voting absentee. No stirring parade, patriotic music, folks in uniform, or historic sights have quite the same effect on me as voting at my polling place among My Fellow Americans.

After over two decades of practice I have a strong aversion to standing in line.

But you could be right-- send me a video of your next polling-place experience and I'll see if I miss it!

Spouse likes absentee ballots because she can hand them to me and say "Here, fill this out, vote me for him and for her and the other and let me know when I'm ready to sign it." She's the queen of delegation.

Kidding aside, the absentee ballot has been a great voter-education tool. Our kid gets involved in the Internet research (hey, the Board of Education affects her life more than it affects mine), there's usually a lively discussion about procedures (like why we'd vote for a guy who's already quit the race but whose name is still on the ballot), and why you might want to vote Democratic in a primary and Republican in the election. You just can't easily have those types of discussions in a polling place (although the crowds might guarantee that you'll get plenty of time to attempt to have that discussion) and I don't even know if they allow kids to hang out in the voting booth.

[astromeria]

Oh I can assure you that there's nothing special to video ( ), it's just the way I feel when I vote. I think I voted absentee once or twice, but I'm not sure...it wasn't memorable. My parents were pretty political, and I looked forward to voting from early childhood. I remember registering to vote for the first time 25 years ago--I was incredibly excited. I remember it more clearly than getting my driver's license--it meant more to me than driving.

I bet your daughter's looking forward to voting, too--kudos for taking the opportunity to teach her and make her think.

[youbet]

Originally Posted by astromeria

My all-time favorite voting experience was the year I lived in Wisconsin. Just walked into the voting place, gave my name and address, and filled out my paper ballot. I think I registered and voted simultaneously.

Sounds very quaint Astro, yet Wisconsin still has a huge problem with getting Dem votes out.* For example, even after the Dems spent big bux in Wisconsin and the Dem candidates spent lots of face time there, Kerry won by only 5K votes!* What a waste.* In Chicago-dominated Illinois, The DNC spent peanuts in Illinois and yet the state was called for Kerry by mid-afternoon election day (don't know why they had to wait that long) and the final result was a Kerry landslide.*

[Mr._johngalt]

Originally Posted by youbet

* In Chicago-dominated Illinois, The DNC spent peanuts in Illinois and yet the state was called for Kerry by mid-afternoon election day (don't know why they had to wait that long) and the final result was a Kerry landslide.*

Just one more reason why Illinois is one of my least fav. places
to live. (Another is the anti-gun nuttiness here). Alas, I am stuck here for the time being.

JG

[simple girl]

Originally Posted by Nords

Hawaii real estate, renting or buying, is the biggest challenge.* Right now there are remote parts of the Big Island that may be "affordable" but I doubt we could buy our place again.* Median single family homes are about $625K and median condo prices are about $325K.* However the market has peaked and things should come down over the next 5-10 years.* If you can solve this challenge then the rest is pretty straightforward.

Thanks for such great detail about the cost of living in Hawaii.* We are very good at LBYM, so I'm more confident now about our ability to afford the day to day costs.* However, as you said, the real estate thing is huge.* We'd have to look at a condo to make it feasible - and we know we could handle the small space - there's only 2 of us, and we have had no difficulty living in a 2 bdr apt in the past.* However, $325K would take a big chunk out of our planned nest egg, and probably would delay us retiring for a few more years.* We are going to have to think hard about that.* We are contemplating perhaps buying a condo now and having a property management company rent it out over the next 10 years or so to get part of the mortage paid off by rental fees.* Do you know anyone who has done this in Hawaii, and what their experience has been?* Any caveats, red flags, things to think about?* (feedback from all welcomed)

Anyone know of any resources we could use to determine how the real estate market is doing in Hawaii, without having to research condo prices all the time?* I'd like to find a way to keep an eye on it and determine when it does appear that prices are coming down.

Thank you!
simple girl

[Nords]

Originally Posted by simple girl

We are contemplating perhaps buying a condo now and having a property management company rent it out over the next 10 years or so to get part of the mortage paid off by rental fees.* Do you know anyone who has done this in Hawaii, and what their experience has been?* Any caveats, red flags, things to think about?* (feedback from all welcomed)

We're doing that with a single-family home and I believe that HonoBob has a condo or two on Oahu. If you've never been a landlord before, especially from another time zone, then read at least these two books before making the plunge: (1) Investing in Real Estate, 4th edition or later, by Andrew McLean & Gary W. Eldred (who's taken over the new editions) and (2) Landlording by Leigh Robinson (7th edition or later). You'll be spending a lot of money up front and hoping to make it back over the next decade, so keep an eye on the numbers. Most Oahu real estate runs at 5% cash-on-cash return or less, usually less, so after factoring in all the extra expenses you may decide that buying & living in Hawaii isn't so difficult after all.

Originally Posted by simple girl

Anyone know of any resources we could use to determine how the real estate market is doing in Hawaii, without having to research condo prices all the time? I'd like to find a way to keep an eye on it and determine when it does appear that prices are coming down.

There are probably a half-dozen Oahu realtors who publish newsletters, but the one I keep coming back to is George Stott. (He's USNA '55 and a retired submariner as well as one of Oahu's most successful realtors, in the business since 1975, so perhaps I'm biased.) They also run a large property-management business with their kids & grandkids. Their website is at http://www.stott.com/ and a sample of his newsletter is at http://www.stott.com/relocation-newsletters.html . You might also want to read http://www.stott.com/buyers-investing.html ...

I think that prices will be lower next year, and in five years they may be even lower. If you move here in the next couple years I'd definitely rent and then spend Sunday afternoons visiting neighborhoods & open houses for a couple years. As you learn more about your choices, you'll recognize the opportunity when it arises.

[Brat]

My parents rented for at least 3 years before finding a HNL condo to buy.*

My observations from their experience: find something where the ground is owned, not leased; if you plan to rent it out check the condo assn by-laws and remember they can change; find a location that is attractive to visitors.

My parents’ condo limited sub-lets to 6-month leases.* They performed background checks (maybe credit checks too), your lessee had better be a saint.* Just the kind of neighborhood they wanted.

The condo was inexpensive, aka old and nearing the end of the land lease.* They didn’t have an issue with that until Dad died and Mom wanted to sell after they had owned it for about 10 years.* She counted herself lucky to get their money back.* They bought before the big surge of Japanese real estate buying and sold after that marked tanked.* In practical terms they had years of enjoyment at a reasonable price, but Mom really wished she had appreciation.* *Properties on leased land are more difficult to sell, particularly condos that are in a rental pool (it is difficult to force the land owner to sell).

Keep in mind that Hawaii is a LONG and EXPENSIVE flight for families.* In practical terms, if you want to see the grand-kids on the mainland very often, be prepared to do the traveling.

[simple girl]

Originally Posted by Nords

There are probably a half-dozen Oahu realtors who publish newsletters, but the one I keep coming back to is George Stott.* (He's USNA '55 and a retired submariner as well as one of Oahu's most successful realtors, in the business since 1975, so perhaps I'm biased.)* They also run a large property-management business with their kids & grandkids.* Their website is at http://www.stott.com/ and a sample of his newsletter is at http://www.stott.com/relocation-newsletters.html .* You might also want to read http://www.stott.com/buyers-investing.html ...

Excellent resource - thanks for all the info - much, much appreciated!

simple girl

[simple girl]

Originally Posted by Brat

My parents rented for at least 3 years before finding a HNL condo to buy.*

My observations from their experience: find something where the ground is owned, not leased; if you plan to rent it out check the condo assn by-laws and remember they can change; find a location that is attractive to visitors.

My parents’ condo limited sub-lets to 6-month leases.* They performed background checks (maybe credit checks too), your lessee had better be a saint.* Just the kind of neighborhood they wanted.

The condo was inexpensive, aka old and nearing the end of the land lease.* They didn’t have an issue with that until Dad died and Mom wanted to sell after they had owned it for about 10 years.* She counted herself lucky to get their money back.* They bought before the big surge of Japanese real estate buying and sold after that marked tanked.* In practical terms they had years of enjoyment at a reasonable price, but Mom really wished she had appreciation.* *Properties on leased land are more difficult to sell, particularly condos that are in a rental pool (it is difficult to force the land owner to sell).

Keep in mind that Hawaii is a LONG and EXPENSIVE flight for families.* In practical terms, if you want to see the grand-kids on the mainland very often, be prepared to do the traveling.

Thanks for the info - will definitely have to research the above thoroughly.

The long and expensive flight is a concern - not for grandkids (we don't have any children), but for other family members.

[Corporateburnout]

Hi everybody,

I am new to this board. We live in the Boston area. I am fed up with the corporate world and badly thinking about ER but I don't think we can swing it for another 5 to 7 more years. My problem is that I am so unhappy with my current middle management position that I am tempting to take another less stressful position for a considerable pay cut of approx. 50% which will delay my retirement for a few more years.

We recently visited for a few days the Raleigh Durham area in NC and we really liked it. I am wondering if anyone is familiar with the area as a retirement community. I read where Cary (a suburb) was listed as of the best places to retire. Any inputs would be greatly appreciated.

[jeff2006]

I have lived in Raleigh for 36 years. I hope to leave fairly soon myself, and would not recommend the area for retirement. Growth gone wild, with no appropriate restrictions on development. Massive tax problems down the road a few years (38 Billion dollar projected shortfall in Wake county, mostly for new schools; the first billion is on the November ballot). A lot of congestion and a lot of traffic.

Raleigh would be easier to live in than Boston. But I think that a lot of other places that have not yet been "discovered" might be better long-term choices.

A regular poster here (Justin, also a Raleigh resident) disagrees with most of what I have just said, so I hope he will post his point of view.

[JB]

We are contemplating perhaps buying a condo now and having a property management company rent it out over the next 10 years or so to get part of the mortage paid off by rental fees. Do you know anyone who has done this in Hawaii, and what their experience has been? Any caveats, red flags, things to think about? (feedback from all welcomed)

I know a few people who bought condos for rentals in Kihei and made out very well. I think that would be very risky now unless you are comitted to moving here (and staying). You also need to decide where you want to live. There are lots of condos in the tourist areas of Kihei, Wailea, and the Lahaina (west side). Many residents choose to live in Wailuku/Kahului, Upcountry, or even East Maui. These areas don't have many condos. There are a few in Kahului and Wailuku. Many people here live in unconventional/alternative housing. Upcountry has a lot of agricultural land that supports multiple dwellings.

I wouldn't say that Hawaii has low taxes (more like mid range). Property taxes are very low.

I don't find food to be very expensive here. I shop at Costco for bulk goods, and local natural foods and grocery stores for everything else. Most foods cost about the same as in the urban areas I've lived on the mainland.

Utilities aren't very expensive in places that don't require AC. Electricty is expensive at around $.30/kwhr. Solar hot water keeps our electric usage down to around 400 kwh/month.

You can keep an eye on maui real estate -listing- prices here .

I think that you should come for an extended visit (3-6 months) before committing to move here. Many people move back for a variety of reasons.

If you really want to save on taxes move to southern Washington state and do all your shopping in Oregon.